Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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DOE cites rising oil prices as the reason for canceling the solicitations for oil deliveries to the Bayou Choctaw SPR site.
Biden administration's decision comes amidst concerns over market conditions and global production cuts impacting oil prices.
The cancellation raises questions about the U.S. energy strategy and the future of the Strategic Petroleum Reserve's replenishment efforts.
Biden
Despite indicating they would refill the Strategic Petroleum Reserve (SPR) by the end of this year, the Department of Energy has now canceled solicitations offered last month.
Citing rising oil prices, the DOE said, “We will not award the current solicitations for the Bayou Choctaw SPR site and will solicit available capacity as market conditions allow.” Three million barrels of oil had been slated for delivery to the Bayou Choctaw SPR site in August and September.
The SPR is the world’s largest supply of emergency crude oil. It was established primarily to reduce the impact of disruptions in supplies of petroleum products and to carry out obligations of the United States under the international energy program.
The SPR is maintained by the U.S. DOE and its oil stocks are stored in huge underground salt caverns at four sites along the coastline of the Gulf of Mexico. The size of the SPR (authorized storage capacity of 714 million barrels) makes it a significant deterrent to oil import cutoffs and a key tool in foreign policy.
Following Russia’s invasion of Ukraine, the Biden Administration made the largest withdrawal in SPR history to curb the oil price spikes that happened in the wake of the invasion. The DOE has consistently promised to refill the SPR as market conditions allow.
One of the 2024 energy predictions I made in January had been “The Biden Administration won’t replace more than 10% of the oil removed from the SPR since Biden was inaugurated.”
The reasoning behind the prediction was that in election years, presidents have tended to withdraw from the SPR to prevent rising oil prices leading up to the election.
My prediction concluded with “By the time the summer driving season and the change to summer gasoline blends arrives in May, I think the SPR purchases will be suspended.”
The DOE added, “As always, we monitor market dynamics to remain nimble and innovative in our successful replenishment approach to protect this critical national security asset.” However, with production cuts in Saudi Arabia and Russia starting to impact the market, it is unlikely that there will be significant oil price relief ahead of the election. Thus, we will likely go into the election with the SPR at the current significantly depleted level.
BP shares as part of the buyback are cancelled, not held in treasury
Buybacks never, never make a measurable difference to the SP.
The shares are usually held in treasury …. to be later given out as additional bonuses to the BoD as rewards to supplement their fabulous salaries.
This is one of the main purpose of the remunerations committee.
The giveaway is that the buybacks continue even when the SP is peaking (like what it is doing now) !…. Bonuses time on the horizon soon then ? ;)
May 3 (Reuters) - A BP-Eni joint venture and Rhino Resources Namibia have signed an agreement for a 42.5% interest in a block in the country's offshore Orange Basin, the companies said on Friday.
The agreement is Azule Energy's first investment in Namibia. Azule, formed in 2022, is a JV between Eni (ENI.MI), and BP (BP.L), for their Angolan assets.
Several oil giants including TotalEnergies (TTEF.PA), and Shell (SHEL.L), have invested in Namibia, which plans to open up a major new frontier basin with recent offshore finds ranking among the largest this century
In April, Portugal's Galp Energia (GALP.LS), said it had found at least 10 billion barrels of oil equivalent in its field, in the largely unexplored Orange Basin.
The agreement with Rhino will give Azule the right to drill two exploration wells in Block 2914A, one of which is expected to begin in 2024 and an option to operate petroleum exploration licence PEL85 on completion of the deal.
I see there were more buy backs again today. BP have purchased millions of shares for cancelation, but why is it not having any positive effect on the share price??? Maybe it has had an effect, if so, just imagine how low the shares would be if they were not buying them back!!
At the moment I am holding, but it looks as if oils are on a downward path for several months......I hope not back to £4.50
With regard to next weeks results, the price of the shares usually go down when they are announced.......especially in a tired 'toppy'market, due for a fall. Trouble is, is cash a better prospect? Where does one put cash for a return and little risk? At least we get a dividend, I suppose.
Relax till Tuesday.
Then let’s hope for a really WOW set of results.
Not expecting a wonder set of results .
But there’s not much fun in hoping for an average set of results
I agree, Bob was a class act, just amazed that the BOD and the venerable head of Human Remains ignored Looney's philandering for so long. We all knew.
Soutanglie,
Bob Dudley did such a fine job over 10 years,was actuality disappointed when he got the nod after Hayward fell on his sword but I soon changed my mind.
Bernard did us no favours. Unlike himself and those he gave plum jobs . . .
You say CONOC (COP)could launch a bid for BP. There smaller than BP,Unquote
60 seconds research reveals BP market cap in dollars as $108.2B and Conoco at $143.16B.
COP is significantly larger and certainly much better run.
Either COP has come on leaps and bounds with seriously good acquisitions and management or BP has allowed itself to slip off the big league table through dire management or is it both.
Your welcome Clued.
Flawed or otherwise, the EIA data - with its accuracy issues - remains the ' best ' public information available to private Investors and small to medium institutions who do not have capabilites or resources to analyse all the feed in data. Larger institutionally investors with have their own independent reserch departments and analysts.
The reason the market reacts to this data , that is pre-released prior to publication to a financial cabal, is for financial gain. The data is a utilised as a critical component of the paper ( financial) oil traders strategy. The data and numbers in this EIA releases may not be right but there is still $$$$$$ to be made by reacting to them.
Have a grand day.
Mark
Thanks MarkGo. Surely the Institutional Investors and Analysts, etc... would pay little attention to the EIA's data if it is that inaccurate, that's the issue I have.
Dow climbs 300 points, S&P 500 rises for first day in three as jobs report looms: Live updates
The US market has learnt a big lesson from Oxy’s Acquistion of ANDARKO in 2019. It destroyed them.
Warren Buffet would probably disagree with you but you are correct that initially OXY did struggle with the acquisition of Anardarko as the overpaid by outbidding other competitors but that is water under the bridge now.
Certainly taking over a company that has a larger market cap than yourself is not that unusual and the mood of BP shareholders is such that there might not be that high level of opposition to a takeover.Conoco would be most interested in BP's assets in Gulf of Mexico and Permian basin.They got an absolute bargain from Shell when the bought their Permian assets and Bp's acquisition of BHP assets there was also an absolute snip.Other assets can be sold off to reduce debt.US traders like all share deals as there is no capital gains tax to pay on those sort of deals and at least 50% of BP equity is held over the pond
BP is not going to be acquired guaranteed .Unquote. We shall see on that one,absolutely nothing guaranteed in the oil business,learnt that from 35 years in the oil patch.
• In the gas & low carbon energy segment, realizationsc compared to the prior quarter are expected to have an adverse impact in the range of $0.2-0.4 billion, including declines in non-Henry Hub natural gas marker prices. There is also expected to be an adverse impact of around $0.2 billion as a result of the devaluation of the Egyptian Pound. In addition, the gas marketing and trading result is expected to be strong following a strong result in the fourth quarter 2023.
• In the oil production & operations segment, realizationsc compared to the prior quarter are expected to have an adverse impact in the range of $0.3-0.6 billion, including price lags on bp's production in the Gulf of Mexico and the UAE and also declines in non-Henry Hub natural gas marker prices.
Other items: Net debt is expected to increase in the first quarter mainly reflecting a working capital build plus phasing of capex and divestment and other proceeds as previously guided.
a All impacts influence bp's underlying RC profit before interest and tax, unless stated otherwise.
b Includes bp's share of production of equity-accounted entities.
c Realizations are based on sales by consolidated subsidiaries only - this excludes equity-accounted entities.
Trading conditions
Brent averaged $83.16/bbl in the first quarter 2024 compared to $84.34/bbl in the fourth quarter 2023.
Morning all
Clued- The issue I have with the EIA is their methodology and their adjustment pattern that enables them to publish now and adjustment later. Now that would not matter if it did not have the subsequent influence over the price of oil.
By design ? Well if not then I would expect adjustments to data would be to overstated as well as understated published data.
The fact of the matter is that the EIA adjustments to US oil production has become consistently negative, indicating that US oil production is likely overstated and not only are supplies overstated, implied weekly oil demand has been understated. Surely, the flawed methodology could be amended to avoid this problem. The EIA's previous attempt at clarity in response to concerns of method was merely the substitution of one confusion for another.
My question is this. Is the EIA really a government agency doing its best in attempting to publish official data, or, is it under the influence of vested interests?
My opinion after studying EIA publications for the past two years alongside 'independent' data providers is the latter.
Have a great day all
Mark
You say CONOC (COP)could launch a bid for BP. There smaller than BP, and think the US market has learnt a big lesson from Oxy’s Acquistion of ANDARKO in 2019. It destroyed them.
COP don’t have prowess as XOM or CVX, and note COP have already completed M&A of Burlington for $36bn
https://intellizence.com/insights/merger-and-acquisition/largest-merger-acquisition-deals/
BP is not going to be acquired guaranteed .
Hugely impressive from shell - What a business they have on their hands - still think the value play is bp however.
Shell can complain about their valuation vs. US oilers all they want, but they cut divi's rapidly during COVID which the US players did not
Shell is a dynamic company run by highly qualified and experienced young professionals.
Hope they take us over and sprinkle some of their magic on our tired old bones.
I get a bit dispondent when I compare the BP BoD to them.
Hi Happy I cannot wait for our results
Exciting times for Bp :)
One of Shell's best quarters in recent memory. Sets a very high bar for us here next week.
It'll be interesting to see how Murray does. With all this talk of Shell / BP relisting, it's worth pointing out that larger proportion of our barrels are produced in the US (v Shell). We are the ideal candidates for a US move.
All IMHO DYOR
Happy
Monday a bank holiday
So only 2 more trading days till results.
Oil down today so maybe till Tuesday my glass will stay half empty.
Will welcome any positive news Tuesday.