This is the weekly Energy Sector financial summary.
The Weekly Energy Report attempt to see the big trends in the energy sectors1.
We are mainly interested in understanding the transition from an oil world to an energy world.
At the moment, the report is build around 122 companies. You can see their tickers, names, sectors and sub-sectors at the end of the report. We created chart for each of these companies. The whole bundle of charts available here.
Also, the focus is really on North-American Oil & Gas companies. We will address this shortcoming soon by adding more European and Asian energy companies to the mix as well as diversifying the industries to include uranium, electricity generations, renewable energies and industrials2.
We would love to hear from you. Are there typos, mistakes? Are graphs unclear? not useful? Should we add additional resources and analysis? Write us a mail
To read the last report, go here and to see the second to last one go here
What made the news ?
Oil and Gas
- Oil have dropped 30% over the last months - Crude going from $76 early October to 50 as of last Friday.
- Concerns are oversupply. Iran sanctions are not really being implemented with China and India still being allowed to import oil from Iran.
- Concerns are greater risk of a recession.
- Concerns are oversupply. Iran sanctions are not really being implemented with China and India still being allowed to import oil from Iran.
- A few are calling this plunge in oil the end of the shale bubble. Shale needs cheap credit to operate. With the increase in interest rate, the shale oil should go down. (I am thinking that if shale oil can’t operate with cheap oil, than oil will be more expensive soon after ;-) So shale oil can then restart with higher price. So shale oil will never really go away.
- A few others are saying low oil price does not usually correlate with recession. Worlwide demand remains strong.
Saudi Arabia (with MBS) need oil at $80 / barrel. USA (with Trump) want low price oil. He is pushing MBS to not install any production cut. He even totally compromised on the sanctions on Iran.
In a recent survey from the bank of Dallas, it shows that Cies need crude to be between $47-$55 for wells to be profitable.
Renewable Energies
Uranium
Utilities - Electricity Generations
Report higlights.
General Energy overview
List of ETF selected for the general overview.
| ticker | Name |
|---|---|
| VDE | Vanguard Energy ETF |
| IXC | iShares Global Energy ETF |
| KOL | VanEck Vectors Coal ETF |
| URA | Global X Uranium ETF |
| UNG | United States Natural Gas Fund LP |
| MLPX | Global X MLP & Energy Infrastructure ETF |
| USO | United States Oil Fund LP |
| SPY | SPDR S&P500 |
Returns of the energy ETF over the last 3 months 
Returns of the energy ETF over the last 12 months 
The Oil & Gas Industry
Following GISC, the Oil & Gas (OG) industry consists of the following sectors and sub-sectors:
| Sector | Subsector | Number of stocks |
|---|---|---|
| Equipment & Services | Drilling | 6 |
| Equipment & Services | Equipment & Services Cies | 18 |
| Consumable Fuels | Exploration & Production Cies | 31 |
| Consumable Fuels | Major Integrated Cies | 11 |
| Consumable Fuels | Refining & Marketing Cies | 11 |
| Consumable Fuels | Storage & Transportation Cies | 19 |
At the bottom of this file, there is the complete list of financial instruments with their sectors and sub-sectors on which the following analysis has been based on.
Long term trends
Let’s check the main Oil & Gas ETF returns. We have picked the following ETF
| Ticker | Name |
|---|---|
| XLE | Energy Select Sector SPDR Fund |
| XEG.TO | iShares S&P/TSX Capped Energy ETF |
| IXC | iShares Global Energy ETF |
| VDE | Vanguard Energy ETF |
| CHIE | Global X China Energy ETF |
| XOP | SPDR S&P Oil & Gas Exploration & Production ETF |
| XES | SPDR S&P Oil & Gas Equipment & Services ETF |
Breadth of the Oil & Gas Market
Usually, on shorter time frame, we use the 50 days Standard Moving Average (SMA) to see if a stock is in an uptrend. The graphs below does exactly that: it checks the percentage of stocks that are trading above their 50 days SMA. This also tell us when the sector might be over-extended to the upside or to the downside.
Weekly and bi-monthly returns
In this section, we check the weekly return for the last 12 weeks for all stocks belonging to the industry, sectors and sub-sectors.
We do the same graph but with a 2 weeks return and a disaggregation by sub-sector.
Recap table
Now let’s have a recap table to drill in at the company level. This table has been generated with data from 23 November, 2018
Uranium
The list of financial instruments
Here is the list of all equities used in this report, their sector and sub-sector.
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