Dow Jones Oil Stocks Up Today as Houston Channel to Reopen

The Dow Jones Industrial Average (DJINDICES: ^DJI  )  was up 25 points, to 16,301, at 12:30 p.m. following some mixed reports on the economy. Oil stocks on the Dow are up as the Houston shipping channel is set to reopen this afternoon after being closed for several days after a ship collision led to an oil spill. The S&P 500 (SNPINDEX: ^GSPC  ) was just below breakeven at 1,857. West Texas Intermediate crude was down 0.4% to $93.36 while Brent crude was up 0.2% to $102.23.

On Saturday, an oil barge pulled by tug boat operator Kirby collided with a bulk carrier out of Greece. An estimated 4,000 barrels of crude oil spilled in the channel. The Coast Guard closed off the channel so it could contain and clean up the spill. Shipping traffic through a spill is possible, but the Coast Guard does not want the crude oil to be dragged out of the area.

Source: U.S. Coast Guard.

The shutdown cuts off the Houston area from the ocean. Houston is particularly important for U.S. oil as a little more than 10% of U.S. refining capacity is in the area. Dow oil stock ExxonMobil (NYSE: XOM  ) said it had to slow production at its 560,000 barrels per day refinery in Baytown, Texas. Fellow Dow energy stock Chevron (NYSE: CVX  ) does not have a refinery in the area, but has been scouting locations with joint venture partner Phillips 66.

An estimated 140 ships are waiting to enter or exit the port, and the number is growing by about 40 vessels a day. Earlier today, Port of Houston officials said they expect to open the shipping channel later this afternoon, though they said the same thing yesterday. In any event, this looks to be a short-term challenge to the Houston area; it will not pose a long-term threat to the U.S. oil market, which is why you don't see oil prices rising.

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  • Report this Comment On March 25, 2014, at 8:58 PM, stevebry56 wrote:

    Clean Energy has been underperforming the market, but its stock promises large upside which makes it a good buy for now on dips.

  • Report this Comment On March 25, 2014, at 9:00 PM, mikewatson021 wrote:

    Clean Energy reported revenues of $334.01 million in fiscal year 2012, its fiscal year end on December 31

  • Report this Comment On March 25, 2014, at 9:03 PM, stevebry56 wrote:

    Clean Energy revenues had increased at a five-year compound annual growth rate of 23.2% through the years. And the analysts expect revenues to touch $600 million by the end of fiscal year 2015.

  • Report this Comment On March 25, 2014, at 9:11 PM, mikewatson021 wrote:

    Despite the Clean Energy’s leadership in the market for natural gas fuels, it has consistently reported financial losses since its inception.

  • Report this Comment On March 25, 2014, at 9:13 PM, stevebry56 wrote:

    For its latest reported fiscal year 2012, the Clean Energy reported a loss of $101.26 million, for per share losses of nearly $1.16.

  • Report this Comment On March 25, 2014, at 9:16 PM, mikewatson021 wrote:

    There has been some improvement in the management of Clean Energy recently, and the company had limited net losses to $34.65 million, or $0.37 per share, in the first nine months of fiscal year 2013

  • Report this Comment On March 25, 2014, at 9:17 PM, stevebry56 wrote:

    Although it seems that Clean Energy is gradually moving to profitability, but the analysts do not expect that Clean Energy will start making profit before 2016.

  • Report this Comment On March 25, 2014, at 9:19 PM, mikewatson021 wrote:

    The Product business segment of Clean Energy reported revenues of $293.8 million for fiscal year 2012, accounting for 88% of Clean Energy’s consolidated topline

  • Report this Comment On March 25, 2014, at 9:20 PM, stevebry56 wrote:

    LNG sales accounted for 72% of all revenues from natural gas fuels. This business segment of Clean Energy revenues were up 15% year-over-year to $237.24 million in the first nine months of fiscal year 2013.

  • Report this Comment On March 25, 2014, at 9:23 PM, mikewatson021 wrote:

    Clean Energy issued debt of $294 million in the first three quarters of fiscal year 2013, taking its total liabilities to $594 million as of the end of third quarter fiscal year 2013. The company is expected to continue issuing more debt in fiscal year 2014 http://goo.gl/cK3LBM

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