In this issue:

The government’s forecasters see big gains ahead for oil and gas prices as well as U.S. output of these commodities, and we have details from the Energy Information Administration’s annual outlook. But very little happens in an orderly progression in this business, so we have two high income plays — one delightfully dull and the other refreshingly risky — to help pass the time during the current lull.  

Energy Strategist Portfolio Update

• CrossAmerica Partners (NYSE: CAPL) added to Growth Portfolio; buy below $30
• ETRACS 2xMonthly Leveraged S&P MLP Index ETN Series B (NYSE: MLPZ) added to Aggressive Portfolio; buy below $60

Commodity Update

Natural gas prices surged past the $3 mark, but we are still cautious at these inventory levels headed into winter. If the winter starts out mild, the bottom could drop out. Oil prices moved above $50 as Russia signaled that it might join OPEC in curbing output to shore up prices. This week I delve into the most recent Annual Energy Outlook from the EIA, which projects oil and natural gas prices out to 2040.

In Other News

• Construction on the Dakota Access Pipeline can continue after a federal appeals court denied the Standing Rock Sioux Tribe’s request for an injunction

• Oil prices advanced after Russian President Vladimir Putin indicated a willingness to join OPEC in limiting oil production with either a freeze or a cut. But prices then headed lower after Igor Sechin, head of state-controlled energy giant Rosneft, said his company will not cap oil production as part of a possible agreement with OPEC

• ConocoPhillips (NYSE: COP) has sued Venezuelan state oil company PDVSA in Delaware, accusing it of fraudulent operations involving its U.S. subsidiary Citgo in an attempt to avoid paying compensation in a dispute over the 2007 nationalization of ConocoPhillips’ Venezuela holdings

• Dallas-based Caelus Energy announced an oil discovery in Alaska of 6 billion barrels, with about 30-40% of that recoverable

• The Energy Information Administration reported that energy-related carbon dioxide emissions in the U.S. for first six months of 2016 were the lowest since 1991.