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Scorch marks and bullet holes scar the battered walls of the Haran family home in kibbutz Be’eri. Its tiled roof has caved in, windows smashed, littering the floors with sharp shards of terracotta and glass – the debris, still untouched, of a day of horror for Israel.

“This house tells the story of Be’eri,” says Yarden Tzemach, a farmer and surviving resident of the kibbutz, one of the Israeli communities near Gaza that was overrun by Hamas militants last year.

“In this house, people were murdered. A family, including three children, were kidnapped from here,” he says.

Outside, beneath the fruit trees in the back yard, a toddler’s ride-on toy car, adorned with stickers of Winnie the Pooh, sits amid the rubble, a stark reminder of the lives shattered here.

In some neighborhoods of Be’eri, barely a building was left intact. More than 100 of its 1,100 residents were killed and another 30 abducted to Gaza on October 7.

Home after home was burned out or reduced to rubble and – a year on – many remain as poignant monuments to an ongoing trauma. At least 10 residents of the kibbutz, all friends and neighbors of each other, are among the more than 100 Israelis believed to still be held hostage.

Progress on a ceasefire and hostage deal between Israel and Hamas has repeatedly fallen apart to the anger and despair of hostage families.

‘Best recovery is coming home

In the main administration building of Be’eri, two large aerial photographs hang side by side near the entrance. One is an image of the kibbutz from April 2023, showing ordered rows of neat, white buildings set in lush gardens. The other, taken just after the October 7 attack, shows the same homes blackened and destroyed in the militants’ rampage.

“They killed my sister over there,” says Amit Solvy, pointing to a house on the map, five rows in from the fence that runs around the kibbutz.

Elsewhere in the administration building, two posters are taped in a window – one showing the names and faces of the kibbutz residents who were killed, and another listing those who are held hostage.

Solvy, the Be’eri finance chairman, himself an Israeli veteran of the 1973 Arab-Israeli War, is one of nearly 100 residents to have so far returned. Despite his personal loss, he came back to his house three months ago and is now helping lead efforts to bring kibbutz Be’eri, formerly a self-sustaining farming community, back to life.

“I said to all the people that the best recovery is coming home. This is the best emotional recovery, in my opinion,” says Solvy.

But he acknowledges not everyone feels the same, estimating that up to 15% of the surviving residents of Be’eri may never return because of the trauma and the memories of October 7.

And many of those who want to come back, he says, are unable to do so until the extensive damage has been repaired and homes rebuilt – a massive renovation project that means it will be at least 2 years, according to Solvy, before the majority of residents can return home.

“There is no infrastructure for kids, there are no schools, so people with families cannot come back yet,” he explains.

‘There were terrorists in my house’

Work on the physical scars has already begun, with heavy machinery breaking ground on a new neighborhood of Be’eri. New homes, untouched by the October 7 attack, are seen as an essential means of attracting the majority of the residents back.

Ayelet Hakim, her husband and their son, 12, and daughter, 5, live alongside many other Be’eri survivors in government-supplied temporary housing in another kibbutz, Hatzerim, an hour’s drive from the horrifying memories of what was their home.

“I sat in my safe room there for hours and hours not knowing what was going on, and feeling my life being threatened, my kid’s life being threatened, because there were terrorists in my house,” she adds.

Her son, Yehonatan, interrupts. “I want to go back to Be’eri, back to the house that I was living in. I don’t care about the trauma,” he pleads.

“The house, no. The kibbutz, yes,” asserts Ayelet.

“Kibbutz Be’eri has been my home for the past 56 years. That’s where I want to live,” she says.

But after so much death and destruction in Be’eri, a community so close to Gaza, much must also be done to reassure residents they’ll be safe.

In July, an Israel Defense Forces internal investigation into the events of October 7 concluded that the Israeli military had “failed in its mission to protect the residents” and was ill-prepared for the mass Hamas attack.

“I believe it will be possible. But it will be a big challenge and will take a long time for people to feel as safe as they felt before October 7,” says Tzemach, back at the ruins of his Be’eri neighborhood.

“You know, once something happens, you always have in the back of your mind that it can happen again.”

This post appeared first on cnn.com

Israel’s military says it has encircled Jabalya, northern Gaza and launched a new ground operation, after seeing signs of Hamas rebuilding, despite nearly a year of fighting and strikes in the territory.

Despite attention shifting to Lebanon after Israeli forces escalated their attacks on the Hezbollah militant group, Israel continues to operate across Gaza and is again focusing on an area it previously said was rid of Hamas.

Elsewhere in Gaza, at least 25 people are confirmed dead after Israeli airstrikes hit a mosque and a school in the center of the territory, hospital officials say. Israel said Hamas was embedded in both buildings.

Israel carried out airstrikes overnight Saturday into Sunday in northern Gaza including against what the military said were “weapons storage facilities, underground infrastructure sites, terrorist cells, and additional military infrastructure sites.”

In a statement, the military said it had detected the presence of Hamas members there, as well as efforts by them “to rebuild its operational capabilities in the area,” and was moving forward with the operation to “dismantle.”

Hamas’s military wing, Al-Qassam Brigades, said it was engaged in “fierce fights” with Israeli forces in northern Gaza.

Dozens of families in the area have packed up their belongings and fled once again after warnings from the Israeli military of the fresh ground operation in Jabalya, which is home to Gaza’s biggest refugee camp.

The Israeli military issued a fresh evacuation order for residents in northern Gaza, adding it had expanded the scope of the “humanitarian area” in Al-Mawasi.

“We heard the sounds of explosions all night long as if the war started today,” Asaf said

Some residents of northern Gaza are refusing to move, saying there is no safe place left in the enclave.

Jabalya is home to Palestinians who have been displaced multiple times during the Israel-Gaza conflict. The camp has already been targeted by the Israel Defense Forces (IDF) several times during the war.

In the separate incident in southern Gaza, a mosque was targeted by Israeli forces early Sunday, killing at least 21 people, while another strike on a school killed four people, hospital officials said,

“The mosque was a shelter for displaced people, there are no militants or anything inside,” said Nabil Nadda, who was nearby when the strike happened. “Just people who have no shelter, tents, or homes so they sheltered in the mosque.”

The Israeli military confirmed it carrying out strikes on both sites, calling them “precise” and said were targeting Hamas “command and control” centers.

The renewed fighting comes on the eve of the anniversary of the October 7 attacks, which saw Hamas kill around 1,200 people in Israel and seize more than 250 hostages.

The Israeli offensive that followed in Gaza – which Israel says is aimed at destroying Hamas – has killed more than 41,000 people and triggered a humanitarian crisis.

This post appeared first on cnn.com

S&P 500 and Nasdaq: New support and targets on Friday

  • This week has not been kind to the S&P 500 index
  • The value of the Nasdaq index retreated to the 19614.1 support level on Tuesday

S&P 500 chart analysis

This week has not been kind to the S&P 500 index. On Tuesday, we had a strong bearish consolidation; on Wednesday, we formed a new weekly low at the 5673.1 level. From then until now, we see a sideways movement of the index in the 5675.0-2720.0 range. Additional pressure in the upper zone makes the EMA 200 moving average. Today’s picture has slight positive indications as support has risen to the 5695.0 level.

Expectations are growing that the S&P 500 has enough strength to jump over the EMA 200 and continue towards the weekly open zone around 5730.0. If we succeed in this, the optimism for the continuation to the bullish side grows. Potential higher targets are 5740.0 and 5750.0 levels. For a bearish option, we need a negative consolidation and a pullback of the index below the 5680.0 level. With those steps, we will put pressure on the support zone, and we need a break below to confirm the bearish scenario. Potential lower targets are 5670.0 and 5660.0 levels.

 

Nasdaq chart analysis

The value of the Nasdaq index retreated to the 19614.1 support level on Tuesday. After that, the index starts the initial consolidation in the 19650.0-19850.0 range. During this morning’s Asian session, we moved close to the upper line of the current range, and there we encounter the EMA 200 moving average. To continue on the bullish side, we need an impulse above at least the 19900.0 level.

That should be plenty of room for the Nasdaq to consolidate above the EMA 200 and continue to rise. Potential higher targets are 19950.0 and 20000.0 levels. For a bearish option, we need a negative consolidation and pullback down to the 19650.0 support level. This puts pressure on this week’s support zone. New pressure could easily push the Nasdaq to a new low and thus confirm the move to the bearish side. Potential lower targets are 19600.0 and 19550.0 levels.

 

The post S&P 500 and Nasdaq: New support and targets on Friday appeared first on FinanceBrokerage.

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It is a bull market for stocks. On the chart below, the S&P 500 SPDR (SPY) recently broke rim resistance of a cup-with-handle pattern and is trading near a 52-week high. The S&P 500 EW ETF (RSP) recorded a new high in late September and is leading the market since July as the bull market broadened. Moreover, over 75% of S&P 500 stocks are trading above their 200-day SMAs.

And that’s not all. As noted in our weekly reports/videos, QQQ and the Mag7 ETF (MAGS) broke out of triangle consolidations. We can also add narrow yield spreads, a dovish Fed and the Chinese bazooka to the equation. Which brings me to the question: What more do bulls want? Answer: Nothing. October is here and an election looms so we may see above average volatility. Even so, the weight of the evidence is clearly bullish for stocks. Volatility is the price of admission.

In our weekly report/video, we highlighted our top three AI stocks. Two of these broke out in late September and one remains within a bullish continuation pattern. The chart below shows Broadcom (AVGO) hitting a new high in June and trading well above the rising 200-day SMA (red line). After hitting a new high, the stock consolidated with a triangle into September. This is a consolidation within an uptrend, which makes it a bullish continuation pattern. AVGO broke out in late September and this breakout signals a continuation of the long-term uptrend.

Check out TrendInvestorPro to see the other two AI stocks, read our weekly report and get access to two invaluable reports with videos. One shows how to find bullish setups with high reward potential and low risk. The other shows how to use breadth indicators to identify capitulation, thrust signals, oversold conditions and market regime. These reports alone are worth the price of admission.

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As a bull market reaches an exhaustion point, market breadth indicators often tend to diverge from the price action of the benchmarks. This “breadth divergence” occurs as leading names begin to falter, and initial selling drives some stocks down to new swing lows.  

Today, we’ll review three market breadth indicators, outline what tends to happen at the end of a bull phase, and describe what we’d need to see to confirm a likely market top based on historical topping phases.

New 52-Week Highs on the Decline

As I discussed with my guest Mark Newton earlier this week, one of the most effective ways to gauge a potential market top is to watch for a decline in the percent of stocks making new 52-week highs.


What will a contentious election season mean for your portfolio, and how can you position yourself as the market moves through the seasonally weakest part of the year?  Join me for a FREE live webcast on Tuesday 10/15 at 1:00pm ET called “Election 2024: Positioning Your Portfolio” and we’ll review all the charts you should follow to navigate election season and beyond!


In a bull market phase, it makes sense for more and more stocks to be achieving this feat. But as a bull market matures, fewer and fewer names are pushing higher, and this indicator tends to diverge from the price action.

At its highest level in mid-September, we observed about 20% of the S&P 500 members making a new 52-week high on the same day. By Thursday of this week, that number was down around 5-6%. So, while some stocks are still pounding higher, fewer and fewer names appear to be participating in the uptrend.

More Stocks are Breaking Their 50-day Moving Average

This next chart features two indicators based on the percent of stocks above their moving averages. The top panel represents the percent of S&P 500 members above their 200-day moving average, which I consider a decent way of measuring long-term breadth conditions.

When the S&P 500 index pulled back in April and August, this indicator remained well above the 50% level, confirming that most stocks remained in a primary uptrend despite the short-term weakness. When we instead use the 50-day moving average, shown in the bottom panel, we can see that this week the measurement dipped below 75%.

I have often found that tactical market pullbacks are marked by this indicator breaking below the 75% level, as that suggests that stocks which had been trending higher are now breaking down below this short-term measure of trend.

Watching the Bullish Percent Index for a Key Bearish Signal

Finally, we can use point & figure charts to create a breadth indicator called the Bullish Percent Index.  Over the last couple weeks, this indicator has pushed above 80%, which represents one of the highest levels in recent years.  This confirms that four out of every five S&P 500 members are showing a bullish signal on their point & figure charts.

In this situation, I like to watch for the Bullish Percent Index to dip back below 70%. That will show that some of those strong point & figure charts are starting to register sell signals, which would mean the price action has changed from bullish to bearish. For now, this indicator remains comfortably about the 70% level, but, based on historical data, that signal could signal a death knell for the bull market phase.

Market breadth indicators are so valuable as they allow investors to look “under the hood” to assess real market conditions from the hundreds of stocks that comprise our major indexes. While these readings remain largely construction for now, these charts could provide fantastic signals of a new pullback phase in October.

RR#6,

Dave

P.S. Ready to upgrade your investment process? Check out my free behavioral investing course!


David Keller, CMT

President and Chief Strategist

Sierra Alpha Research LLC


Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

The author does not have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not in any way represent the views or opinions of any other person or entity.

After Friday’s stellar jobs report—254,000 jobs added in September vs. the Dow Jones forecast of 15,000—stocks and Treasury yields initially reacted with a big jump. The data confirms the strength of the labor market and the US economy.

Let’s not forget, though, that a devastating hurricane ripped through six states, leaving people homeless, isolated, and without power. The hurricane would have caused job losses, especially in the services sector. We’ll know more in the next jobs report. Fortunately, the US dockworkers’ strike was short-lived, so its impact may have been very light.

The Macro Picture

The stronger-than-expected September jobs report resulted in increased investor optimism. In addition to a large increase in new jobs, unemployment fell to 4.1%, and average hourly earnings are up by 0.4%.

The broader stock market indexes closed higher into the close, which is unusual price action for a Friday when too many uncertainties are lingering. The daily chart of the S&P 500 ($SPX) below shows that after hitting an all-time high on September 26, the index pulled back close to its 21-day exponential moving average (EMA). Thursday’s doji candlestick represents indecision, and Friday’s jobs report reversed the indecision to optimism.

CHART 1. S&P 500 REMAINS BULLISH. The index bounced off its 21-day EMA with expanding market breadth. The number of 52-week highs outnumbers the new 52-week lows.Chart source: StockCharts.com. For educational purposes.

Overall, the S&P 500’s trend is bullish, and market breadth is expanding, with new 52-week highs greater than new 52-week lows.

The Nasdaq Composite ($COMPQ) closed above its August high (see chart below). Market breadth, measured by different indicators than those in the chart of the S&P 500, is also expanding.

CHART 2. NASDAQ BOUNCES ABOVE AUGUST HIGH. The Nasdaq has been trading sideways since its August high. Will today’s breakout from that high have enough momentum for follow-through action? The market breadth indicators give mixed signals.Chart source: StockCharts.com. For educational purposes.

The Nasdaq Composite Bullish Percent Index (BPI) is at 55.67, indicating slight bullishness. The Nasdaq Percent of Stocks above their 200-day moving average is at 44.54, which is relatively low, but it is trending higher. The Nasdaq Advance-Decline Line is trending lower, which is a little concerning. The Nasdaq hasn’t been as strong in its recovery as the S&P 500 and the Dow Jones Industrial Average ($INDU), which again eked out a record close.

Small-cap stocks rallied the most of the indexes featured in the StockCharts Market Overview panel on Your Dashboard. After falling below the trading range it’s been in for the last month, the S&P 600 Small Cap Index ($SML) is back within the range (area between dashed blue horizontal lines).

CHART 3. SMALL-CAP STOCKS TICK HIGHER. After Thursday’s price action, small-cap stocks picked up strength and made it back to close within their trading range. Advanced outnumber has declined, and the percentage of stocks trading above their 50-day moving average is also trending higher.Chart source: StockCharts.com. For educational purposes.

The market breadth indicators in the lower panel show that market breadth for $SML is also improving. The percentage of $SML stocks trading above their 50-day moving average is trending higher, and the number of advances and volume advance percent is higher.

The bond market also reacted strongly to the jobs report. Treasury yields rose after the news broke, with the 10-year US Treasury yield closing up 3.4% at 3.98%. This supports the notion that the Fed will likely slow down the pace of rate cuts. The CME FedWatch Tool reflects the probability of a 25 basis point interest rate cut in the Fed’s November 7 meeting at 98.9%.

Another important area to watch is volatility. The Cboe Volatility Index ($VIX) pulled back on Friday, closing at 19.21. But don’t be surprised to see it tick back up. Geopolitical turbulence is still front and center, and there’s an important election one month away. Investors should tread carefully, since any event could cause a volatility spike and change the picture.

Sector Performance

Crude oil prices rose this week, mostly due to Middle East tensions. The Energy sector was a laggard in the last several months, but it has now broken out of its downward-sloping trendline, ending the week as the top-performing sector.

The daily chart of XLE clearly shows a reversal in energy prices.

CHART 4. ENERGY SELECT SECTOR SPDR (XLE) BREAKS OUT. Rising geopolitical turbulence lifts oil prices higher. The S&P Energy Sector BPI also spiked, showing bullish dominance.Chart source: StockCharts.com. For educational purposes.

The S&P Energy Sector BPI spiked higher to 68.18 putting it into bullish territory. If tensions continue to escalate in the Middle East, oil prices could rise further.

To identify the stocks in the sector, pull up the StockCharts MarketCarpet, select 5D Change from the Color By dropdown menu, and click on Energy (see image below).

ENERGY SECTOR MARKET CARPET. It’s easy to see which were the top gainers in the sector. The table on the right can be sorted in ascending or descending order. Double click on any box to see the Symbol Summary page for the ticker symbol.Image source: StockCharts.com.

The table on the right shows the top-performing stocks in the sector.

Create a ChartList of energy stocks and populate it with the stocks listed in the table. Top performers as of this writing are Diamondback Energy (FANG), Williams Cos., Inc. (WMB), APA Corporation (APA), Occidental Petroleum (OXY), and Marathon (MRO). And don’t forget Vistra Energy (VST), the top StockCharts Technical Rank stock.

Before adding the stocks to your ChartList, you may want to analyze each one more closely. Double-clicking on the box of any stock will open the Symbol Summary page for the selected symbol.

Other Areas To Consider

Metals and stocks of Chinese companies have also been rallying. Gold, silver, and copper prices saw significant rises. The iShares China Large-Cap ETF (FXI) gapped higher, hitting a new 52-week high. Our blog posts cover both topics deeply, so check out the articles.

The first trading week of October ends on a strong note. But it is October, and historically, the month tends to be volatile, especially in an election year. Plus, earnings season kicks off at the end of next week. This means there’s all the more reason to be cautious.

End-of-Week Wrap-Up

  • S&P 500 closed up 0.22% for the week, at 5751.07, Dow Jones Industrial Average up 0.09% for the week at 42,352.75; Nasdaq Composite closed up 0.10% for the week at 18,137.95
  • $VIX up 13.27% for the week, closing at 19.21
  • Best performing sector for the week: Energy
  • Worst performing sector for the week: Consumer Staples
  • Top 5 Large Cap SCTR stocks: Vistra Energy Corp. (VST); KE Holdings, Inc. (BEKE); JD.com, Inc. (JD); Applovin Corp (APP); Carvana (CVNA)

On the Radar Next Week

  • Fed speeches
  • September Consumer Price Index (CPI)
  • September Producer Price Index (PPI)
  • Earnings season kicks off with JP Morgan Chase (JPM), Wells Fargo (WFC), and Delta Airlines (DAL)

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

In this StockCharts TV video, Mary Ellen highlights the continuation rally in AI-related stocks while also reviewing broader market conditions. The move higher in yields as well as volatility were discussed heading into next week’s FOMC notes and inflation data.

This video originally premiered October 4, 2024. You can watch it on our dedicated page for Mary Ellen on StockCharts TV.

New videos from Mary Ellen premiere weekly on Fridays. You can view all previously recorded episodes at this link.

If you’re looking for stocks to invest in, be sure to check out the MEM Edge Report! This report gives you detailed information on the top sectors, industries and stocks so you can make informed investment decisions.

Trillion Energy International Inc. (‘ Trillion ‘ or the ‘Company ‘) (CSE: TCF) (OTCQB: TRLEF) (Frankfurt: Z62) is pleased to announce it is gearing up SASB gas field operations with the installation of Velocity Strings (VS) at this time.

On September 30 th , 2024, after the Company reached an agreement with its partner at SASB on the technical aspects of the program, it was assigned operatorship for the conduct of this program.

The Company then was able to sign a service agreement with a snubbing provider ‘Snub Co’ to install the velocity strings. Mobilization of the snubbing unit, which is currently in Romania, has begun. The propose of the operation is to increase or stabilize production rates in producing wells, by reducing water loading.

Currently the Akcakoca-3 and South Akcakoca-2 are averaging 2.55 MMcf/d and 2.3 MMcf/over the past 30 days. The other two long reach directionally drilled wells Guluc-2 and West Akcakoca-1 were only produced intermittently due to water loading. Even still, Guluc-2 averaged 1.7 MMcf/d over the last 2 months.

Arthur Halleran CEO of Trillion stated:

‘Initially it was assumed that the VS could only be run in using a drilling rig, however, we have now convinced all a snubbing unit can accomplish this activity. This has been a giant step forward. This strategic move underscores our commitment to maximizing shareholder value through operational excellence and innovative solutions in the dynamic European energy market.’

Oil block update -The Company has continued to work to finalize a farm-in to earn a working and revenue interest in M46 and M47 oil exploration blocks within the Cudi-Gabar petroleum province, Southeastern Turkiye (the ‘Oil Blocks’). The Company initiated seismic work in 2023 on the Oil Blocks planned four exploration wells for 2024, however, such wells have not been drilled as the Company focused on its workover program at SASB.  As a result, the block license owner secured a third party to drill two wells on the Oil Blocks and gave up a 20% interest. As such, the first two wells will not be drilled by Trillion and Trillion is committed to earning an interest in the Oil Blocks subject to financing and finalizing participation terms.

About the Company

Trillion Energy International Inc is focused on oil and natural gas production for Europe and Türkiye with natural gas assets in Türkiye. The Company is 49% owner of the SASB natural gas field, a Black Sea natural gas development and a 19.6% (except three wells with 9.8%) interest in the Cendere oil field. More information may be found on www.sedar.com , and our website.

Con   tact
Arthur Halleran, Chief Executive Officer
Brian Park, Vice President of Finance
1-778-819-1585
E-mail: info@trillionenergy.com ;
Website: www.trillionenergy.com

Cautionary Statement Regarding Forward-Looking Statements

This news release may contain certain forward-looking information and statements, including without limitation, statements pertaining to the Company’s ability to obtain regulatory approval of the executive officer and director appointments. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. Trillion does not undertake to update any forward-looking information except in accordance with applicable securities laws.

These statements are no guarantee of future performance and are subject to certain risks, uncertainties, delay, change of strategy, and assumptions that are difficult to predict and which may change over time. Accordingly, actual results and strategies could differ materially and adversely from those expressed in any forward-looking statements as a result of various factors. These factors include unforeseen securities regulatory challenges, COVID, oil and gas price fluctuations, operational and geological risks, changes in capital raising strategies, the ability of the Company to raise necessary funds for development; the outcome of commercial negotiations; changes in technical or operating conditions; the cost of extracting gas and oil may increase and be too costly so that it is uneconomic and not profitable to do so and other factors discussed from time to time in the Company’s filings on www.sedar.com, including the most recently filed Annual Report on Form 20-F and subsequent filings. For a full summary of our oil and gas reserves information for Turkey, please refer to our Forms F-1,2,3 51-101 filed on www.sedar.com, and or request a copy of our reserves report effective December 31, 2022 and updated January 31 2023.

News Provided by GlobeNewswire via QuoteMedia

This post appeared first on investingnews.com

Enbridge (TSX:ENB,NYSE:ENB) has announced plans to construct and operate new crude oil and natural gas pipelines in the US Gulf of Mexico to support BP’s (LSE:BP) recently sanctioned Kaskida deepwater development.

The crude oil pipeline, referred to as the Canyon Oil Pipeline System, will consist of 24-inch and 26-inch diameter pipes with a capacity of 200,000 barrels per day. It will originate from the Keathley Canyon area and transport crude oil to Shell Pipeline Company LP’s Green Canyon 19 platform.

From there, the oil will be further delivered to the Louisiana market, positioning Enbridge as a key player in transporting crude from deepwater fields to the US mainland.

In addition to the oil pipeline, Enbridge will also construct a natural gas pipeline called the Canyon Gathering System. This 12-inch pipeline will have the capacity to handle 125 million cubic feet of gas per day.

The Canyon Gathering System will connect subsea to Enbridge’s existing Magnolia Gas Gathering Pipeline, which will then transport the gas to Enbridge’s downstream Garden Banks Gas Pipeline, a Federal Energy Regulatory Commission (FERC)-regulated pipeline system.

This pipeline will help ensure the efficient delivery of natural gas from the deepwater field to markets onshore.

The Kaskida project, BP’s sixth operated hub in the US Gulf of Mexico, has a production capacity of 80,000 barrels of oil per day from its initial phase of six wells.

Located 250 miles southwest of New Orleans in the Keathley Canyon area, Kaskida taps into approximately 275 million barrels of recoverable oil equivalent, with potential for additional development phases based on further evaluations.

Furthermore, the project also plays a critical role in unlocking the potential of up to 10 billion barrels of discovered resources within the broader Kaskida and Tiber catchment areas. The hub will utilize advanced 20K drilling technology to develop high-pressure reservoirs in furtherance of deepwater oil extraction efforts.

Enbridge’s agreements with BP are supported by long-term contracts and include provisions that would allow BP to potentially connect future discoveries in its Paleogene portfolio to the new pipeline systems.

The new pipelines will be designed to accommodate additional connections from other nearby oil and gas fields, allowing for potential future expansion.

Enbridge plans to begin detailed design work and procurement activities in early 2025, with the pipelines expected to become operational by 2029. The total cost of the project is estimated at around US$700 million.

The company sees this expansion as part of Enbridge’s broader strategy to diversify its offshore business.

“The Canyon Oil and Gas pipelines offer an attractive opportunity for Enbridge to serve customers in the Gulf of Mexico and further expand our US Gulf Coast footprint,” said Cynthia Hansen, Enbridge’s executive vice president and president of gas transmission and midstream.

“The agreements generate stable and predictable cash flow and provide future growth opportunities,” she added.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com