A giant oil field has been found in south Australia that could hold as much as 233 billion barrels of oil, valued at today's prices at over $20 trillion. The oil is located in the Arckaringa Basin, an area surrounding Coober Pedy.
Estimates at this time are anywhere from 3.5 billion to 233 billion barrels of oil.
While the range has a huge disparity, Linc Energy is moving towards securing financing so it can drill six horizontal wells to confirm and identify the amount of oil estimated to be available for extraction.
Barclays Bank has been hired by Linc to secure financing for the project, which for the next stage is estimated to cost from $150 to $300 million.
Assuming the probable upper target of the estimates, the range is expected to come in at from 103 billion barrels of oil to 233 billion barrels.
Showing posts with label Oil Company. Show all posts
Showing posts with label Oil Company. Show all posts
Saturday, January 26, 2013
Monday, May 24, 2010
U.S. Pushing BP (NYSE:BP) by Raising Liability Cap for Oil Spill
The U.S. governments' attempt to force BP (NYSE:BP) pay more than they legally have to for Gulf of Mexico oil spill will have the usual unintended consequences, having the potential to make it too costly for smaller oil companies to drill for offshore oil. It would also generate a slew of lawsuits related to existing agreements in place.
In relationship to economic losses connected to oil spills, politicians have introduced legislation which would raise the cap to $10 billion as the maximum payout required.
The existing $75 million cap on damages is also being considered to be raised, with Obama supporting it.
What will raise legal problems and challenges is the legislation is targeting leases that are already in place, and not only new leases, something that could cause all type of problems for companies drilling, as the lease agreements were based on existing conditions and costs, and the increase in insurance premiums could devastate the companies if this is what ends up happening.
There is precedence in a prior Supreme Court ruling which favored existing leases, which says the laws in place at the time the lease was agreed to are considered to be still part of the contract, and would rule in the situation.
More than likely the attempt to change the terms of the lease would be rejected, as it would breach the leases in place.
The idea of applying a cap to BP alone could also be unconstitutional in reference to due process and basic fairness, so is also unlikely to be implemented.
With BP saying they're more than willing to pay for legitimate economic claims, it's questionable as to why the politicians are going forward with this, as they could do it at another time once they see how BP responds practically to their promise. This of course only applies to this specific case, and no other.
In relationship to economic losses connected to oil spills, politicians have introduced legislation which would raise the cap to $10 billion as the maximum payout required.
The existing $75 million cap on damages is also being considered to be raised, with Obama supporting it.
What will raise legal problems and challenges is the legislation is targeting leases that are already in place, and not only new leases, something that could cause all type of problems for companies drilling, as the lease agreements were based on existing conditions and costs, and the increase in insurance premiums could devastate the companies if this is what ends up happening.
There is precedence in a prior Supreme Court ruling which favored existing leases, which says the laws in place at the time the lease was agreed to are considered to be still part of the contract, and would rule in the situation.
More than likely the attempt to change the terms of the lease would be rejected, as it would breach the leases in place.
The idea of applying a cap to BP alone could also be unconstitutional in reference to due process and basic fairness, so is also unlikely to be implemented.
With BP saying they're more than willing to pay for legitimate economic claims, it's questionable as to why the politicians are going forward with this, as they could do it at another time once they see how BP responds practically to their promise. This of course only applies to this specific case, and no other.
Tuesday, May 18, 2010
Exxon Mobil's (NYSE:XOM) Hadrian Project Delayed
Exxon Mobil (NYSE:XOM), which was ready to launch their Hadrian drilling project in the Gulf of Mexico last week, has had it delayed until at least May 28, according to the giant oil company.
After the explosion and consequent oil spill from the Deepwater Horizon oil rig which has especially affected BP (NYSE:BP), Halliburton (NYSE:HAL) and Transocean (NYSE:RIG), regulators restricted drilling in the area for the time being.
Even though the May 28 day was given, an Exxon spokeswoman said there is no clear day announced when they will be allowed to launch operations in the Gulf region.
Once the government put the moratorium in place on drilling permits, all work on the projected was effectively halted until further notice.
The deepwater offshore drilling at the stie will be in just under 7,000 feet of water. Exxon had put a rig in place before the project was halted.
After the explosion and consequent oil spill from the Deepwater Horizon oil rig which has especially affected BP (NYSE:BP), Halliburton (NYSE:HAL) and Transocean (NYSE:RIG), regulators restricted drilling in the area for the time being.
Even though the May 28 day was given, an Exxon spokeswoman said there is no clear day announced when they will be allowed to launch operations in the Gulf region.
Once the government put the moratorium in place on drilling permits, all work on the projected was effectively halted until further notice.
The deepwater offshore drilling at the stie will be in just under 7,000 feet of water. Exxon had put a rig in place before the project was halted.
Tuesday, May 11, 2010
Occidental Petroleum (NYSE:OXY) Drops on Inflation, EU Fears
Occidental Petroleum (NYSE:OXY) fell, along with other energy and commodity companies, as increased inflation in China and major concerns over the fallout from the sovereign debt crisis in Europe, and whether or not the almost $1 trillion will do much to stop it, has investors wandering if demand can hold up under these economic circumstances.
With austerity measures tied to the sovereign debt bailout of some European countries, along with China battling inflation and attempting to ward off a potential bubble, thoughts are demand will start to decrease for raw materials, and adding Europe and China together could result in significant cutbacks, which could devastate countries and companies counting on Chinese demand to grow their economies.
One positive Occidental Petroleum does have in general, is they have no exposure in the Gulf of Mexico, which could have created many headaches and problems for them.
So while demand is a major issue going forward, at least they can focus primarily on economic issues and not legal ones, along with uncertainty about the future off deepwater, offshore oil drilling.
Occidental does have some offshore exposure, but that's in working with Libya and Qatar, but in the Americas it's all onshore drilling, which makes them a more predictable company than those with major offshore exposure at this time, especially those in the Gulf.
With austerity measures tied to the sovereign debt bailout of some European countries, along with China battling inflation and attempting to ward off a potential bubble, thoughts are demand will start to decrease for raw materials, and adding Europe and China together could result in significant cutbacks, which could devastate countries and companies counting on Chinese demand to grow their economies.
One positive Occidental Petroleum does have in general, is they have no exposure in the Gulf of Mexico, which could have created many headaches and problems for them.
So while demand is a major issue going forward, at least they can focus primarily on economic issues and not legal ones, along with uncertainty about the future off deepwater, offshore oil drilling.
Occidental does have some offshore exposure, but that's in working with Libya and Qatar, but in the Americas it's all onshore drilling, which makes them a more predictable company than those with major offshore exposure at this time, especially those in the Gulf.
Saturday, May 8, 2010
Devon Energy (NYSE:DVN) Ready to Fly
Devon Energy (NYSE:DVN) made a great move (in hindsight) when they divested of their holdings in the Gulf of Mexico before the unfortunate accident which brought down the oil rig Deepwater Horizon, which while lucky, still has strong, positive repercussions for Devon going forward, specifically with how they're making use of their extra capital, and have prepared for solid, organic growth for some time to come.
With their $9.9 billion in capital as a result of selling their Gulf assets, Devon has been buying back stock in the company, with $3.5 billion used for that purpose.
The strong balance sheet of Devon, along with a good mix of oil and gas assets, and their low operational costs, has positioned them to be among the best in the natural gas sector for some time to come.
With their $9.9 billion in capital as a result of selling their Gulf assets, Devon has been buying back stock in the company, with $3.5 billion used for that purpose.
The strong balance sheet of Devon, along with a good mix of oil and gas assets, and their low operational costs, has positioned them to be among the best in the natural gas sector for some time to come.
Exxon Mobil (NYSE:XOM) a Good Investment?
Exxon Mobil (NYSE:XOM) is always among the largest companies in the world, and oil company as well, with a market cap of just under $300 billion, although it fluctuates off and on.
With the strategy of investing about $125 billion over the next five years to increase revenue and profits, it looks like they are a serious company to consider for a safe and long-term investment.
The investment capital will be used to expand their chemical business, develop new upstream projects, increase the capacity at their refineries, and create new technologies.
Revenue over the past five years has grown by 60 percent, while profits have surged by 79 percent. It could easily reach and/or surpass those levels in the next five years as well.
With the strategy of investing about $125 billion over the next five years to increase revenue and profits, it looks like they are a serious company to consider for a safe and long-term investment.
The investment capital will be used to expand their chemical business, develop new upstream projects, increase the capacity at their refineries, and create new technologies.
Revenue over the past five years has grown by 60 percent, while profits have surged by 79 percent. It could easily reach and/or surpass those levels in the next five years as well.
Tuesday, May 4, 2010
Anadarko (NYSE:APC) Credit-Default Swaps Costs Surge
After the introduction of spill legislation yesterday, the cost of protecting Anadarko Petroleum (NYSE:APC) debt rose to its highest levels in close to a year as liability would increase from $75 million up to a staggering $10 billion if the bill is passed.
Anadarko has a 25 percent non-operating interest in the leaking rig.
Costs for credit-default swaps increased 15 basis points to 120.6 basis points, the most its been since May 26, 2009.
For a smaller oil company like Anadarko, which generated $716 million in net income last quarter, or $1.43 a share, the exposure is extraordinary, and could ultimately be devastating in the worst case scenario, which isn't out of the question in light of the negative publicity and extent of the oil spill.
Anadarko has a 25 percent non-operating interest in the leaking rig.
Costs for credit-default swaps increased 15 basis points to 120.6 basis points, the most its been since May 26, 2009.
For a smaller oil company like Anadarko, which generated $716 million in net income last quarter, or $1.43 a share, the exposure is extraordinary, and could ultimately be devastating in the worst case scenario, which isn't out of the question in light of the negative publicity and extent of the oil spill.
Saturday, April 10, 2010
Chevron (NYSE:CVX) Refining Profits
Chevron Turning Profit at Refinery for Next Quarter
Chevron (NYSE:CVX) recently stated their refinery business has turned around and should turn a profit in the next quarter after a loss in the fourth quarter.
Margins in the refinery business of Chevron are given as the reason for the expected turnaround for the first quarter.
Analysts are looking for profit of $1.66 a share for the next quarter for Chevron, even with the $150 million charge from strong cost cutting.
Chevron (NYSE:CVX) recently stated their refinery business has turned around and should turn a profit in the next quarter after a loss in the fourth quarter.
Margins in the refinery business of Chevron are given as the reason for the expected turnaround for the first quarter.
Analysts are looking for profit of $1.66 a share for the next quarter for Chevron, even with the $150 million charge from strong cost cutting.
Friday, March 12, 2010
Wells Fargo (NYSE:WFC) Big Stake InterOil (NYSE:IOC)
Wells Fargo Stake in InterOil
Wells Fargo & Co. (NYSE:WFC) disclosed today it had a stake in InterOil (NYSE:IOC) of over 10 percent through its required 13G filing with the SEC.
The 10.25 percent stake in InterOil equals around $312.64 million or 4.39 million shares.
InterOil's operations are primarily in the Southwest Pacific region and Papau New Guinea.
Wells Fargo Stake in InterOil
Wells Fargo & Co. (NYSE:WFC) disclosed today it had a stake in InterOil (NYSE:IOC) of over 10 percent through its required 13G filing with the SEC.
The 10.25 percent stake in InterOil equals around $312.64 million or 4.39 million shares.
InterOil's operations are primarily in the Southwest Pacific region and Papau New Guinea.
Wells Fargo Stake in InterOil
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