Bank of America strategist Francisco Blanch recently stated: “We think in the next three years we could see $100 barrels again, and we stand by that.”
A very bold statement.
Despite yesterday’s slight dip, the oil market is still holding a bullish pattern. There are several stocks in the oil and gas industry making news this week, and we have a few for you to look at today.
Allied Energy Corporation (OTCMKTS:AGYP) is an interesting way to play the market, the company rediscovers old wells, which is a very ‘green’ way to explore. The company has 4 projects in the North Texas region and has just released an update for shareholders. AGYP CEO George Montieth said in yesterday’s press release: “I am pleased to inform our stakeholders that we have work crews scheduled at both the Green Lease site and the Annie Gilmer Lease site. Everyone is anxious to make up for the time we lost due to heavy rains in North Texas. The ground has finally dried out, and we can easily and safely move equipment onto and around the lease sites.”
Cabot Oil & Gas (NYSE:COG) is like AGYP in the sense the company has found support and looks set up for a potential move. COG offers a bit of diversification because it holds huge reserves of natural gas totaling approximately 12,903 billion cubic feet, along with roughly 22,000 barrels of oil or other liquid hydrocarbons.
That means the company is not solely dependent on oil prices to thrive, but it is vulnerable to natural gas market fluctuations. Natural gas prices fell 2.7% on June 23, after news from the U.S. Energy Information Administration (EIA) that liquefied natural gas (LNG) exports declined substantially in 2020.
“A mild winter and COVID-19 mitigation efforts have led to declining global natural gas demand and high natural gas storage inventories in Europe and Asia, reducing the need for LNG imports,” the EIA reported on June 23. “Historically low natural gas and LNG spot prices in Europe and Asia have affected the economic viability of U.S. LNG exports.”
Aemetis Inc. (NASDAQ: AMTX) was recently awarded an engineering services contract to Worley for the Aemetis ‘Carbon Zero’ renewable jet and diesel plant in Riverbank, California.
The Aemetis Carbon Zero renewable jet and diesel project is designed to hydrotreat renewable oils with hydrogen from orchard and forest wood waste. By utilizing hydroelectric electricity and carbon sequestration along with negative carbon intensity hydrogen, the Aemetis plant is expected to produce among the lowest carbon intensity renewable jet and diesel fuel in the world.
“Operations at the Aemetis Carbon Zero plant are scheduled to begin in 2023 at the rate of 45 million gallons per year, expanding to 90 million gallons by early 2025,” stated Eric McAfee, Chairman and CEO of Aemetis. “The Carbon Zero project team includes Koch Project Solutions as the EPC, Worley for engineering and technical solutions, Axens for process engineering and technology license, and ATSI serving as owner’s representative, working with our in-house Aemetis technology, development, finance, regulatory, and Global Sales and Trading team members. The renewable jet and diesel produced at the Riverbank plant will supply the aviation and trucking industries with low carbon, low emission, renewable fuel.”
