Petrobras (NYSE:PBR), Anadarko (NYSE:APC), Transocean (NYSE:RIG), Royal Dutch Shell (NYSE:RDS-A) and Cameron International (NYSE:CAM) all closed up Thursday, bucking the trend of oil futures pulling back after climbing over $101 a barrel on Wednesday.
Obama's economy continues to crumble as first-time unemployment claims surged by close to 10,000, exploding past the anticipated decline of 4,000 economists had been expecting. That is a seasonally adjusted 424,000 for the week ended May 21.
The U.S. economy growth rate was also worst than expected, growing at a very weak 1.8 percent rate in the first quarter, falling from the 3.1 percent growth rate in the fourth quarter, and missing the 2.2 percent growth rate economists had projected.
The U.S. Labor Department also upwardly revised initial unemployment claims from the last report they issued.
All of this had an impact on oil prices, as oil futures ended lower Thursday. Light, sweet crude for July delivery settled down $1.09, or 1.1 percent, to $100.23 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange settled up 12 cents, or 0.1 percent, to $115.05 a barrel.
Front-month June reformulated gasoline blendstock, settled up 3.21 cents, or 1.1 percent, to $3.0483 a gallon. June heating oil was up 0.26 cent, or 0.1 percent, to $2.9829 a gallon.
With the Memorial Day weekend coming in the U.S., which usually involves heavy travel and usage of gasoline in vehicles, it probably counteracted the slightly lower price of oil and gas heading into the summer season.
Petrobras closed Thursday at $34.15, gaining $0.50, or 1.49 percent. Cameron International closed at $48.33, up $0.56, or 1.17 percent. Royal Dutch Shell soared to $70.28, surging $1.27, or 1.84 percent. Transocean ended the session at $69.36, rising $0.30, or 0.43 percent. Anadarko closed at $77.89, up $0.67, or 0.87 percent.
Showing posts with label Petrobras. Show all posts
Showing posts with label Petrobras. Show all posts
Friday, May 27, 2011
Friday, November 5, 2010
Hess (NYSE:HES), Petrobras (NYSE:PBR), PetroChina (NYSE:PTR) Surge on Rising Oil Prices
Hess Corporation (NYSE:HES), Petrobras (NYSE:PBR), PetroChina (NYSE:PTR) were all moving up Thursday on the inflationary measures put in place by the Federal Reserve through QE2, which pushed the broader commodity market up, along with raw materials companies within each sector, including the oil producers.
Commodity prices overall rose, including silver, which increased to over $26 an ounce. Gold prices rose to all-time record highs again, closing in on the $1,400 an ounce mark. Aluminum surged to its highest levels since April.
Light, sweet crude for December delivery settled the trading day up $1.80 a barrel on the New York Mercantile Exchange at $86.49.
Hess Corporation closed at $69.25 Thursday, rising $2.81, or 4.23 percent. Petrobras surged to close at $20.42, gaining $0.96, or 4.93 percent. PetroChina was up to $131.06 at the end of the trading day, rising by $2.25, or 1.75 percent.
Commodity prices overall rose, including silver, which increased to over $26 an ounce. Gold prices rose to all-time record highs again, closing in on the $1,400 an ounce mark. Aluminum surged to its highest levels since April.
Light, sweet crude for December delivery settled the trading day up $1.80 a barrel on the New York Mercantile Exchange at $86.49.
Hess Corporation closed at $69.25 Thursday, rising $2.81, or 4.23 percent. Petrobras surged to close at $20.42, gaining $0.96, or 4.93 percent. PetroChina was up to $131.06 at the end of the trading day, rising by $2.25, or 1.75 percent.
Thursday, October 28, 2010
Petrobras (NYSE:PBR) Preparing to Resume Gulf Deepwater Drilling
The first production from the Cascade and Chinook fields in the Gulf of Mexico by Brazil's state-owned oil giant Petrobras (NYSE:PBR) is set to launch sometime near the end of 2010.
Petrobras owns the entirety of the Cascade field after acquiring the remaining 50 percent from Devon Energy Corp. (NYSE:DVN), which has turned its focus to onshore natural gas in North America.
Concerning Chinook, Petrobras has a 66.7 percent stake in that field, with Total SA (NYSE:TOT) of France having the remaining 33.3 percent. Petrobras is the operator of both the fields.
The oil moratorium from the Obama administration has set the project back, but since the wells were drilled before the implementation of the moratorium, it won't be negatively impacted from the permitting process, which will take a lot of time for competitors to get approved for.
Petrobras owns the entirety of the Cascade field after acquiring the remaining 50 percent from Devon Energy Corp. (NYSE:DVN), which has turned its focus to onshore natural gas in North America.
Concerning Chinook, Petrobras has a 66.7 percent stake in that field, with Total SA (NYSE:TOT) of France having the remaining 33.3 percent. Petrobras is the operator of both the fields.
The oil moratorium from the Obama administration has set the project back, but since the wells were drilled before the implementation of the moratorium, it won't be negatively impacted from the permitting process, which will take a lot of time for competitors to get approved for.
Monday, October 25, 2010
Petrobras (NYSE:PBR) Upgraded on Falling Share Price
After dropping 13 percent since early October, and 31 percent on the year, Petrobras (NYSE:PBR) has been out of favor with investors, enduring many downgrades as their debt load continues to be formidable with more on the horizon.
Petrobras has recently stated they may have to borrow another $60 billion over the next five years as well.
Believing they've bottomed out, UBS (NYSE:UBS) upgraded the Brazilian oil giant, citing the fall in price. That "warrants an upgrade" said UBS. They were raised from "Sell" to "Neutral."
The upcoming election in Brazil is important as it relates to Petrobras and potential investors. If the preferred candidate of president Luiz Inacio Lula da Silva, Dilma Rousseff, wins, it would be considered bad for the company as far as offering returns to investors, as there is sure to be much more spending by the government's mandate, which would push returns down.
On the other hand, a win by opposition leader Jose Serra, considered more centrist than Rousseff, would be better for the company and shareholders. Unfortunately, it seems the favorite is Rousseff at this time. The election will be held on October 31.
Petrobras is controlled by the Brazilian state, and so who is heading the country has an immediate impact on the oil giant.
Another challenge for them is the recent announcement they are going to fall short of its production goal of 2.1 million barrels of oil a day. Coupled with the large debt load, it doesn't look good for those who could get better returns elsewhere.
Petrobras has recently stated they may have to borrow another $60 billion over the next five years as well.
Believing they've bottomed out, UBS (NYSE:UBS) upgraded the Brazilian oil giant, citing the fall in price. That "warrants an upgrade" said UBS. They were raised from "Sell" to "Neutral."
The upcoming election in Brazil is important as it relates to Petrobras and potential investors. If the preferred candidate of president Luiz Inacio Lula da Silva, Dilma Rousseff, wins, it would be considered bad for the company as far as offering returns to investors, as there is sure to be much more spending by the government's mandate, which would push returns down.
On the other hand, a win by opposition leader Jose Serra, considered more centrist than Rousseff, would be better for the company and shareholders. Unfortunately, it seems the favorite is Rousseff at this time. The election will be held on October 31.
Petrobras is controlled by the Brazilian state, and so who is heading the country has an immediate impact on the oil giant.
Another challenge for them is the recent announcement they are going to fall short of its production goal of 2.1 million barrels of oil a day. Coupled with the large debt load, it doesn't look good for those who could get better returns elsewhere.
Thursday, October 7, 2010
Barclays (NYSE:BCS) Cuts Petrobas (NYSE:PBR) to "Equalweight"
Barclays Capital (NYSE:BCS) analyst Paul Cheng downgraded Petrobas (NYSE:PBR) from "Overweight" to "Equalweight," citing concerns over the spending of the company.
With Petrobras profits considered a means of socialist programs of the Brazilian government, uncertainty over how deeply the government may rob the Petrobras piggy bank is weighing on the mind of Cheng, and other investors as well.
If Petrobras is tapped in a big way by the incoming Brazilian government, it would mean a "lower future return for Petrobras' minority shareholders over the next several years."
Other spending concerns are the move to an increased domestic refining capacity, which could result in capital expenditures of over $150 billion over the next decade, said Cheng.
In the past Petrobras added capacity overseas inexpensively as their strategy.
Petrobras common shares closed at $35.09 Wednesday, dropping $1.62, or 4.41 percent.
With Petrobras profits considered a means of socialist programs of the Brazilian government, uncertainty over how deeply the government may rob the Petrobras piggy bank is weighing on the mind of Cheng, and other investors as well.
If Petrobras is tapped in a big way by the incoming Brazilian government, it would mean a "lower future return for Petrobras' minority shareholders over the next several years."
Other spending concerns are the move to an increased domestic refining capacity, which could result in capital expenditures of over $150 billion over the next decade, said Cheng.
In the past Petrobras added capacity overseas inexpensively as their strategy.
Petrobras common shares closed at $35.09 Wednesday, dropping $1.62, or 4.41 percent.
Wednesday, October 6, 2010
Petrobras (NYSE:PBR) Downgraded by Itau Unibanco to "Market Perform"
In light of the recent $70 billion sale of shares by Brazil's Petrobras (NYSE:PBR), Itau Unibanco downgraded the company from "Outperform" to "Market Perform."
Itau Unibanco analysts said, "We believe that the last two years have undermined Petrobras’ goodwill with the market and consequently investors’ appetite to pay material premiums, at least for now."
In other words the stock is considered expensive at this time.
Petrobras closed in New York at $36.71 Tuesday, gaining $0.12, or, 0.33 percent. Volume was almost exactly double the 3-month daily average.
Itau Unibanco analysts said, "We believe that the last two years have undermined Petrobras’ goodwill with the market and consequently investors’ appetite to pay material premiums, at least for now."
In other words the stock is considered expensive at this time.
Petrobras closed in New York at $36.71 Tuesday, gaining $0.12, or, 0.33 percent. Volume was almost exactly double the 3-month daily average.
Tuesday, September 28, 2010
Citigroup (NYSE:C), Bank of America (NYSE:BAC), Morgan Stanley (NYSE:MS) Make Little on Petrobras (NYSE:PBR) Fees
Petrobras (NYSE:PBR) has been in the news recently because of its enormous equity offering of $67 billion in common and preferred shares of the company, generating massive media coverage because it's one of the largest equity deals in history.
Global bookrunners like Citigroup (NYSE:C), Bank of America (NYSE:BAC) and Morgan Stanley (NYSE:MS) didn't fare as well though, as the fees from the deal won't do much to add to the bottom line of the company.
Fees for the overall deal came to only $147.2 million, a little over 0.20 percent of the deal.
Similar to other deals, the low fees were spun as irrelevant in relationship to the knowledge the participating banks would receive, and marketed as steps to numerous other deals in the near future.
Banco Bradesco of Brazil was the lead manager for the offering, with Grupo Santander of Spain and Banco Itau of Brazil also participating.
Global bookrunners like Citigroup (NYSE:C), Bank of America (NYSE:BAC) and Morgan Stanley (NYSE:MS) didn't fare as well though, as the fees from the deal won't do much to add to the bottom line of the company.
Fees for the overall deal came to only $147.2 million, a little over 0.20 percent of the deal.
Similar to other deals, the low fees were spun as irrelevant in relationship to the knowledge the participating banks would receive, and marketed as steps to numerous other deals in the near future.
Banco Bradesco of Brazil was the lead manager for the offering, with Grupo Santander of Spain and Banco Itau of Brazil also participating.
Tuesday, September 7, 2010
Shell (NYSE:RDS-A) Reportedly Selling For Oil Blocks in Brazil to Finance other Investments
A local Brazilian news agency, Estado, said Royal Dutch Shell (NYSE: RDS-A) is now looking for buyers for some of its stakes in deepwater oil exploration blocks off the coast of Brazil.
The oil giant is looking to sell four exploration blocks in what is identified as the pre-salt field.
One block is the BM-S-8 block, which is operated by Petrobras (NYSE:PBR). Shell owns a 20 percent stake in that part of the oil field.
Citing a Shell statement, Estado said the reason for the sales are to help finance other investment plans. Other assets in the region are reportedly going to be offered for sale by Shell as well.
The other blocks for sale are the BM-ES-28 block, which they have an 83.5 percent stake in; the BM-S-45 block, where they have a 40 percent stake in; and the BS4 block, which they also have a 40 percent stake.
All the blocks are located in the Santos and Espirito Santo basins, off the southeastern coast of Brazil.
The oil giant is looking to sell four exploration blocks in what is identified as the pre-salt field.
One block is the BM-S-8 block, which is operated by Petrobras (NYSE:PBR). Shell owns a 20 percent stake in that part of the oil field.
Citing a Shell statement, Estado said the reason for the sales are to help finance other investment plans. Other assets in the region are reportedly going to be offered for sale by Shell as well.
The other blocks for sale are the BM-ES-28 block, which they have an 83.5 percent stake in; the BM-S-45 block, where they have a 40 percent stake in; and the BS4 block, which they also have a 40 percent stake.
All the blocks are located in the Santos and Espirito Santo basins, off the southeastern coast of Brazil.
Friday, September 3, 2010
Citigroup (NYSE:C), Bank of America (NYSE:BAC), Goldman (NYSE:GS) Underwriting Billions for Petrobras (NYSE:PBR)
In a filing with the U.S. Securities and Exchange Commission, Petrobras (NYSE:PBR) revealed they'll be raising about $60 billion by selling shares of their common and preferred stock. The offering is being underwritten by Citigroup (NYSE:C), Bank of America (NYSE:BAC), Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:MS), among others.
Petrobras said they're going to sell up to 2,174,073,900 shares of their common stock, and 1,585,867,998 shares of their preferred stock in the offering.
Based on their September 1 closing price of $35.07 a common share, and $31.12 for each preferred ADS on the same date, the overall potential total of the offering would come to $62,798,491,875.38. That's before underwriter fees, other expenses and taxes.
Existing shareholders will be offered the first 80 percent of the shares on a priority basis.
While bookmaking should start today, pricing should be confirmed on September 23, 2010.
Petrobras said they're going to sell up to 2,174,073,900 shares of their common stock, and 1,585,867,998 shares of their preferred stock in the offering.
Based on their September 1 closing price of $35.07 a common share, and $31.12 for each preferred ADS on the same date, the overall potential total of the offering would come to $62,798,491,875.38. That's before underwriter fees, other expenses and taxes.
Existing shareholders will be offered the first 80 percent of the shares on a priority basis.
While bookmaking should start today, pricing should be confirmed on September 23, 2010.
Wednesday, September 1, 2010
Petrobras (NYSE:PBR), Brazilian Government Far Apart on Oil-for-shares Swap
Heading into a meeting with the National Energy Policy Council of Brazil, Petrobras (NYSE:PBR) and the government are far apart on the price of a proposed oil-for-shares swap.
The deal centers around Petrobras acquiring 5 billion barrels of oil in exchange for newly issued shares.
Petrobras wants to pay about $5-$6 a barrel, while the Brazilian government wants double that, from $10-$12 a barrel. That huge discrepancy has caused negotiations to drag on far longer than expected.
Once a deal is reached, that's only the first step, as it then must be approved by the CNPE, which is a group of government ministers from different sectors.
Analysts following Petrobras also feel the $5-$6 a barrel is much more in line with the risks involved in drilling in waters that have been largely untested. The value of the oil will determine the amount of capital Petrobras will have to put into the deal.
There are a couple of forces at work here. First, the government of Brazil must seek to get the best price for the resources on behalf of their citizens, which own natural resources under the ground.
Second, the amount it would cost Petrobras to secure the oil rights would heavily dilute the stock, making the Brazilian government a huge shareholder, and force minority shareholders to acquire shares to protect them from extreme dilution, because of their being newly issued.
There is a presidential election coming up in October in Brazil as well, adding another element to the deal, which politicians will want to favor the people in order to influence voting.
Petrobras says it is looking to sell as much as $25 billion in new shares by September for the deal, while the government is still looking at $50 billion.
The deal centers around Petrobras acquiring 5 billion barrels of oil in exchange for newly issued shares.
Petrobras wants to pay about $5-$6 a barrel, while the Brazilian government wants double that, from $10-$12 a barrel. That huge discrepancy has caused negotiations to drag on far longer than expected.
Once a deal is reached, that's only the first step, as it then must be approved by the CNPE, which is a group of government ministers from different sectors.
Analysts following Petrobras also feel the $5-$6 a barrel is much more in line with the risks involved in drilling in waters that have been largely untested. The value of the oil will determine the amount of capital Petrobras will have to put into the deal.
There are a couple of forces at work here. First, the government of Brazil must seek to get the best price for the resources on behalf of their citizens, which own natural resources under the ground.
Second, the amount it would cost Petrobras to secure the oil rights would heavily dilute the stock, making the Brazilian government a huge shareholder, and force minority shareholders to acquire shares to protect them from extreme dilution, because of their being newly issued.
There is a presidential election coming up in October in Brazil as well, adding another element to the deal, which politicians will want to favor the people in order to influence voting.
Petrobras says it is looking to sell as much as $25 billion in new shares by September for the deal, while the government is still looking at $50 billion.
Friday, June 4, 2010
Petrobras (NYSE:PBR-A) Discovers Light Oil Offshore
Petroleo Brasileiro SA, or Petrobras (NYSE:PBR-A), has discovered light oil about three miles below the ocean floor at the Marlim field.
This continues on with the successful discovery a number of offshore oil across a number of fields off the coast of Brazil.
Initial estimates are there are close to 380 million barrels of recoverable oil and natural gas at the find, about 2.6 percent of overall proven reserves of Petrobras.
Good news for the company is it can be extracted fairly quickly because they have other production equipment nearby, which will allow them to recover it quicker than normal.
This continues on with the successful discovery a number of offshore oil across a number of fields off the coast of Brazil.
Initial estimates are there are close to 380 million barrels of recoverable oil and natural gas at the find, about 2.6 percent of overall proven reserves of Petrobras.
Good news for the company is it can be extracted fairly quickly because they have other production equipment nearby, which will allow them to recover it quicker than normal.
Monday, September 7, 2009
Everyone Drilling Oil but U.S.?
Oil Exploration and Drilling
It's extraordinary that countries around the world are drilling and pursuing oil, with the exception of off the coasts of America and within its borders as well, where billion's of barrels are sitting there because of the far left environmental activists pressuring Democrats, who refuse to ignore them and open up our land and coasts to the billions of barrels of oil already known to be available to us, along with the potentially huge, unknown reserves there for the taking.
I'm not saying American Oil Companies aren't drilling, just that they're not drilling off the coasts of the U.S., which would be very lucrative and helpful to the American economy and American people.
Bizarrely, the Obama administration continues to resist drilling off the shores of the U.S. while oil companies from other nations cash in, like BP from the UK did recently in the Gulf, where they found billions of barrels of oil recently, although it'll take time to know how much it is overall. They are also going to drill a second place in attempts to tap into even more reserves, while the U.S. oil policy is in shambles because of political special interests.
Even though Congress repealed the restrictions on 85 percent of American waters, the Department of Interior under the Obama administration hasn't issued one lease to an oil company for drilling and exploration.
Foolishly, the result will be continued dependence on foreign oil and whims, while we sit on potential resources that could help ween us from this foreign oil dependence in a big way.
Interestingly, the discovery of the Tiber oil by BP in the gulf recently has led some to believe it is a big piece of evidence that strengthens the abiotic theory of oil's origins.
The abiotic theory of oil asserts that any type of hydrocarbon, which includes gas and oil, is the result of natural chemical processes deep in the earth which rise through the fissures of the planet and is usually deposited in sedimentary layers beneath the surface.
What is hypocritical in all this is under the Obama administration, the U.S.Export-Import bank loaned $2 billion to Brazil's Petrobras for furthering their offshore drilling efforts. This gives support to billionaire George Soros, an avid Obama supporter, who owns a stake in Petrobras, which is a state-owned oil and gas company.
Oil Exploration and Drilling
It's extraordinary that countries around the world are drilling and pursuing oil, with the exception of off the coasts of America and within its borders as well, where billion's of barrels are sitting there because of the far left environmental activists pressuring Democrats, who refuse to ignore them and open up our land and coasts to the billions of barrels of oil already known to be available to us, along with the potentially huge, unknown reserves there for the taking.
I'm not saying American Oil Companies aren't drilling, just that they're not drilling off the coasts of the U.S., which would be very lucrative and helpful to the American economy and American people.
Bizarrely, the Obama administration continues to resist drilling off the shores of the U.S. while oil companies from other nations cash in, like BP from the UK did recently in the Gulf, where they found billions of barrels of oil recently, although it'll take time to know how much it is overall. They are also going to drill a second place in attempts to tap into even more reserves, while the U.S. oil policy is in shambles because of political special interests.
Even though Congress repealed the restrictions on 85 percent of American waters, the Department of Interior under the Obama administration hasn't issued one lease to an oil company for drilling and exploration.
Foolishly, the result will be continued dependence on foreign oil and whims, while we sit on potential resources that could help ween us from this foreign oil dependence in a big way.
Interestingly, the discovery of the Tiber oil by BP in the gulf recently has led some to believe it is a big piece of evidence that strengthens the abiotic theory of oil's origins.
The abiotic theory of oil asserts that any type of hydrocarbon, which includes gas and oil, is the result of natural chemical processes deep in the earth which rise through the fissures of the planet and is usually deposited in sedimentary layers beneath the surface.
What is hypocritical in all this is under the Obama administration, the U.S.Export-Import bank loaned $2 billion to Brazil's Petrobras for furthering their offshore drilling efforts. This gives support to billionaire George Soros, an avid Obama supporter, who owns a stake in Petrobras, which is a state-owned oil and gas company.
Oil Exploration and Drilling
Tuesday, January 27, 2009
Oil | Gasprom, Statoil, Petrobras
What to the names Gasprom, Statoil and Petrobras have in common? They're all state-owned oil and natural gas energy companies that have a lot of upside potential for oil investors.
When you consider the national monopolies represented by state-owned oil & gas companies, you realize the great potential an energy investor has, assuming they do their homework, as not all nationalized oil companies are the same. Take Mexico and Venezuela, who run their oil exploration companies horribly, and you'd have to have oil in your veins to invest in them.
But in some cases, the competitive advantage for a well run national oil company offers great opportunity.
Take Petrobras of Brazil for a moment. They discovered huge offshore oil fields over the last couple years, and the government offered the prime drilling locations to who? You got it: Petrobras. If any other oil companies are allowed in, you know all they'll get is the leftovers.
Now Statoil, or StoilHydro, from Norway, is in a similar situation, and are positioned for some good profits going forword.
As far as Russian oil company Gazprom, which also has a presence in the UK, they are obviously a much more risky investment, but worthwhile testing out with your spare change rather than serious energy investment money. The Gazprom news is a little more volatile than the oil news concerning other energy companies owned by governments.
Now that the idea is being floated around out there that all the easy oil has been accessed (it hasn't but that's a different story), these national oil and natural gas exploration companies should receive a lot of positive attention from news outlets as the idea of scarcity and higher prices woo oil investors.
We're going to see more oil rigs offshore, and those will be installed by companies like statoil, Petrobras and Gazprom.
Many energy investors don't realize the size of some of the state oil companies even when compared to huge oil and gas firms like Exxon Mobile. Exxon Mobile doesn't have anywhere near the oil and gas capacity that these state oil & gas companies have, and they have to pay taxes, contrary to the national oil and gas companies.
Where does that leave us? It leaves us with huge companies that own a monopoly exploring and drilling a natural resource that will be needed for decades and decades ahead.
Those energy companies owned run by those countries operationally sound way, will bring good returns for investors for years to come. Just think of the country producing the oil and gas to see what the risks are. As risky as the country is in other areas, will be the risk involved for investors in oil and gas.
New techniques used allow oil & gas exploration companies to see through the salty ocean bottoms to find new energy reserves. That is what allowed Petrobras to discover the Tupi and other oil fields which had been there all along.
Depending on what your energy investment strategy is and your personal risk disposition, national companies like Gazprom, Statoil and Petrobras could be places you put your dollars for the long haul.
When you consider the national monopolies represented by state-owned oil & gas companies, you realize the great potential an energy investor has, assuming they do their homework, as not all nationalized oil companies are the same. Take Mexico and Venezuela, who run their oil exploration companies horribly, and you'd have to have oil in your veins to invest in them.
But in some cases, the competitive advantage for a well run national oil company offers great opportunity.
Take Petrobras of Brazil for a moment. They discovered huge offshore oil fields over the last couple years, and the government offered the prime drilling locations to who? You got it: Petrobras. If any other oil companies are allowed in, you know all they'll get is the leftovers.
Now Statoil, or StoilHydro, from Norway, is in a similar situation, and are positioned for some good profits going forword.
As far as Russian oil company Gazprom, which also has a presence in the UK, they are obviously a much more risky investment, but worthwhile testing out with your spare change rather than serious energy investment money. The Gazprom news is a little more volatile than the oil news concerning other energy companies owned by governments.
Now that the idea is being floated around out there that all the easy oil has been accessed (it hasn't but that's a different story), these national oil and natural gas exploration companies should receive a lot of positive attention from news outlets as the idea of scarcity and higher prices woo oil investors.
We're going to see more oil rigs offshore, and those will be installed by companies like statoil, Petrobras and Gazprom.
Many energy investors don't realize the size of some of the state oil companies even when compared to huge oil and gas firms like Exxon Mobile. Exxon Mobile doesn't have anywhere near the oil and gas capacity that these state oil & gas companies have, and they have to pay taxes, contrary to the national oil and gas companies.
Where does that leave us? It leaves us with huge companies that own a monopoly exploring and drilling a natural resource that will be needed for decades and decades ahead.
Those energy companies owned run by those countries operationally sound way, will bring good returns for investors for years to come. Just think of the country producing the oil and gas to see what the risks are. As risky as the country is in other areas, will be the risk involved for investors in oil and gas.
New techniques used allow oil & gas exploration companies to see through the salty ocean bottoms to find new energy reserves. That is what allowed Petrobras to discover the Tupi and other oil fields which had been there all along.
Depending on what your energy investment strategy is and your personal risk disposition, national companies like Gazprom, Statoil and Petrobras could be places you put your dollars for the long haul.
Friday, January 16, 2009
Petrobras Says Oil and Gas Production Up 4.3 Percent Over Last Year
The good news for Brazil's government-run company Petrobras (PZE), is overall its output increased by 4.3 percent in 2008 in contrast to output in 2007. The bad news is their international oil and gas production both fell.
Considering today's economic climate, it still isn't a bad performance.
On the domestic side, which is where the major production of the company comes from, oil and gas production grew to almost 2.2 million barrels a day, while overall production was 2.4 million barrels a day.
On the international side of things, gas fell by 8.3 percent to 17,063 cubic meters a day, while oil declined by 2 percent to 123,635 barrels a day.
Most of the international drop came from the hurrican season as well as some of the maturer oil fields fell in production.
Tuesday, January 13, 2009
Petrobras Breaks Monthly Oil Export Record in December
Brazil's Petrobras broke its own monthly oil export record in December, as the government-run company announced it exported 620,000 barrels of oil daily, easily surpassing the past record of 574,000 barrels exported daily set in October 2008.
For the month of December, Petrobras exported a total of 19.234 million barrels, with the U.S. accounting for 63 percent of those exports.
Other regions of export significance for Petrobras were Europe, which accounted for 21.4 percent of oil exports, South America, accounting for 5.4 percent of exports, and Asian and Caribbean countries, which combined for 5.0 percent of exports.
Monthly revenue for the month of December came in at $574 million.
For the month of December, Petrobras exported a total of 19.234 million barrels, with the U.S. accounting for 63 percent of those exports.
Other regions of export significance for Petrobras were Europe, which accounted for 21.4 percent of oil exports, South America, accounting for 5.4 percent of exports, and Asian and Caribbean countries, which combined for 5.0 percent of exports.
Monthly revenue for the month of December came in at $574 million.
Tuesday, August 19, 2008
Oil News Around the Web
Oil stocks post gains as crude prices rebound
Oil jumps $3 on projections about inventory report
McCain touts drilling agenda from oil platform
Crude Oil Advances on Weaker Dollar, Gasoline Supply Forecast
Trio Plan $1.8 Billion Oil Port In Bet On Texas Refining
Zone Oil & Gas Signs Joint Venture deal with Penn Virginia
Petrobras July oil output in Brazil flat
Storm Fay unlikely to disrupt offshore oil production
Spindletop Oil & Gas Co. Releases Earnings for First Half of 2008.
Platinum Energy Resources, Inc. Reports Financial and Operational Results for the Second Quarter Ended June 30, 2008
ReoStar Energy Announces First Quarter Fiscal Year 2009 Financial Results
Oil jumps $3 on projections about inventory report
McCain touts drilling agenda from oil platform
Crude Oil Advances on Weaker Dollar, Gasoline Supply Forecast
Trio Plan $1.8 Billion Oil Port In Bet On Texas Refining
Zone Oil & Gas Signs Joint Venture deal with Penn Virginia
Petrobras July oil output in Brazil flat
Storm Fay unlikely to disrupt offshore oil production
Spindletop Oil & Gas Co. Releases Earnings for First Half of 2008.
Platinum Energy Resources, Inc. Reports Financial and Operational Results for the Second Quarter Ended June 30, 2008
ReoStar Energy Announces First Quarter Fiscal Year 2009 Financial Results
Tuesday, April 15, 2008
Petrobras Claims Yet Another Huge Oil Find - the Largest in 30 Years
The Brazilian company Petrobas has claimed another huge oil field find under the ocean, this time it could be up to 33 billion of barrels of oil in the field, about 5times the size of Tupi. They also discovered a huge gas field recently, which also contained oil; and they named Juniper.
This discovery, if it holds to near the size estimated, will be the largest oil discovery in the world in 30 years.
"It could be the world's biggest discovery in the past 30 years, and the world's third-biggest currently active field," Haroldo Lima, head of the government's oil and fuel market regulator, told reporters.
The new find is in the Santos basin area called Carioca, west of the Tupi field. Other companies with a stake in the field are BG, with a 30 percent, and Repsol, with a 25 percent stake.
A number of geologists have theorized that the Tupi field probably would entertain a neighboring, larger field, containing both natural gas and oil. Obviously they were right.
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