Oil stockpiles in the U.S. plunged 7.2 million barrels last week, according to the American Petroleum Institute, pushing up oil prices for the second day in a row.
The drop in inventories was the most occurring in the U.S. in five weeks.
Hurricane Isaac, according to a report from the Energy Department, could result in a decline of 4.95 million barrels. Just under 50 percent of oil production and 26 percent of natural gas production remains shut down as a result of the storm.
As for gasoline stockpiles, it was down 2.3 million barrels last week, said the American Petroleum Institute. Some analysts believe it's close to being 3 million barrels lower.
Oil for October delivery climbed as high as $96.06 a barrel on the New York Mercantile Exchange, a gain of 70 cents. Brent oil for October dropped $1.09, or 1 percent, to $113.09 a barrel on the ICE Futures Europe exchange, based in London.
Exxon Mobil (XOM) closed Wednesday at $87.33, gaining $0.21, or 0.24 percent. ConocoPhillips (COP) ended the session at $54.87, falling 1.34, or 2.38 percent. Chevron (CVX) closed at $110.77, down $0.45, or 0.40 percent.
Showing posts with label Chevron. Show all posts
Showing posts with label Chevron. Show all posts
Wednesday, September 5, 2012
Wednesday, July 11, 2012
Chevron (CVX) Says Q2 Profits Will Surpass Prior Quarter
Profits for the second quarter will surpass the first quarter, according to Chevron Corp. (CVX), citing better margins from its refining operations.
Refining margins climbed higher than the previous quarter, rising to $4 a barrel to $24.89, while West Coast margins rose to $21.32 a barrel
Oil and gas production in the U.S. also improved for the quarter, jumping an average of 665,000 barrels per day during April and May, up from the 651,000 barrels per day average in the first quarter. The increase was largely a result of increased production in the Gulf of Mexico.
Globally oil equivalent production dropped from 2.63 million bpd in the first quarter to 2.62 million bpd in the latest quarter. That is falling below it projected average for 2012 of 2.68 million bpd.
The declining global production was the consequence of the ongoing "shut-in of production at the Frade field in Brazil and planned maintenance in Kazakhstan contributed to the majority of the decline," said the energy giant.
A report will be released next week by Brazil's oil regulator on the causes of the oil spill which shut down Frade since March. That lowered Chevron's production by 30,000 bpd.
Chevron closed Wednesday at $104.85, up $0.97, or 0.93 percent.
Refining margins climbed higher than the previous quarter, rising to $4 a barrel to $24.89, while West Coast margins rose to $21.32 a barrel
Oil and gas production in the U.S. also improved for the quarter, jumping an average of 665,000 barrels per day during April and May, up from the 651,000 barrels per day average in the first quarter. The increase was largely a result of increased production in the Gulf of Mexico.
Globally oil equivalent production dropped from 2.63 million bpd in the first quarter to 2.62 million bpd in the latest quarter. That is falling below it projected average for 2012 of 2.68 million bpd.
The declining global production was the consequence of the ongoing "shut-in of production at the Frade field in Brazil and planned maintenance in Kazakhstan contributed to the majority of the decline," said the energy giant.
A report will be released next week by Brazil's oil regulator on the causes of the oil spill which shut down Frade since March. That lowered Chevron's production by 30,000 bpd.
Chevron closed Wednesday at $104.85, up $0.97, or 0.93 percent.
Friday, June 1, 2012
Exxon (XOM) Receives Approval for Hebron
Exxon Mobil (NYSE: XOM) received approval from Labrador Offshore Petroleum Board and Newfoundland to proceed with plans to develop the Hebron oil field. The field is located off Newfoundland, Canada.
Partners with Exxon in the endeavor include Chevron (NYSE: CVX), with a 26.7 percent interest; Suncor Energy (NYSE: SU), with 22.7 percent; and Statoil ASA (NYSE: STO), with 9.7 percent. Exxon has a 36 percent stake in the field.
Locally, Energy Corporation of Labrador and Newfoundland has a 4.9 percent stake in the venture.
Production at the field is expected to average approximately 150,000 barrels a day, although it could rise as high as 180,000 barrels a day.
There are an estimate 707 million barrels of oil located in the Hebron oil field.
Partners with Exxon in the endeavor include Chevron (NYSE: CVX), with a 26.7 percent interest; Suncor Energy (NYSE: SU), with 22.7 percent; and Statoil ASA (NYSE: STO), with 9.7 percent. Exxon has a 36 percent stake in the field.
Locally, Energy Corporation of Labrador and Newfoundland has a 4.9 percent stake in the venture.
Production at the field is expected to average approximately 150,000 barrels a day, although it could rise as high as 180,000 barrels a day.
There are an estimate 707 million barrels of oil located in the Hebron oil field.
Monday, May 21, 2012
Chesapeake (CHK) (XOM) (CVX) Climb on Oil Prices, Natural Gas Demand
A number of energy companies enjoyed moves into positive territory today, including Chesapeake Energy (CHK), Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX), which were all up on stronger oil prices and a perceived increase in demand for natural gas as a streak of warmer weather approaches.
Shares of energy companies have been getting hit hard as of late, with 12 of the last 13 trading session has shares in the companies down.
The NYSE Arca Natural Gas Index, the NYSE Arca Oil Index, and the Philadelphia Oil Service Index were all trading positive in mid-day action.
Electrical utilities have been changing from coal use to cheaper natural gas, which has helped the beleaguered fuel source get some strength to it.
Oil prices rose to over $92 a barrel, jumping $.62 a barrel a little before noon.
BP (NYSE: BP), Nabors Industries (NYSE: NBR) and Valero Energy Corp. (NYSE: VLO) were all trading much stronger in response to positive signals.
Shares of energy companies have been getting hit hard as of late, with 12 of the last 13 trading session has shares in the companies down.
The NYSE Arca Natural Gas Index, the NYSE Arca Oil Index, and the Philadelphia Oil Service Index were all trading positive in mid-day action.
Electrical utilities have been changing from coal use to cheaper natural gas, which has helped the beleaguered fuel source get some strength to it.
Oil prices rose to over $92 a barrel, jumping $.62 a barrel a little before noon.
BP (NYSE: BP), Nabors Industries (NYSE: NBR) and Valero Energy Corp. (NYSE: VLO) were all trading much stronger in response to positive signals.
Friday, January 13, 2012
Chevron (CVX) (UPL) (EXC) (SO) (IMO) (OIS) Ratings, Price Targets
Chevron (NYSE: CVX), Ultra Petroleum (NYSE: UPL), Exelon (NYSE: EXC), Southern (NYSE: SO), Imperial Oil (NYSE: IMO) and Oil States International (NYSE: OIS) ratings and price targets.
Ultra Petroleum (UPL) was downgraded by Stifel Nicolaus from a “Buy” rating to a “Hold” rating.
Chevron (CVX) had its price target raised by Oppenheimer (NYSE:OPY) from $120.00 to $130.00. They have an “Outperform” rating on the company.
Exelon (NYSE: EXC) had its price target lowered by Wunderlich to $45.00. They have a “Buy” rating on the company.
Southern (SO) was downgraded by JPMorgan Chase & Co. (NYSE:JPM) from a “Neutral” rating to an “Underweight” rating.
Imperial Oil (IMO) was downgraded by UBS AG (NYSE:UBS) from a “Buy” rating to a “Neutral” rating.
Oil States International (OIS) had its “Buy” rating reiterated by Sterne Agee.
Ultra Petroleum (UPL) was downgraded by Stifel Nicolaus from a “Buy” rating to a “Hold” rating.
Chevron (CVX) had its price target raised by Oppenheimer (NYSE:OPY) from $120.00 to $130.00. They have an “Outperform” rating on the company.
Exelon (NYSE: EXC) had its price target lowered by Wunderlich to $45.00. They have a “Buy” rating on the company.
Southern (SO) was downgraded by JPMorgan Chase & Co. (NYSE:JPM) from a “Neutral” rating to an “Underweight” rating.
Imperial Oil (IMO) was downgraded by UBS AG (NYSE:UBS) from a “Buy” rating to a “Neutral” rating.
Oil States International (OIS) had its “Buy” rating reiterated by Sterne Agee.
Thursday, January 12, 2012
Oasis (OAS) (TSCO) (EIX) (CVX) (BEN) (SXC) Ratings, Price Targets
Oasis Petroleum Inc. (NYSE: OAS), Tractor Supply Co. (NASDAQ: TSCO), Edison International (NYSE: EIX), Chevron (NYSE: CVX), Franklin Resources, Inc. (NYSE: BEN) and Suncoke Energy Inc. (NYSE: SXC) ratings and price targets.
Tractor Supply Co. (TSCO) had its “Buy” rating reiterated by Bank of America (NYSE:BAC).
Edison International (EIX) had its price target raised by Ticonderoga from $51.00 to $54.00. They have a “Buy” rating on the company.
Chevron (CVX) had its price target raised by Jefferies Group (NYSE:JEF) to $125.00. They have a “Hold” rating on the company.
UBS AG (NYSE:UBS) initiated coverage on Franklin Resources, Inc. (BEN). They placed a “Neutral” rating and a price target of $104.00 on the company.
Wells Fargo & Co. (NYSE:WFC) initiated coverage on Suncoke Energy Inc. (SXC). They placed an “Outperform” rating on the company.
Canaccord Genuity downgraded Oasis Petroleum Inc. (OAS) from a "Buy" rating to a "Hold" rating. They have a price target of $32.00 on the company.
Tractor Supply Co. (TSCO) had its “Buy” rating reiterated by Bank of America (NYSE:BAC).
Edison International (EIX) had its price target raised by Ticonderoga from $51.00 to $54.00. They have a “Buy” rating on the company.
Chevron (CVX) had its price target raised by Jefferies Group (NYSE:JEF) to $125.00. They have a “Hold” rating on the company.
UBS AG (NYSE:UBS) initiated coverage on Franklin Resources, Inc. (BEN). They placed a “Neutral” rating and a price target of $104.00 on the company.
Wells Fargo & Co. (NYSE:WFC) initiated coverage on Suncoke Energy Inc. (SXC). They placed an “Outperform” rating on the company.
Canaccord Genuity downgraded Oasis Petroleum Inc. (OAS) from a "Buy" rating to a "Hold" rating. They have a price target of $32.00 on the company.
Thursday, May 26, 2011
Chevron's (CVX) Downstream Business Unimpressive
The fact that Chevron (NYSE:CVX) had its "Buy" rating from Jefferies (NYSE:JEF) reiterated on them today isn't because of its downstream refinery business, as margins are anemic in comparison to its upstream oil and natural gas production business.
That's not to say there isn't substantial revenue in the refined products business of Chevron, as the company could have sold as much as $100 billion in refined products in 2010, although it doesn't release those figures.
Among refinded products sold are gasoline, jet fuel, gas oil and kerosene, among other products.
Estimates are refined products make up about 8 percent of the overall stock value of Chevron, mostly because of the low margin business it is. Margins have been at about 2.33 percent in the refined business for the energy giant for 2010.
In contrast, the oil and natural gas production generates margins of 53 percent.
The leading refined product sold by far was gasoline, which accounted for close to $39 billion in revenue in the segment.
Among Chevron's major competitors are BP (NYSE:BP), Exxon Mobil (NYSE:XOM), Halliburton (NYSE:HAL) and ConocoPhillips (NYSE:COP).
Chevron was trading at $103.57, up $0.32, or 0.31 percent, as of 2:05 PM EDT.
That's not to say there isn't substantial revenue in the refined products business of Chevron, as the company could have sold as much as $100 billion in refined products in 2010, although it doesn't release those figures.
Among refinded products sold are gasoline, jet fuel, gas oil and kerosene, among other products.
Estimates are refined products make up about 8 percent of the overall stock value of Chevron, mostly because of the low margin business it is. Margins have been at about 2.33 percent in the refined business for the energy giant for 2010.
In contrast, the oil and natural gas production generates margins of 53 percent.
The leading refined product sold by far was gasoline, which accounted for close to $39 billion in revenue in the segment.
Among Chevron's major competitors are BP (NYSE:BP), Exxon Mobil (NYSE:XOM), Halliburton (NYSE:HAL) and ConocoPhillips (NYSE:COP).
Chevron was trading at $103.57, up $0.32, or 0.31 percent, as of 2:05 PM EDT.
Wednesday, November 10, 2010
Chevron (NYSE:CVX) Acquiring Atlas Energy (NASDAQ:ATLS) for $4.3 Billion
An agreement between Chevron Corporation (NYSE:CVX) and Atlas Energy, Inc. (NASDAQ:ATLS) was announced Tuesday where Chevron will acquire Atlas for $4.3 billion. The amount paid for Atlas will include debt.
The offer will equal a value of $43.34 a share for Atlas shareholders, a premium of 37 percent over the 'November 8' close of Atlas.
Shareholders in Atlas will receive $38.25 in cash for each share they own plus a pro-rata share of a distribution of more than 41 million units of Atlas Pipeline Holdings, L.P. (NYSE:AHD), valued at $5.09 each share.
"All of our shareholders should benefit from this sale and upon its completion, Atlas will have achieved a return of well over 800% since its initial public offering less than 6 1/2 years ago. All of our employees and shareholders should know that, through Chevron’s acquisition of Atlas Energy, we will be bringing into the Marcellus Shale one of the world’s largest corporations, an energy company second to none in its skills and dedication to excellence. This augurs well for customers and suppliers, our joint venture partners, those of our employees who will be continuing with Chevron, the local communities in which we have been active – and our nation, for all of whom Chevron’s involvement in development of this resource will be of enormous benefit," said Atlas Energy Chairman and CEO Edward E. Cohen.
Goldman Sachs (NYSE:GS) advised Chevron on the deal and Jefferies & Company, Inc. was lead advisor for Atlas.
The offer will equal a value of $43.34 a share for Atlas shareholders, a premium of 37 percent over the 'November 8' close of Atlas.
Shareholders in Atlas will receive $38.25 in cash for each share they own plus a pro-rata share of a distribution of more than 41 million units of Atlas Pipeline Holdings, L.P. (NYSE:AHD), valued at $5.09 each share.
"All of our shareholders should benefit from this sale and upon its completion, Atlas will have achieved a return of well over 800% since its initial public offering less than 6 1/2 years ago. All of our employees and shareholders should know that, through Chevron’s acquisition of Atlas Energy, we will be bringing into the Marcellus Shale one of the world’s largest corporations, an energy company second to none in its skills and dedication to excellence. This augurs well for customers and suppliers, our joint venture partners, those of our employees who will be continuing with Chevron, the local communities in which we have been active – and our nation, for all of whom Chevron’s involvement in development of this resource will be of enormous benefit," said Atlas Energy Chairman and CEO Edward E. Cohen.
Goldman Sachs (NYSE:GS) advised Chevron on the deal and Jefferies & Company, Inc. was lead advisor for Atlas.
Friday, November 5, 2010
Halliburton (NYSE:HAL), Apache Corp (NYSE:APA), Chevron (NYSE:CVX) Up on Rising Oil Prices
Halliburton (NYSE:HAL), Apache Corp (NYSE:APA), Chevron (NYSE:CVX) were all moving up Thursday on the inflationary measures announced by the Federal Reserve through QE2, which pushed the overall commodity market up, along with companies within each sector, including the oil producers.
Commodity prices in general increased, including silver, which increased to over $26 an ounce. Gold prices surged to all-time record highs again, nearing the $1,400 an ounce mark. Aluminum increased to its highest levels since April, and silver went over $26 an ounce.
Light, sweet crude for December delivery settled the trading day up $1.80 a barrel on the New York Mercantile Exchange at $86.49.
Halliburton closed at $32.85 Thursday, rising $1.16, or 3.66 percent. Apache Corp surged to close at $107.79, gaining $5.21, or 5.08 percent. Chevron was up to $85.14 at the end of the trading session, rising by $2.44, or 2.95 percent.
Commodity prices in general increased, including silver, which increased to over $26 an ounce. Gold prices surged to all-time record highs again, nearing the $1,400 an ounce mark. Aluminum increased to its highest levels since April, and silver went over $26 an ounce.
Light, sweet crude for December delivery settled the trading day up $1.80 a barrel on the New York Mercantile Exchange at $86.49.
Halliburton closed at $32.85 Thursday, rising $1.16, or 3.66 percent. Apache Corp surged to close at $107.79, gaining $5.21, or 5.08 percent. Chevron was up to $85.14 at the end of the trading session, rising by $2.44, or 2.95 percent.
Tuesday, November 2, 2010
BP (NYSE:BP) Results Lag Exxon (NYSE:XOM), Marathon (NYSE:MRO), Chevron (NYSE:CVX)
While higher oil prices helped major oil companies like Exxon (NYSE:XOM), Marathon (NYSE:MRO), Chevron (NYSE:CVX) to solid quarters, although Chevron was weaker than expected, it wasn't able to help BP (NYSE:BP) overcome continuing charges related to expenses incurred from the Gulf of Mexico oil spill.
Still, it was good news for BP in that they generated a profit for the quarter soon after permanently plugging the Macondo oil well.
After taking another charge of $7.7 billion, it brings the total estimated costs of the BP oil spill to almost $40 billion, already exceeding expectations, and will surely rise more going forward.
A significant amount of the financial health of BP will relate to whether or not they're designated as being grossly negligent, which could cost them billions more if they are.
CEO Bob Dudley says he's confident that isn't going to happen.
Earnings per share for the latest quarter reached $0.59, a major improvement over the $5.42 they lost in the second quarter, but obviously falling short of the $1.60 generated last year in the same quarter before the spill.
Still, it was good news for BP in that they generated a profit for the quarter soon after permanently plugging the Macondo oil well.
After taking another charge of $7.7 billion, it brings the total estimated costs of the BP oil spill to almost $40 billion, already exceeding expectations, and will surely rise more going forward.
A significant amount of the financial health of BP will relate to whether or not they're designated as being grossly negligent, which could cost them billions more if they are.
CEO Bob Dudley says he's confident that isn't going to happen.
Earnings per share for the latest quarter reached $0.59, a major improvement over the $5.42 they lost in the second quarter, but obviously falling short of the $1.60 generated last year in the same quarter before the spill.
Chevron (NYSE:CVX) Rebranding Havoline Under Chevron Logo
Chevron (NYSE:CVX) announced Monday they're rebranding Havoline under the Chevron logo by the middle of 2011.
Doug Hinzie, vice president, Americas, Chevron Lubricants, said in a statement, "Moving the Havoline product line under the Chevron family is the natural next step in consolidating our North America lubricants, coolants, additives and chemicals products under one master brand. In 2008, the company began this process by successfully bringing its commercial and industrial product lines under the Chevron master brand. With this move, the Havoline brand will achieve greater visibility, increased retail opportunities, expanded marketing support and the benefits of being part of the Chevron brand, which enjoys a much larger presence than Texaco in North America. This change is one component of our long-term plan to reinforce and grow the Havoline brand - one of the most enduring, respected and valued brands in the lubricant market."
Chevron released disappointing results for the last quarter on Friday, with third-quarter earnings dropping almost 2 percent on currency exchange challenges and the Gulf oil moratorium imposed by the Obama administration.
Doug Hinzie, vice president, Americas, Chevron Lubricants, said in a statement, "Moving the Havoline product line under the Chevron family is the natural next step in consolidating our North America lubricants, coolants, additives and chemicals products under one master brand. In 2008, the company began this process by successfully bringing its commercial and industrial product lines under the Chevron master brand. With this move, the Havoline brand will achieve greater visibility, increased retail opportunities, expanded marketing support and the benefits of being part of the Chevron brand, which enjoys a much larger presence than Texaco in North America. This change is one component of our long-term plan to reinforce and grow the Havoline brand - one of the most enduring, respected and valued brands in the lubricant market."
Chevron released disappointing results for the last quarter on Friday, with third-quarter earnings dropping almost 2 percent on currency exchange challenges and the Gulf oil moratorium imposed by the Obama administration.
Chevron (NYSE:CVX) Ordered to Improve Inspection and Leak Detection Systems in Utah
A summer leak near the University of Utah campus resulted in about 800 barrels of oil spilling into Red Butte Creek for close to 10 hours before Chevron (NYSE:CVX) even found out about it, suggesting their inspection and leak detection system needs to be significantly improved, according to the Transportation Department.
Chevron will reportedly be required to respond to allegations and comply to the order within a 30-day period.
Chevron spokesman Mickey Driver said, “Chevron has not yet received the order. When we do receive the order, we will review the agency findings before making any comments on them.”
The agency said in a statement that the oil giant may have failed to patrol its pipeline rights of way, control corrosion on its system and protect its pipeline from stray electrical currents.
A fine of $423,600 has been proposed by the U.S. Transportation Department.
Chevron will reportedly be required to respond to allegations and comply to the order within a 30-day period.
Chevron spokesman Mickey Driver said, “Chevron has not yet received the order. When we do receive the order, we will review the agency findings before making any comments on them.”
The agency said in a statement that the oil giant may have failed to patrol its pipeline rights of way, control corrosion on its system and protect its pipeline from stray electrical currents.
A fine of $423,600 has been proposed by the U.S. Transportation Department.
Monday, November 1, 2010
Morgan Stanley (NYSE:MS) Lowers Chevron's (NYSE:CVX) Earnings Estimate
Chevron (NYSE:CVX) had its earnings estimate lowered by Morgan Stanley (NYSE:MS) in 2010, although Morgan did maintain their "Overweight" rating on the giant energy company.
For fiscal 2010, earnings per share were downwardly adjusted from $9.53 to $9.29, and for fiscal 2011, earnings were upwardly adjusted from $9.60 to $9.72.
Chevron was trading at just above level at 1:40 PM EDT, rising to $82.76, gaining $0.16, or 0.19 percent.
For fiscal 2010, earnings per share were downwardly adjusted from $9.53 to $9.29, and for fiscal 2011, earnings were upwardly adjusted from $9.60 to $9.72.
Chevron was trading at just above level at 1:40 PM EDT, rising to $82.76, gaining $0.16, or 0.19 percent.
Halliburton (NYSE:HAL) Share Price Driven by Headlines in Near Term on BP (NYSE:BP) Cement Job
There is no doubt in the short term that Halliburton (NYSE:HAL) shares will fluctuate based on headlines related to uncertainties surrounding the cement job which was identified as unstable by the oil spill commission investigating the cement mixture used on BP's (NYSE:BP) Macondo well.
As the smoke clears some though, a number of financial institutions consider the risk is small for ancillary companies like Halliburton, and believe will be indemnified in the incident.
Canaccord said, "While not a smoking gun, the findings do put more focus on HAL’s cementing role in the Macondo incident. However, do keep in mind that BP made all final decisions, and an unstable cement test alone does not put liability on HAL. In short, we believe that BP remains operator with full responsibility, and HAL still has indemnification protection, from reservoir pollution or contamination, outside of gross negligence (as stated in its service contract with BP, posted in response to today’s letter)."
"Chevron (NYSE:CVX) will discuss the report at the public hearing on Nov 9. Expect headlines to drive stock near term. Market has generally dismissed significant liability for other third-party contractors involved, such as Transocean (NYSE:RIG) and Cameron (NYSE:CAM), whose operations have also been called into question. In other words, we believe the market has scrutinized third-party liability and contract indemnity over the past 6 months, and has come away anticipating BP to bear the full brunt of financial responsibility."
Halliburton closed Friday at $31.86, gaining $0.18, or 0.57 percent. Canaccord has a price target of $45 on the oil services company.
As the smoke clears some though, a number of financial institutions consider the risk is small for ancillary companies like Halliburton, and believe will be indemnified in the incident.
Canaccord said, "While not a smoking gun, the findings do put more focus on HAL’s cementing role in the Macondo incident. However, do keep in mind that BP made all final decisions, and an unstable cement test alone does not put liability on HAL. In short, we believe that BP remains operator with full responsibility, and HAL still has indemnification protection, from reservoir pollution or contamination, outside of gross negligence (as stated in its service contract with BP, posted in response to today’s letter)."
"Chevron (NYSE:CVX) will discuss the report at the public hearing on Nov 9. Expect headlines to drive stock near term. Market has generally dismissed significant liability for other third-party contractors involved, such as Transocean (NYSE:RIG) and Cameron (NYSE:CAM), whose operations have also been called into question. In other words, we believe the market has scrutinized third-party liability and contract indemnity over the past 6 months, and has come away anticipating BP to bear the full brunt of financial responsibility."
Halliburton closed Friday at $31.86, gaining $0.18, or 0.57 percent. Canaccord has a price target of $45 on the oil services company.
Thursday, October 28, 2010
BP (NYSE:BP) Watches as Rivals Chevron (NYSE:CVX), Exxon (NYSE:XOM) and Shell (NYSE:RDS-A) Push Ahead in Gulf
All BP (NYSE:BP) can do at this time in the Gulf of Mexico is stand on the sidelines and watch as Chevron (NYSE:CVX), Exxon (NYSE:XOM) and Shell (NYSE:RDS-A) move ahead with their attempts to expand their Gulf presence and gain advantage over their rival.
Major companies can now apply for permits now that the oil moratorium has been lifted in the Gulf, and though technically BP could as well, they know at this time it would be a waste of time and energy, and will focus on cleaning up its image and going through the process of having it determined whether or not they're considered negligent in the matter.
Once that is cleared up, they may feel more free to pursue Gulf permits, which CEO Bob Dudley has implied the company will continue to do, as they have no intention of willingly leaving the Gulf unless forced to.
This will give their competitors a key advantage going forward, and BP will have to weigh that against taking the time to resist in lawsuits and claims which may not be legitimate, but better to settle and get behind them rather than waste precious time.
For now, their competitors have the upper hand in the Gulf and are taking measures to expand that advantage as much as possible.
Major companies can now apply for permits now that the oil moratorium has been lifted in the Gulf, and though technically BP could as well, they know at this time it would be a waste of time and energy, and will focus on cleaning up its image and going through the process of having it determined whether or not they're considered negligent in the matter.
Once that is cleared up, they may feel more free to pursue Gulf permits, which CEO Bob Dudley has implied the company will continue to do, as they have no intention of willingly leaving the Gulf unless forced to.
This will give their competitors a key advantage going forward, and BP will have to weigh that against taking the time to resist in lawsuits and claims which may not be legitimate, but better to settle and get behind them rather than waste precious time.
For now, their competitors have the upper hand in the Gulf and are taking measures to expand that advantage as much as possible.
Wednesday, October 27, 2010
Chevron (NYSE:CVX) Hires Forensic Accountants to Investigate Gorgon Expenses
Chevron has reported hired forensic accountants to investigate whether contractors working on the $43 billion Gorgon gas project have been overcharging them for their labor.
Even so, Chevron, when queried on rumors they had huge cost overruns and were behind schedule, denied the assertions, and said the project will deliver gas as projected by 2014.
It's unknown if this is a fishing expedition or is based upon going over the hefty contracts, which in a year's time have come to $24 billion in total rewarded to contractors and/or subcontractors.
Alleged increasing costs and labor shortages are also part of the idea the company could be getting shortchanged.
Either Chevron believes there's something to the rumors or they're moving to quench the rumors before they get out of control.
Even so, Chevron, when queried on rumors they had huge cost overruns and were behind schedule, denied the assertions, and said the project will deliver gas as projected by 2014.
It's unknown if this is a fishing expedition or is based upon going over the hefty contracts, which in a year's time have come to $24 billion in total rewarded to contractors and/or subcontractors.
Alleged increasing costs and labor shortages are also part of the idea the company could be getting shortchanged.
Either Chevron believes there's something to the rumors or they're moving to quench the rumors before they get out of control.
Chevron (NYSE:CVX) Garners a "Buy" Rating from Credit Agricole
Credit Agricole believes Chevron (NYSE:CVX) has a lot more room to move upward since bottoming out for the year in July, dropping to as low as $66.83 at the time.
Chevron has since rebounded to an annual high of $85.24, and closed Monday just below that at $85.15, gaining $0.28, or 0.33 percent.
Credit Agricole initiated coverage on them with a "Buy" rating, and placed a price target of $100 on the energy giant.
Chevron has since rebounded to an annual high of $85.24, and closed Monday just below that at $85.15, gaining $0.28, or 0.33 percent.
Credit Agricole initiated coverage on them with a "Buy" rating, and placed a price target of $100 on the energy giant.
Tuesday, October 26, 2010
BP's (NYSE:BP) Well Design Under Fire Again
A day after BP (NYSE:BP) CEO Bob Dudley came out swinging to support and defend the company, competitors from major oil companies - Chevron (NYSE:CVX) and Total SA (NYSE:TOT) - came out and criticized the well design of BP on the Macondo Well, saying wasn't the best for the type of well it was.
Talking to a parliamentary committee in the UK, Richard Cohagan, managing director of Chevron UK, and Roland Festor, managing director of Total's Exploration and Production unit in the UK, said the the design of the Macondo Well wasn't the type that should have been used in a reservoir like Macondo.
This seems to be an ongoing attempt by most major oil companies to say their practices wouldn't have resulted in the explosion and resultant disaster.
Even so, Chevron and Total executives wouldn't commit to saying the design of the well was the cause of the explosion and oil leaking into the Gulf of Mexico.
BP with their internal investigation concluded there was no relationship between the design of the well and the accident. Investigations are ongoing as to the cause of the disaster.
Talking to a parliamentary committee in the UK, Richard Cohagan, managing director of Chevron UK, and Roland Festor, managing director of Total's Exploration and Production unit in the UK, said the the design of the Macondo Well wasn't the type that should have been used in a reservoir like Macondo.
This seems to be an ongoing attempt by most major oil companies to say their practices wouldn't have resulted in the explosion and resultant disaster.
Even so, Chevron and Total executives wouldn't commit to saying the design of the well was the cause of the explosion and oil leaking into the Gulf of Mexico.
BP with their internal investigation concluded there was no relationship between the design of the well and the accident. Investigations are ongoing as to the cause of the disaster.
Monday, October 25, 2010
BP's (NYSE:BP) CEO Bod Dudley Blasts Media's Culture of Fear
While BP (NYSE:BP) chief executive officer Bob Dudley has taken responsibility for mistakes made by the company and the unfortunate consequences resulting from them, at the same time he has blasted the media for its jumping to conclusions far before the facts came in surrounding the incident.
Speaking at an annual conference held by CBI in Britain, Dudley said, "A great rush to judgment by a fair number of observers before the full facts could possibly be known, even from some in our industry.
"I watched graphic projections of oil swirling around the gulf, around Florida, across and around Bermuda to England - these appeared authoritative and inevitable. The public fear was everywhere."
Dudley called it a climate of fear which was created by the media.
Responding to criticism of BP's practices from major competitors like Shell (NYSE:RDS-A), Exxon (NYSE:XOM) and Chevron (NYSE:CVX), Dudley said BP's practices are how the general industry operates, and not specific to BP alone.
Their rivals have contradicted that conclusion, saying they wouldn't have drilled in the way BP had.
Speaking at an annual conference held by CBI in Britain, Dudley said, "A great rush to judgment by a fair number of observers before the full facts could possibly be known, even from some in our industry.
"I watched graphic projections of oil swirling around the gulf, around Florida, across and around Bermuda to England - these appeared authoritative and inevitable. The public fear was everywhere."
Dudley called it a climate of fear which was created by the media.
Responding to criticism of BP's practices from major competitors like Shell (NYSE:RDS-A), Exxon (NYSE:XOM) and Chevron (NYSE:CVX), Dudley said BP's practices are how the general industry operates, and not specific to BP alone.
Their rivals have contradicted that conclusion, saying they wouldn't have drilled in the way BP had.
BP (NYSE:BP), Chevron (NYSE:CVX), Transocean (NYSE:RIG), Exxon (NYSE:XOM), Conoco (NYSE:COP), Shell (NYSE:RDS-A), Diamond (NYSE:DO), Hercules (Nasdaq:HERO) Have 100s of Wells Waiting for Approval in Gulf
Although BOEMRE director Michael Bromwich has said ther are only 10 new wells waiting for permits in the Gulf of Mexico, companies like BP (NYSE:BP), Chevron (NYSE:CVX), Transocean (NYSE:RIG), Exxon (NYSE:XOM), Conoco (NYSE:COP), Shell (NYSE:RDS-A), Diamond (NYSE:DO) and Hercules (Nasdaq:HERO) in fact have hundreds of wells waiting to be approved.
The disingenuous figures put forth by Bromwich are so small because hundreds of wells haven't been approved to enter into the permitting process.
There are 69 exploration and development plans are backlogged, just sitting there awaiting action, with each one including three to five wells, according to senior vice president and general counsel of Hercules, James W. Noe. And that was as of August 17. Since then no figures have been released, suggesting far more waiting to have decisions made.
Since the moratorium was lifted on October 12, there have only been six permits approved by the Bureau of Ocean Energy Management, Regulation and
Enforcement, and those were only in shallow-water areas, not the deepwater sections which allegedly have had the moratorium lifted.
I say allegedly because the regulations and permits are effectively having the same results as if a moratorium were still in place for deepwater drilling.
The disingenuous figures put forth by Bromwich are so small because hundreds of wells haven't been approved to enter into the permitting process.
There are 69 exploration and development plans are backlogged, just sitting there awaiting action, with each one including three to five wells, according to senior vice president and general counsel of Hercules, James W. Noe. And that was as of August 17. Since then no figures have been released, suggesting far more waiting to have decisions made.
Since the moratorium was lifted on October 12, there have only been six permits approved by the Bureau of Ocean Energy Management, Regulation and
Enforcement, and those were only in shallow-water areas, not the deepwater sections which allegedly have had the moratorium lifted.
I say allegedly because the regulations and permits are effectively having the same results as if a moratorium were still in place for deepwater drilling.
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