PFGBEST Energy Comment

CHICAGO - Feb 2/12 - SNS -- Following is the energy futures comment from PFGBEST Research.

Is Exxon Mobil Stupid?

By Phil Flynn

Energy Market Comments

by Phil Flynn, PFGBEST

1-800-935-6487

pflynn@PFGBEST.com

Thursday, February 02, 2012 at 7:55 AM

The Energy Report for Thursday, February 2, 2012

By Phil Flynn 800-935-6487

Stupid is as stupid does and after Exxon Mobil, the world's largest publicly traded oil company, reported net income of $9.4 billion for the quarter, up from $9.25 billion the year before and revenue of $121.6 billion, up 16 percent from the year before, T. Boone Pickens seemed to suggest that they were stupid. You see Mr. Pickens, according to the AP, after his company, Clean Energy Fuels, announced a deal with truck maker Navistar to make more vehicles that run on the abundant fuel and build more fueling stations, seemed to suggest that the only way to bolster U.S. natural gas prices and cut the market's massive oversupply is to stop drilling. Mr. Pickens said that, "This country is so overwhelmed with natural gas that the only way to get prices up is to stop companies drilling gas wells," Pickens said at a news conference to promote the Navistar deal, which advances his aim to break U.S. dependence on oil for transport. "Don't be afraid that this deal will be made and we will wake up in a year with natural gas prices three or four times higher," Pickens said.

Yet Exxon Mobil said that they will keep producing and why not? They are not only the largest producer in the US, they could be one of the only ones. Mr. Pickens may be worried that Exxon will grab market share and drive some smaller gas companies out of business and perhaps make some of his investments less profitable.

Still if you want to build demand for natural gas powered cars the best way is cheap natural gas. It will create demand and it may have to get a bit cheaper. In Chicago we are seeing natural gas cabs. On an typical shift in a normal cab the drivers pay on average $50 to $55 fill the tank. For the natural gas cabs it's about $30-$35 equivalent. But the hybrid cabs are even cheaper coming it at $25 or $30. We may need to see even lower prices to push the technology forward.

Oil did a slow fade as we expected. Refining issues have kept products elevated yet the market big picture is heavy. The Energy Information Agency reported a very low refinery rate for this time of year. U.S. crude oil refinery inputs averaged 14.2 million barrels per day during the week ending January 27, 89 thousand barrels per day below the previous week's average. Refineries operated at 81.8 percent of their operable capacity last week. Gasoline production decreased slightly last week, averaging 8.5 million barrels per day. Distillate fuel production increased last week, averaging 4.5 million barrels per day.

Make sure you are You are getting my daily trades! Call me - Phil Flynn - at 800-935-6487 to get your free trial and to open your account. If you are looking for better business TV, it's time to get the Power to Prosper and me! every day by tuning into the Fox Business Network! Just call me at 800-935-6487 or email me at pflynn@pfgbest.com

There is a substantial risk of loss in trading futures and options.Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. PFGBEST, its officers and directors may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.

PFGBEST Research Team

Phone: 800-361-6855 or 319-553-2181

DISCLAIMER: Futures and options trading involve substantial risk. The valuation of futures and options may fluctuate, and as a result, clients may lose more then their original investment. In

no event should the content of this website be construed as an express of an implied promise, guarantee or implication by of from the author(s) that you will profit or that losses can or will be

limited in any manner whatsoever. Past performance is not necessarily indicative of future results. Information provided on this website is intended solely for informative purposes and is obtained

from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. PFGBEST Research. its officers, directors, employees and brokers may in the normal course of business have positions, which may or may not agree with the opinions expressed in

this report.

Information on this page is derived from third parties and is deemed to be reliable. STAT Communications Ltd. accepts no responsibility for errors, omissions or inaccuracies in any of the material

presented on this web site. Opinions expressed on this web site are those of the respective individuals and/or institutions and do not represent the opinions of STAT Communications Ltd. and/or STAT

Publishing or its staff and/or management.