Liberty Oilfield Services has purchased the shale fracking business of Schlumberger, in a bet on a resurgence in shale's prospects. Reuters' Liz Hampton reports: Liberty Oilfield Services’ acquisition of Schlumberger’s shale fracking business will make it the third-largest oilfield services firm by North American revenue, nudging out Baker Hughes Co (BKR.N) in a bet on a shale rebound. Denver-based Liberty Oilfield (LBRT.N) on Tuesday agreed to swap a 37% stake in the company in exchange for Schlumberger’s North American hydraulic fracturing fleet, two Texas sand mines and other … [Read more...]
Starbucks is Putting the Blockchain on Your Coffee Beans
Isis Almeida reports for Bloomberg that Starbucks customers will now be able to find the farm that grew their coffee beans by using blockchain technology. She writes: Starting Tuesday, customers buying coffee at Starbucks stores across the U.S. will be able to use a code on the bags to find out where their beans came from, where they were roasted and even get brewing tips from baristas, said Michelle Burns, the company’s senior vice president of global coffee, tea and cocoa. A reverse code will be given to farmers so that they can finally track their produce. The new tool, powered by … [Read more...]
Americans Spark Lumber Shortage in Escape from the City
You have read about the lumber shortages facing America as economic activity heats up. Americans escaping the city have initiated a housing boom that is creating lumber shortages. The Wall Street Journal reports on one woodworker here in Newport, RI that ordered four times the lumber he normally would, and still didn't have enough. The Journal explains: When woodworker Michael Hendershot stocked up with lumber in March ahead of building season, he feared the coronavirus pandemic would disrupt the supply of wood more than demand for fences, decks and cabinets. He multiplied his usual order by … [Read more...]
Your Portfolio Could Use This Investment as a Powerful Insurance Policy
There are very few real counterbalancers available in an asset bubble like the one being blown today by the Fed and other central banks. One investment I have found to be reasonably reliable as a counterweight insurance policy is precious metals, specifically gold and silver. Is there downside risk in buying metals? Of course. Here’s how I previously explained that risk: Relative to gold, silver is cheap. The higher the gold/silver ratio, the cheaper silver is. The historical gold/silver ratio has been 15:1. Today, it is 53:1. Central banks do not own silver, which they could dump on … [Read more...]
Skittish Investors Flock to Silver
Investors are recognizing some extra risk in markets and want protection. Gold, and more recently silver, have been a big hit. Amrith Ramkumar writes in The Wall Street Journal of silver's drive to a nearly four-year high: Both gold and silver tend to attract investors when money managers are skittish about the global economy and seeking alternatives to stocks and bonds. They continue to attract investors who expect a bumpy economic recovery in the years ahead. Meanwhile, ultralow bond yields continue to make precious metals more appealing to investors because the metals don’t offer any … [Read more...]
Silver Still has Room to Run
Silver has caught fire since hitting a low in mid-March. The iShares Silver ETF has soared 75% since March 18th. That may not beat the mega-cap tech stocks that look more and more like a bubble every day, but it's still a compelling move. And, silver may have a lot more room to run. If the ratio of gold to silver reverts to its long-term average versus gold, silver prices could rise another 65%, assuming no change in the price of gold. … [Read more...]
What Is Going to Happen to Oil Prices?
Oil prices recently traded at less than $0/barrel. In 2008, prices were over $120/barrel. What is going to happen to prices for oil in the future? Joe Wallace examines the market in The Wall Street Journal, writing: Some think the bust will set in motion a boom, predicting that investment in oil-and-gas production will dry up and propel crude prices back above $100 a barrel. “That funding pressure is going to be massive. It’s going to be really difficult for some of the producers to produce,” said Trevor Woods, chief investment officer of Ohio-based hedge fund Northern Trace Capital. “We … [Read more...]
Here Comes the Milkman
Customers eager for delivered products are driving a resurgence in a long-dying business, milk delivery. Rachel Feintzeig reports for the Wall Street Journal: The glass bottles are gone. The cream-topped milk of yore has been replaced by oat milk, almond milk and even a Snickers-flavored drink. But the milkman is back, summoned by customers eager for home delivery in a world changed by pandemic. At Wade’s Dairy in Bridgeport, Conn., the novel coronavirus has turned demand on its head and opened the door to a new—old—business idea. Wade’s had previously spent a century offering home … [Read more...]
Oil Demand Recovery as the World Reopens
The Wall Street Journal reports that oil demand is rising again as the world reopens after its coronavirus induced shutdown, writing: Oil consumption is rising again in those parts of the world emerging from coronavirus lockdowns, helping to alleviate a global glut and rebalance a market stymied by months of low demand and a devastating rout that saw prices drop as much as two-thirds this year. Green shoots of an oil recovery are sprouting with regions of China attempting a semblance of normal life as lockdowns are eased and parts of Europe and the U.S. allow businesses to reopen. “We … [Read more...]
Why Crude Oil Could Be Immune to the Coronavirus
Cuneyt Kazokoglu explains why, despite the damage the worldwide coronavirus shutdown has done to the oil market, crude won't be killed by the virus. He writes in the FT: The coronavirus crisis has thrown the oil market out of balance and like other forecasters, we expect an unprecedented contraction in oil demand this year. But while some are arguing that we have seen the peak in 2019 with consumption never recovering, if anything, the pandemic is likely to significantly delay the structural transformation of the world’s economy away from oil. Although global consumption will fall this … [Read more...]
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