With major oil companies like Chevron (NYSE:CVX), Conoco Phillips (NYSE:COP) Exxon Mobil (NYSE:XOM) and Royal Dutch Shell (NYSE:RDS-A), among others, unsuccessfully working the offshore areas of Libya, the country is counting on a successful exploration from BP to help them return to an important player in the oil sector.
The Gulf of Sidra, which BP will be drilling in, hasn't been drilled before, and BP will be drilling the first in the area in hopes of tapping into Libyan oil and gas reserves.
Libya has a goal of reaching levels from the 1970s, where they peaked a 3 million barrels of oil a day being produced by 2015. By 2020 they want to increase daily production to 3.5 million barrels, although some close to the situation say the possibility of those goals being met is slim.
National Oil Corp., the Libyan state state energy company, said more realistic would be attaining about 2.5 million barrels a day by 2015.
In a deal with Libyan leader Muammar Gaddafi, BP will drill five deepwater offshore wells in the Gulf of Sidra, along with an onshore concession in Ghademe Basin.
The bad news for BP and Libya is Royal Dutch Shell has already drilled two wells in the Gulf of Sidra and came up empty.
Showing posts with label Conoco Phillips. Show all posts
Showing posts with label Conoco Phillips. Show all posts
Friday, October 22, 2010
Wednesday, August 25, 2010
BP (NYSE:BP) Stock Trading, Shares Fall 18.4%
Despite the optimism over BP's (NYSE:BP) success with the Macondo well, amid the company's stock trading, share prices continues to fall. There was a rebound of BP's stock prices at the end of July into August, but investors are now cashing in their profits.
In the last 12 trading days, the company has taken a nose dive of 18.4 percent. Yesterday the shares declined $1.20 or 3.3 percent to $34.92. During the same time frame, the Amex Oil & Gas Index slid 8.7 percent, that of which BP is a component. While BP led the oil stock drop yesterday, other companies including Exxon Mobil, Chevron, Anadarko, and Conoco Philips all lost over a percent.
There is still much uncertainty with BP, and analysts are saying they are very concerned over what will come next for the company. If Federal Investigators decide the company was negligent, the company's expenses could see a considerable jump. BP has already paid out over $6 billion.
It would also bump up the Federal fine from $4.9 billion to $17.6 billion. As well as let the company's partners, Anadarko and Mitsui off the hook from their 25 percent and 10 percent stakes in the well.
In the last 12 trading days, the company has taken a nose dive of 18.4 percent. Yesterday the shares declined $1.20 or 3.3 percent to $34.92. During the same time frame, the Amex Oil & Gas Index slid 8.7 percent, that of which BP is a component. While BP led the oil stock drop yesterday, other companies including Exxon Mobil, Chevron, Anadarko, and Conoco Philips all lost over a percent.
There is still much uncertainty with BP, and analysts are saying they are very concerned over what will come next for the company. If Federal Investigators decide the company was negligent, the company's expenses could see a considerable jump. BP has already paid out over $6 billion.
It would also bump up the Federal fine from $4.9 billion to $17.6 billion. As well as let the company's partners, Anadarko and Mitsui off the hook from their 25 percent and 10 percent stakes in the well.
Friday, August 13, 2010
Chevron (NYSE:CVX), Conoco (NYSE:COP), Others Vying for Caspian Exploration Rights
ConocoPhillips (NYSE:COP), Chevron Corp. (NYSE:CVX), TX Oil Limited and Mubadala Development Co. are all in the running to acquire rights to explore the Caspian Sea blocks of Turkmenistan.
TX Oil Limited is a new company created this year to target Turkmenistan for development opportunities. It is chaired by the son of former President George H.W. Bush and brother former President George W. Bush, Neil Bush.
If I was a betting man, I would guess that company has an inside edge on bidding, as George H.W. Bush sent a letter with Neil on a trip in the early part of 2010 to communicate with the president of Turkmenistan, and made a personal visit in June. according to the country's website Turkmenistan.ru.
There aren't many proven reserves in the offshore blocks, so this is probably more of a strategic move to gain assess to onshore exploration opportunities, where natural gas is in abundance, with Turkmenistan reportedly holding the fourth largest reserves in the world.
The government of Turkmenistan will make the final decision on who gets the two blocks being offered.
TX Oil Limited is a new company created this year to target Turkmenistan for development opportunities. It is chaired by the son of former President George H.W. Bush and brother former President George W. Bush, Neil Bush.
If I was a betting man, I would guess that company has an inside edge on bidding, as George H.W. Bush sent a letter with Neil on a trip in the early part of 2010 to communicate with the president of Turkmenistan, and made a personal visit in June. according to the country's website Turkmenistan.ru.
There aren't many proven reserves in the offshore blocks, so this is probably more of a strategic move to gain assess to onshore exploration opportunities, where natural gas is in abundance, with Turkmenistan reportedly holding the fourth largest reserves in the world.
The government of Turkmenistan will make the final decision on who gets the two blocks being offered.
Lukoil Receives Financing to Acquire Conoco (NYSE:COP) Shares in Company
The recent announcement that Conoco (NYSE:COP) would be selling 7.6 percent stake in Lukoil back to the company is a step closer to reality, as Lukoil secured $1.5 billion in financing from six banks.
Lukoil agreed with ConocoPhillips to buyback the 7.6 percent stake they held for $3.4 billion, and included in the terms of the deal are a 60-day option to acquire more stock in the company held by Conoco.
Unnamed people close to the deal said the banks involved in the financing are Citigroup Inc. (NYSE:C), Bank of Tokyo-Mitsubishi UFJ Ltd., ING Groep NV, Natixis, Royal Bank of Scotland Group Plc and WestLB AG.
The known terms of the loan are its a one-year deal
Lukoil agreed with ConocoPhillips to buyback the 7.6 percent stake they held for $3.4 billion, and included in the terms of the deal are a 60-day option to acquire more stock in the company held by Conoco.
Unnamed people close to the deal said the banks involved in the financing are Citigroup Inc. (NYSE:C), Bank of Tokyo-Mitsubishi UFJ Ltd., ING Groep NV, Natixis, Royal Bank of Scotland Group Plc and WestLB AG.
The known terms of the loan are its a one-year deal
Wednesday, August 11, 2010
ConocoPhillips (NYSE:COP), PetroChina (NYSE:PTR) Negotiating on Shale Gas Projects
ConocoPhillips (NYSE:COP) and PetroChina (NYSE:PTR) have been quietly negotiating on a joint venture in China which would target shale gas projects in the middle kingdom.
Operations would initially be pursued in the Sichuan province, where Conoco would explore an approximate 3,000 kilometer area of Sichuan.
This would a first for China, which has no proof of having had began shale gas production in the country.
As in many cases, the benefit to China would be the expertise of a western company like Conoco, which would have far more advanced technology to perform exploration and testing at a higher level.
China is desperate for natural resources, and a competing world makes their own land the best place to get it if the resources are there.
With the discovery of enormous shale natural gas reserves in America, China is hoping their country may have significant reserves as well, which could last them for many decades, and more.
Operations would initially be pursued in the Sichuan province, where Conoco would explore an approximate 3,000 kilometer area of Sichuan.
This would a first for China, which has no proof of having had began shale gas production in the country.
As in many cases, the benefit to China would be the expertise of a western company like Conoco, which would have far more advanced technology to perform exploration and testing at a higher level.
China is desperate for natural resources, and a competing world makes their own land the best place to get it if the resources are there.
With the discovery of enormous shale natural gas reserves in America, China is hoping their country may have significant reserves as well, which could last them for many decades, and more.
Friday, July 30, 2010
Chevron (NYSE:CVX) Earnings: Up, Up, and Away!
Earnings for Chevron Corp. (NYSE:CVX) skyrocketed in the latest quarter, tripling during the period, while exceeding analysts’ projections.
Second-quarter profits soared to $5.41 billion, or $2.70 a share, up from the $1.75 billion, or 87 cents a share, during the same quarter last year.
Analysts had been looking for earnings per share of $2.46.
As with their major competitors Exxon Mobil Corp. (NYSE:XOM) and ConocoPhillips (NYSE:COP), refining margins increased significantly during the reporting period, generating much of the earnings. Demand for fuel also rose around the world, contributing to the strong numbers from more sales and higher prices. The average price of U.S. oil futures was $78.05 a barrel for the quarter.
Revenue surged to $53 billion, a gain of 32 percent.
Production for oil and gas increased to 2.75 million barrels a day, an increase of 2.8 percent.
Second-quarter profits soared to $5.41 billion, or $2.70 a share, up from the $1.75 billion, or 87 cents a share, during the same quarter last year.
Analysts had been looking for earnings per share of $2.46.
As with their major competitors Exxon Mobil Corp. (NYSE:XOM) and ConocoPhillips (NYSE:COP), refining margins increased significantly during the reporting period, generating much of the earnings. Demand for fuel also rose around the world, contributing to the strong numbers from more sales and higher prices. The average price of U.S. oil futures was $78.05 a barrel for the quarter.
Revenue surged to $53 billion, a gain of 32 percent.
Production for oil and gas increased to 2.75 million barrels a day, an increase of 2.8 percent.
Monday, July 12, 2010
BP (NYSE:BP): Not Selling Assets, Not Selling Stock, Not Selling Shares
There has been many rumors surrounding whether potential investors would purchase BP (NYSE:BP). It seems to be more of a fairytale hope then anything else according to analysts.
There are several variables that must be looked at. For one, are BP's assets worth the hassle? With the thousands upon thousands of legal claims as well as the public relations issue, for any oil company to take on BP would be an extreme risk.
Paul Malchanov, an analyst for Raymond James in Houston, TX., said, " It's very debatable that any company would be comfortable wading into this legal nightmare, which would last many years. The biggest problem is getting your hands around the liabilities."
While the CEO of Petroleum and Resources Corporation, Doug Ober, said he's even heard traders talk about Conoco Phillips purchasing BP. " The likelihood of BP getting taken over is next to nil. Why would a U.S. company want to buy BP given the black eye that it has," said Ober.
Malchonov said he does not recommend BP for investors. Other companies like Chevron and Hess are trading at cheaper valuations. There is still to much risk and uncertainties with BP.
There are several variables that must be looked at. For one, are BP's assets worth the hassle? With the thousands upon thousands of legal claims as well as the public relations issue, for any oil company to take on BP would be an extreme risk.
Paul Malchanov, an analyst for Raymond James in Houston, TX., said, " It's very debatable that any company would be comfortable wading into this legal nightmare, which would last many years. The biggest problem is getting your hands around the liabilities."
While the CEO of Petroleum and Resources Corporation, Doug Ober, said he's even heard traders talk about Conoco Phillips purchasing BP. " The likelihood of BP getting taken over is next to nil. Why would a U.S. company want to buy BP given the black eye that it has," said Ober.
Malchonov said he does not recommend BP for investors. Other companies like Chevron and Hess are trading at cheaper valuations. There is still to much risk and uncertainties with BP.
Friday, July 9, 2010
Appeals Court Rejects Drilling Ban, Good News For Exxon (NYSE:XOM), ConocoPhillips (NYSE:COP), Shell (LSE:RDSA), and BP (NYSE:BP)
The appeals court rejected the drilling ban on deep sea wells, this is good news for Exxon (NYSE:XOM), Conoco Phillips (NYSE:COP), Shell (LSE:RDSA), and BP (NYSE:BP). The Obama administration attempted to put into place a six month moratorium into place. This was decided by a three person panel in New Orleans federal court.
In the ruling, it said that the Interior Department did not prove that the government would suffer "irreparable injury" if the drilling ban was not put into place. The court also decided that it would be harmful and arbitrary where thousands of people depend upon energy companies for their livelihood.
The governments argument is that the moratorium is needed while the Obama administration develops new safety standards. With what has happened with BP being responsible for the worst oil spill in U.S. history, they want to ensure there is ample time to move in more emergency equipment to the Gulf region.
It is expected that the Interior Department will now rewrite the rules and issue a new moratorium. The current ban has stopped the drilling on 33 exploratory wells and put a halt on any new permits.
In the ruling, it said that the Interior Department did not prove that the government would suffer "irreparable injury" if the drilling ban was not put into place. The court also decided that it would be harmful and arbitrary where thousands of people depend upon energy companies for their livelihood.
The governments argument is that the moratorium is needed while the Obama administration develops new safety standards. With what has happened with BP being responsible for the worst oil spill in U.S. history, they want to ensure there is ample time to move in more emergency equipment to the Gulf region.
It is expected that the Interior Department will now rewrite the rules and issue a new moratorium. The current ban has stopped the drilling on 33 exploratory wells and put a halt on any new permits.
Thursday, July 8, 2010
ConocoPhillips (NYSE:COP) Confirms Warren Buffett's Wisdom Again
A lot of people commenting on Warren Buffett's investment in ConocoPhillips (NYSE:COP) thought he had made a bad decision, and as usual didn't see the value in Conoco that Buffett did.
He again has proven himself one of the best analyzers of companies, as he invested heavily in Conoco, and has been rewarded strongly for it, and will be for some time to come if the oil giant continues to perform as it has been.
Considering the pressure on the overall equities market, and even more on the oil sector, the performance of Conoco has been solid no matter how you measure it.
Their 52-week range has been from $38.62 to $60.53, and today are standing at $51.16.
He again has proven himself one of the best analyzers of companies, as he invested heavily in Conoco, and has been rewarded strongly for it, and will be for some time to come if the oil giant continues to perform as it has been.
Considering the pressure on the overall equities market, and even more on the oil sector, the performance of Conoco has been solid no matter how you measure it.
Their 52-week range has been from $38.62 to $60.53, and today are standing at $51.16.
Friday, July 2, 2010
Exxon (NYSE:XOM) and ConocoPhillips (NYSE:COP) Stock Trading, Yearly Lows and Maintained Uptrends
The largest and best managed oil company, Exxon Mobile (NYSE:XOM) is currently trading at a yearly low and has seen a 20 percent decline compared to this time last year. Other big oil giants like Chevron, PetroChina, and Statoil have discovered billions of barrels of oil over the last 2-3 years.
Even though they're shares are going mostly sideways, they've also seen a decline of 16 percent over the last year. Gene McGillian, broker and analyst at Trading Energy in Stanford said, "The fundamentals of the market remain negative. If we don't get some positive economic news we will soon test $70."
There is one oil company ConocoPhillips (NYSE:COP) that has maintained an uptrend which is quite impressive despite the broad market being down since May. Billionaire investor Warren Buffet is a big shareholder of ConocoPhillips and recommends them.
Even though they're shares are going mostly sideways, they've also seen a decline of 16 percent over the last year. Gene McGillian, broker and analyst at Trading Energy in Stanford said, "The fundamentals of the market remain negative. If we don't get some positive economic news we will soon test $70."
There is one oil company ConocoPhillips (NYSE:COP) that has maintained an uptrend which is quite impressive despite the broad market being down since May. Billionaire investor Warren Buffet is a big shareholder of ConocoPhillips and recommends them.
Monday, June 28, 2010
ConocoPhillips' (NYSE:COP) Syncrude Deal Completed
ConocoPhillips' (NYSE:COP) has finished its divestation of Syncrude, selling their 9.03 percent stake in the Canadian oil sands project to Sinopec International Petroleum and Production Co.
This is the largest deal made by a Chinese company in the Canadian sands, and was acquired for $4.65 billion.
This accounts for almost half of the strategy of ConocoPhillips to sell off assets worth close to $10 billion by 2011.
"I have approved the application by Sinopec ... to acquire control of the ConocoPhillips Partnership because I am satisfied that the investment is likely to be of net benefit to Canada," Canadian Industry Minister Tony Clement said in a statement Friday.
Sinopec is the top refiner in China, as well as the second largest producer of oil.
This is the largest deal made by a Chinese company in the Canadian sands, and was acquired for $4.65 billion.
This accounts for almost half of the strategy of ConocoPhillips to sell off assets worth close to $10 billion by 2011.
"I have approved the application by Sinopec ... to acquire control of the ConocoPhillips Partnership because I am satisfied that the investment is likely to be of net benefit to Canada," Canadian Industry Minister Tony Clement said in a statement Friday.
Sinopec is the top refiner in China, as well as the second largest producer of oil.
Friday, June 25, 2010
Oil Funds, Oil Options: Oil Companies Falling Short Exxon (NYSE:XOM), Shell (LSE:RDSA), Chevron (NYSE:CVX), ConocoPhillips (NYSE:COP), BP (NYSE:BP)
Edward Markey, a Democrat from Massachusetts criticized BP (NYSE:BP), Exxon Mobil (NYSE:XOM), Shell (LSE:RDSA), Chevron (NYSE:CVX), and Conoco Phillips (NYSE:COP) for not funding any new response and safety tools.
The tools being used in the BP oil cleanup in the Gulf of Mexico are pretty much the same tools that were used in the Exxon Valdez oil cleanup effort. Skimmers to collect the oil, booms to contain it, and the main weapon being used chemical dispersant's. Markey is proposing a bill that will broden oil options by using oil funds to the tune of $50 million being used to develop deep water drilling, and put it towards funding research for better oil spill clean up tools as well as new oil spill prevention methods.
Markey said, "the oil companies have been lying when they said they had the capacity to handle an emergency like the Deepwater Horizon spill. We can't afford to get stuck again without the tools to respond to a spill like the one we're seeing in the Gulf. It is clear that the oil companies have not created new solutions to keep their new drilling technologies safe."
The tools being used in the BP oil cleanup in the Gulf of Mexico are pretty much the same tools that were used in the Exxon Valdez oil cleanup effort. Skimmers to collect the oil, booms to contain it, and the main weapon being used chemical dispersant's. Markey is proposing a bill that will broden oil options by using oil funds to the tune of $50 million being used to develop deep water drilling, and put it towards funding research for better oil spill clean up tools as well as new oil spill prevention methods.
Markey said, "the oil companies have been lying when they said they had the capacity to handle an emergency like the Deepwater Horizon spill. We can't afford to get stuck again without the tools to respond to a spill like the one we're seeing in the Gulf. It is clear that the oil companies have not created new solutions to keep their new drilling technologies safe."
Saturday, June 19, 2010
Oil Companies Must Rewrite Spill Response Plans: Exxon (NYSE:XOM), Shell (LSE:RDSA), ConocoPhillips (NYSE:COP), Chevron (NYSE:CVX)
At a House Energy meeting, it was determined that Exxon (NYSE:XOM), Shell (LSE:RDSA), ConocoPhillips (NYSE:COP), and Chevron (NYSE:CVX) are as unprepared as BP with their oil spill response plans. U.S. Representative Edward Markey is going to ask the executives of each of these oil companies to revise their plans.
Markey said," there has to be a complete inspection of every facility in the Gulf, not just BP. The only thing worse than one oil rig in the bottom of the Gulf of Mexico, would be two oil rigs in the bottom of the Gulf of Mexico. We have to make sure there are no ticking time bombs." He also said the plans were "90 percent identical" for all five companies.
This is the exact reason Obama declared a six month moratorium and any deepwater drilling. To give the government time to investigate and complete their investigation as to the causes of the Gulf of Mexico oil spill. This ban has effected 33 drilling rigs in the Gulf. There are 17 members of the House from Gulf Coast states who are urging Obama to lift the ban as it will effect over 20,000 jobs in the area.
According to a lawmakers statement, "many offshore drilling companies will not be able to survive the ban."
Markey said," there has to be a complete inspection of every facility in the Gulf, not just BP. The only thing worse than one oil rig in the bottom of the Gulf of Mexico, would be two oil rigs in the bottom of the Gulf of Mexico. We have to make sure there are no ticking time bombs." He also said the plans were "90 percent identical" for all five companies.
This is the exact reason Obama declared a six month moratorium and any deepwater drilling. To give the government time to investigate and complete their investigation as to the causes of the Gulf of Mexico oil spill. This ban has effected 33 drilling rigs in the Gulf. There are 17 members of the House from Gulf Coast states who are urging Obama to lift the ban as it will effect over 20,000 jobs in the area.
According to a lawmakers statement, "many offshore drilling companies will not be able to survive the ban."
Monday, May 31, 2010
Chevron (NYSE:CVX) and Conoco Phillips (NYSE:COP) Sign Deal Binding Them For 12 yrs.
There are two deals that have been agreed to by Chevron (NYSE:CVX) and Conoco Phillips (NYSE:COP) , according to Indonesia's energy watchdog BPMIGAS. Chevron is Indonesia's largest oil producer and the final deal entails Chevron purchasing their natural gas from Conoco Phillips.
One of the deals was an amendment to a previous deal, which was meet with resistance by politicians because it was said to be unfair due to the current hike in the prices of oil. The gas supply will come from Conoco Phillips fields in South Sumatra.
The terms are for a four year time period, where Conoco Phillips will be supplying 77.9 trillion British thermal units total. As well as an additional 12 year agreement for 1,177 trillion British thermal units.
This deal will replace a prior deal which entailed swapping crude oil for natural gas among the two companies. Chevron is currently producing 370,000 barrels of crude oil daily from Sumatra.
As production has decreased due to not being able to tap new fields quickly enough, Indonesia has become a net importer of crude oil in recent years.
One of the deals was an amendment to a previous deal, which was meet with resistance by politicians because it was said to be unfair due to the current hike in the prices of oil. The gas supply will come from Conoco Phillips fields in South Sumatra.
The terms are for a four year time period, where Conoco Phillips will be supplying 77.9 trillion British thermal units total. As well as an additional 12 year agreement for 1,177 trillion British thermal units.
This deal will replace a prior deal which entailed swapping crude oil for natural gas among the two companies. Chevron is currently producing 370,000 barrels of crude oil daily from Sumatra.
As production has decreased due to not being able to tap new fields quickly enough, Indonesia has become a net importer of crude oil in recent years.
Tuesday, May 25, 2010
Republicans Boldly Battling Democrats on "Arbitrary" Oil Liability Cap
Republicans have been strongly and boldly battling the anti-business Democrats who are using the oil spill in the Gulf of Mexico to increase the oil spill liability cap from $75 million to $10 billion, something Obama has already called "arbitrary." If this incredibly stupid legislation was imposed, major oil companies like BP (NYSE:BP), Shell (NYSE:RDS-A), Chevron (NYSE:CVX), Exxon Mobil (NYSE:XOM) and ConocoPhillips (NYSE:COP) would be put out of the offshore oil drilling business, and replaced by nationalized, or socialized, oil companies around the world.
Evidently the Democrats think the pursuit of this agenda will cause people to abhor Republicans who oppose it, but people are a lot smarter and informed today, and know that they would end up bearing the brunt of the outrageous costs of insuring that much liability, which would also put smaller offshore drilling companies out of business.
The latest incredibly ignorant Democrat bill even took the $10 billion cap off, which would have exposed the oil companies to unlimited liability.
I can only think this is being done in an attempt to make an excuse to nationalize American or other oil companies, which would have to be done if they were to be able to compete with the already-existing national oil companies.
The Democrats, if they even want to be taken seriously anymore, need to drop their pretentious and stupid tactics and spend their time working on legitimate regulations, not the type that are only put forth as politically motivated ploys that have no relationship to the existing problem, but are an attempt to position themselves for a different agenda.
Evidently the Democrats think the pursuit of this agenda will cause people to abhor Republicans who oppose it, but people are a lot smarter and informed today, and know that they would end up bearing the brunt of the outrageous costs of insuring that much liability, which would also put smaller offshore drilling companies out of business.
The latest incredibly ignorant Democrat bill even took the $10 billion cap off, which would have exposed the oil companies to unlimited liability.
I can only think this is being done in an attempt to make an excuse to nationalize American or other oil companies, which would have to be done if they were to be able to compete with the already-existing national oil companies.
The Democrats, if they even want to be taken seriously anymore, need to drop their pretentious and stupid tactics and spend their time working on legitimate regulations, not the type that are only put forth as politically motivated ploys that have no relationship to the existing problem, but are an attempt to position themselves for a different agenda.
Tuesday, May 18, 2010
Exxon Mobil (NYSE:XOM) Oil Prices Change, How It Will Affect Your Summer Plans
Exxon Mobil, (NYSE:XOM) the nations largest oil company stock has dropped almost 2 percent. While Conoco Phillips has dropped nearly 3 percent, the oil prices continue to change. As a whole, the oil trading industry has lost a total of 20 percent in just two weeks.
With the Summer Driving season almost here, many are wondering how, with the fluctuation of oil trading, it will effect their plans. The good news comes to U.S. motorists who should see a substantial drop at the gas pump, just in time for Summer.
Earlier this month gas spiked close to $3.00 a gallon. Tom Kloza from the Oil Price Information Service has said, prices will hit $2.75 a gallon or less by next week within many areas in the U.S.
Kloza also stated that the crude oil companies are the only losers in all of this, but they will still make plenty of money at the current oil prices.
If the oil prices today stay at the current price of around $70 a barrel, Kloza said that will translate to $2.60 - $2.65 a gallon. With some areas in the U.S. getting as low as $2.50 a gallon.
With the Summer Driving season almost here, many are wondering how, with the fluctuation of oil trading, it will effect their plans. The good news comes to U.S. motorists who should see a substantial drop at the gas pump, just in time for Summer.
Earlier this month gas spiked close to $3.00 a gallon. Tom Kloza from the Oil Price Information Service has said, prices will hit $2.75 a gallon or less by next week within many areas in the U.S.
Kloza also stated that the crude oil companies are the only losers in all of this, but they will still make plenty of money at the current oil prices.
If the oil prices today stay at the current price of around $70 a barrel, Kloza said that will translate to $2.60 - $2.65 a gallon. With some areas in the U.S. getting as low as $2.50 a gallon.
Oil and Gas Investments Plunge, Buffet Cuts Over 3 Million in Conoco Phillips (NYSE:CON) Shares
Warren Buffet cuts over 3 million in Conoco Phillips (NYSE:CON) oil and gas investments. Billionaire Warren Buffet's investment choices and moves on companies are watched closely by investors.
At the end of March, Mr. Buffet held $34.18 million shares in Conoco Phillips. Three month prior, he had $37.71 million shares invested in the company. This information comes from Berkshire Hathaway Inc.'s U.S. equity portfolio filed with the U.S. Securities and Exchange commission.
Mr. Buffet's U.S. equity portfolio at the close of the March 2010 quarter, was down from $57.93 billion to $50.93 billion. His oil trading investments weren't the only companies he reduced.
At the end of the December 2009 quarter, he held $138.27 million dollars in Kraft Foods Inc., this has been reduced to $106.73 shares. Also, Procter and Gamble Co. was reduced from $87.5 million to $79.09 million. As well as Costco Wholesale Corp. which went from $5.25 million shares to $4.23 million in shares.
At the end of March, Mr. Buffet held $34.18 million shares in Conoco Phillips. Three month prior, he had $37.71 million shares invested in the company. This information comes from Berkshire Hathaway Inc.'s U.S. equity portfolio filed with the U.S. Securities and Exchange commission.
Mr. Buffet's U.S. equity portfolio at the close of the March 2010 quarter, was down from $57.93 billion to $50.93 billion. His oil trading investments weren't the only companies he reduced.
At the end of the December 2009 quarter, he held $138.27 million dollars in Kraft Foods Inc., this has been reduced to $106.73 shares. Also, Procter and Gamble Co. was reduced from $87.5 million to $79.09 million. As well as Costco Wholesale Corp. which went from $5.25 million shares to $4.23 million in shares.
Monday, May 17, 2010
Exxon Mobil's (NYSE:XOM) Stock Continues To Fall
In German Trading, Exxon Mobil's (NYSE:XOM) stock continues to fall. With crude oil dropping below $70 a barrel in New York, this is the fifth day it has plummeted.
The biggest U.S. oil company, Exxon has dropped to $63.06 in German trading, that's a 0.8 percent loss. The third largest energy company, ConocoPhillips is at $55,32, losing 0.9 percent. The largest U.S. aluminum producer Alcoa, has also dropped to $12.14 losing 1.8 percent.
Dow Jones Industrial average dropped 0.1 percent to 10,600. Nasdaq - 100 Index futures also fell less than 0.1 percent bringing it to 1,909.5.
The euro dropped today to the lowest level in over four years against the dollar. The currency was traded for as low as $1.2235. In Brussels, the European finance ministers will meet today.
They are under pressure to show how they are planning to reduce deficits quickly enough to satisfy investors.
The biggest U.S. oil company, Exxon has dropped to $63.06 in German trading, that's a 0.8 percent loss. The third largest energy company, ConocoPhillips is at $55,32, losing 0.9 percent. The largest U.S. aluminum producer Alcoa, has also dropped to $12.14 losing 1.8 percent.
Dow Jones Industrial average dropped 0.1 percent to 10,600. Nasdaq - 100 Index futures also fell less than 0.1 percent bringing it to 1,909.5.
The euro dropped today to the lowest level in over four years against the dollar. The currency was traded for as low as $1.2235. In Brussels, the European finance ministers will meet today.
They are under pressure to show how they are planning to reduce deficits quickly enough to satisfy investors.
Tuesday, February 3, 2009
Oil Refinery Workers New Labor Contract
Union negotiators for oil refinery workers have tentatively agreed to a new contract which represents approximately 24,000 union members.
The new contract deals with labor issues like wage and benefit levels, which the details of the agreement weren't released.
If there had been a strike, it would have affected up to 10 percent of the overall refining capacity in America's oil industry. Other reports say the strike could have affected close to two-thirds of the capacity to make fuels in general, gasoline and diesel.
Details of the oil refinery workers deal will be released sometime on Wednesday by their representatives of the United Steelworkers union. Signing off on the deal was the National Oil Policy Committee, which still has to be ratified by local union units.
Some of the large oil and gas companies that would have been affected by the strike were Exxon Mobil (nyse:XOM), Royal Dutch Shell (nyse: RDSA), BP (nyse:BP) PLC, Valero (nyse:VLO), and Chevron (nyse:CVX), of close to 60 oil producers in general.
Besides higher wages, other issues being negotiated for the oil refinery workers were cost-of-living increases and full benefits for medical, dental and vision; both for current and retired oil workers.
The deal was worked out with Shell Oil, which will also be extended to the other plants, including Valero Energy Corp., Exxon Mobil Corp., Chevron and BP Plc. The deal, if approved, will keep up to six refinery plants from closing, and about 1.7 barrels a day from going off line.
Some of the known parts of the contract are a three percent raise for each of the three years of the contract, along with a signing bonus of $2,500 if it is approved before February 16.
Fuel and oil demand has fallen so much that the refineries have slowed production after falling prices put downward pressure on margins. Oil processors have had a record number of days of making gasoline at a loss, measured by futures prices.
The two largest refiners in America, ConocoPhillips and Valero were leading the fuel production cut in oil refinery output.
Gas prices had surged by 10 percent last week as the possibility of a strike loomed over the oil and oil refinery industry.
On the New York Mercantile Exchange, gasoline for March delivery increased 1.68 cents to $1.166 a gallon. Gas prices across the nation grew to $1.89 a gallon according to AAA.
Now that a strike is probably averted, we should see a corresponding fall in gasoline prices as demand continues to fall.
If things do change economically, this new contract could be a diaster for union members, as higher operating costs through increased wages and benefits could put many oil refinery workers out of a job in the months ahead. But that's how unions always work, as they overreach and cause loss of jobs, while benefitting only some of the members.
For the week ending January 16, oil refinery production had operated at 82.5 percent of capacity, down significantly from the 85.2 percent the week before. It'll a long time before gas and oil demand increase in any major way.
Motorists in the U.S. continue to drive much less, as for the second year they've driven at a lower rate than the previous year. According to the Federal Highway Administration, vehicle miles have plunged by 5.3 percent or 12.9 billion miles. We should see that continue on, and oil refineries operating at even less capacity before it turns around.
The new contract deals with labor issues like wage and benefit levels, which the details of the agreement weren't released.
If there had been a strike, it would have affected up to 10 percent of the overall refining capacity in America's oil industry. Other reports say the strike could have affected close to two-thirds of the capacity to make fuels in general, gasoline and diesel.
Details of the oil refinery workers deal will be released sometime on Wednesday by their representatives of the United Steelworkers union. Signing off on the deal was the National Oil Policy Committee, which still has to be ratified by local union units.
Some of the large oil and gas companies that would have been affected by the strike were Exxon Mobil (nyse:XOM), Royal Dutch Shell (nyse: RDSA), BP (nyse:BP) PLC, Valero (nyse:VLO), and Chevron (nyse:CVX), of close to 60 oil producers in general.
Besides higher wages, other issues being negotiated for the oil refinery workers were cost-of-living increases and full benefits for medical, dental and vision; both for current and retired oil workers.
The deal was worked out with Shell Oil, which will also be extended to the other plants, including Valero Energy Corp., Exxon Mobil Corp., Chevron and BP Plc. The deal, if approved, will keep up to six refinery plants from closing, and about 1.7 barrels a day from going off line.
Some of the known parts of the contract are a three percent raise for each of the three years of the contract, along with a signing bonus of $2,500 if it is approved before February 16.
Fuel and oil demand has fallen so much that the refineries have slowed production after falling prices put downward pressure on margins. Oil processors have had a record number of days of making gasoline at a loss, measured by futures prices.
The two largest refiners in America, ConocoPhillips and Valero were leading the fuel production cut in oil refinery output.
Gas prices had surged by 10 percent last week as the possibility of a strike loomed over the oil and oil refinery industry.
On the New York Mercantile Exchange, gasoline for March delivery increased 1.68 cents to $1.166 a gallon. Gas prices across the nation grew to $1.89 a gallon according to AAA.
Now that a strike is probably averted, we should see a corresponding fall in gasoline prices as demand continues to fall.
If things do change economically, this new contract could be a diaster for union members, as higher operating costs through increased wages and benefits could put many oil refinery workers out of a job in the months ahead. But that's how unions always work, as they overreach and cause loss of jobs, while benefitting only some of the members.
For the week ending January 16, oil refinery production had operated at 82.5 percent of capacity, down significantly from the 85.2 percent the week before. It'll a long time before gas and oil demand increase in any major way.
Motorists in the U.S. continue to drive much less, as for the second year they've driven at a lower rate than the previous year. According to the Federal Highway Administration, vehicle miles have plunged by 5.3 percent or 12.9 billion miles. We should see that continue on, and oil refineries operating at even less capacity before it turns around.
Tuesday, December 23, 2008
Warren Buffett Investing Heavily in ConocoPhillips
Regulatory filings show that Warren Buffett has been buying up shares of ConocoPhillips (COP) since the end of March. At that time Berkshire Hathaway (BRK-B) owned 17.5 million shares, while now they've acquired over 83 million shares.
That move by Buffett and Berkshire Hathaway make it the largest shareholder in Conoco at this time.
Other major investment managers have been making large share acquisitions of Conoco as well, including Chris Davis and Ken Feinberg's Davis New York Venture (NYVTX) fund. They believe investment in commodities will be a big part of increasing returns in the years ahead, even though they are temporarily out of favor.
"As developing nations add to worldwide incremental demand for commodities like oil and natural resources, we believe the long-term average price ranges for such resources could climb, notwithstanding the recent pullback in certain commodity prices. Consistent with our energy and natural resource-related investments to date, we will remain on the lookout for disciplined capital allocators who can generate attractive profits for shareholders given a stable price environment and windfall profits under more bullish scenarios."
For a good look at what differentiates ConocoPhillips from its competitors, Morningstar analyst Allen Good gives an indepth analysis of the company.
That move by Buffett and Berkshire Hathaway make it the largest shareholder in Conoco at this time.
Other major investment managers have been making large share acquisitions of Conoco as well, including Chris Davis and Ken Feinberg's Davis New York Venture (NYVTX) fund. They believe investment in commodities will be a big part of increasing returns in the years ahead, even though they are temporarily out of favor.
"As developing nations add to worldwide incremental demand for commodities like oil and natural resources, we believe the long-term average price ranges for such resources could climb, notwithstanding the recent pullback in certain commodity prices. Consistent with our energy and natural resource-related investments to date, we will remain on the lookout for disciplined capital allocators who can generate attractive profits for shareholders given a stable price environment and windfall profits under more bullish scenarios."
For a good look at what differentiates ConocoPhillips from its competitors, Morningstar analyst Allen Good gives an indepth analysis of the company.
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