Showing posts with label Royal Dutch Shell. Show all posts
Showing posts with label Royal Dutch Shell. Show all posts
Thursday, October 18, 2012
Yamana (AUY) (COP) (EXC) (WNR) (GORO) (HAL) (IAG) (RDS-A) Ratings Changes
Yamana Gold (AUY), ConocoPhillips (COP), Exelon Co. (EXC), Western Refining, Inc. (WNR), Gold Resource Co. (GORO), Halliburton (HAL), IAMGOLD Corp (IAG) and Royal Dutch Shell (RDS-A) had ratings on them adjusted by analysts.
Scotia Capital upgraded Yamana Gold (AUY) from a "Sector Perform" rating to an "Outperform" rating.
Goldman Sachs (GS) upgraded ConocoPhillips (COP) from a "Sell" rating to a "Neutral" rating.
Citigroup (C) upgraded Exelon Co. (EXC) from a "Sell" rating to a "Neutral" rating.
Goldman Sachs upgraded Western Refining, Inc. (WNR) from a "Neutral" rating to a "Buy" rating.
Global Hunter Securities downgraded Gold Resource Co. (GORO) from an "Accumulate" rating to a "Neutral" rating. They have a price target of $17.50 on the company.
Global Hunter Securities downgraded Halliburton (HAL) from an "Accumulate" rating to a "Neutral" rating. They have a price target of $38.00 on the company.
Scotia Capital downgraded IAMGOLD Corp (IAG) from an "Outperform" rating to a "Sector Perform" rating.
Goldman Sachs downgraded Royal Dutch Shell (RDS.A) from a "Neutral" rating to a "Sell" rating.
Monday, September 17, 2012
Shell's (RDS-A) Alaska Drilling Plans Put on Hold
Plans to drill for oil of the coast of Alaska had to be put on hold by Royal Dutch Shell Plc (RDS-A) after a containment dome built to limit any oil spill was broken.
According to the company, the time it'll take to finish repairing the dome will result in Shell not being able to drill in the region this year.
Shell said this in a statement:
"We are disappointed that the dome has not yet met our stringent acceptance standards, but as we have said all along, we will not conduct any operation until we are satisfied that we are fully prepared to do it safely."
In place of drilling for oil this year, Shell said it will instead drill what are called "top holes," which will prepare for deeper drilling next season.
Shell is drilling in the Burger A prospect in the Chukchi Sea, and has spent approximately $4.5 billion in preparation for the process. The company will also begin to explore the Beaufort Sea region.
According to the company, the time it'll take to finish repairing the dome will result in Shell not being able to drill in the region this year.
Shell said this in a statement:
"We are disappointed that the dome has not yet met our stringent acceptance standards, but as we have said all along, we will not conduct any operation until we are satisfied that we are fully prepared to do it safely."
In place of drilling for oil this year, Shell said it will instead drill what are called "top holes," which will prepare for deeper drilling next season.
Shell is drilling in the Burger A prospect in the Chukchi Sea, and has spent approximately $4.5 billion in preparation for the process. The company will also begin to explore the Beaufort Sea region.
Thursday, October 28, 2010
BP (NYSE:BP) Losing Competitive Advantage to Chevron (NYSE:CVX), Exxon (NYSE:XOM) and Shell (NYSE:RDS-A) in Gulf Drilling
BP (NYSE:BP) rivals Chevron (NYSE:CVX), Exxon (NYSE:XOM) and Shell (NYSE:RDS-A) are using the misfortune of BP to quickly gain a wider competitive advantage in Gulf drilling as the troubled energy company has to focus on other battles and shoring up their reputation.
No government entity or official would likely grant BP a drilling permit in the Gulf of Mexico at this time, while the other companies are applying for permits to drill in the region.
Interestingly, Anadarko (NYSE:APC) has been given a free pass, as they've indicated they're ready to resume drilling in the Gulf even though they are 25 percent owners in the failed Macondo oil well, and their liability and responsibility in the matter is yet to be determined.
This is about resources, and since BP is by far the only company involved able to pay for damages, the others have in general ignored, although they may have to pay BP back before it's all through, although it's expected to be far below anything BP will have to pay.
BP will fall behind their rivals in the Gulf because of the Gulf oil spill, and their competitors will be smart to take advantage of the current conditions to extend their lead over them, which it looks like they're doing.
No government entity or official would likely grant BP a drilling permit in the Gulf of Mexico at this time, while the other companies are applying for permits to drill in the region.
Interestingly, Anadarko (NYSE:APC) has been given a free pass, as they've indicated they're ready to resume drilling in the Gulf even though they are 25 percent owners in the failed Macondo oil well, and their liability and responsibility in the matter is yet to be determined.
This is about resources, and since BP is by far the only company involved able to pay for damages, the others have in general ignored, although they may have to pay BP back before it's all through, although it's expected to be far below anything BP will have to pay.
BP will fall behind their rivals in the Gulf because of the Gulf oil spill, and their competitors will be smart to take advantage of the current conditions to extend their lead over them, which it looks like they're doing.
Tuesday, October 12, 2010
Shell (NYSE:RDS-a) CEO Blasts BP (NYSE:BP) Report
Royal Dutch Shell Plc (NYSE:RDS-a) chief executive officer Peter Voser came out swinging today against the design of the well used for Macondo and the way BP (NYSE:BP) conducted the investigation into the reasons why it failed.
Voser's conclusion that BP used less expensive options in order to increase profits at the expense of safety lines up with the conclusions of lawmakers in the U.S. that in part is seemed part of the BP practices at this particular oil well.
"Shell clearly would have drilled this well in a different way and would have had more options to prevent the accident," asserted Voser. He was talking about using more barriers than BP did to prevent leaks in the design of the well.
Concerning Shell's projects in the Gulf of Mexico, Voser said they would be more selective in who they worked with, making sure the companies had the expertise and ability to help pay for the costs if an accident were to occur.
That was and is a major problem for BP, which is struggling to get some of their smaller partners to pay. And even if and when they pay, there will be limitations on how much they will be able to pay.
Voser's conclusion that BP used less expensive options in order to increase profits at the expense of safety lines up with the conclusions of lawmakers in the U.S. that in part is seemed part of the BP practices at this particular oil well.
"Shell clearly would have drilled this well in a different way and would have had more options to prevent the accident," asserted Voser. He was talking about using more barriers than BP did to prevent leaks in the design of the well.
Concerning Shell's projects in the Gulf of Mexico, Voser said they would be more selective in who they worked with, making sure the companies had the expertise and ability to help pay for the costs if an accident were to occur.
That was and is a major problem for BP, which is struggling to get some of their smaller partners to pay. And even if and when they pay, there will be limitations on how much they will be able to pay.
Friday, October 1, 2010
BP (NYSE:BP), Exxon (NYSE:XOM) Dispute Pushes Noble (NYSE:NE) Shares Down
The announcement by Noble Corp. (NYSE:NE) they were in the midst of arbitrating a disagreement between BP Plc (NYSE:BP) and Exxon Mobil Corp. (NYSE:XOM) over one of their rigs pushed the price of Noble shares down over 3 percent Thursday.
The Homer Ferrington rig is the one being fought over, which has been idle since April 24 in Libya, while the two oil giants hash out their differences.
Noble said in a regulatory filing that they had "initiated arbitration proceedings” and “Payment of the dayrate is subject to the resolution of this dispute.”
At the same time, Noble revealed a large number of their rigs had experience “a significant increase in downtime.”
In the filing Noble added that during the “period of limitation on certain activities” the the Noble Driller rig leased to Royal Dutch Shell Plc (NYSE:RDS-a) has a daily “suspension rate” of $46,000 to $48,000."
Starting in 2011, the rig should work at a daily rate of $382,000 to $384,000.
The Homer Ferrington rig is the one being fought over, which has been idle since April 24 in Libya, while the two oil giants hash out their differences.
Noble said in a regulatory filing that they had "initiated arbitration proceedings” and “Payment of the dayrate is subject to the resolution of this dispute.”
At the same time, Noble revealed a large number of their rigs had experience “a significant increase in downtime.”
In the filing Noble added that during the “period of limitation on certain activities” the the Noble Driller rig leased to Royal Dutch Shell Plc (NYSE:RDS-a) has a daily “suspension rate” of $46,000 to $48,000."
Starting in 2011, the rig should work at a daily rate of $382,000 to $384,000.
Thursday, September 16, 2010
ExxonMobil (NYSE:XOM), Chevron (NYSE:CVX), ConocoPhillips (NYSE:COP) and Shell Oil (NYSE:RDS-A) Ads Point to BP's (NYSE:BP) Failure
Although the name of BP (NYSE:BP) hasn't specifically been mentioned, competitors ExxonMobil (NYSE:XOM), Chevron (NYSE:CVX), ConocoPhillips (NYSE:COP) and Shell Oil (NYSE:RDS-A) have been putting ads in major newspapers, saying if wells were built and operated correctly in the first place, they wouldn't fail.
The headline of one of the ads say, “Engineer it. Build it. And make sure it is never needed.”
But in the fine print is where they make their key attack. It says, “While we don’t yet have all the facts regarding the incident in the Gulf of Mexico, we do know that such tragedies are avoidable. By starting with properly designed wells, by following established procedures and best practices, by conducting relentless inspections, tests and drills, and with frequent, thorough training of personnel, accidents like this should never happen.”
The four majors mentioned above are part of a partnership to build a rapid response system to limit the damage of an oil spill if it ever does happen again. They are together spending about $1 billion to develop it.
Other than those who had a direct stake or contractual connection to the Deepwater Horizon oil rig or Macondo oil well, this may be the first time others with no direct connection have entered into the public relations fray.
The headline of one of the ads say, “Engineer it. Build it. And make sure it is never needed.”
But in the fine print is where they make their key attack. It says, “While we don’t yet have all the facts regarding the incident in the Gulf of Mexico, we do know that such tragedies are avoidable. By starting with properly designed wells, by following established procedures and best practices, by conducting relentless inspections, tests and drills, and with frequent, thorough training of personnel, accidents like this should never happen.”
The four majors mentioned above are part of a partnership to build a rapid response system to limit the damage of an oil spill if it ever does happen again. They are together spending about $1 billion to develop it.
Other than those who had a direct stake or contractual connection to the Deepwater Horizon oil rig or Macondo oil well, this may be the first time others with no direct connection have entered into the public relations fray.
Wednesday, September 8, 2010
Benchmark Maintains "Hold" on Shell (NYSE:RDS-A), Marathon (NYSE:MRO)
The Benchmark Company said they've maintained their "Hold" ratings on Royal Dutch Shell (NYSE:RDS-A) and Marathon Oil (NYSE:MRO).
For Shell, they based the decision on the "belief that the normalized earnings-multiple valuation currently in place is insufficiently excessive to warrant a more aggressively negative investment posture."
While they don't have a formal price target on Shell, they said they felt on a sector average normalized earnings multiple, fair value would probably be from $51 to $53 a share for the ADR.
Citing valuation challenges, the "Hold" rating on Marathon was reiterated, although Benchmark stated that against "a 'peer' group, which we readily acknowledge may not be applicable, the stock is trading at a sizable 40% normalized earnings-multiple discount."
For Shell, they based the decision on the "belief that the normalized earnings-multiple valuation currently in place is insufficiently excessive to warrant a more aggressively negative investment posture."
While they don't have a formal price target on Shell, they said they felt on a sector average normalized earnings multiple, fair value would probably be from $51 to $53 a share for the ADR.
Citing valuation challenges, the "Hold" rating on Marathon was reiterated, although Benchmark stated that against "a 'peer' group, which we readily acknowledge may not be applicable, the stock is trading at a sizable 40% normalized earnings-multiple discount."
Friday, August 6, 2010
Shell (NYSE:RDS-A) Execs' Wife Charged with Murdering Their 3 Children
Face of Mass-murderer
The wife of Royal Dutch Shell (NYSE: RDS-A) executive, Pasquale Riggi, was charged with brutally murdering their 3 children, stabbing them to death before apparently trying to hide the evidence by starting a fire.
Theresa Riggi, 46, reportedly jumped or fell from the upper story of the house she was staying at, where she was said to be in serious but stable condition.
Pasquale Riggi and his wife were in the middle of a divorce and fighting for custody of the children. Now we know who should have gotten them.
A fire in the home caused the fire department to go to the scene, where the grizzly murders were discovered.
Victims of the mother included twins Augustino and Gianluca, who were eight years old, and their sister Cecilia, who was five years old.
Theresa Riggi didn't show up for a scheduled hearing this week, causing the judge in the case to be concerned over the safety of the children from the mother. The judge was right, but unfortunately they couldn't find them before the murders.
The judge had ruled that social workers should step in to supervise the children until the divorce was settled. The mother of Riggi appeared to make an excuse for her actions by saying she "snapped" when that decision was made.
The father, Pasquale Riggi, said, "Our family is struggling to come to terms with the immense and tragic loss of three beautiful children."
Thursday, July 29, 2010
Shell (NYSE:RDS-A) Earnings Up on Oil Prices, Increased Production
Royal Dutch Shell Plc (NYSE:RDS-A) had a strong quarter, led by higher oil prices and a solid production performance which exceeded expectations.
Earnings increased to $4.21 billion, beating street estimates of $4.08 billion. Last year earnings for the quarter stood at $3.82 billion.
Gas and oil production on average increased by 3.11 barrels of oil equivalent a day, a five percent rise. Liquefied-natural-gas sales volumes were up 34% over last year in the same quarter.
Like their major competitors, Shell is increasing its exposure to natural gas, with a goal increasing it to slightly over 50 percent of total production by 2012.
Costs for the quarter beat target goals, coming in at $3.5 billion, a 15 percent gain over projections.
CEO Peter Voser, said the continues on its strategy of divesting of non-core assets, with a goal of increasing sales to $8 billion through 2011.
Approximately 40 percent of capital spending over the next several years will target the Asia Pacific region.
The Obama, Democrat oil moratorium in the Gulf of Mexico, has the most drastic effects on Shell, which has the most oil rigs affected by the drilling ban.
Chief Financial Officer Simon Henry said to investors he estimates a cost of $200 million after taxes for the full year.
With seven rigs shut down during the BP (NYSE:BP) Gulf crisis, Henry said they had a charge of $56 million for the second quarter. Voser has hinted he may attempt to get claim the capital from BP.
Earnings increased to $4.21 billion, beating street estimates of $4.08 billion. Last year earnings for the quarter stood at $3.82 billion.
Gas and oil production on average increased by 3.11 barrels of oil equivalent a day, a five percent rise. Liquefied-natural-gas sales volumes were up 34% over last year in the same quarter.
Like their major competitors, Shell is increasing its exposure to natural gas, with a goal increasing it to slightly over 50 percent of total production by 2012.
Costs for the quarter beat target goals, coming in at $3.5 billion, a 15 percent gain over projections.
CEO Peter Voser, said the continues on its strategy of divesting of non-core assets, with a goal of increasing sales to $8 billion through 2011.
Approximately 40 percent of capital spending over the next several years will target the Asia Pacific region.
The Obama, Democrat oil moratorium in the Gulf of Mexico, has the most drastic effects on Shell, which has the most oil rigs affected by the drilling ban.
Chief Financial Officer Simon Henry said to investors he estimates a cost of $200 million after taxes for the full year.
With seven rigs shut down during the BP (NYSE:BP) Gulf crisis, Henry said they had a charge of $56 million for the second quarter. Voser has hinted he may attempt to get claim the capital from BP.
Friday, July 23, 2010
BP (NYSE:BP), Exxon (NYSE:XOM), Anadarko (NYSE:APC), Shell (NYSE:RDS-a), Chevron (NYSE:CVX), Marathon Oil (NYSE:MRO) Pulling Workers from Gulf
With Tropical Storm Bonnie due to hit the Gulf region Saturday, BP (NYSE:BP), Exxon (NYSE:XOM), Anadarko (NYSE:APC), Shell (NYSE:RDS-a), Chevron (NYSE:CVX) and Marathon Oil (NYSE:MRO) are pulling all non-essential workers from the area.
In the case of BP, that will interrupt the drilling of the relief well, which is close to being completed, and operations to permanently seal the Macando oil well near at hand.
The containment cap will remain in place, although monitoring of it will be put on hold. It seems to have held solidly, and shouldn't pose a problem while the storm passes through the area.
If it picks up in strength, which is possible when it hits the warmer waters, more workers could be evacuated from the Gulf.
In the case of BP, that will interrupt the drilling of the relief well, which is close to being completed, and operations to permanently seal the Macando oil well near at hand.
The containment cap will remain in place, although monitoring of it will be put on hold. It seems to have held solidly, and shouldn't pose a problem while the storm passes through the area.
If it picks up in strength, which is possible when it hits the warmer waters, more workers could be evacuated from the Gulf.
Thursday, July 22, 2010
Exxon (NYSE:XOM), Shell (NYSE:RDS-A), Chevron (NYSE:CVX), ConocoPhillips (NYSE:COP) Developing Rapid-response Deployment System
Exxon Mobil (NYSE:XOM), Chevron Corp. (NYSE:CVX), ConocoPhillips (NYSE:COP) and Royal Dutch Shell (NYSE:RDS-A) announced they are working together to develop a rapid-response system to combat any future oil spills.
The four companies are contributing $250 million each toward the $1 billion project, which will be able to be used at depths up to 10,000 feet, and capture or contain up to 100,000 barrels a day; something that would have stopped the BP (NYSE:BP) oil spill from spreading across the Gulf.
Alan Jeffers, an Exxon spokesman, said this about the new effort, “Exxon Mobil is taking the lead on the engineering construction phase, but the plan is to set up a non-profit organization that will ultimately manage this. It’s still in the development stages, but we’re going to ask others to join and those who choose not to join can have access to the equipment via commercial arrangements.”
The new organization created from the effort will be non-profit, and will be called the Marine Well Containment Co.
It isn't called a rapid-response system for nothing, as it'll be able to be deployed within a period of 24 hours.
Engineers from the four companies mentioned above are working on developing the system.
The four companies are contributing $250 million each toward the $1 billion project, which will be able to be used at depths up to 10,000 feet, and capture or contain up to 100,000 barrels a day; something that would have stopped the BP (NYSE:BP) oil spill from spreading across the Gulf.
Alan Jeffers, an Exxon spokesman, said this about the new effort, “Exxon Mobil is taking the lead on the engineering construction phase, but the plan is to set up a non-profit organization that will ultimately manage this. It’s still in the development stages, but we’re going to ask others to join and those who choose not to join can have access to the equipment via commercial arrangements.”
The new organization created from the effort will be non-profit, and will be called the Marine Well Containment Co.
It isn't called a rapid-response system for nothing, as it'll be able to be deployed within a period of 24 hours.
Engineers from the four companies mentioned above are working on developing the system.
Tuesday, June 29, 2010
Exxon (NYSE:XOM), Shell (NYSE:RDS-A) Could Make BP (NYSE:BP) Bid Says JPMorgan (NYSE:JPM)
Exxon Mobil Corp. (NYSE:XOM) and Royal Dutch Shell (NYSE:RDS-A) could consider acquiring BP (NYSE:BP) in the future, according to Fred Lucas, an analyst for JPMorgan (NYSE:JPM).
BP could be prime for being taken over after losing over $100 billion in market value since the accident on the Deepwater Horizon in the Gulf of Mexico.
If a company could buy out BP at a highly favorable rate, it could largely negate the liabilities the company will face in the years ahead.
Of the two companies with the potential and expertise to buy out BP, Exxon Mobil is the stronger of the two, and could make an offer of shares and cash for the company.
Lucas also said they could spin off the downstream assets of BP, valued at about $50 billion.
Although this is a distinct possibility, Lucas did write it under a potential future scenario and not anything he's heard.
BP could be prime for being taken over after losing over $100 billion in market value since the accident on the Deepwater Horizon in the Gulf of Mexico.
If a company could buy out BP at a highly favorable rate, it could largely negate the liabilities the company will face in the years ahead.
Of the two companies with the potential and expertise to buy out BP, Exxon Mobil is the stronger of the two, and could make an offer of shares and cash for the company.
Lucas also said they could spin off the downstream assets of BP, valued at about $50 billion.
Although this is a distinct possibility, Lucas did write it under a potential future scenario and not anything he's heard.
Friday, May 28, 2010
Marathon (NYSE:MRO), Anadarko (NYSE:APC), Shell (NYSE:RDS-A), Most Exposed to Gulf Ban
As the market digests the move by Barack Obama to ban drilling at 33 locations in the Gulf of Mexico, those companies most affected by the ban are Marathon (NYSE:MRO), Anadarko (NYSE:APC), Shell (NYSE:RDS-A), along with Eni SpA, which are based in Rome.
Shell leads the way of those with most exposure to the drilling ban, with five wells affected, while Marathon, Anadarko, and Eni SpA each have three. That's according to an official at the Minerals Management Service who asked not to be named.
Shell, Marathon and Anadarko were all hit hard as the market found out about their exposure, with Anadarko taking the brunt of it with a drop of $3.24 a share, or 5.83 percent, ending the session at $52.33; Marathon lost $0.55 a share, or 1.74 percent, falling to $31.09 on the day; and Shell wasn't far behind them, losing $0.61 a share, or 1.15 percent, closing at $52.40.
Anadarko has more exposure through it 25 percent non-operating ownership in the Deepwater Horizon, which is lying at the bottom of the ocean.
Shell leads the way of those with most exposure to the drilling ban, with five wells affected, while Marathon, Anadarko, and Eni SpA each have three. That's according to an official at the Minerals Management Service who asked not to be named.
Shell, Marathon and Anadarko were all hit hard as the market found out about their exposure, with Anadarko taking the brunt of it with a drop of $3.24 a share, or 5.83 percent, ending the session at $52.33; Marathon lost $0.55 a share, or 1.74 percent, falling to $31.09 on the day; and Shell wasn't far behind them, losing $0.61 a share, or 1.15 percent, closing at $52.40.
Anadarko has more exposure through it 25 percent non-operating ownership in the Deepwater Horizon, which is lying at the bottom of the ocean.
Shell (NYSE:RDS-A) Spends $4.7 Billion for East Resources
Royal Dutch Shell PLC (NYSE:RDS-A) has laid out $4.7 billion to acquire privately held East Resources in order to get their hands on the 1.25 million acres in Marcellus Shale controlled by East Resources
"We are enhancing our world-wide Upstream portfolio for profitable growth, through exploration and focused acquisitions, and through divestment of non-core positions,” Shell's CEO Peter Voser said. “These acreage additions form part of an on-going strategy, which also includes divestments, with an objective to grow and to upgrade the quality of Shell's North America tight gas portfolio."
"East Resources' management have built an excellent organization, with high quality assets in the Marcellus, which we are pleased to have as our centrepiece as we enter the premier shale gas play in the north east US,” Voser added. “The opportunity now is to consolidate our tight gas portfolio, divest from non-core positions across North America, and to invest for profitable growth, by deploying Shell's technology and capabilities on a large scale."
An additional 1.3 million tight gas acreage will in their North American portfolio, which now stands at an estimated 2.7 billion barrels of oil and equivalents.
As part of the deal, Shell will also get investment companies Kohlberg Kravis Roberts & Co. and Jefferies & Company.
Regulators will have to approve of the all-cash deal before it is finalized.
"We are enhancing our world-wide Upstream portfolio for profitable growth, through exploration and focused acquisitions, and through divestment of non-core positions,” Shell's CEO Peter Voser said. “These acreage additions form part of an on-going strategy, which also includes divestments, with an objective to grow and to upgrade the quality of Shell's North America tight gas portfolio."
"East Resources' management have built an excellent organization, with high quality assets in the Marcellus, which we are pleased to have as our centrepiece as we enter the premier shale gas play in the north east US,” Voser added. “The opportunity now is to consolidate our tight gas portfolio, divest from non-core positions across North America, and to invest for profitable growth, by deploying Shell's technology and capabilities on a large scale."
An additional 1.3 million tight gas acreage will in their North American portfolio, which now stands at an estimated 2.7 billion barrels of oil and equivalents.
As part of the deal, Shell will also get investment companies Kohlberg Kravis Roberts & Co. and Jefferies & Company.
Regulators will have to approve of the all-cash deal before it is finalized.
Friday, May 21, 2010
Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX), Royal Dutch Shell (NYSE: RDS-A) Recommend Safety Changes for Offshore Drilling
Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX) and Royal Dutch Shell (NYSE:RDS-A) are part of a task force brought together to take a look at ways they can make changes to offshore drilling to make it safer, in the light of the oil spill in the gulf from the explosion on the Deepwater Horizon oil rig.
Also partaking in the discussions were BP (NYSE:BP) (LON:BP), Transocean (NYSE:RIG), and Halliburton (NYSE:HAL), all which had a connection to the failed rig.
Some of the recommendations from the discussions include deploying redundant barriers against gas flow before the heavy drilling fluid is removed; increased testing of blowout preventers to be be sure they can drill through the pipe to shut off the well in emergency situations; and running a negative pressure test to ensure the barriers in place are working before the heavy drilling fluid is taken out.
The companies made it clear their recommendations are a criticism of BP and the other companies, and even if these recommended procedures were in place it wouldn't necessarily have stopped what happened on the Deepwater Horizon.
Also partaking in the discussions were BP (NYSE:BP) (LON:BP), Transocean (NYSE:RIG), and Halliburton (NYSE:HAL), all which had a connection to the failed rig.
Some of the recommendations from the discussions include deploying redundant barriers against gas flow before the heavy drilling fluid is removed; increased testing of blowout preventers to be be sure they can drill through the pipe to shut off the well in emergency situations; and running a negative pressure test to ensure the barriers in place are working before the heavy drilling fluid is taken out.
The companies made it clear their recommendations are a criticism of BP and the other companies, and even if these recommended procedures were in place it wouldn't necessarily have stopped what happened on the Deepwater Horizon.
Thursday, May 6, 2010
Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX), ConocoPhillips (NYSE:COP) Bidding on Iraq Gas Fields
Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX) and ConocoPhillips (NYSE:COP), among a number of other energy companies, have been invited to bid on licenses for three major gas fields in Iraq; the Akkas field, the Mansouriya field and the Siba field.
Iraq is rated as the 11th in size for natural gas reserves, with an estimated 3.15 trillion cubic meters. Production at this time stands at 1.64 billion cubic feet a day.
The gas fields are being offered for auction because of the shortage of natural gas needed to run the power generators in Iraq, which at this time are providing less that half of what the country needs.
Other companies among the 45 invited to the auction include BP PLC (LSE:BP) (NYSE: BP), Occidental Petroleum (NYSE:OXY), Royal Dutch Shell (NYSE: RDS-A) and Total SA (NYSE:TOT).
Iraq is rated as the 11th in size for natural gas reserves, with an estimated 3.15 trillion cubic meters. Production at this time stands at 1.64 billion cubic feet a day.
The gas fields are being offered for auction because of the shortage of natural gas needed to run the power generators in Iraq, which at this time are providing less that half of what the country needs.
Other companies among the 45 invited to the auction include BP PLC (LSE:BP) (NYSE: BP), Occidental Petroleum (NYSE:OXY), Royal Dutch Shell (NYSE: RDS-A) and Total SA (NYSE:TOT).
Monday, May 3, 2010
BP (NYSE:BP) Chevron (NYSE:CVX) Shell (NYSE:RDS.A) Have Most Exposure in Gulf
BP (NYSE:BP) Chevron (NYSE:CVX) and Shell (NYSE:RDS.A) have the most exposure in the Gulf of Mexico when considering the impact of the explosion of the Deepwater Horizon oil rig and the fallout from it and how it will effect the financials in the future.
According to Deutsche Bank analyst Paul Sankey, the exposure of BP is the most at $37 billion, with Shell and Chevron behind them.
Costs will inevitably rise as a consequence of the disaster in that particular region, and while all companies will ultimately bear the brunt of those costs, these three oil companies will share the most.
Some of the expected cost increases could be increased royalties and/or taxes and more costly safety requirements.
BP will be the most effected, and it will cost them more to drill the area in the future while probably receiving less return on the oil.
According to Deutsche Bank analyst Paul Sankey, the exposure of BP is the most at $37 billion, with Shell and Chevron behind them.
Costs will inevitably rise as a consequence of the disaster in that particular region, and while all companies will ultimately bear the brunt of those costs, these three oil companies will share the most.
Some of the expected cost increases could be increased royalties and/or taxes and more costly safety requirements.
BP will be the most effected, and it will cost them more to drill the area in the future while probably receiving less return on the oil.
Monday, March 29, 2010
Shell (NYSE:RDS.A) Increases Natural Gas Stake in Texas
Royal Dutch Shell Natural Gas Holdings
Royal Dutch Shell (NYSE:RDS.A) has been increasing its position in a natural gas field in Texas to enlarge their position in the North American gas business, which has great promise for decades ahead.
The location of the Texas natural gas field is near San Antonio, and is called Eagle Ford. Shell leased another 150,000 acres in the region not too long ago in anticipation of increasing demand for the commodity.
Shell has been working the last couple of years to build up their portfolio in North America, and now have 2.4 million acres of land which holds up to 21 trillion cubic feet of natural gas.
Shell also has significant holdings in the U.S. Rockies and Louisiana, as well as in British Columbia and Alberta, Canada.
Shale gas could end up accounting for half of all U.S. natural gas supplied by 2035.
Royal Dutch Shell (NYSE:RDS.A) has been increasing its position in a natural gas field in Texas to enlarge their position in the North American gas business, which has great promise for decades ahead.
The location of the Texas natural gas field is near San Antonio, and is called Eagle Ford. Shell leased another 150,000 acres in the region not too long ago in anticipation of increasing demand for the commodity.
Shell has been working the last couple of years to build up their portfolio in North America, and now have 2.4 million acres of land which holds up to 21 trillion cubic feet of natural gas.
Shell also has significant holdings in the U.S. Rockies and Louisiana, as well as in British Columbia and Alberta, Canada.
Shale gas could end up accounting for half of all U.S. natural gas supplied by 2035.
Tuesday, March 23, 2010
BG Group (LSE:BG) $80 Billion Deal with China National Offshore Oil Corp
BG Group in Huge Natural Gas Deal with China
BG Group (LSE:BG) is about to sign a major deal worth from $50 billion to up to $80 billion with China National Offshore Oil Corp for a liquified natural gas agreement.
If prices are close to last years' prices, the deal would be close to the higher end of $80 billion.
This is why Australia and China have been working hard behind the scenes to patch up their relationships, as this follows a deal with PetroChina and Royal Dutch Shell for Arrow Energy, also based in Australia for $3.4 billion. That was for coal-seam gas.
BG Group in Huge Natural Gas Deal with China
BG Group (LSE:BG) is about to sign a major deal worth from $50 billion to up to $80 billion with China National Offshore Oil Corp for a liquified natural gas agreement.
If prices are close to last years' prices, the deal would be close to the higher end of $80 billion.
This is why Australia and China have been working hard behind the scenes to patch up their relationships, as this follows a deal with PetroChina and Royal Dutch Shell for Arrow Energy, also based in Australia for $3.4 billion. That was for coal-seam gas.
BG Group in Huge Natural Gas Deal with China
PetroChina (NYSE:PTR) Royal Dutch Shell (NYSE:RDS-B) Acquire Arrow Energy
PetroChina and Royal Dutch Shell Acquire Arrow Energy
After increasing their offer by 6 percent, PetroChina (NYSE:PTR) and Royal Dutch Shell (NYSE:RDS-B) agreed to acquire Arrow Energy for $3.1 billion.
This is the first entry by a Chinese company into the natural gas trapped in the coal of Queensland, Australia. Arrow owns the coal-seam gas resources reserves in the region.
The price is considered a premium of 35 percent over the original pre-announcement close.
Australian regulators will have to approve the deal, but there's no indication that will be a problem. Shareholders will also have to vote to approve the deal, which was recommended by the board of the company to accept.
After increasing their offer by 6 percent, PetroChina (NYSE:PTR) and Royal Dutch Shell (NYSE:RDS-B) agreed to acquire Arrow Energy for $3.1 billion.
This is the first entry by a Chinese company into the natural gas trapped in the coal of Queensland, Australia. Arrow owns the coal-seam gas resources reserves in the region.
The price is considered a premium of 35 percent over the original pre-announcement close.
Australian regulators will have to approve the deal, but there's no indication that will be a problem. Shareholders will also have to vote to approve the deal, which was recommended by the board of the company to accept.
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