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everyone knows BP & XOM, SHEL, CVX, COP are not tied to oil price. Never have been.
Even OXY isn’t.
You will also find the VIX is disconnected from reality too. It trades at 19-20bps.
Markets and SP’s are all disconnected.
i’m a holder in oilies BP, SHELL, OXY, XOM and BHP & RIO in mining
Hi Charlie, Does that mean they have built in 2 more dividend increases until 2025? With the buy backs that should help.
Y11 - hard keeping up with your caprice.
How much will companies pay under the levy?
Shell has said it is not expecting to pay any of the windfall tax at all this year, as its investments in the North Sea meant it did not count as having made any UK profits.
It does expect to pay some in 2023.
BP said it would pay $800m (£678m) in windfall tax this year.
However, we don't know exactly how much profit these companies are making from extracting oil and gas in the UK.
How much tax do oil companies usually pay?
Oil and gas firms operating in the North Sea are taxed differently to other firms.
Taxes on their profits are higher - they pay 30% corporation tax on their profits and a supplementary 10% rate on top of that. Other firms currently pay corporation tax at 19%.
But oil and gas firms have been able to reduce the amount of tax they pay by factoring in losses or spending on things like decommissioning North Sea oil platforms.
In recent years, such methods have meant that BP and Shell, for example, have paid almost no tax in the UK.
BP and Shell both received more money back from the UK government than they paid every year from 2015 to 2020 (except 2017, when Shell paid more than it received).
Shell also paid a negative amount of tax in 2021, taking its total since 2015 to -£685m of tax in the UK.
BP paid more money in tax than it received back in 2021, taking its total since 2015 to -£107m.
Will the windfall tax affect investment in oil and gas?
Shell said earlier in the year that it plans to spend between £20bn and £25bn on UK energy over the next 10 years.
But on 21 November, Shell's UK boss David Bunch told the Confederation of British Industry conference the company would now "have to evaluate each project on a case by case basis" because the windfall tax would mean it had "less to invest".
BP plans to spend a maximum of £18bn on the UK's energy system by the end of 2030.
In May 2022, BP chief executive Bernard Looney told the Times newspaper that all of the company's planned UK investments would carry on regardless of any windfall tax.
In July, its UK boss Louise Kingham told a committee of MPs that the company had initially been concerned about the windfall tax being a "multi-year proposal" but that the news that it would be ending in December 2025 had been "helpful".
BP has not commented publicly since it was announced that the tax would be extended until 2028.
TotalEnergies announced on 2 December that it would be cutting its planned investment in the North Sea by a quarter, or £100m, in 2023 as a result of the extension to the windfall tax.
The French oil company is calling for there to be a mechanism by which the windfall tax would be reviewed if oil and gas prices fall below a certain level before 2028.
oil and gas companies operating in the North Sea.
The levy was introduced in May, but will now carry on for longer and at a higher rate.
There had been calls to increase the tax after Shell and BP reported huge profits.
How much money have energy firms been making?
BP made $8.2bn (£7.1bn) worldwide between July and September, which was more than double its profit for the same period in 2021. It had made £6.9bn in the three months to June.
Shell announced worldwide profits of £8.2bn and £9bn for the same three-month periods.
Both companies have increased their dividend payments, which is the money they give directly to shareholders.
And they have been spending billions buying back their own shares from the market, in order to increase their value.
Shell and BP's profits have been boosted by high oil and gas prices, exacerbated by Russia's invasion of Ukraine. However, both companies say they have lost a lot of money as a result of stopping investments in Russian oil firms.
What is a windfall tax?
A windfall tax is an extra levy imposed by a government on a company.
The idea is to target firms which benefit from something they were not responsible for - in other words, a windfall.
Energy firms are getting much more money for their oil and gas than they were last year.
This is because demand increased when Covid restrictions were lifted and the Ukraine war led to concerns about energy supply.
How high could my energy bills go?
Which countries are doing the most to tackle energy bills?
How does the new windfall tax work?
Rishi Sunak introduced the tax when he was chancellor, describing it as a 25% Energy Profits Levy.
In the Autumn Statement, Chancellor Jeremy Hunt announced this would increase to 35% from January 2023, and stay in place until March 2028. It had previously been scheduled to finish at the end of 2025.
The levy applies to profits made from extracting UK oil and gas, but not from other activities such as refining oil and selling petrol and diesel on forecourts.
Labour criticised the scheme because it also lets firms claim tax savings worth 91p of every £1 invested in fossil fuel extraction in the UK. That allowance will continue.
Mr Hunt said the tax would raise £40bn over six years.
The government also introduced a temporary 45% levy on what it calls "extraordinary returns" from low-carbon electricity generators in the UK.
The Electricity Generator Levy will be paid from 1 January by larger generators. The government hopes it will raise about £14bn over six years.
But in the meantime
Yes
Does anyone please have any good theory re the SP/POO disconnect?
Thanks
Thanks
Barring no war ...its more likely to hit £5 with the price of oil
When will bp be back in the £3 ?
24th September
Anyone receives the dividend yet?
Answer. Oil price goes up so do oil shares.
What rise? Stagnant for months around 300p mark.
$69 earlier. 70s soon
its forming a rising wedge in past days, the gold price often indicates direction of oil price moves 19 months out, its possible oil could correct down and pull bp down but even if it did its likely to be only a month as gold price started to rise 18 months ago, there was just 2 or 3 months down , but it looks more likely its going to break out upwards, its presently in the channel that might top at 410p from mid July, but up to friday it was also in a channel pointing to 359p on 30th April, previously this has happened and bp price went back into the steeper channel for several days. Interesting that 19 months from the rising gold price might indicate rising oil prices through to early 2022, and rising BP till start 2022. Both BP and Rolls Royce are in channels (as are many other recovery stocks) that might go up substantially over next 3 years. Im wondering if BP could go to £6 and RR to £4 in next 3 years, from what look like their most likely primary recovery channels from lows, it does look like in wave 1 up certainly for BP but likely for RR, though not impossible for the later to still form a C wave down first but i wouldnt think thats likely, i would think the lows are in for both. BP is hitting against sloped resistance from lows of 21/4/20 and 14/5/20, guessing will break through this soon and move significantly upwards, both the shares might be decent income and capital gains returners for pension investments it seems. interestingly the oil price seems to preceed the general share index moves also incl SP500, which might indicate a move down in stocks in around 3 years, if so the next 3 years might be ideal for the most beaten down recovery stocks perhaps.
Ok ESG but this should be at least at 400 with oil @ 65...
hi, you are on the wrong page for bp, search it in the share price search but dont press enter then find the correct bp.
Hi how many time a year does bp pay dividends . How much are they currently paying. Thanks in advance
Not keeping up with the oil price at all.
We should be at 300p now. I topped up again albeit a small amount only.
Any thoughts on Bp and shell are great oil companies , but will they be able to morph into great renewable companies ,the
business model is totally different.
Posted by me on RDS BB but equally applies to BP in terms of trends:
"While we are focusing on our own imminent lockdown much of Asia is humming along quite nicely and coping with the virus, including China. Lockdowns and working from home in Europe and, potentially some parts of the Americas, may drive higher-than-average gas demand over the winter and the improving trend of gas prices should continue. This could partly offset any softness in oil (because of less driving and aviation). The impact of higher gas prices was reflected in RDSB's Q3 results but may be an even bigger factor in Q4.
The US election will remove a key element of uncertainty regardless of the outcome albeit conceding that a close outcome may bring its own ramifications.
Keep an eye on the pound, too. Every day we get nearer to 1 January 2021, pressure will mount on the pound unless and until there is a deal. Also, the longer it takes, the more incomplete and unsatisfactory the deal we will get, and the greater the pressure on the pound. RDS earns income in dollars so, all other things equal, the share price in pounds should increase with weaker sterling. A decisive result in the US election would also put a wind in the sails of the dollar.
I think our excellent results drew a line under concerns about operational and financial performance. The cashflow of $10bn dollars, better than expected profit and the small dividend increase all tell me that RDS is excellently placed when there is a sustained oil price recovery. Yes, there are many short-term challenges but markets are always looking ahead. By the time, some investors realise RDS is a good long-term investment, shares may already be up 30-40%. The early gains will be the quickest and strongest as more normal trading emerges.
Feeling very optimistic for next week."