BAKKEN OIL BUSINESS JOURNAL

BakkenJournal_June_July16

The BAKKEN OIL BUSINESS JOURNAL is a high-gloss, full-color magazine with a targeted distribution that gets our Advertisers in front of the RIGHT EYES in this industry. Direct mailed to Companies in the Bakken with bonus distribution at Energy Shows.

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Read online @ B A K K E N O I L B I Z . C O M / d i g i t a l - j o u r n a l 19 ➤ continued, pg 35 HOSE ASSEMBLIES WHILE YOU WAIT 406.433.1590 After Hours: 406.478.3116 Fax: 406.433.1589 Fluid Connectors - Industrial Hose - Seals Hydraulics - Pneumatics - Automation Filtration - Racor - Instrumentation SIDNEY, MT 205 2nd Avenue NE www.mfcpinc.com Formerly MD Hose & Fitting XNLV206165 Montana • Colorado • Utah • Wyoming • Alaska New Mexico • Oregon • Washington • Idaho • North Dakota New Store in Williston Open in July! As everyone in and out of the energy industry knows, the last two years have been tough for those whose livelihood depends on oil. Layoffs and bankruptcies have become way too com- mon as oil production has slowed down. On the bright side, the best we can say is – given the plunge in oil prices – consumers are en- joying gasoline prices that haven't been this low for a long time. But, that's not enough to offset the threats and concerns faced by people whose liveli- hood depends on oil. What's ahead in the world of oil? With the idea of getting a more complete picture of the energy world today, we decided to look at developments in the stock market. We spent some time talking oil with John Dowd, portfolio manager of the $2.4 billion Fidelity Select Energy Fund (symbol FSENX). John has been an oil analyst for 25 years and the man- ager of the Select Energy Fund for the last ten. Thus, he has seen the industry swing from boom to bust and back more than once. John has a difficult job. The objective of his fund is capital appre- ciation. However, over the last two years, oil stocks with prices heading up have largely disappeared. Companies that were in great shape in 2014 saw their profits evaporate and their stock prices plunge, sometimes plunging a lot more than oil prices. As John noted, for an oil company, when oil is $30 a barrel, it's go- ing to hurt. Nevertheless, John recently won a Lipper award for the best risk- adjusted performance in the sector over the past decade. Due to his stock picks, his fund has posted some healthy gains. When we spoke in mid-May, the fund was up about 12 percent year-to-date. According to the Lipper Mutual Fund Rating Agency, John's fund ranks near the top of its category. He notes, "We are in the latter stage of a classic commodity cycle that pushed oil prices to well over $100 a barrel in 2014 followed by a price collapse that resulted from the huge production in- creases and excess supplies that came from the combination of hydraulic fracturing and horizontal drilling. The bust has forced US oil companies to cut their capital expenditure budgets and Talking Oil with John Dowd – Fidelity Portfolio Manager By: CHRIS BISCHOF

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