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.
Showing posts with label Shell. Show all posts
Showing posts with label Shell. Show all posts
Friday, July 9, 2010
Thursday, July 1, 2010
BP's (NYSE:BP) Takeover: Shell (LSE:RDSA) or Exxon (NYSE:XOM)
BP's (NYSE:BP) fallen far enough in their stock prices for them to be considered attractive to other big oil oil companies and rivals like Shell (LSE:RDSA) and Exxon Mobil (NYSE:XOM) to purchase. On April 19th BP's stocks closed at $60.09, the day before the Deepwater Horizon oil rig exploded. With yesterdays stock prices closing at $28.88, that's a loss of over 50 percent of their market value.
"In theory, either Exxon Mobil or RD Shell could consider a bid for BP," said Lucas to investors. "We focus on these two names because they have similar business models and similar global asset structures. They also bear the lowest political risk to a potential combination with BP."
This idea of a takeover by Lucas was "prompted by the gap between the current market value of BP and the intrinsic value that we see in BP." Douglas Youngston, an oil industry analyst of Arbuthnot Securities told CNNMoney if BP's stock fell below $30 a share, it would then become appealing as a possible takeover target.
Youngson said, "if the share price continues to fall, other companies may see this for the bargain it will be." He said this on June 2nd when BP's stock price hit $37.66.
"In theory, either Exxon Mobil or RD Shell could consider a bid for BP," said Lucas to investors. "We focus on these two names because they have similar business models and similar global asset structures. They also bear the lowest political risk to a potential combination with BP."
This idea of a takeover by Lucas was "prompted by the gap between the current market value of BP and the intrinsic value that we see in BP." Douglas Youngston, an oil industry analyst of Arbuthnot Securities told CNNMoney if BP's stock fell below $30 a share, it would then become appealing as a possible takeover target.
Youngson said, "if the share price continues to fall, other companies may see this for the bargain it will be." He said this on June 2nd when BP's stock price hit $37.66.
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."
Tuesday, June 22, 2010
Shell (LSE:RDSA) Penalized By Bond Market, 2.75 Billion Debt Offering
In a 2.75 billion dollar debt offering, Shell (LSE:RDSA) received penalties by the bond market. Anadarko's notes saw a significant decline as fear mounts that profits will fall across the oil industry due to the worst U.S. oil spill in history.
Shell has the most rigs in the Gulf that are now being effected by the deepwater drilling ban. The effect is causing Shell to face higher yield spreads causing investors considerable doubt to weather the government will further increase restrictions and regulations. Anadarko has yet to see if they will be required to pay their share of the oil spill disaster. Having a 25 percent stake, if it's found that they do have to pay they would be required to pay 25 percent of the oil cleanup costs.
Levington, a managing director of corporate credit at Brookfield in New York said, "it could delay the timely projects or possibly eliminate them. It could require additional monitoring and maintenance, all of which could hurt earnings, cash flow, and returns on oil invested capital."
Shell has the most rigs in the Gulf that are now being effected by the deepwater drilling ban. The effect is causing Shell to face higher yield spreads causing investors considerable doubt to weather the government will further increase restrictions and regulations. Anadarko has yet to see if they will be required to pay their share of the oil spill disaster. Having a 25 percent stake, if it's found that they do have to pay they would be required to pay 25 percent of the oil cleanup costs.
Levington, a managing director of corporate credit at Brookfield in New York said, "it could delay the timely projects or possibly eliminate them. It could require additional monitoring and maintenance, all of which could hurt earnings, cash flow, and returns on oil invested capital."
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."
Tuesday, June 15, 2010
Shell (LSE:RDSA) Workers May Stike: Strike Indicators
Shell (LSE:RDSA) oil workers may strike at Statoil Shell Platforms, there are several strike indicators. The strike will start June 17th if mediation fails. The mediated talks are effecting 6,700 workers.
These talks have been going on for two days and are being monitored by the government. Talks conclude at midnight on June 16th, which could begin the strike according to unions and employers. The three unions involved are Industry Energy Safe, the Norwegian Oil Industry Association, and the Norwegian Organization of Managers and Executives. The breakdown of these three unions happened May 6th.
The Shell operated Draugen Platform puts out about 43,000 barrels of oil daily. This is the platform that the unions are calling a strike on. Eli Ane Nedreskaar, a group spokeswoman said, "should negotiations break down, the OLF may choose to announce a lock out, which would enter into force four days later. But this has not been decided yet."
In 2010 Norway's oil production as well as natural gas condensate and liquids is estimated at 1.87 million barrels a day. That puts them as the sixth largest supplier of crude oil as well as the second largest importer of gas. The Industry Energy Union is demanding wages for cleaners be the same as those who work offshore.
These talks have been going on for two days and are being monitored by the government. Talks conclude at midnight on June 16th, which could begin the strike according to unions and employers. The three unions involved are Industry Energy Safe, the Norwegian Oil Industry Association, and the Norwegian Organization of Managers and Executives. The breakdown of these three unions happened May 6th.
The Shell operated Draugen Platform puts out about 43,000 barrels of oil daily. This is the platform that the unions are calling a strike on. Eli Ane Nedreskaar, a group spokeswoman said, "should negotiations break down, the OLF may choose to announce a lock out, which would enter into force four days later. But this has not been decided yet."
In 2010 Norway's oil production as well as natural gas condensate and liquids is estimated at 1.87 million barrels a day. That puts them as the sixth largest supplier of crude oil as well as the second largest importer of gas. The Industry Energy Union is demanding wages for cleaners be the same as those who work offshore.
Monday, May 24, 2010
Oil Prices Today: BP (NYSE:BP) Leads In Falling Percentages
BP (NYSE:BP) is getting hit hard with criticism, anger, and rising doubt, but they're feeling it hardest in stock prices among oil companies. As of Monday BP has fallen to a 52 week low.
BP's shares have fallen another 4 percent at the open bringing it to $42.08. Bringing the New York Stock Exchange Arca oil index down 1.7 percent to 948 points. Royal Dutch Shell shares are also feeling the heat at a 2.4 percent drop at $51.52.
Transocean has also hit a 52 week low dropping 2.2 percent at $57.95. With Transocean being the biggest percent decliner, its put the Philadelphia Oil Service Sector Index down 1 percent to 176 points.
There is not much optimism of if and when these percentages will increase.
To add to the loss, crude oil price were low overnight. Though the July crude features contract bounced back from the overnight low of $69.55 a barrell to $70.23 a barrell. That's a 19 cent increase on the New York Mercantile Exchange.
BP's shares have fallen another 4 percent at the open bringing it to $42.08. Bringing the New York Stock Exchange Arca oil index down 1.7 percent to 948 points. Royal Dutch Shell shares are also feeling the heat at a 2.4 percent drop at $51.52.
Transocean has also hit a 52 week low dropping 2.2 percent at $57.95. With Transocean being the biggest percent decliner, its put the Philadelphia Oil Service Sector Index down 1 percent to 176 points.
There is not much optimism of if and when these percentages will increase.
To add to the loss, crude oil price were low overnight. Though the July crude features contract bounced back from the overnight low of $69.55 a barrell to $70.23 a barrell. That's a 19 cent increase on the New York Mercantile Exchange.
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