In their latest quarterly report, Noble Corp.'s (NYSE:NE) profits plummeted by 80 percent, as the toll from the Obama administrations' oil moratorium continues to rise.
Even though the moratorium was lifted before the November elections, it is effectively still in place because of the permitting process and new regulations which will keep oil companies from drilling in the deepwater portions of the Gulf of Mexico for some time.
Profits in the quarter for Noble dropped to $86 million, or 34 cents a share, far below the $426 million, or $1.63 a share they produced last year in the same quarter.
Revenue for the third quarter also dropped to $613 million.
Analysts had been looking for revenue of $635 million, and profits of 35 cents a share.
The guidance from Noble Chief Executive David Williams was ominous: "We recognize that the effects of U.S. policies related to offshore drilling will be felt into 2011 and beyond."
Noble closed Wednesday at $35.00 a share, gaining $0.27, or 0.78 percent.
Showing posts with label Moratorium. Show all posts
Showing posts with label Moratorium. Show all posts
Thursday, October 21, 2010
Monday, October 4, 2010
BP (NYSE:BP) Won't Pay Shallow-Water Drilling Workers
With the Obama administration's disastrous oil moratorium in the Gulf, many workers have been taking a beating, and BP (NYSE:BP) has rightly stated at this time they're not going to pay for those out of work because of Obama's policies.
It's not that the oil moratorium explicitly stops drilling in shallow water, it's the fallout from the slowing permitting process which is the culprit behind hundreds of lost jobs in that segment of the industry.
Sen. Mary Landrieu (D, La.) blames the Obama administration for the job losses, saying it's a "de facto moratorium" on new drilling permits which is behind it.
Landrieu added, "It may be the federal government that has to step up and provide relief to the shallow-water rig workers that they've put out of business."
Responding to a request by Landrieu to pay for the shallow-water workers, BP said through fund spokesman Mukul Verma, that after paying for deepwater workers starting in the early part of 2011, there probably won't be enough money left over for shallow-water workers.
It's not that the oil moratorium explicitly stops drilling in shallow water, it's the fallout from the slowing permitting process which is the culprit behind hundreds of lost jobs in that segment of the industry.
Sen. Mary Landrieu (D, La.) blames the Obama administration for the job losses, saying it's a "de facto moratorium" on new drilling permits which is behind it.
Landrieu added, "It may be the federal government that has to step up and provide relief to the shallow-water rig workers that they've put out of business."
Responding to a request by Landrieu to pay for the shallow-water workers, BP said through fund spokesman Mukul Verma, that after paying for deepwater workers starting in the early part of 2011, there probably won't be enough money left over for shallow-water workers.
Tuesday, September 28, 2010
BP's (NYSE:BP) Don Suttles Sees Offshore Drilling Returning in Stages
The oil moratorium and new regulations imposed on the offshore oil industry by the Obama administration will probably result in a slow restart of drilling once the moratorium is lifted, according to BP's (NYSE:BP) chief operating officer Don Suttles.
Suttles said concerning interim regulations, that "Certain equipment, certain wells, certain rigs are going to find it easier to meet those requirements," adding that will probably ultimately lead to a "phased restart" of offshore drilling in the Gulf of Mexico.
William Reilly, a co-chair of the National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling, said when asked about the speed with which drilling will resume and the moratorium lifted, that he and co-Chair Bob Graham "have both raised a number of questions" concerning "just how much one needs to do" to increase the quality of oversight of the 33 oil rigs remaining in the Gulf.
"It's not entirely clear what remains to be done," Reilly said.
In other words, this is an over-response, not matter how it's spun. What more can be done than to ensure equipment is working properly and workers are trained to do their jobs well, and there is testing and follow up to verify it?
While Reilly didn't say it, he does seem to be frustrated over attempting to make something perfect in a world where perfection is impossible.
Suttles said concerning interim regulations, that "Certain equipment, certain wells, certain rigs are going to find it easier to meet those requirements," adding that will probably ultimately lead to a "phased restart" of offshore drilling in the Gulf of Mexico.
William Reilly, a co-chair of the National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling, said when asked about the speed with which drilling will resume and the moratorium lifted, that he and co-Chair Bob Graham "have both raised a number of questions" concerning "just how much one needs to do" to increase the quality of oversight of the 33 oil rigs remaining in the Gulf.
"It's not entirely clear what remains to be done," Reilly said.
In other words, this is an over-response, not matter how it's spun. What more can be done than to ensure equipment is working properly and workers are trained to do their jobs well, and there is testing and follow up to verify it?
While Reilly didn't say it, he does seem to be frustrated over attempting to make something perfect in a world where perfection is impossible.
Wednesday, September 22, 2010
BP (NYSE:BP) Rig Worker Fund Not Drawing Many People
The $100 million fund set up by BP (NYSE:BP) to pay for workers out of a job because of the Obama Gulf oil moratorium has drawn relatively few respondents, as only about 356 workers have applied for grants.
It seems the reasoning behind it is it's either not known too much, as there hasn't been much media coverage, or the possibility most employers have retained their workers despite the moratorium.
Expectations were as many as 9,000 people would seek the grants, which are offered in a range of $3,000 to $30,000.
Now the charity will move to the next stage and will offer support workers of the industry to apply for the grants. Those serving the sector, like supply boats, will be able to receive grants now.
BP finally permanently plugged the oil well after temporarily stopping the oil leak in July.
It seems the reasoning behind it is it's either not known too much, as there hasn't been much media coverage, or the possibility most employers have retained their workers despite the moratorium.
Expectations were as many as 9,000 people would seek the grants, which are offered in a range of $3,000 to $30,000.
Now the charity will move to the next stage and will offer support workers of the industry to apply for the grants. Those serving the sector, like supply boats, will be able to receive grants now.
BP finally permanently plugged the oil well after temporarily stopping the oil leak in July.
Friday, September 17, 2010
Fed Moratorium Study Blasted by Critics
The federal government released a so-called report Thursday saying the oil moratorium put in place in the Gulf of Mexico in response to the BP (NYSE:BP) oil spill isn't causing as much economic damage as originally thought.
The government says the moratorium has only caused the temporary loss of 8,000 to 12,000 jobs in the Gulf region, and about $1.8 billion less in spending.
Allegedly on 2,000 oil rig workers have been out of work during the six-month ban, and the other job losses from the Obama administration came from business serving the industry, such as suppliers.
Critics of the ban, which is just about everybody in the Gulf states, say the oil drilling ban has been devastating to the Gulf economy. They have estimated that as many as 50,000 workers would be affected by the ban.
The first estimate from the Interior Department was for 23,000 workers to be out of work from the moratorium.
I wonder if they're taking into account the four oil rigs already gone or leaving the area, with oil companies saying more will leave in the near future.
Those are thousands of jobs that will never return to the region.
The government says the moratorium has only caused the temporary loss of 8,000 to 12,000 jobs in the Gulf region, and about $1.8 billion less in spending.
Allegedly on 2,000 oil rig workers have been out of work during the six-month ban, and the other job losses from the Obama administration came from business serving the industry, such as suppliers.
Critics of the ban, which is just about everybody in the Gulf states, say the oil drilling ban has been devastating to the Gulf economy. They have estimated that as many as 50,000 workers would be affected by the ban.
The first estimate from the Interior Department was for 23,000 workers to be out of work from the moratorium.
I wonder if they're taking into account the four oil rigs already gone or leaving the area, with oil companies saying more will leave in the near future.
Those are thousands of jobs that will never return to the region.
Thursday, September 16, 2010
Another Transocean (NYSE:RIG) Oil Rig Leaving Gulf
The news gets worse in light of the misguided Obama oil moratorium which continues to crush the Gulf region, as over 20,000 workers remain out of work because of the decision, while a fourth rig is now about to leave the region permanently, with Transocean (NYSE:RIG) saying they'll be removing a second rig from the area, while Diamond Offshore Drilling Inc (NYSE:DO) has already removed two.
Diamond and Anadarko (NYSE:APC) are in a battle over a third oil rig, which Anadarko wants to cancel the contract because of the moratorium.
Transocean CEO Steven Newman said concerning Gulf drilling activity, that there will probably be no meaningful continuation until sometime in 2011.
The growing idea is the regulatory atmosphere will probably result in a much less robust Gulf drilling area, and loss of thousands of jobs on a permanent basis.
Hopefully that will change after the mid-term elections.
Diamond and Anadarko (NYSE:APC) are in a battle over a third oil rig, which Anadarko wants to cancel the contract because of the moratorium.
Transocean CEO Steven Newman said concerning Gulf drilling activity, that there will probably be no meaningful continuation until sometime in 2011.
The growing idea is the regulatory atmosphere will probably result in a much less robust Gulf drilling area, and loss of thousands of jobs on a permanent basis.
Hopefully that will change after the mid-term elections.
Tuesday, September 14, 2010
Shallow Water Moratorium after BP (NYSE:BP) Oil Spill? May as Well be!
As the United States continues to flounder economically, new rules for shallow water drilling from the BP (NYSE:BP) disaster have close to the same consequences as if there was an oil moratorium in place, as it continues to be in deeper Gulf waters by the order of the Obama administration, which is wreaking economic havoc in the Gulf states struggling to recover.
Since June 8, only 5 of the 13 drilling permits applied for have been approved.
The problem is the new regulations in place which will allegedly make it safer to drill in shallow waters, even though government inspectors had cleared every oil rig in the Gulf with the exception of two, as being safe to operate.
According to Jim Noe, Executive Director of the Shallow Water Energy Security Coalition, regulators need to differentiate between the development of shallow water drilling and deepwater drilling.
He said, "BOEM must recognize that it cannot continue to shove a square peg into a round hole by treating all offshore drilling operations the same, disregarding history and geological facts."
Noe is referring to using a tiered review process for the industry based on risks associated with the depths being drilled in.
He added, of the 46 available shallow water rigs, 15 of them have now been idled, in addition to the idled deepwater rigs.
Just the deepwater moratorium alone is causing the loss of over 20,000 jobs, according to most state authorities in the region.
Since June 8, only 5 of the 13 drilling permits applied for have been approved.
The problem is the new regulations in place which will allegedly make it safer to drill in shallow waters, even though government inspectors had cleared every oil rig in the Gulf with the exception of two, as being safe to operate.
According to Jim Noe, Executive Director of the Shallow Water Energy Security Coalition, regulators need to differentiate between the development of shallow water drilling and deepwater drilling.
He said, "BOEM must recognize that it cannot continue to shove a square peg into a round hole by treating all offshore drilling operations the same, disregarding history and geological facts."
Noe is referring to using a tiered review process for the industry based on risks associated with the depths being drilled in.
He added, of the 46 available shallow water rigs, 15 of them have now been idled, in addition to the idled deepwater rigs.
Just the deepwater moratorium alone is causing the loss of over 20,000 jobs, according to most state authorities in the region.
Thursday, September 2, 2010
Transocean (NYSE:RIG) Moves Oil Rig, Jobs, Out of Gulf
One of the oil rigs left with nothing to do in the Gulf of Mexico because of the Obama administration moratorium on deepwater drilling, has been moved by Transocean (NYSE:RIG) - along with the jobs it would have provided - to Nigeria.
The rig is contracted out to ENI from Italy, which left the region last week.
Thousands of jobs are at stake as the oil moratorium continues to take its toll on oil workers and those who serve the industry.
A federal judge allowed the lawsuit against the moratorium to go forward today, saying the second moratorium was in essence no different from the first, and based on no new data.
Protests are spreading across the nation, beginning in Texas, as the oil industry and oil workers express their outrage toward the Obama administration for refusing to halt the moratorium, even after a federal judge had said they had to after the first moratorium.
That led to the disingenuous second moratorium, which the judge ruled on Wednesday.
The rig is contracted out to ENI from Italy, which left the region last week.
Thousands of jobs are at stake as the oil moratorium continues to take its toll on oil workers and those who serve the industry.
A federal judge allowed the lawsuit against the moratorium to go forward today, saying the second moratorium was in essence no different from the first, and based on no new data.
Protests are spreading across the nation, beginning in Texas, as the oil industry and oil workers express their outrage toward the Obama administration for refusing to halt the moratorium, even after a federal judge had said they had to after the first moratorium.
That led to the disingenuous second moratorium, which the judge ruled on Wednesday.
Thursday, August 19, 2010
Canada Says "Yes" to Offshore Drilling for Chevron (NYSE:CVX), Others
A Canadian Senate committee wisely said there is no reason not to allow oil companies like Chevron (NYSE:CVX) to continue to drill for crude and gas off the coasts of Canada, contrary to the misguided oil moratorium implemented by the Obama administration.
According to a report from the Senate committee on energy, the environment and natural resources, after listening to 26 witnesses, "No evidence was adduced to justify any such ban or suspension and the committee is recommending that the said Chevron operation continue as planned, under close scrutiny and supervision by the regulators."
There had been a few calls to impose an Obama-like moratorium in Canadian waters, but ignoring the hysteria generated from the mainstream press, the committee, as they said, found no reason not to continue with deep offshore drilling.
Committee chair David Angus said the senators felt the safety precautions now in place should be more than enough to prevent a similar accident like the one in the Gulf of Mexico by BP (NYSE:BP) from happening in Canadian waters.
According to a report from the Senate committee on energy, the environment and natural resources, after listening to 26 witnesses, "No evidence was adduced to justify any such ban or suspension and the committee is recommending that the said Chevron operation continue as planned, under close scrutiny and supervision by the regulators."
There had been a few calls to impose an Obama-like moratorium in Canadian waters, but ignoring the hysteria generated from the mainstream press, the committee, as they said, found no reason not to continue with deep offshore drilling.
Committee chair David Angus said the senators felt the safety precautions now in place should be more than enough to prevent a similar accident like the one in the Gulf of Mexico by BP (NYSE:BP) from happening in Canadian waters.
Friday, July 30, 2010
BP (NYSE:BP) Oil Making $100 Million Fund For Rig Workers
BP (NYSE:BP) oil said today that it is planning on beginning a $100 million fund for unemployed rig workers. It will be a charitable fund for those workers experiencing economic hardship caused by the drilling moratorium forced by the United States Government.
BP's Managing Director Bob Dudley said, "The Baton Rouge Area Foundation has a strong track record of meeting community needs, and we are quite confident the foundations will respond effectively to assist the rig workers who today are struggling to make ends meet."
On June 16th BP said they planned on setting up a voluntary fund as a gesture of good will for the people of the Gulf Coast Region. What's being called The Rig Worker Assistance Fund will be handled by The Gulf Coast Restoration and Protection Foundation.
Foundation president and CEO, John G. Davies said, "The foundation is committed to moving as quickly as we can to write grants from this donation by BP. This agreement with BP came together over about three weeks, and we are moving rapidly to create the guidelines related to this grant program. We expect to release all the details of the program within two weeks, than to begin taking applications for grants September 1st."
BP's Managing Director Bob Dudley said, "The Baton Rouge Area Foundation has a strong track record of meeting community needs, and we are quite confident the foundations will respond effectively to assist the rig workers who today are struggling to make ends meet."
On June 16th BP said they planned on setting up a voluntary fund as a gesture of good will for the people of the Gulf Coast Region. What's being called The Rig Worker Assistance Fund will be handled by The Gulf Coast Restoration and Protection Foundation.
Foundation president and CEO, John G. Davies said, "The foundation is committed to moving as quickly as we can to write grants from this donation by BP. This agreement with BP came together over about three weeks, and we are moving rapidly to create the guidelines related to this grant program. We expect to release all the details of the program within two weeks, than to begin taking applications for grants September 1st."
Thursday, July 29, 2010
Hornbeck (NYSE:HOS) Surpasses Expectations, Earnings Skyrocket
Hornbeck Offshore Services Inc (NYSE:HOS) beat analysts' estimates, as the provider of marine transportation posted solid numbers for the quarter.
Earnings for the quarter came in at $13 million, or 48 cents a share, far surpassing the $199,000, or 1 cent a share, they generated in the same quarter last year.
For revenue and earnings, analysts had been looking for $94 million in revenue and 14 cents a share in earnings.
Revenue increased to $111.9 million, a 14 percent gain. Revenue from upstream operations was $100.5 million, rising 20 percent.
For the year, Hornbeck gave a guidance range of 81 cents a share to $1.73 a share for the full year. That beats the expected 76 cents analysts projected.
Hornbeck was the company that pressed hardest for the oil moratorium by Obama to be lifted, and temporarily had it stopped.
Earnings for the quarter came in at $13 million, or 48 cents a share, far surpassing the $199,000, or 1 cent a share, they generated in the same quarter last year.
For revenue and earnings, analysts had been looking for $94 million in revenue and 14 cents a share in earnings.
Revenue increased to $111.9 million, a 14 percent gain. Revenue from upstream operations was $100.5 million, rising 20 percent.
For the year, Hornbeck gave a guidance range of 81 cents a share to $1.73 a share for the full year. That beats the expected 76 cents analysts projected.
Hornbeck was the company that pressed hardest for the oil moratorium by Obama to be lifted, and temporarily had it stopped.
Tuesday, July 13, 2010
Obama's Moratorium Results in Diamond Offshore (NYSE:DO) Moving Rig Out of Gulf to 'Republic of Congo'
Diamond Offshore (NYSE:DO) announced today it is moving its oil rig Ocean Confidence out of the Gulf of Mexico to the Republic of Congo, and has suspended a contract in the region to make the rig available.
Diamond Offshore President and CEO, Larry Dickerson, said, “As the uncertainty about continued deepwater drilling in the GOM persists, we must consider alternatives that allow our deepwater assets to remain employed. The contract we suspended with Murphy has been restructured into a one-year commitment in the GOM that is expected to recommence when our customer is satisfied that it can obtain the necessary permits and can meet any new regulatory requirements.”
A subsidiary of Murphy Exploration and Production Company (NYSE:MUR) will be the recipient of the oil rig via a new multi-well international agreement.
It's unknown how many jobs Americans have lost as a consequence of Obama's misguided oil moratorium.
This is the second rig Diamond has pulled out of region in the last several days.
Diamond Offshore President and CEO, Larry Dickerson, said, “As the uncertainty about continued deepwater drilling in the GOM persists, we must consider alternatives that allow our deepwater assets to remain employed. The contract we suspended with Murphy has been restructured into a one-year commitment in the GOM that is expected to recommence when our customer is satisfied that it can obtain the necessary permits and can meet any new regulatory requirements.”
A subsidiary of Murphy Exploration and Production Company (NYSE:MUR) will be the recipient of the oil rig via a new multi-well international agreement.
It's unknown how many jobs Americans have lost as a consequence of Obama's misguided oil moratorium.
This is the second rig Diamond has pulled out of region in the last several days.
New Drilling Ban Issued By U.S. Government, Stemmed From BP (NYSE:BP)
After much criticism, the U.S. Government has issued a new revised moratorium which stemmed from BP's (NYSE:BP) disastrous oil spill. It was said Obama's administration would have to do this after a U.S. appeals court ruled against it, saying there wasn't legal basis to shut down all oil drilling. Especially when so many livelihoods depend upon it.
This new improved moratorium is geared more towards the people and business that have been effected. The priority being to protect the thousands of jobs in the Gulf region, while at the same time looking to make the oil industry safer. Ken Salazar, Interior Secretary, is to issue and put into effect the revised, more flexible moratorium at 4 pm EDT.
A government source said that under the new ban deepwater production will be allowed to continue, only some deepwater drilling will be banned. If new safety and environmental rules are meet than shallow drilling will be allowed to continue. If Salazar finds that deepwater drilling can be resumed safely, the freeze could end before November 30th, continued the source.
According to spokesman Robert Gibbs, the White House feels strongly that the revised moratorium will stand up in court.
This new improved moratorium is geared more towards the people and business that have been effected. The priority being to protect the thousands of jobs in the Gulf region, while at the same time looking to make the oil industry safer. Ken Salazar, Interior Secretary, is to issue and put into effect the revised, more flexible moratorium at 4 pm EDT.
A government source said that under the new ban deepwater production will be allowed to continue, only some deepwater drilling will be banned. If new safety and environmental rules are meet than shallow drilling will be allowed to continue. If Salazar finds that deepwater drilling can be resumed safely, the freeze could end before November 30th, continued the source.
According to spokesman Robert Gibbs, the White House feels strongly that the revised moratorium will stand up in court.
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.
Monday, June 28, 2010
Oil Company Executives Leave Meeting With Salazar Disappointed: BP (NYSE:BP), Exxon (NYSE:XOM), Transocean (NYSE:RIG), Chevron (NYSE:CVX),
Executives from several oil and gas companies including BP (NYSE:BP), Exxon Mobil (NYSE:XOM), Transocean (NYSE:RIG), Chevron (NYSE:CVX), Noble Energy, Hercules Offshore Inc., Rowan Cos. Inc. (NYSE:RDC), Diamond Offshore Drilling, and Seahawk Drilling, attended an hour long meeting with Ken Salazar, U.S. Interior Secretary today. Also present were the heads of the trade groups for the industry.
The purpose of this meeting was to lift the moratorium imposed by President Obama. Everybody left disappointed as Salazar refused to make any promises that the government would lift the Deep water drilling ban. Kendra Barkoff, Interior spokeswoman confirmed the meeting took place but refused to comment on the contents of the meeting itself.
"Numerous operators told Secretary Salazar that they were in the final stages of moving rigs, deepwater rigs out of the Gulf of Mexico and to West Africa or the Middle East. We were frankly disappointed at the lack of serious attention that was paid by the department of the Interior on the horrible economic impact that the Department of Interior's policies are having on the industry and on communities along the Gulf Coast, " said a source close to the matter.
In letters to the executives of these oil and gas companies, House Democrats questioned if their oil response plans "were adequate to protect the Gulf region from the consequences of a sub sea blowout similar to the blowout" that BP experienced at the Macondo well.
The purpose of this meeting was to lift the moratorium imposed by President Obama. Everybody left disappointed as Salazar refused to make any promises that the government would lift the Deep water drilling ban. Kendra Barkoff, Interior spokeswoman confirmed the meeting took place but refused to comment on the contents of the meeting itself.
"Numerous operators told Secretary Salazar that they were in the final stages of moving rigs, deepwater rigs out of the Gulf of Mexico and to West Africa or the Middle East. We were frankly disappointed at the lack of serious attention that was paid by the department of the Interior on the horrible economic impact that the Department of Interior's policies are having on the industry and on communities along the Gulf Coast, " said a source close to the matter.
In letters to the executives of these oil and gas companies, House Democrats questioned if their oil response plans "were adequate to protect the Gulf region from the consequences of a sub sea blowout similar to the blowout" that BP experienced at the Macondo well.
Shell Oil (LSE:RDSA) Reaches Gulf Deal With Noble
Shell Oil (LSA:RDSA) has reached a deal with Noble Corp. that gives them $4 billion of new contracts. Noble is also purchasing Frontier Drilling, a privately held company for $2.16 billion in cash.
Shell will be paying reduced fees for the leasing of Noble's rigs in the Gulf of Mexico. They have also given Shell the full right to cancel any contracts between the two rigs currently in the Gulf. Due to President Obama's six month moratorium on deepwater drilling.
The agreements are contingent upon Noble closing the deal with Frontier. Upon doing so, Shell will have the go ahead for the two ultra deepwater projects according to the terms of the contract. Anadarko pulled out of their contract with Noble in the beginning of June from drilling contracts due to the moratorium.
John Breed, a Noble spokesman said the purpose of the Shell purchase is to hopefully ease concerns and prevent oil companies from fully abandoning agreements in the Gulf. " We're working with our customers to find a resolution that would allow them to keep rigs under contract," said Breed.
Shell will be paying reduced fees for the leasing of Noble's rigs in the Gulf of Mexico. They have also given Shell the full right to cancel any contracts between the two rigs currently in the Gulf. Due to President Obama's six month moratorium on deepwater drilling.
The agreements are contingent upon Noble closing the deal with Frontier. Upon doing so, Shell will have the go ahead for the two ultra deepwater projects according to the terms of the contract. Anadarko pulled out of their contract with Noble in the beginning of June from drilling contracts due to the moratorium.
John Breed, a Noble spokesman said the purpose of the Shell purchase is to hopefully ease concerns and prevent oil companies from fully abandoning agreements in the Gulf. " We're working with our customers to find a resolution that would allow them to keep rigs under contract," said Breed.
Sunday, June 27, 2010
Shell (LSE:RDSA): We Must Keep Deep Water Drilling For Oil
Peter Voser, the chief executive of Royal Dutch Shell (LSE:RDSA) said even though there's been a massive oil spill due to BP, lack of resources and ability to contain the crude oil, deep water drilling is still an absolute necessary to be able to meet the growing energy demands the industry is facing. He was sure to add though that the disaster readiness must be properly evaluated and corrected.
"My expectation is that we will go forward with it but it needs some changes. It's clear, now some of the findings are coming out, that the oil response side has got some weaknesses and we as an industry have to come together in order to actually be better prepared in the future," said Voser.
Due to the worst oil spill in history, President Obama put into play a six month moratorium on all deep water drilling. This was put into place in May and was only supposed to last through that month and be effective on any new deep water drilling. As the month of May came to a close, that is when Obama extended the moratorium to six months and made it effective on all drilling rigs in the Gulf.
Voser said, "we have got other safety procedures across the globe. But I think again that for some companies, there will be some learning in this that needs to be adapted. Safety and design features need to be constantly improved. By doing so we can actually prevent these kinds of things from happening much more and I think that's where we need to drive it even further on the global scale."
"My expectation is that we will go forward with it but it needs some changes. It's clear, now some of the findings are coming out, that the oil response side has got some weaknesses and we as an industry have to come together in order to actually be better prepared in the future," said Voser.
Due to the worst oil spill in history, President Obama put into play a six month moratorium on all deep water drilling. This was put into place in May and was only supposed to last through that month and be effective on any new deep water drilling. As the month of May came to a close, that is when Obama extended the moratorium to six months and made it effective on all drilling rigs in the Gulf.
Voser said, "we have got other safety procedures across the globe. But I think again that for some companies, there will be some learning in this that needs to be adapted. Safety and design features need to be constantly improved. By doing so we can actually prevent these kinds of things from happening much more and I think that's where we need to drive it even further on the global scale."
Wednesday, June 23, 2010
Stock Prices, Crude Oil Futures: Chevron (NYSE:CVX), Halliburton (NYSE:HAL), Exxon (NYSE:XOM),
Stock prices in energy see a dramatic decline in Chevron (NYSE:CVX), Halliburton (NYSE:HAL), and Exxon (NYSE:XOM). This drop was seen after the White House stated they planned to immediately appeal a decision made by a judge in Louisiana to stop the moratorium banning any new drilling for six months.
Exxon Mobil dropped 1.9 percent to 61.94. While Chevron seen a decline of 2.3 percent taking them to 74. Then there Halliburton which slid 3.9 percent to 25.99.
Ben Halliburton, chief investment officer at Tradition Capital Management said, "it's a big negative for the industry if the moratorium is not lifted. Clearly, the companies impacted are going to have negative revisions on their earnings and their cash flows if they're involved in the deepwater Gulf."
The Nasdaq dropped 1.19 percent to 2261.80. While the Standard and Poors 500 saw a decline of 1.61 percent to 1095.31. All sectors of the S&P ended in the red lead by energy. The Dow Jones fell 1.43 percent to 10293.52, there largest one day loss since June 4th.
Exxon Mobil dropped 1.9 percent to 61.94. While Chevron seen a decline of 2.3 percent taking them to 74. Then there Halliburton which slid 3.9 percent to 25.99.
Ben Halliburton, chief investment officer at Tradition Capital Management said, "it's a big negative for the industry if the moratorium is not lifted. Clearly, the companies impacted are going to have negative revisions on their earnings and their cash flows if they're involved in the deepwater Gulf."
The Nasdaq dropped 1.19 percent to 2261.80. While the Standard and Poors 500 saw a decline of 1.61 percent to 1095.31. All sectors of the S&P ended in the red lead by energy. The Dow Jones fell 1.43 percent to 10293.52, there largest one day loss since June 4th.
Growing Outrage over Obama's Oil Moratorium
Other than his radical environmental pals, and his Democrat buddies, very few people or businesses support the overreaction of Obama to impose a six-month moratorium on drilling for oil in over 500 feet of water in the Gulf of Mexico, as businesses serving the industry, as well as the industry itself, get financially crushed from Obama's misguided decision.
A judge lifted the moratorium, saying it was unprecedented in history, with no parameters or guidelines other than completely shutting everything down involved in the decision of Obama.
The arrogant president of the United States doesn't care, and immediately went on the offense against the people and businesses in the Gulf region by appealing the ruling of the federal judge.
A number of people say it could do more damage than the disaster itself to the people of the Gulf.
A judge lifted the moratorium, saying it was unprecedented in history, with no parameters or guidelines other than completely shutting everything down involved in the decision of Obama.
The arrogant president of the United States doesn't care, and immediately went on the offense against the people and businesses in the Gulf region by appealing the ruling of the federal judge.
A number of people say it could do more damage than the disaster itself to the people of the Gulf.
Tuesday, June 22, 2010
Judge Overturns Obama's Moratorium Due To BP (NYSE:BP)
In a surprising move, Martin Feldman, U.S. District Judge from New Orleans has blocked President Obama's six month moratorium, originating because of BP's (NYSE:BP) worst oil spill in U.S. history. The moratorium was at first going to just be for any new deepwater drilling and for only the month of May, but then it turned into a suspension of all Gulf coast drilling. Shutting down 33 of the Gulf's exploratory wells.
The complaint was submitted to the Judge by several businesses who provided many different services who are arguing the moratorium was arbitrarily imposed. In his ruling Feldman agreed, stating in his ruling that the Interior Department is assuming because one rig failed all rigs and companies involved with deepwater drilling are posing an imminent danger.
Feldman wrote, "an invalid agency decision to suspend drilling of wells in depths of over 500 feet simply cannot justify the immeasurable effect on the plaintiffs, the local economy, the Gulf region, and the critical present day aspect of the availability of domestic energy in this country."
The Interior Department's response to the lawsuit is simply, the moratorium is necessary while the continued attempts go on in the Gulf to stop the crude oil and cleanup the oil spill. "A second deepwater blowout could overwhelm the efforts to respond to the current disaster," said the Interior Department.
The White House said there will be an immediate appeal.
The complaint was submitted to the Judge by several businesses who provided many different services who are arguing the moratorium was arbitrarily imposed. In his ruling Feldman agreed, stating in his ruling that the Interior Department is assuming because one rig failed all rigs and companies involved with deepwater drilling are posing an imminent danger.
Feldman wrote, "an invalid agency decision to suspend drilling of wells in depths of over 500 feet simply cannot justify the immeasurable effect on the plaintiffs, the local economy, the Gulf region, and the critical present day aspect of the availability of domestic energy in this country."
The Interior Department's response to the lawsuit is simply, the moratorium is necessary while the continued attempts go on in the Gulf to stop the crude oil and cleanup the oil spill. "A second deepwater blowout could overwhelm the efforts to respond to the current disaster," said the Interior Department.
The White House said there will be an immediate appeal.
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