Energy Stocks Surge on Positive Exploration News

Strategic Insights -

Energy companies saw gains on Monday, January 26, 2011, as Chevron Corp.'s (CVX) announcement of successful well tests in the Moho-Bilondo permit area off the Republic of Congo coast sparked optimism. The news contributed to a higher Dow Jones U.S. Oil & Gas Index, while key energy stocks like XOM, CVX, and SLB experienced significant price movements. Meanwhile, Valero Energy Corp. (VLO) announced a 55-day overhaul of its Port Arthur, Texas, refinery, citing sources familiar with operations at the 287,000-barrel-a-day facility.

Key Takeaways:

  • Chevron Corp.'s (CVX) announcement of successful well tests in the Moho-Bilondo permit area off the Republic of Congo coast led to a surge in energy stocks, with CVX experiencing a +0.29% gain.
  • The discoveries follow previous exploration wells in the permit area in 2007 and positive appraisal wells drilled in 2008 and 2009.
  • CVX holds a 31.5% stake in the Moho-Bilondo project, which is currently producing 90,000 barrels of crude oil a day.
  • Valero Energy Corp.'s (VLO) 55-day overhaul of its Port Arthur, Texas, refinery will include repairs to the refinery's two atmospheric vacuum distillation units and its delayed coking and hydrocracking unit.
  • The overhaul will impact the refinery's operations, which currently produce 287,000 barrels of oil per day.
  • The SmarTrend Alert system, an automated pattern recognition system, indicated an uptrend in CVX on September 10, 2010, and in VLO on September 30, 2010.

Statistics:

  • The Dow Jones U.S. Oil & Gas Index reached 599.28 on January 26, 2011.
  • NYMEX Benchmark Crude oil reached $86.96, up +0.77 (+0.04%).
  • Top Energy Stocks' price movements:

+ XOM: +0.03%

+ CVX: +0.29%

+ SLB: +0.54%

+ OXY: -1.18%

+ COP: +0.33%

  • CVX's stake in the Moho-Bilondo project: 31.5%
  • Current production of Moho-Bilondo project: 90,000 barrels of crude oil per day
  • VLO's refinery production: 287,000 barrels of oil per day

Sources:

  • MidnightTrader, "Energy Stocks Higher After Chevron Tests Success" (January 26, 2011)
  • Reuters, "Valero to shut Port Arthur refinery for repairs" (January 26, 2011)
  • Comtex SmarTrend Alert, "UPTREND on 09-10-2010 for CVX @ $78.38"
  • Comtex SmarTrend Alert, "UPTREND on 09-30-2010 for VLO @ $17.41"
  • Comtex News Network, Inc., "Copyright (C) 2004-2011 Comtex News Network, Inc."