Exxon Mobil (XOM), Chesapeake Utilities (CPK), National Grid (NGG), Oasis Petroleum Inc. (OAS), Suncor Energy Inc. (SU), Niska Gas Storage (NKA) and Hess (HES) had ratings and price targets on them adjusted by analysts.
Hilliard Lyons upgraded Chesapeake Utilities Corp (CPK) from a "Neutral" rating to a "Long" rating. They have a price target of $45.00 on the company.
Morgan Stanley upgraded National Grid (NGG) to an Overweight" rating.
Stephens upgraded Oasis Petroleum Inc. (OAS) from an "Equal Weight" rating to a "Overweight" rating.
BMO Capital Markets upgraded Suncor Energy Inc. (SU) from a "Market Perform" rating to a "Outperform" rating.
Raymond James upgraded Exxon Mobil (XOM) from a "Market Perform" rating to a "Outperform" rating.
Wells Fargo & Co. upgraded Niska Gas Storage (NKA) from an "Underperform" rating to a "Market Perform" rating.
Raymond James downgraded Hess Corp (HES) from an "Outperform" rating to a "Market Perform" rating.
Showing posts with label Exxon Mobil. Show all posts
Showing posts with label Exxon Mobil. Show all posts
Wednesday, April 25, 2012
Thursday, March 22, 2012
Exxon (XOM) (EMR) (GLF) (HOS) (SUBCY) (XEC) Ratings, Price Targets
Exxon Mobil (XOM), Emerson Electric Co. (EMR), Gulfmark Offshore (GLF), Hornbeck Offshore (HOS), Subsea 7 SA (SUBCY) and Cimarex Energy Co. (XEC) had ratings and price targets on them adjusted by analysts.
JPMorgan Chase & Co. upgraded Exxon Mobil (XOM) from an "Underweight" rating to a "Neutral" rating.
Nomura upgraded Emerson Electric Co. (EMR) from a "Neutral" rating to a "Buy" rating.
Morgan Stanley initiated coverage on Gulfmark Offshore (GLF). They placed an "Equal Weight" rating on the company.
Morgan Stanley initiated coverage on Hornbeck Offshore (HOS). They placed an "Equal Weight" rating on the company.
JPMorgan Chase & Co. upgraded Subsea 7 SA (SUBCY) from a "Neutral" rating to a "Overweight" rating.
Caris & Co. initiated coverage on Cimarex Energy Co. (XEC). They placed an "Average" rating on the company.
JPMorgan Chase & Co. upgraded Exxon Mobil (XOM) from an "Underweight" rating to a "Neutral" rating.
Nomura upgraded Emerson Electric Co. (EMR) from a "Neutral" rating to a "Buy" rating.
Morgan Stanley initiated coverage on Gulfmark Offshore (GLF). They placed an "Equal Weight" rating on the company.
Morgan Stanley initiated coverage on Hornbeck Offshore (HOS). They placed an "Equal Weight" rating on the company.
JPMorgan Chase & Co. upgraded Subsea 7 SA (SUBCY) from a "Neutral" rating to a "Overweight" rating.
Caris & Co. initiated coverage on Cimarex Energy Co. (XEC). They placed an "Average" rating on the company.
Monday, March 5, 2012
Enbridge's (ENB) U.S. Pipeline Remains Closed
After a two-vehicle accident in Illinois close to the the township of New Lenox, the pipeline of Enbridge (NYSE:ENB), which delivers the majority of oil from Canada to the United States, remains closed, and may remain closed for up to four more days.
The accident took place by an above-ground part of the conduit close to a pumping station.
Enbridge's Line 14/64, which delivers 318,000 barrel a day, will probably result in pressuring prices for Canadian crude in response to the accident.
Line 14, may start up again as early as Wednesday, while Line 64, is estimated to restart on Thursday.
Enbridge spokeswoman Lorraine Little said these estimates are subject to change because they were the initial assessments made by the company.
The capacity for Line 14/64 is north of 2 million barrels a day, which amounts to close to 3 percent of American imports. Canada exports the oil from Alberta tar sands.
Potentially affected by the slowdown is Exxon Mobil (NYSE:XOM), which receives some oil from the pipeline, which they get at its refinery located in Joliet, Illinois. Exxon says at this time they are meeting contractual obligations.
Enbridge was trading at $38.34, down $0.38, or 0.98 percent, as of 12:16 PM EST. Exxon was trading at $86.63, up $0.30, or 0.35 percent.
The accident took place by an above-ground part of the conduit close to a pumping station.
Enbridge's Line 14/64, which delivers 318,000 barrel a day, will probably result in pressuring prices for Canadian crude in response to the accident.
Line 14, may start up again as early as Wednesday, while Line 64, is estimated to restart on Thursday.
Enbridge spokeswoman Lorraine Little said these estimates are subject to change because they were the initial assessments made by the company.
The capacity for Line 14/64 is north of 2 million barrels a day, which amounts to close to 3 percent of American imports. Canada exports the oil from Alberta tar sands.
Potentially affected by the slowdown is Exxon Mobil (NYSE:XOM), which receives some oil from the pipeline, which they get at its refinery located in Joliet, Illinois. Exxon says at this time they are meeting contractual obligations.
Enbridge was trading at $38.34, down $0.38, or 0.98 percent, as of 12:16 PM EST. Exxon was trading at $86.63, up $0.30, or 0.35 percent.
Monday, February 13, 2012
Exxon Mobil (XOM) Flex Muscles in Iraq
After signing an exploration deal with Kurdistan in the latter part of 2011, Exxon Mobil (NYSE:XOM), not unexpectedly, won't be allowed to bid in the next round of oil and gas exploration contracts in Iraq.
That's of little consequence, as the inept and corrupt Iraqi government only allows energy Western businesses in the country to take somewhere around $2 a barrel, regardless of what the price of oil is.
Many Western energy companies have foolishly went along with the Iraqis in hope of getting better deals later, but that could be playing a fool's game, something Exxon Mobil is wise not to engage in.
The decision to work with Kurdistan and its better deals has to be seen as the energy giant sending a message to Iraq, no matter how it all turns out. It also points to the outrageous actions of the Iraqi government towards the West, as the companies participating in the production in the country aren't making any money there.
As long as they are willing to grab onto the carrot, they won't profit in the region until they force the hand of the Iraqi government, as Exxon is wisely attempting to do.
It was extremely premature for other western energy companies to enter into deals with Iraq before decisions were made as to how the oil royalties would be divided up.
This is the reason Iraq has opposed any Western company doing business with the Kurds, as the competition forces them to react to the offer of the Kurds, which is superior to the laughable 'offer' of Iraq to the western oil companies.
Deputy Prime Minster for Energy Hussein al-Shahristani has said he would like to have Exxon working in the country, but noted the company knows the terms of working there.
To work in Iraq is the equivalent of doing charity in the country, and until the government changes their mind, it would be better for any energy company not to deal with a country that doesn't allow businesses to profit there.
That's of little consequence, as the inept and corrupt Iraqi government only allows energy Western businesses in the country to take somewhere around $2 a barrel, regardless of what the price of oil is.
Many Western energy companies have foolishly went along with the Iraqis in hope of getting better deals later, but that could be playing a fool's game, something Exxon Mobil is wise not to engage in.
The decision to work with Kurdistan and its better deals has to be seen as the energy giant sending a message to Iraq, no matter how it all turns out. It also points to the outrageous actions of the Iraqi government towards the West, as the companies participating in the production in the country aren't making any money there.
As long as they are willing to grab onto the carrot, they won't profit in the region until they force the hand of the Iraqi government, as Exxon is wisely attempting to do.
It was extremely premature for other western energy companies to enter into deals with Iraq before decisions were made as to how the oil royalties would be divided up.
This is the reason Iraq has opposed any Western company doing business with the Kurds, as the competition forces them to react to the offer of the Kurds, which is superior to the laughable 'offer' of Iraq to the western oil companies.
Deputy Prime Minster for Energy Hussein al-Shahristani has said he would like to have Exxon working in the country, but noted the company knows the terms of working there.
To work in Iraq is the equivalent of doing charity in the country, and until the government changes their mind, it would be better for any energy company not to deal with a country that doesn't allow businesses to profit there.
Thursday, May 26, 2011
Chevron's (CVX) Downstream Business Unimpressive
The fact that Chevron (NYSE:CVX) had its "Buy" rating from Jefferies (NYSE:JEF) reiterated on them today isn't because of its downstream refinery business, as margins are anemic in comparison to its upstream oil and natural gas production business.
That's not to say there isn't substantial revenue in the refined products business of Chevron, as the company could have sold as much as $100 billion in refined products in 2010, although it doesn't release those figures.
Among refinded products sold are gasoline, jet fuel, gas oil and kerosene, among other products.
Estimates are refined products make up about 8 percent of the overall stock value of Chevron, mostly because of the low margin business it is. Margins have been at about 2.33 percent in the refined business for the energy giant for 2010.
In contrast, the oil and natural gas production generates margins of 53 percent.
The leading refined product sold by far was gasoline, which accounted for close to $39 billion in revenue in the segment.
Among Chevron's major competitors are BP (NYSE:BP), Exxon Mobil (NYSE:XOM), Halliburton (NYSE:HAL) and ConocoPhillips (NYSE:COP).
Chevron was trading at $103.57, up $0.32, or 0.31 percent, as of 2:05 PM EDT.
That's not to say there isn't substantial revenue in the refined products business of Chevron, as the company could have sold as much as $100 billion in refined products in 2010, although it doesn't release those figures.
Among refinded products sold are gasoline, jet fuel, gas oil and kerosene, among other products.
Estimates are refined products make up about 8 percent of the overall stock value of Chevron, mostly because of the low margin business it is. Margins have been at about 2.33 percent in the refined business for the energy giant for 2010.
In contrast, the oil and natural gas production generates margins of 53 percent.
The leading refined product sold by far was gasoline, which accounted for close to $39 billion in revenue in the segment.
Among Chevron's major competitors are BP (NYSE:BP), Exxon Mobil (NYSE:XOM), Halliburton (NYSE:HAL) and ConocoPhillips (NYSE:COP).
Chevron was trading at $103.57, up $0.32, or 0.31 percent, as of 2:05 PM EDT.
Wednesday, May 25, 2011
Exxon (XOM) (BP) (COP) Close Up on Oil Price Outlook
Shares of oil companies like Exxon Mobil (NYSE:XOM), BP (NYSE:BP) and ConocoPhillips all closed up Tuesday as analysts boosted their outlook on the price of Brent crude.
Morgan Stanley (NYSE:MS) increased its Brent crude projection, noting stronger demand and supply problems related to Libyan production. The brokerage lifted its 2011 Brent crude price projection from $100 to $120 a barrel a barrel and its 2012 projection from $105 to $130.
JP Morgan (NYSE:JPM) reiterated its Brent crude price estimate of $130 in the third-quarter of 2011.
Goldman Sachs (NYSE:GS) raised it projection for Brent crude from $105 to $120 a barrel for 2011, and for 2012 from $120 to $140 a barrel.
BP closed Tuesday at $44.37, jumping $0.34, or 0.77 percent. ConocoPhillips closed at $71.91, up $0.58, or 0.81 percent. Exxon ended the session at $81.29, rising $0.62, or 0.77 percent.
Morgan Stanley (NYSE:MS) increased its Brent crude projection, noting stronger demand and supply problems related to Libyan production. The brokerage lifted its 2011 Brent crude price projection from $100 to $120 a barrel a barrel and its 2012 projection from $105 to $130.
JP Morgan (NYSE:JPM) reiterated its Brent crude price estimate of $130 in the third-quarter of 2011.
Goldman Sachs (NYSE:GS) raised it projection for Brent crude from $105 to $120 a barrel for 2011, and for 2012 from $120 to $140 a barrel.
BP closed Tuesday at $44.37, jumping $0.34, or 0.77 percent. ConocoPhillips closed at $71.91, up $0.58, or 0.81 percent. Exxon ended the session at $81.29, rising $0.62, or 0.77 percent.
Monday, December 20, 2010
Energy XXI (Nasdaq:EXXI) Closes Exxon (NYSE:XOM) Deal
Energy XXI (EXXI) announced they have closed the deal with ExxonMobil (NYSE:XOM), where the acquired natural gas and shallow water shelf oil in the Gulf of Mexico from them.
They said in a press release:
"Pro forma for the acquisition, estimated proved plus probable reserves increase 72 percent to 158.1 million BOE from 92.1 million BOE at the company's June 30, 2010 fiscal year end. Production increases to approximately 46,000 BOE per day, up more than 77 percent from the 25,900 BOE per day average in the most recent fiscal quarter ended Sept. 30, 2010.
The transaction was funded through a combination of cash on hand, borrowings against the company's $700 million corporate revolver, as amended, and proceeds from the previously disclosed private placement by the company's operating subsidiary, Energy XXI Gulf Coast, Inc., of $750 million of 9.25% senior unsecured notes due 2017, which closed earlier today. Actual funding requirements at closing totaled $1.01 billion, including the 10 percent deposit that had been placed in escrow. The purchase remains subject to post-closing adjustments to reflect actual operating results since the effective date of Dec. 1, 2010."
Energy XXI closed Friday at $27.08, up $0.66, or 2.50 percent. Exxon closed at $72.17, down $0.05, or 0.07 percent.
They said in a press release:
"Pro forma for the acquisition, estimated proved plus probable reserves increase 72 percent to 158.1 million BOE from 92.1 million BOE at the company's June 30, 2010 fiscal year end. Production increases to approximately 46,000 BOE per day, up more than 77 percent from the 25,900 BOE per day average in the most recent fiscal quarter ended Sept. 30, 2010.
The transaction was funded through a combination of cash on hand, borrowings against the company's $700 million corporate revolver, as amended, and proceeds from the previously disclosed private placement by the company's operating subsidiary, Energy XXI Gulf Coast, Inc., of $750 million of 9.25% senior unsecured notes due 2017, which closed earlier today. Actual funding requirements at closing totaled $1.01 billion, including the 10 percent deposit that had been placed in escrow. The purchase remains subject to post-closing adjustments to reflect actual operating results since the effective date of Dec. 1, 2010."
Energy XXI closed Friday at $27.08, up $0.66, or 2.50 percent. Exxon closed at $72.17, down $0.05, or 0.07 percent.
Monday, December 6, 2010
ExxonMobil (NYSE:XOM) Blocked in Oil Terminal Sale
ExxonMobil (NYSE:XOM) has again been blocked by the Australian Competition & Consumer Commission over its attempt to sell their share in a fuel terminal located at the port of Gladstone in Queensland.
The regulator said, "The ACCC's preliminary view is that the proposed acquisition is likely to substantially lessen competition in the market for the supply of import-capable petrol and diesel terminal services in the Gladstone region."
Specified was the effect it may have on independent fuel suppliers who could be hindered from entering the region if the deal is allowed to go through.
ExxonMobil was attempting to sell their share in the venture to Caltex Australia.
The regulator said, "The ACCC's preliminary view is that the proposed acquisition is likely to substantially lessen competition in the market for the supply of import-capable petrol and diesel terminal services in the Gladstone region."
Specified was the effect it may have on independent fuel suppliers who could be hindered from entering the region if the deal is allowed to go through.
ExxonMobil was attempting to sell their share in the venture to Caltex Australia.
Friday, November 5, 2010
BP (NYSE:BP) Rises on Exxon (NYSE:XOM) Bid Rumor
Rumors were rampant this morning that Exxon Mobil was interested in acquiring BP (NYSE:BP), pushing the stock up in early trading, where in London it rose as high as 451.35 pence, and up to $43.98 in New York before pulling back.
At 11:45 AM EDT, BP was trading at $43.75, down $0.16, or 0.38.
BP had no comment on the speculation, and Exxon communicated the usual idea that it was "not our practice to comment on market speculation, rumors or media reports."
Even if a company was interested in BP, it seems they would wait until the decision on whether or not they would be considered grossly negligent in the Gulf oil spill, which could cost them billions more than they're looking at at this time.
At 11:45 AM EDT, BP was trading at $43.75, down $0.16, or 0.38.
BP had no comment on the speculation, and Exxon communicated the usual idea that it was "not our practice to comment on market speculation, rumors or media reports."
Even if a company was interested in BP, it seems they would wait until the decision on whether or not they would be considered grossly negligent in the Gulf oil spill, which could cost them billions more than they're looking at at this time.
Exxon Mobil (NYSE:XOM), Transocean (NYSE:RIG), Shell (NYSE:RDS-a) Up on Rising Oil Prices
Exxon Mobil (NYSE:XOM), Transocean (NYSE:RIG), Shell (NYSE:RDS-a) were all in positive territory Thursday on the inflationary measures announced by the Federal Reserve through QE2, which drove the overall commodity market up, along with companies within each sector, including the oil producers.
Commodity prices overall rose, including silver, which increased to over $26 an ounce. Gold prices surged to all-time record highs again, nearing the $1,400 an ounce mark. Aluminum increased to its highest levels since April, and silver went over $26 an ounce.
Light, sweet crude for December delivery settled the trading day up $1.80 a barrel on the New York Mercantile Exchange at $86.49.
Exxon Mobil closed at $69.38 Thursday, rising $1.41, or 2.07 percent. Transocean surged to close at $64.21, gaining $0.25, or 0.39 percent. Shell was up $68.29 at the end of the trading day, increasing by $1.10, or 1.64 percent.
Commodity prices overall rose, including silver, which increased to over $26 an ounce. Gold prices surged to all-time record highs again, nearing the $1,400 an ounce mark. Aluminum increased to its highest levels since April, and silver went over $26 an ounce.
Light, sweet crude for December delivery settled the trading day up $1.80 a barrel on the New York Mercantile Exchange at $86.49.
Exxon Mobil closed at $69.38 Thursday, rising $1.41, or 2.07 percent. Transocean surged to close at $64.21, gaining $0.25, or 0.39 percent. Shell was up $68.29 at the end of the trading day, increasing by $1.10, or 1.64 percent.
Wednesday, November 3, 2010
ExxonMobil (NYSE:XOM) to Drill for Natural Gas in Germany's Rhineland
News that ExxonMobil (NYSE:XOM) and other energy companies would begin to drill for natural gas in Germany's Rhineland was met with mixed response, although opposition was from radical environment groups and politicians from the country.
Rhineland has already granted Exxon and other firms from Canada, Australia and Germany to drill in the state.
The focus of drilling will be close to the northern Münsterland region. ExxonMobil plans to start drilling in Borken, Steinfurt and Nordwalde soon. Additional regions include the northern and southern Ruhr Valley and counties in Sauerland.
A so-called energy expert for the Greens, Oliver Krischer, alledged, “We are surprised. We didn’t know a thing. The claims were staked quietly and secretly.”
The usual fears of damaging ground water from drilling for the gas has generated opposition from those living in the Münsterland region. It's unlikely it'll hinder the process for the companies.
Rhineland has already granted Exxon and other firms from Canada, Australia and Germany to drill in the state.
The focus of drilling will be close to the northern Münsterland region. ExxonMobil plans to start drilling in Borken, Steinfurt and Nordwalde soon. Additional regions include the northern and southern Ruhr Valley and counties in Sauerland.
A so-called energy expert for the Greens, Oliver Krischer, alledged, “We are surprised. We didn’t know a thing. The claims were staked quietly and secretly.”
The usual fears of damaging ground water from drilling for the gas has generated opposition from those living in the Münsterland region. It's unlikely it'll hinder the process for the companies.
Tuesday, November 2, 2010
BP (NYSE:BP) Results Lag Exxon (NYSE:XOM), Marathon (NYSE:MRO), Chevron (NYSE:CVX)
While higher oil prices helped major oil companies like Exxon (NYSE:XOM), Marathon (NYSE:MRO), Chevron (NYSE:CVX) to solid quarters, although Chevron was weaker than expected, it wasn't able to help BP (NYSE:BP) overcome continuing charges related to expenses incurred from the Gulf of Mexico oil spill.
Still, it was good news for BP in that they generated a profit for the quarter soon after permanently plugging the Macondo oil well.
After taking another charge of $7.7 billion, it brings the total estimated costs of the BP oil spill to almost $40 billion, already exceeding expectations, and will surely rise more going forward.
A significant amount of the financial health of BP will relate to whether or not they're designated as being grossly negligent, which could cost them billions more if they are.
CEO Bob Dudley says he's confident that isn't going to happen.
Earnings per share for the latest quarter reached $0.59, a major improvement over the $5.42 they lost in the second quarter, but obviously falling short of the $1.60 generated last year in the same quarter before the spill.
Still, it was good news for BP in that they generated a profit for the quarter soon after permanently plugging the Macondo oil well.
After taking another charge of $7.7 billion, it brings the total estimated costs of the BP oil spill to almost $40 billion, already exceeding expectations, and will surely rise more going forward.
A significant amount of the financial health of BP will relate to whether or not they're designated as being grossly negligent, which could cost them billions more if they are.
CEO Bob Dudley says he's confident that isn't going to happen.
Earnings per share for the latest quarter reached $0.59, a major improvement over the $5.42 they lost in the second quarter, but obviously falling short of the $1.60 generated last year in the same quarter before the spill.
Monday, November 1, 2010
ExxonMobil (NYSE:XOM) Discovers Rich Gas Condensate Off Nigeria
ExxonMobil (NYSE:XOM) revealed today it has made a discovery of rich gas condensate off the coast of Nigeria.
The find was made in the Pegi-1 discovery well, with about 165 net feet of rich gas condensate found. Rich gas condensate is a form of natural gas liquid.
Mark Ward, chairman of Mobil Producing Nigeria Unlimited, the joint venture of Exxon in Nigeria, said, "We are focused on developing oil and gas reserves and supplying natural gas that will boost commercial power production in line with the federal government's aspiration."
Nigeria has been desperate to wean their people off of expensive diesel-fired generators because of the shortage of electricity in the country.
To that end, they added in their statement, that "Significant additional potential remains in untested deeper targets within the Pegi fault block as well as in adjacent fault blocks."
The find was made in the Pegi-1 discovery well, with about 165 net feet of rich gas condensate found. Rich gas condensate is a form of natural gas liquid.
Mark Ward, chairman of Mobil Producing Nigeria Unlimited, the joint venture of Exxon in Nigeria, said, "We are focused on developing oil and gas reserves and supplying natural gas that will boost commercial power production in line with the federal government's aspiration."
Nigeria has been desperate to wean their people off of expensive diesel-fired generators because of the shortage of electricity in the country.
To that end, they added in their statement, that "Significant additional potential remains in untested deeper targets within the Pegi fault block as well as in adjacent fault blocks."
Concerns Rise on ExxonMobil's (NYSE:XOM) Stock Repurchase Strategy
The purpose of the repurchase of shares by ExxonMobil (NYSE:XOM) has UBS (NYSE:UBS) concerned, as it's not to the end they hoped for after the highly dilutive acquisition of natural gas producer XTO.
"XOM repurchased $3 billion in shares in 3Q, and is increasing the pace to $5 billion in 4Q. However, XOM does not seem to intend to accelerate repurchases to retire the shares issued for the dilutive XTO acquisition; rather, the buyback will remain the “flywheel” to regulate excess cash. We are slightly revising ’10/ ‘11 EPS estimates from $5.77/$5.76 to $5.83/$5.96 primarily on the increased pace of the buyback and higher int’l R&M performance," said UBS.
Exxon closed Friday at $66.49, gaining $0.27, or 0.41 percent. UBS raised their price target on the energy giant from $63 to $65.
"XOM repurchased $3 billion in shares in 3Q, and is increasing the pace to $5 billion in 4Q. However, XOM does not seem to intend to accelerate repurchases to retire the shares issued for the dilutive XTO acquisition; rather, the buyback will remain the “flywheel” to regulate excess cash. We are slightly revising ’10/ ‘11 EPS estimates from $5.77/$5.76 to $5.83/$5.96 primarily on the increased pace of the buyback and higher int’l R&M performance," said UBS.
Exxon closed Friday at $66.49, gaining $0.27, or 0.41 percent. UBS raised their price target on the energy giant from $63 to $65.
Thursday, October 28, 2010
BP (NYSE:BP) Watches as Rivals Chevron (NYSE:CVX), Exxon (NYSE:XOM) and Shell (NYSE:RDS-A) Push Ahead in Gulf
All BP (NYSE:BP) can do at this time in the Gulf of Mexico is stand on the sidelines and watch as Chevron (NYSE:CVX), Exxon (NYSE:XOM) and Shell (NYSE:RDS-A) move ahead with their attempts to expand their Gulf presence and gain advantage over their rival.
Major companies can now apply for permits now that the oil moratorium has been lifted in the Gulf, and though technically BP could as well, they know at this time it would be a waste of time and energy, and will focus on cleaning up its image and going through the process of having it determined whether or not they're considered negligent in the matter.
Once that is cleared up, they may feel more free to pursue Gulf permits, which CEO Bob Dudley has implied the company will continue to do, as they have no intention of willingly leaving the Gulf unless forced to.
This will give their competitors a key advantage going forward, and BP will have to weigh that against taking the time to resist in lawsuits and claims which may not be legitimate, but better to settle and get behind them rather than waste precious time.
For now, their competitors have the upper hand in the Gulf and are taking measures to expand that advantage as much as possible.
Major companies can now apply for permits now that the oil moratorium has been lifted in the Gulf, and though technically BP could as well, they know at this time it would be a waste of time and energy, and will focus on cleaning up its image and going through the process of having it determined whether or not they're considered negligent in the matter.
Once that is cleared up, they may feel more free to pursue Gulf permits, which CEO Bob Dudley has implied the company will continue to do, as they have no intention of willingly leaving the Gulf unless forced to.
This will give their competitors a key advantage going forward, and BP will have to weigh that against taking the time to resist in lawsuits and claims which may not be legitimate, but better to settle and get behind them rather than waste precious time.
For now, their competitors have the upper hand in the Gulf and are taking measures to expand that advantage as much as possible.
Wednesday, October 27, 2010
BP (NYSE:BP), Conoco (NYSE:COP), Exxon (NYSE:XOM), Total (NYSE:TOT), Shell (NYSE:RDS-A), Apache (NYSE:APA) Land North Sea Licenses
Major oil companies like BP PLC (NYSE:BP), Royal Dutch Shell SA (NYSE:RDS-A), ConocoPhillips (NYSE:COP), ExxonMobil Corp. (NYSE:XOM), Total SA (NYSE:TOT) and Apache Corp. (NYSE:APA) were awarded gas and oil licenses by the British government to drill in the North Sea.
According the the government, 83 companies were awarded 144 licenses to drill for oil and gas in over 268 blocks in the region.
Although a lower number of licenses were awarded than the previous round of licensing in 2008, where 192 were offered, another 99 blocks entailing up to 45 licenses will be available after more research is done on them.
Oil production in British waters have dropped by about 5 percent annually since peaking in 1999 at 2.6 million barrels a day. In the next five years, even with an estimated 20 billion barrels of oil equivalent estimated to be left in the North Sea, production is expected to drop to about 1 million barrels a day.
In 2009-2010, 1.36 million barrels a day are being produced in British waters.
According the the government, 83 companies were awarded 144 licenses to drill for oil and gas in over 268 blocks in the region.
Although a lower number of licenses were awarded than the previous round of licensing in 2008, where 192 were offered, another 99 blocks entailing up to 45 licenses will be available after more research is done on them.
Oil production in British waters have dropped by about 5 percent annually since peaking in 1999 at 2.6 million barrels a day. In the next five years, even with an estimated 20 billion barrels of oil equivalent estimated to be left in the North Sea, production is expected to drop to about 1 million barrels a day.
In 2009-2010, 1.36 million barrels a day are being produced in British waters.
Monday, October 25, 2010
BP's (NYSE:BP) CEO Bod Dudley Blasts Media's Culture of Fear
While BP (NYSE:BP) chief executive officer Bob Dudley has taken responsibility for mistakes made by the company and the unfortunate consequences resulting from them, at the same time he has blasted the media for its jumping to conclusions far before the facts came in surrounding the incident.
Speaking at an annual conference held by CBI in Britain, Dudley said, "A great rush to judgment by a fair number of observers before the full facts could possibly be known, even from some in our industry.
"I watched graphic projections of oil swirling around the gulf, around Florida, across and around Bermuda to England - these appeared authoritative and inevitable. The public fear was everywhere."
Dudley called it a climate of fear which was created by the media.
Responding to criticism of BP's practices from major competitors like Shell (NYSE:RDS-A), Exxon (NYSE:XOM) and Chevron (NYSE:CVX), Dudley said BP's practices are how the general industry operates, and not specific to BP alone.
Their rivals have contradicted that conclusion, saying they wouldn't have drilled in the way BP had.
Speaking at an annual conference held by CBI in Britain, Dudley said, "A great rush to judgment by a fair number of observers before the full facts could possibly be known, even from some in our industry.
"I watched graphic projections of oil swirling around the gulf, around Florida, across and around Bermuda to England - these appeared authoritative and inevitable. The public fear was everywhere."
Dudley called it a climate of fear which was created by the media.
Responding to criticism of BP's practices from major competitors like Shell (NYSE:RDS-A), Exxon (NYSE:XOM) and Chevron (NYSE:CVX), Dudley said BP's practices are how the general industry operates, and not specific to BP alone.
Their rivals have contradicted that conclusion, saying they wouldn't have drilled in the way BP had.
Exxon Mobil (NYSE:XOM) Now Covered by Standpoint Research
Standpoint Research has launched coverage on Exxon Mobil (NYSE:XOM), starting the energy giant off with a "Buy" rating.
Exxon has struggled over the last 12 months, dropping below $57 at its low point in July, but rebounding from then on.
On Friday they closed at $66.34, gaining $0.02, or 0.03 percent. Standpoint has a price target of $78 on the oil giant.
Exxon has a market cap of approximately $337.79 billion.
Exxon has struggled over the last 12 months, dropping below $57 at its low point in July, but rebounding from then on.
On Friday they closed at $66.34, gaining $0.02, or 0.03 percent. Standpoint has a price target of $78 on the oil giant.
Exxon has a market cap of approximately $337.79 billion.
BP (NYSE:BP), Chevron (NYSE:CVX), Transocean (NYSE:RIG), Exxon (NYSE:XOM), Conoco (NYSE:COP), Shell (NYSE:RDS-A), Diamond (NYSE:DO), Hercules (Nasdaq:HERO) Have 100s of Wells Waiting for Approval in Gulf
Although BOEMRE director Michael Bromwich has said ther are only 10 new wells waiting for permits in the Gulf of Mexico, companies like BP (NYSE:BP), Chevron (NYSE:CVX), Transocean (NYSE:RIG), Exxon (NYSE:XOM), Conoco (NYSE:COP), Shell (NYSE:RDS-A), Diamond (NYSE:DO) and Hercules (Nasdaq:HERO) in fact have hundreds of wells waiting to be approved.
The disingenuous figures put forth by Bromwich are so small because hundreds of wells haven't been approved to enter into the permitting process.
There are 69 exploration and development plans are backlogged, just sitting there awaiting action, with each one including three to five wells, according to senior vice president and general counsel of Hercules, James W. Noe. And that was as of August 17. Since then no figures have been released, suggesting far more waiting to have decisions made.
Since the moratorium was lifted on October 12, there have only been six permits approved by the Bureau of Ocean Energy Management, Regulation and
Enforcement, and those were only in shallow-water areas, not the deepwater sections which allegedly have had the moratorium lifted.
I say allegedly because the regulations and permits are effectively having the same results as if a moratorium were still in place for deepwater drilling.
The disingenuous figures put forth by Bromwich are so small because hundreds of wells haven't been approved to enter into the permitting process.
There are 69 exploration and development plans are backlogged, just sitting there awaiting action, with each one including three to five wells, according to senior vice president and general counsel of Hercules, James W. Noe. And that was as of August 17. Since then no figures have been released, suggesting far more waiting to have decisions made.
Since the moratorium was lifted on October 12, there have only been six permits approved by the Bureau of Ocean Energy Management, Regulation and
Enforcement, and those were only in shallow-water areas, not the deepwater sections which allegedly have had the moratorium lifted.
I say allegedly because the regulations and permits are effectively having the same results as if a moratorium were still in place for deepwater drilling.
BP (NYSE:BP), Chevron (NYSE:CVX), Conoco (NYSE:COP), Exxon (NYSE:XOM) Met with Ken Salazar on Safety Issues
BP (NYSE:BP), Chevron (NYSE:CVX), Conoco (NYSE:COP) and Exxon (NYSE:XOM) met recently with Interior Secretary Ken Salazar and Michael Bromwich, among others, over creation of new organization to improve safety measures in the industry through the establishment of best practices guidelines and new technologies related to the industry.
The new entity would be called the Ocean Energy Safety Institute, and would include the Coast Guard, regulators and industry representatives. The technological side would include using funds to do research and develop certain technologies to help the industry.
Interior spokeswoman Kendra Barkoff said about the meeting, “Secretary Salazar, Deputy Secretary David Hayes and Director Bromwich met with industry representatives today to discuss strategies for further developing and making available blowout containment capabilities moving forward.”
Some talk about whether or not the government will help fund the initiative has started, and in our view this shouldn't be something taxpayers should have to pay for.
Let the industry pay for things that could help improve operational safety, led by those that understand what's needed and the stakes at risk.
Other than ensuring compliance, the government should have no other role in the matter.
As far as proposed taxes on the industry, that wasn't included in the discussions, but that as well needs to be dropped so American consumers aren't hit with increased energy costs, which is what the outcome of more taxes would be.
When the government taxes any industry, it's the people who end up paying for it with higher costs.
The new entity would be called the Ocean Energy Safety Institute, and would include the Coast Guard, regulators and industry representatives. The technological side would include using funds to do research and develop certain technologies to help the industry.
Interior spokeswoman Kendra Barkoff said about the meeting, “Secretary Salazar, Deputy Secretary David Hayes and Director Bromwich met with industry representatives today to discuss strategies for further developing and making available blowout containment capabilities moving forward.”
Some talk about whether or not the government will help fund the initiative has started, and in our view this shouldn't be something taxpayers should have to pay for.
Let the industry pay for things that could help improve operational safety, led by those that understand what's needed and the stakes at risk.
Other than ensuring compliance, the government should have no other role in the matter.
As far as proposed taxes on the industry, that wasn't included in the discussions, but that as well needs to be dropped so American consumers aren't hit with increased energy costs, which is what the outcome of more taxes would be.
When the government taxes any industry, it's the people who end up paying for it with higher costs.
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