Dow Jones Oil Stocks Up Today as Houston Channel to Reopen

Coast Guard to lift closure following oil spill.

Mar 25, 2014 at 12:33PM

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.

Uscoast Guard

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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Dan Dzombak can be found on Twitter @DanDzombak or on his Facebook page, DanDzombak. He has no position in any stocks mentioned. The Motley Fool recommends Chevron. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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