Based on a recent survey of Energy Strategist readers, we are making some changes in the presentation format. Many readers had requested a summary of top news and recommendations changes at the top, and starting with this issue we’re accommodating. We hope they make our research more accessible and useful.

Portfolio Action Summary

• Selling Total (NYSE: TOT) from the Conservative Portfolio




• Selling Eni (NYSE: E) from the Conservative Portfolio




• Adding EQT Midstream (NYSE: EQM) to the Conservative Portfolio; buy below $51




• Raising the buy below target on Conservative Portfolio holding Sunoco Logistics Partners (NYSE: SXL) to $67




• Raising the buy below target on Conservative Portfolio holding Teekay LNG Partners (NYSE: TGP) to $46

Commodity Update

After the large blowout in 2012 and subsequent collapse this year, the Brent-WTI differential has yet to recover strength. Brent crude for September delivery is $109.03 per barrel, and West Texas Intermediate (WTI) is $106.15/bbl for a differential of $3.09/bbl. Natural gas is trading at $3.31/MMBtu, versus $2.77/MMBtu one year ago.

In Other News

• Integrated oil companies reported broadly disappointing earnings, while domestic shale producers, notably EOG Resources (NYSE: EOG) delivered strong results

• The refining sector got a bit of good news when the EPA pared back ethanol mandates that had been criticized as being nearly impossible to meet. I will examine this development in more detail below

• While the Keystone XL pipeline’s future is still very much up in the air, TransCanada is hedging its bets by announcing a new 1.1 million bpd pipeline that would connect the oil sands to Canada’s East Coast

• Electric carmaker Tesla Motors surprised Wall Street with revenue and profit that greatly exceeded expectations. The share price of the company is up 335 percent year-to-date

• Not faring nearly as well is Vinod Khosla’s latest advanced biofuel venture KiOR. The company’s 2nd quarter production was 75% below prior forecasts, and the share price is down 57 percent year-to-date. As I have advised investors for the past two years, continue to avoid this company

• Tokyo Electric Power Company (OTC: TKECF) has acknowledged that its crippled Fukushima nuclear power plant is leaking radioactive water into the Pacific Ocean.

• The Obama Administration has approved the third permit for a natural gas export facility. This facility is backed by UK-based BG Group (NYSE: BG) and Houston-based Southern Union, a joint venture between Energy Transfer Equity LP (NYSE: ETE) and Energy Transfer Partners LP (NYSE: ETP).