According to the Industrial Commission of North Dakota, oil production in the state has soared to record levels.
For the month of July, the amount of oil produced in the state climbed to over 674,000 barrels a day, a record for the state.
For Bakken, Three Forks and Sanish, oil production also surged to record levels, jumping to 610,000 barrels a day for the month.
Showing posts with label Oil Production. Show all posts
Showing posts with label Oil Production. Show all posts
Friday, September 14, 2012
Thursday, August 5, 2010
Murphy Oil (NYSE:MUR) Earnings Up 71 Percent on Higher Oil, Gas Prices and Wider Margins
Murphy Oil Corp.'s (NYSE:MUR) earnings in the second quarter soared 71 percent, driven by higher gas and oil prices, along with margins from motor fuel.
Earnings reached $272.3 million for the quarter, or $1.41 a share, against the $158.8 million, or 83 cents a share, in the same quarter last year.
Analysts had estimated earnings of $1.21 a share.
Revenue increased to $5.59 billion, up from the $4.56 billion in last year's second quarter. That was below analysts' expectations, who were looking for $6.36 billion.
Average oil production on a daily basis globally was 189,951 barrels of oil equivalent, an improvement of 33 percent over last year.
Guidance for the third quarter was for earning of $1.10 to $1.15 a share.
Murphy also announced their Board of Directors has declared a quarterly dividend increase of 10 percent, to 27.5 cents a share, equal to $1.10 annually.
Earnings reached $272.3 million for the quarter, or $1.41 a share, against the $158.8 million, or 83 cents a share, in the same quarter last year.
Analysts had estimated earnings of $1.21 a share.
Revenue increased to $5.59 billion, up from the $4.56 billion in last year's second quarter. That was below analysts' expectations, who were looking for $6.36 billion.
Average oil production on a daily basis globally was 189,951 barrels of oil equivalent, an improvement of 33 percent over last year.
Guidance for the third quarter was for earning of $1.10 to $1.15 a share.
Murphy also announced their Board of Directors has declared a quarterly dividend increase of 10 percent, to 27.5 cents a share, equal to $1.10 annually.
Tuesday, July 6, 2010
BP's (NYSE:BP) Pan-American could be at Top of Asset Sale List
In a bid to become more liquid, BP (NYSE:BP) has been looking at selling some of its assets in order to raise about $10 billion to help pay off victims of the oil spill.
There have been several assets being considered, especially oil fields in several countries which are past their oil production prime, or are smaller in reserves.
But the top asset that could be sold and which would raise close to what they want is Pan-American in Argentina.
One name being bantered about as to a potential suitor of Pan-American is Cnooc Ltd., the largest offshore oil producer.
“Pan American is the obvious place to start,” said Christopher Wheaton, at Allianz RCM’s Energy Fund in London. It’s got a valuation from Cnooc in mid-March and is one of the assets you could carve out of the portfolio easily.”
Pan-American produces close to 100,000 barrels of oil a day, and 450 cubic meters of gas, according to BP.
The sale of Pan-American would fetch over $9 billion for BP.
There have been several assets being considered, especially oil fields in several countries which are past their oil production prime, or are smaller in reserves.
But the top asset that could be sold and which would raise close to what they want is Pan-American in Argentina.
One name being bantered about as to a potential suitor of Pan-American is Cnooc Ltd., the largest offshore oil producer.
“Pan American is the obvious place to start,” said Christopher Wheaton, at Allianz RCM’s Energy Fund in London. It’s got a valuation from Cnooc in mid-March and is one of the assets you could carve out of the portfolio easily.”
Pan-American produces close to 100,000 barrels of oil a day, and 450 cubic meters of gas, according to BP.
The sale of Pan-American would fetch over $9 billion for BP.
Wednesday, June 30, 2010
BP (NYSE:BP) Fined $5.2 Million for False Production Figures
The U.S. government is going over BP (NYSE:BP) in a stringent manner, and they fined the oil giant $5.2 million in relationship to production figures on a Colorado Indian reservation.
BP America is the unit under scrutiny, who the Interior Department says has misreported production data repeatedly on tribal lands of the Ute since 2007.
After Southern Ute auditors had found the alleged discrepancies, BP had promised to change them to the correct figures, which after a period of time, they were checked again, and found to have continued to report false numbers.
While all of this is fine, it is a little cowardly in my opinion to have the Interior Department wait until these circumstances to deal with it and pile on the company, rather than have taken care of it when it happened.
The question is why did they let it go on so long if they indeed knew about it. This doesn't exonerate BP of course, just saying it seems it should have been taken care of long ago if it was true, not at an opportunistic time to make the Interior Department look good.
BP America is the unit under scrutiny, who the Interior Department says has misreported production data repeatedly on tribal lands of the Ute since 2007.
After Southern Ute auditors had found the alleged discrepancies, BP had promised to change them to the correct figures, which after a period of time, they were checked again, and found to have continued to report false numbers.
While all of this is fine, it is a little cowardly in my opinion to have the Interior Department wait until these circumstances to deal with it and pile on the company, rather than have taken care of it when it happened.
The question is why did they let it go on so long if they indeed knew about it. This doesn't exonerate BP of course, just saying it seems it should have been taken care of long ago if it was true, not at an opportunistic time to make the Interior Department look good.
Tuesday, June 15, 2010
Fire on BP (NYSE:BP) Oil Processing Vessel
Earlier today BP (NYSE:BP) had to stop capturing and processing oil as a fire broke out on the Discoverer Enterprise, the oil tanker being used to collect the oil on a daily basis since the cap was placed on the oil well.
There was reportedly no permanent damage to the BP vessel, and the oil processing stoppage was only temporary.
Conjecture is the fire probably started as a result of the ship being hit by lighting, which caused the stoppage in oil recovery at about 10:30 AM EDT.
Another ship in the area, Q4000, may begin operations for capturing oil in the area today, which would add approximately 50 percent more capacity to capturing the oil, reaching up to 28,000 barrels a day.
With no one really sure as to how much oil is escaping the oil well, it seems BP is taking a incremental strategy to attack the problem, although if they need to, they're ready to capture up to 50,000 barrels of oil if there is that much leaking into the Gulf.
There was reportedly no permanent damage to the BP vessel, and the oil processing stoppage was only temporary.
Conjecture is the fire probably started as a result of the ship being hit by lighting, which caused the stoppage in oil recovery at about 10:30 AM EDT.
Another ship in the area, Q4000, may begin operations for capturing oil in the area today, which would add approximately 50 percent more capacity to capturing the oil, reaching up to 28,000 barrels a day.
With no one really sure as to how much oil is escaping the oil well, it seems BP is taking a incremental strategy to attack the problem, although if they need to, they're ready to capture up to 50,000 barrels of oil if there is that much leaking into the Gulf.
Saturday, June 5, 2010
BP (NYSE:BP) Oil Collection Better than Thought
In the first 24 hours since capping the oil leak, BP (NYSE:BP) has collected 6,000 barrels of oil, higher than the 1,000 barrels of oil originally thought to have been captured by the oil giant, according to Coast Guard Admiral Thad Allen.
That many barrels of oil is the equivalent of about 252 gallons.
BP has a goal of producing 15,000 barrels a day using the siphoning method they're now employing, which should remove the bulk of the oil leaking into the Gulf, although there is no way of knowing the exact mount being released, as estimates now are from between 12,000 to 19,000 a day.
So if it's on the lower end, BP won't reach it's goal simply because there isn't that much oil leaking.
Either way, some oil will end up leaking into the Gulf until two relief wells are completed. Estimates for that are from August to possibly as late as December.
That many barrels of oil is the equivalent of about 252 gallons.
BP has a goal of producing 15,000 barrels a day using the siphoning method they're now employing, which should remove the bulk of the oil leaking into the Gulf, although there is no way of knowing the exact mount being released, as estimates now are from between 12,000 to 19,000 a day.
So if it's on the lower end, BP won't reach it's goal simply because there isn't that much oil leaking.
Either way, some oil will end up leaking into the Gulf until two relief wells are completed. Estimates for that are from August to possibly as late as December.
Tuesday, May 25, 2010
Exxon Mobil (NYSE:XOM) Sells Global Partners (NYSE:GLP) 190 Gas Stations
Exxon Mobil (NYSE:XOM) has sold 190 gas stations to Global Partners LP (NYSE:GLP) for $200 million.
Global said their decision was based on the desire to increase profits by supplying retailers gasoline and diesel.
The gas stations are all located in the northeast United States, in the states of Rhode Island, Massachusetts and New Hampshire. There are 31 other gas stations in the region owned by independent retailers which are also part of the deal.
Exxon has been selling off their gas stations, which they now consider a non-core asset in order to put their attention on oil and natural gas production, which bring much higher returns.
Global said they're going to finance the deal either with an existing credit line or via capital markets.
Global said their decision was based on the desire to increase profits by supplying retailers gasoline and diesel.
The gas stations are all located in the northeast United States, in the states of Rhode Island, Massachusetts and New Hampshire. There are 31 other gas stations in the region owned by independent retailers which are also part of the deal.
Exxon has been selling off their gas stations, which they now consider a non-core asset in order to put their attention on oil and natural gas production, which bring much higher returns.
Global said they're going to finance the deal either with an existing credit line or via capital markets.
Friday, May 21, 2010
Clayton Williams (Nasdaq:CWEI) Oil Production to Rise says Company
Clayton Williams (Nasdaq:CWEI) announced on Friday that it has raised its guidance for oil production in the fourth quarter, increasing it by a significant 28 percent.
With natural gas prices probably going to be depressed for some time because of enormous supply, Clayton is migrating to more oil production to increase revenue in profits.
A number of other oil and natural gas companies have made the same decision, although a small number have actually increased their natural gas production, possibly thinking there may be more opportunity if enough suppliers cut back on production, which may skew the natural gas supply picture, which may increase the prices if enough supply is abandoned.
The revised daily oil production numbers increased from 14,975 barrels of oil equivalent to 15,892 barrels of oil equivalent for the second quarter. Original projections were for daily oil production to rise from 14,358 barrels of oil equivalent to 15,275 barrels of oil equivalent.
Barrels of oil produced on a daily basis increased from 8,150 barrels to 8,350 barrels, to 8,600 barrels to 8,800 barrels.
Natural gas production is also projected to increase, rising from 33.5 million cubic feet a day to 37.5 million cubic feet a day, to a range between 34.5 million cubic feet to 38.5 million cubic feet.
With natural gas prices probably going to be depressed for some time because of enormous supply, Clayton is migrating to more oil production to increase revenue in profits.
A number of other oil and natural gas companies have made the same decision, although a small number have actually increased their natural gas production, possibly thinking there may be more opportunity if enough suppliers cut back on production, which may skew the natural gas supply picture, which may increase the prices if enough supply is abandoned.
The revised daily oil production numbers increased from 14,975 barrels of oil equivalent to 15,892 barrels of oil equivalent for the second quarter. Original projections were for daily oil production to rise from 14,358 barrels of oil equivalent to 15,275 barrels of oil equivalent.
Barrels of oil produced on a daily basis increased from 8,150 barrels to 8,350 barrels, to 8,600 barrels to 8,800 barrels.
Natural gas production is also projected to increase, rising from 33.5 million cubic feet a day to 37.5 million cubic feet a day, to a range between 34.5 million cubic feet to 38.5 million cubic feet.
Saturday, April 24, 2010
BP (LSE:BP) Production Not Affected by Oil Rig Explosion
After the explosion in connection with the oil rig drilling in the Gulf of Mexico, BP (LSE:BP) (NYSE:BP) shareholders were wondering how that would have an impact on oil production.
As far as the area the company was drilling in, it was a relatively small deposit and won't have any significant impact on oil supplies for the company.
The estimate was for less than 100 million barrels at the location, and was only being considered commercially because it was nearby other pipliines.
In that particular area BP produces about 450,000 barrels a day, about 12 percent of BP's total production.
As far as the area the company was drilling in, it was a relatively small deposit and won't have any significant impact on oil supplies for the company.
The estimate was for less than 100 million barrels at the location, and was only being considered commercially because it was nearby other pipliines.
In that particular area BP produces about 450,000 barrels a day, about 12 percent of BP's total production.
Thursday, April 22, 2010
Petrobras (NYSE:PBR) Gas, Oil Production Down in March
Petrobras (NYSE:PBR) reported gas and oil production in March was down slightly, with gas and oil production combined reaching 2.556 million barrels of oil equivalent on a daily basis.
In February total gas and oil production for Petrobras was 2.561 barrels of oil equivalent a day, 0.2 percent more than March.
Domestic oil production for March increased to an average of 1.994 million barrels a day, a 0.3 percent gain. In February that came to 1.988 million billions a day for oil.
Internationally, crude oil production fell for the company, as it averaged 149,600 barrels of crude daily, dropping from the 151,400 average in February.
The main reason for the overall decline in March gas and oil production was decreasing demand for natural gas, as Petrobras has lowered its output in response to lower usage.
Natural gas production domestically dropped to 66.7 million cubic meters a day, falling from the 68.1 million cubic meters a day used in February.
In February total gas and oil production for Petrobras was 2.561 barrels of oil equivalent a day, 0.2 percent more than March.
Domestic oil production for March increased to an average of 1.994 million barrels a day, a 0.3 percent gain. In February that came to 1.988 million billions a day for oil.
Internationally, crude oil production fell for the company, as it averaged 149,600 barrels of crude daily, dropping from the 151,400 average in February.
The main reason for the overall decline in March gas and oil production was decreasing demand for natural gas, as Petrobras has lowered its output in response to lower usage.
Natural gas production domestically dropped to 66.7 million cubic meters a day, falling from the 68.1 million cubic meters a day used in February.
Monday, April 19, 2010
Imperial Oil (TSE:IMO): Low Margins Expected
Margins at Imperial Oil (TSE:IMO) are expected to push down earnings, as the company prepares to release its latest quarterly report on April 29.
Those oil companies with strong investment in the downstream are expected to have low margins at their refining businesses, which is sure to result in lower earnings.
Imperial Oil, whose largest shareholder is ExxonMobil (NYSE:XOM), and which has controlling interest in the company, has also said they have started their maintanance at the Strathcona refinery in Edmonton, Alberta, which shouldn't cause any supply problems with the usual 187,000 barrels a day processed there.
The shutdown is expected to last into May.
Those oil companies with strong investment in the downstream are expected to have low margins at their refining businesses, which is sure to result in lower earnings.
Imperial Oil, whose largest shareholder is ExxonMobil (NYSE:XOM), and which has controlling interest in the company, has also said they have started their maintanance at the Strathcona refinery in Edmonton, Alberta, which shouldn't cause any supply problems with the usual 187,000 barrels a day processed there.
The shutdown is expected to last into May.
Thursday, April 15, 2010
OPEC May Increase Production if Oil Prices Go Over $100 a Barrel
OPEC May Increase Oil Production if Prices Go Over $100 a Barrel
OPEC will change its production levels if the price of oil goes above $100 a barrel, said Kuwaiti Oil Minister Sheikh Ahmad Abdullah al-Sabah today.
Even so, Sheikh Ahmad that considerations would have to be taken into account concerning supply and demand when making decisions.
For now, oil prices at about $85 a barrel are considered a good price by OPEC, and that isn't anticipated to change much, although some think it'll go much higher as the summer period comes.
I don't think so though, as the so-called recovery isn't really one, as data continues to come out showing increased loss of jobs and foreclosures.
That will keep oil demand from rising, along with oil prices.
OPEC will change its production levels if the price of oil goes above $100 a barrel, said Kuwaiti Oil Minister Sheikh Ahmad Abdullah al-Sabah today.
Even so, Sheikh Ahmad that considerations would have to be taken into account concerning supply and demand when making decisions.
For now, oil prices at about $85 a barrel are considered a good price by OPEC, and that isn't anticipated to change much, although some think it'll go much higher as the summer period comes.
I don't think so though, as the so-called recovery isn't really one, as data continues to come out showing increased loss of jobs and foreclosures.
That will keep oil demand from rising, along with oil prices.
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.
Friday, March 5, 2010
BP (NYSE:BP) Out-produces ExxonMobil (NYSE:XOM)
BP Versus ExxonMobil
BP (NYSE:BP) has made a big deal about it producing more oil and gas for the first time in history over its giant competitor ExxonMobil (NYSE:XOM).
The problem is the profits of BP plunged by 45 percent in 2009, while ExxonMobil had earnings of over $4 billion more than BP, making the boast somewhat empty.
While blaming the decrease in profits on oil prices falling, you have to consider ExxonMobil experienced the same conditions, and were able to thrive in them, revealing evidently a BP company that doesn't have its costs reined in as they should have.
BP Versus ExxonMobil
BP (NYSE:BP) has made a big deal about it producing more oil and gas for the first time in history over its giant competitor ExxonMobil (NYSE:XOM).
The problem is the profits of BP plunged by 45 percent in 2009, while ExxonMobil had earnings of over $4 billion more than BP, making the boast somewhat empty.
While blaming the decrease in profits on oil prices falling, you have to consider ExxonMobil experienced the same conditions, and were able to thrive in them, revealing evidently a BP company that doesn't have its costs reined in as they should have.
BP Versus ExxonMobil
Monday, March 1, 2010
BHP Billiton (LON:BLT), Argentina, Falklands
BHP Billiton, Falklands and Argentina
The threats be Argentina to hold back projects of BHP Billiton (LON:BLT) on its mainland soil has little bite to it, as the company is currently doing nothing on the mainland of Argentina, and more than likely was sure to shut their work there down before committing to the Falkland Island area for oil exploration.
What could be a legitimate threat would be toward future exploration licenses awarded the country for Argentina, but that's not here nor there, and again, has little bite to it, if any at all, as the actions of BHP Billiton show.
It seems the continued actions of Argentina are in response to frustration over the United Nations to not intervene in the situation, which is in reality a territorial dispute between the U.K. and Argentina, which most countries consider to be the property of the U.K.
So to attempt to expand this to other areas outside the United Nations isn't going to prove much, other than to remind nations that Argentina was defeated militarily when it last attempted to forcefully regain the island, and there's little political will to pursue this in any way by other countries.
BHP Billiton won't be hindered in any way by all of this, and other than the occasional protests from Argentina, will largely not suffer any consequences from getting involved with the project, but will profit from it if there is significant oil reserves found, as the hold a 51 percent stake in the project.
BHP Billiton, Falklands and Argentina
The threats be Argentina to hold back projects of BHP Billiton (LON:BLT) on its mainland soil has little bite to it, as the company is currently doing nothing on the mainland of Argentina, and more than likely was sure to shut their work there down before committing to the Falkland Island area for oil exploration.
What could be a legitimate threat would be toward future exploration licenses awarded the country for Argentina, but that's not here nor there, and again, has little bite to it, if any at all, as the actions of BHP Billiton show.
It seems the continued actions of Argentina are in response to frustration over the United Nations to not intervene in the situation, which is in reality a territorial dispute between the U.K. and Argentina, which most countries consider to be the property of the U.K.
So to attempt to expand this to other areas outside the United Nations isn't going to prove much, other than to remind nations that Argentina was defeated militarily when it last attempted to forcefully regain the island, and there's little political will to pursue this in any way by other countries.
BHP Billiton won't be hindered in any way by all of this, and other than the occasional protests from Argentina, will largely not suffer any consequences from getting involved with the project, but will profit from it if there is significant oil reserves found, as the hold a 51 percent stake in the project.
BHP Billiton, Falklands and Argentina
Tuesday, February 9, 2010
Exxon Mobil (NYSE: XOM) Contracts with Praxair (NYSE: PX)
Praxair (NYSE: PX) has landed a deal with Exxon Mobil (NYSE: XOM) to construct and operate an air separation unit for the giant oil company for its gas processing plant in Hawkins, Texas.
The air separation unit will also be owned outright by Praxair will be used to increase the supply of nitrogen for enhanced oil recovery.
Consequently, the installation of the new production facility is scheduled to be operational sometime in the second half of 2011. About 85 million cubic feet of high-pressure nitrogen will be produced by Praxair for Exxon Mobil on a daily basis.
Praxair already supplies nitrogen gas to Exxon Mobil, but this will increase the amount of nitrogen used in order to improve the recovery of it natural gas and oil reserves.
Praxair Exxon Mobil Air Separation Unit
The air separation unit will also be owned outright by Praxair will be used to increase the supply of nitrogen for enhanced oil recovery.
Consequently, the installation of the new production facility is scheduled to be operational sometime in the second half of 2011. About 85 million cubic feet of high-pressure nitrogen will be produced by Praxair for Exxon Mobil on a daily basis.
Praxair already supplies nitrogen gas to Exxon Mobil, but this will increase the amount of nitrogen used in order to improve the recovery of it natural gas and oil reserves.
Praxair Exxon Mobil Air Separation Unit
Tuesday, January 26, 2010
ExxonMobil (NYSE: XOM) Lands Iraqi Contract
ExxonMobil (NYSE: XOM) landed a contract as lead in a consortium which will work on redeveloping and growing the West Qurna-1 field in southern Iraq, said the company in a press release.
Other members of the group include Oil Exploration Co., a state-owned Iraqi oil company, which will have 25 percent stake in the venture, as well as Shell, which will have a 15 percent stake in the oil production development. ExxonMobil will hold the remaining 60 percent stake in the venture.
Exxon added in their press release that they are in ongoing talks with government official from Iraq on partaking in "other opportunities to assist Iraq in developing the country's resources."
The next stage will be to find quality vendors and will recruit and help develop local workers for the deal.
ExxonMobil (NYSE: XOM)
Other members of the group include Oil Exploration Co., a state-owned Iraqi oil company, which will have 25 percent stake in the venture, as well as Shell, which will have a 15 percent stake in the oil production development. ExxonMobil will hold the remaining 60 percent stake in the venture.
Exxon added in their press release that they are in ongoing talks with government official from Iraq on partaking in "other opportunities to assist Iraq in developing the country's resources."
The next stage will be to find quality vendors and will recruit and help develop local workers for the deal.
ExxonMobil (NYSE: XOM)
Monday, January 25, 2010
Petrobras (NYSE:PZE) Brazil Oil Production 2009
Petrobras (NYSE:PZE)
Including gas production in Brazil for 2009, that increased overall by 5.1 percent to 2,287,457.
Gas production held down the average, as it was basically level for 2009 in comparison with 2008 in Brazil based on decreased demand. Daily gas volume in the country from Petrobras stood at 50,343,000 cubic meters a day, again, essentially the same usage as 2008.
Oil use in 2008 had stood at 1,854,655 barrels a day.
In 2008 the average combination gas and oil usage in Brazil from Petrobras was 2,275,896 barrels a day.
Oil production for Petrobras when taking in its overall global operations for 2009 came in at 2,525,260 barrels a day; up from 2,399,958 a day in 2008. That represents a 13.7 percent increase from 2008, or 140.576 barrels a day.
The drop in natural gas in general came from decreased demand from Bolivia.
Petrobras (NYSE:PZE)
Including gas production in Brazil for 2009, that increased overall by 5.1 percent to 2,287,457.
Gas production held down the average, as it was basically level for 2009 in comparison with 2008 in Brazil based on decreased demand. Daily gas volume in the country from Petrobras stood at 50,343,000 cubic meters a day, again, essentially the same usage as 2008.
Oil use in 2008 had stood at 1,854,655 barrels a day.
In 2008 the average combination gas and oil usage in Brazil from Petrobras was 2,275,896 barrels a day.
Oil production for Petrobras when taking in its overall global operations for 2009 came in at 2,525,260 barrels a day; up from 2,399,958 a day in 2008. That represents a 13.7 percent increase from 2008, or 140.576 barrels a day.
The drop in natural gas in general came from decreased demand from Bolivia.
Petrobras (NYSE:PZE)
Tuesday, January 19, 2010
Goldman Sachs | Oil Shortages 2010
Oil Prices
Goldman Sachs (NYSE:GS) said today that there will be crude oil shortages as supply won't be able to keep up with demand, signifying higher oil prices in 2010 and 2011.
Projections from Goldman Sachs are the demand for oil will return to pre-recession levels, while production for oil will be down, causing the shortages and resultant oil price increases as a result.
There is probably more optimism in Goldman Sachs' report than among most others watching the industry, who believe oil demand will in fact remain down for some time to come, as the so-called recovery, for the most part, really isn't one.
Consider that jobs aren't being created and businesses aren't hiring. Goldman is saying that those working will start traveling more and spending on transportation, which I personally don't see happening, as I don't even begin to believe the recession is ended, let alone that we're in a period of recovery.
Nothing points to that being what is happening at this time, and I think Goldman Sachs is wrong here and we're going to continue to see consumers and businesses keep things tight as far as spending goes.
Consequently, I think oil prices will probably remain relatively level, although I'm sure there will be occasional spikes in oil prices over the next couple of years.
I don't doubt the production side being possibly challenged, just that the demand will remain low and so lower oil production won't cause significant oil price increases because of lower demand.
Of course the wild card in all of this is the state of the consumer in China, India and Brazil. If they take on a new role of consuming much more oil, then it could cause some price increases. But as far as it relates to the American consumer, I don't see them being a price driver of oil any time soon.
Oil Prices
Goldman Sachs (NYSE:GS) said today that there will be crude oil shortages as supply won't be able to keep up with demand, signifying higher oil prices in 2010 and 2011.
Projections from Goldman Sachs are the demand for oil will return to pre-recession levels, while production for oil will be down, causing the shortages and resultant oil price increases as a result.
There is probably more optimism in Goldman Sachs' report than among most others watching the industry, who believe oil demand will in fact remain down for some time to come, as the so-called recovery, for the most part, really isn't one.
Consider that jobs aren't being created and businesses aren't hiring. Goldman is saying that those working will start traveling more and spending on transportation, which I personally don't see happening, as I don't even begin to believe the recession is ended, let alone that we're in a period of recovery.
Nothing points to that being what is happening at this time, and I think Goldman Sachs is wrong here and we're going to continue to see consumers and businesses keep things tight as far as spending goes.
Consequently, I think oil prices will probably remain relatively level, although I'm sure there will be occasional spikes in oil prices over the next couple of years.
I don't doubt the production side being possibly challenged, just that the demand will remain low and so lower oil production won't cause significant oil price increases because of lower demand.
Of course the wild card in all of this is the state of the consumer in China, India and Brazil. If they take on a new role of consuming much more oil, then it could cause some price increases. But as far as it relates to the American consumer, I don't see them being a price driver of oil any time soon.
Oil Prices
Thursday, October 15, 2009
Newfield Exploration (NYSE:NFX) Upgraded to Outperform by Wells Fargo
Wells Fargo (NYSE:WFC) announced that it has upgraded Newfield Exploration (NYSE: NFX) from Market Perform to Outperform, and increased its target range from $35-$40 to $56-$60.
According to Wells Fargo, it's decision was based on Newfield's exploration potential, discount of valuation, operational catalysts and growing focus on oil.
Especially noted by Wells Fargo was Newfield's Monument Butte & Bakken programs which are the chief area where it's exposure to oil is located.
Natural gas also continues to play a major part in its valuations, as it accounts for 54 percent of Newfield's portfolio, while crude stands at 46 percent.
It was also felt by Wells Fargo that the Monument Butte asset in the Uinta Basin held by Newfiled Exploration is highly undervalued by the street, another significant factor in its upgrade of the company stock.
According to Wells Fargo, it's decision was based on Newfield's exploration potential, discount of valuation, operational catalysts and growing focus on oil.
Especially noted by Wells Fargo was Newfield's Monument Butte & Bakken programs which are the chief area where it's exposure to oil is located.
Natural gas also continues to play a major part in its valuations, as it accounts for 54 percent of Newfield's portfolio, while crude stands at 46 percent.
It was also felt by Wells Fargo that the Monument Butte asset in the Uinta Basin held by Newfiled Exploration is highly undervalued by the street, another significant factor in its upgrade of the company stock.
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