3 Energy Stock Stories To Start the Trading Week

Statoil (NYSE:STO): Closing price $23.38

The Norwegian oil and gas major Statoil has announced that it and its partner Petoro have proven a large amount of additional resources in the Gullfaks licence in the Norwegian North Sea. Preliminary calculations show that the find contains between 40 and 150 million recoverable barrels of oil equivalents. There is a high degree of uncertainty with the resource estimate but the firm’s models do indicate further upside potential. The production well where the test is being carried out presently supplies a high and stable out[ut of 7,500 barrels per day, and since December has produced almost 1 million barrels.

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STO

Edison International (NYSE:EIX): Closing price $52.37

This summer, California could see the largest regional power shortages in more than ten years, pushing wholesale prices up, while idled nuclear reactors and low hydroelectric production reduce generating capacity. The California Independent System Operator Corp. said in March that managing the state grid, particularly in areas of Southern California, will be “difficult” as the system will be operating without Edison’s San Onofre nuclear power plant and two natural gas-fired units, while concurrently the hydroelectric output will stand at a three-year low. The nuclear plant comprises  3.7 percent of the state’s capacity.

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EIX

BP (NYSE:BP): Closing price $41.15
The British supermajor has put its current development scheme for Mad Dog Phase 2 on the back burner, deferring the billion-barrel deep-water oilfield project in the Gulf of Mexico until the completion of a review of options. BP confirmed to Upstream that the multi-billion dollar cost of implementing Mad Dog Phase 2, calculated on a giant production spar also referred to as Big Dog, was no longer economically viable as presently formulated. The company released a statement to Upstream explaining its decision: “The current development plan for Mad Dog Phase 2 is not as attractive as previously modelled, due largely to market conditions and industry inflation. BP, in collaboration with co-owners Union Oil Company of California, a wholly owned subsidiary of Chevron Corp, and BHP Billiton Petroleum, is currently reviewing existing plans and other options in evaluating how to develop the project.”

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BP