The amount of natural gas in the United States has become so abundant it no longer makes sense for companies to continue to put more resources into it, and that has caused Chesapeake Energy Corp (NYSE:CHK) to transfer $400 million it had targeted natural gas exploration and production, to oil exploration.
Supply of natural gas has put a lot of downward pressure on natural gas prices at a time when oil prices are rising. Oil margins have a larger spread and oil is much more profitable than its counterpart at this time, and for the foreseeable future.
In a press release, Chesapeake said, "In recognition of the significant and persistent value gap that has developed between natural gas and oil prices, Chesapeake has accelerated its transition to a more liquids-rich asset base."
The full-year drilling budget for Chesapeake will remain level, with $4.5 billion to $4.6 billion set aside for that purpose.
Cheasapeake will release its earnings for the second quarter after the market closes today.
Showing posts with label Oil Exploration. Show all posts
Showing posts with label Oil Exploration. Show all posts
Tuesday, August 3, 2010
Tuesday, June 22, 2010
Petrobras (NYSE:PBR) Ignores BP (NYSE:BP), Investing $224 Billion Over Five Years
In what should be a very profitable move, the bold Brazilian oil company, Petroleo Brasilero SA, or Petrobras (NYSE:PBR), is ignoring the Gulf of Mexico troubles connected to the BP (NYSE:BP) oil spill, is investing about $224 billion over the next five years in its offshore oil fields, the largest discovered in the Western Hemisphere in 30 years.
The oil fields were discovered using new techniques which are able to discover what's below the salt on the ocean floor.
Now that so many possibilities are open because of the new way of finding out what's below the ocean floor, BP is also setting aside an additional $118.8 billion for exploration and production during that same five-year period as well.
With oil prices relatively low, although still more profitable than natural gas, the future looks bright for Petrobras, as they will assuredly make more discoveries of their coasts, and bring the world oil it thirsts so much for.
This is a great move by the company, as it's the perfect time to expand when the rest of the world is largely going on the defensive in regards to oil.
The oil fields were discovered using new techniques which are able to discover what's below the salt on the ocean floor.
Now that so many possibilities are open because of the new way of finding out what's below the ocean floor, BP is also setting aside an additional $118.8 billion for exploration and production during that same five-year period as well.
With oil prices relatively low, although still more profitable than natural gas, the future looks bright for Petrobras, as they will assuredly make more discoveries of their coasts, and bring the world oil it thirsts so much for.
This is a great move by the company, as it's the perfect time to expand when the rest of the world is largely going on the defensive in regards to oil.
Thursday, May 20, 2010
Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX), Encana (NYSE:ECA), Awarded Oil Exploration Licenses from Greenland
Greenland has awarded major oil companies like Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX), Encana (NYSE:ECA) and Husky Energy (TSE:HSE), among others, licenses to explore its offshore and onshore regions for oil and gas.
According to an estimate from a US Geological Survey in 2009, there could be up to 50 billion barrels of oil in Greenland. Even so, that's much lower than prior estimates from the USGS, which have been as high as 160 billion barrels of reserves.
The right conditions are there for the people of Greenland to support the venture, as they want to gain independence from Denmark, which at this time they are a dominion of.
Citizens of Greenland receive over $10,000 each form Denmark at this time, and it's estimated that one good oil field would replace that for the residents, which number about 56,000.
According to an estimate from a US Geological Survey in 2009, there could be up to 50 billion barrels of oil in Greenland. Even so, that's much lower than prior estimates from the USGS, which have been as high as 160 billion barrels of reserves.
The right conditions are there for the people of Greenland to support the venture, as they want to gain independence from Denmark, which at this time they are a dominion of.
Citizens of Greenland receive over $10,000 each form Denmark at this time, and it's estimated that one good oil field would replace that for the residents, which number about 56,000.
Monday, April 19, 2010
BlackPearl Resources (TSE:PXX) Selling 9 Million Shares
Oil and gas exploration company BlackPearl Resources (TSE:PXX) announced it has plans to sell 9 million shares of commond shares of stock at C$2.90 each.
BlackPearl is looking to raise C$26.1 million from the offering.
The purpose of the selling of common shares in the company is to replenish capital spent when they acquired a larger working interest in its Blackrod SAGD project.
Other than general purposes, capital raised will also be directed toward its operations at Onion Lake, and to a lesser degree other projects of interest.
BlackPearl is looking to raise C$26.1 million from the offering.
The purpose of the selling of common shares in the company is to replenish capital spent when they acquired a larger working interest in its Blackrod SAGD project.
Other than general purposes, capital raised will also be directed toward its operations at Onion Lake, and to a lesser degree other projects of interest.
Monday, April 5, 2010
Will Halliburton (NYSE: HAL), Baker Hughes (NYSE:BHI) Benefit from More Oil and Gas Exploration?
Halliburton and Baker Hughes
This is a no brainer of course, there is no doubt the decision to allow more drilling off the Coasts of the U.S. by Obama will be a big boost to exploration companies like Halliburton (NYSE:HAL) and Baker Hughes (NYSE:BHI).
Oil drilling companies like Atwood Oceanics (NYSE:ATW) and Transocean (NYSE:RIG), and others like them, should benefit as oil and gas resources are discovered.
Assuming they were part of the action, other types of companies which would probably profit from it are Devon Energy (NYSE:DVN) and EOG Resources (NYSE:EOG).
Some are trying to say certain parts of the coastlines being released for drilling won't produce much in the way of oil and gas, but that's simply speculation and wishful thinking.
We have no idea how much may be out there, and until the exploration and drilling takes place, we won't have an answer.
These are of course long-term plays, but something to keep in mind as the exploration and drilling gets underway in the years ahead.
This is a no brainer of course, there is no doubt the decision to allow more drilling off the Coasts of the U.S. by Obama will be a big boost to exploration companies like Halliburton (NYSE:HAL) and Baker Hughes (NYSE:BHI).
Oil drilling companies like Atwood Oceanics (NYSE:ATW) and Transocean (NYSE:RIG), and others like them, should benefit as oil and gas resources are discovered.
Assuming they were part of the action, other types of companies which would probably profit from it are Devon Energy (NYSE:DVN) and EOG Resources (NYSE:EOG).
Some are trying to say certain parts of the coastlines being released for drilling won't produce much in the way of oil and gas, but that's simply speculation and wishful thinking.
We have no idea how much may be out there, and until the exploration and drilling takes place, we won't have an answer.
These are of course long-term plays, but something to keep in mind as the exploration and drilling gets underway in the years ahead.
Tuesday, March 16, 2010
Royal Dutch Shell (NYSE:RDS-B) Oil Production Strategy
Royal Dutch Shell Cutting Costs and Increasing Oil Production
Royal Dutch Shell (NYSE:RDS-B) laid out its strategy to cut costs and increase oil production, and shareholders responded positively by rewarding the stock with nice upward push.
Shell officials noted that 2009 was the best oil exploration year they had in over a decade, and revenue and profits will reflect that in the years ahead, with over 8 billion in equivalent resources added to the company.
The company will also exit some of its refining and exposure in retail markets.
About 2,000 more jobs will be cut as part of their cost-cutting measures over the next year as well.
Taken together, the company has solidified its core business with these moves, and are poised for production growth for the first time in many years.
Royal Dutch Shell (NYSE:RDS-B) laid out its strategy to cut costs and increase oil production, and shareholders responded positively by rewarding the stock with nice upward push.
Shell officials noted that 2009 was the best oil exploration year they had in over a decade, and revenue and profits will reflect that in the years ahead, with over 8 billion in equivalent resources added to the company.
The company will also exit some of its refining and exposure in retail markets.
About 2,000 more jobs will be cut as part of their cost-cutting measures over the next year as well.
Taken together, the company has solidified its core business with these moves, and are poised for production growth for the first time in many years.
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