George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
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Thanks for the reference Aquae Sulis. In light of recent events, this is part of the picture I'm looking at::
"Local and foreign governments force companies within the industry to closely comply with environmental regulations. These regulations often require capital to comply, forcing smaller companies out of the sector."
Accepting your line of reasoning re investor sentiment Albi1 and NigWit but countering that is the fact that it will preclude more companies gaining a foothold in future oil exploration hence benefiting current players such as Hurricane i.e. fewer suppliers to meet future demand and hence greater profits.
https://www.investopedia.com/ask/answers/061115/how-strong-are-barriers-entry-oil-and-gas-sector.asp
Aduk
Nigwit and I have some similarity in that we are both trying to say it's about investor sentiment not peak oil . If market sentiment rules where does that leave us?
Sipp, the great lover of wildlife that you are, I feel you're somewhat conflicted personally and I understand because I am in the same position. You can post what you like but you know what I'm saying.
'Electric power has become very popular in model airplanes but only because there is no requirement for long duration flight.'
Model aircraft don't carry passengers, luggage. seating infrastructure, safety requirements, .fuel for a long distance flight so are a completely different concepts
However the recent real aircraft are certainly impressive, but still a very long way to go
A really interesting and thought provoking video.But that was 2007,is there any more recent CO2 denial stuff about ?
Biffa,
"I'm surprised at your point of view, as your mate RB over at CA seems to have bought into the HUR story / timeframe in no small way and we all know he can do or say no wrong in your fluttering eyes."
Firstly, to give you some context...
This is my first 'login' for a good 48 hours, 'cos I've had more important things to do. Like driving 400 miles for the first race in the 'camioncross' season, involving a stupendous poker-game at Canet-Plage on Friday night, and generally having fun. And survived it, despite a massive bruise on my left arm due to being hit by a wayward wheel-nut, but that's just part of the course doing closup trackside photography. Good fun in good company, all I've got to do now is drive the 400 miles back home & etc..
But trawling through all these posts, I'm sorry to say I think you're wrong in the above-quoted phrase.
I see no similarity between Albi1 and Nigwit. Even if they might bring up 'climate change' stuff every now and again.
Also, I think you should research further about Crystal Amber, especially given other posts recently from daltry et al.
RB (CEO of CA) bought into HUR very early. And it has to be admitted (however grudgingly) that without that early investment, Hurricane may never have made it to where they are now. But CA is not an 'investment' company, it's a 'trading' company, whose sole interest is in its own profits, without a care in the world about other investors nor anything like that.
But with enough 'clout' (in terms of percentage of shares held in the company) to be able to significantly affect the SP via their trades.
And with enough 'media clout' and tame hacks to shamelessly badmouth the hand which feeds them when it works to their advantage.
But that's the way it is, and no amount of talk on these BB's will change it. I personally consider CA to be a thorn in every PI's side regarding this share, and without that company's trading activities the SP would probably be running in the mid 60's by now, rather than the mid-40's as at present.
However, still just sitting tight, H1 is far from finished yet, there's lots going on, and of course there's the AGM to come, and I think there'll be 'triple whammy' news announced then.
'Night, all. Market's still closed tomorrow, so why worry? I'm just hoping the traffic on the road home will be slightly kinder than it was on the way down here. Electric cars have been around for ages, but there's no reason for people to treat motorways like dodgems!
PS What's with all this 'climate change' stuff? Personally I like warm weather. And just to put that into perspective, one of the most fascinating 'painted caves' (the paintings dating from about 17,000 years ago) is the Grotte Cosquer, not far from Marseilles. The entrance to it is about 20m below current sea-level, and prehistoric man didn't have scuba gear. We'll survive. Just not all of us, maybe, but who cares about that, really?
IJWT
Thanks for the more detailed info, I was just really trying to paint an industry-wide picture of current and potential future investment in the industry, through acquisition that IMV, trumps all of the renewables hitting the HUR investment-case-brigade.
SiPP
Think Anadarko is a different kettle of fish. Big acreage but low CapEx and well life means quick pay back of dollars invested. New tech likemplug and.perf is reducing the breakeven all the time also.
The difference with a big fixed rig development is the time it takes, the huge CapEx all or nothing bet that has a.much longer payback horizon.
Hess make clear it's interest in Stabroek repays full investment inside 3yrs at $50 oil (from memory) then the rest just hits the bottom line for as long as folk are buying oil.
Spending multi billions for a payback commencing in 10yrs which then needs to repay CapEx is less common I dare say.
There is of course the multi FPSO potential WoS (if environment permits) which I have long advocated as being self funding.
The biggest negative to the use of oil (and hence maybe the market value of oil companies) for multiple purposes (cars, planes, ships, power generation and plastics/pharaceuticals, etc) is sentiment of II's! This is definitely moving in the wrong direction, but the actual demand for and use of oil is unlikely to be substantially diminished to any great extent for many decades to come, the revolution may well come in sentiment, but not in real life.In fact the poo may well go up significantly as the supply diminishes due to lack of investment and the demand stays the same or increases. As the third world grows out of poverty, guess what, they consume more energy and demand more material things, like cars.The cost of change is so great and will take so long and there is no real new breakthrough technology identified yet. Electric is not necessarily the answer in the long term, could be nuclear power generation, hydrogen cars, etc. None of which is any where near like publicly acceptable yet. The current demos are driven by sentiment, but there are no solutions suggested yet, except all stay at home (no travel) and hug a pet/partner for warmth. Back to the simple life hey, not sure how many are going to buy that!
There is also the strategic angle of oil from HUR in safe stable home waters, who knows what the Russians will do on restricting supplies to western Europe!
So overall yes the revolution is coming, but cannot see it having much impact on oil price and price of HUR shares for many decades to come, they may actually be enhanced!!
IMHO
SpruceGoose2
"but think the HUR sp has indeed suffered somewhat due to lairy investors being offput by the green, anti-fossil-fuel noise."
No.
Other major oilco's SP's have risen sharply in the last 3 months. So, that cannot be it. Fact.
More likely, the Market is waiting on results. We are around the same SP as we were when PoO was $71 so, despite de-risking the EPS installation and the Spirit farmin, the market is not interested in ascribing value to those things, yet.
What it will ascribe value to, IMHO, is when we are successfully producing 20,000 barrels of oil per day (excluding downtime) with decent GOR, no water cut and sustained flow rates. And further potentially significant value if we complete a successful 3-well drill campaign on Lincoln and Warwick.
This RED HERRING of green agendas has NO IMPACT on our current SP. That is my opinion but I see that as fact, given the above.
IJWT
Chevron buying Anadarko proves that there is plenty of scope for Big Oil to continue to invest in lucrative assets. Big Oil spent just 1% on renewables investment according to Reuters, although the picture varies from region to region, and company to company, with the USA lagging Europe and the likes of Shell leading the way by spending $1-2B of its $25-30 billion budget on renewable investments.
Equinor plans to spend 20-30% of its budget by 2030!!!
Reuters goes on to say
"As a whole, however, the world’s top 24 publicly-listed (oil) companies spent 1.3 percent of total budgets of $260 billion on low carbon energy in 2018.
That is still nearly double the 0.68 percent of investments the group had made in the period between 2010 and 2017."
Nearly double. Wow. Double of very little is very little and this increasing investment in renewables, will, IMHO, not impact the valuation or sale ability of Hurricane Energy one iota in the next couple of years.
I do agree with your general assessment that the market is waiting for HUR to prove it can sustain the 17,000 barrels per day (net) and this is exactly what Dr trice told us at the last AGM: That the market wanted to see 6-12 months of data before we might get any serious interest.
This thread has been visited before. It largely covered the same ground, largely by the same naysayers that remain invested (which I believe, nothing wrong with having a concerned view of one's investment) and then concluded the same thing.
And I repeat, if one is uncomfortable with their investment here, one should sell up. I did so with SXX the other week and so heed my own advice.
Saudi are now spending billions on renewables - but they are also spending billions on refining. They have figured that at $2-3/BO OPEX, they will be last (main) producer of oil at end of this century - some 5-10 million BO/day. Hard to compete with in 81 years time...
Nigwit
Nearly Star Trek ... all very interesting!
Interesting article.
I've never thought a long-haul flight powered by electricity would be possible.
I imagine, though, that it would be safer because of decreased risk of fire.
...combustability when you drive into the back of em? Better in trains and buses!
Renewables are great why not use hydrogen in cars
As I wrote it again can I now get a tenner a share
Renewables grow at but why not use hydrogen in card
BTW still expect my fiver a share
Albi Are the other big oilers investing for the future, S.A. only wants to sell of 5% of Aramco
When it comes to global warming, there are 3 basic questions.
1) Does it exist ?
2) Is it caused by CO2 ?
3) Is it man-made ?
My answers are 1) Yes 2) No 3) Don't Know
Even Patrick Moore doesn't believe it.
https://www.youtube.com/watch?v=oYhCQv5tNsQ
Johnpwh
Lol, that's definitely NOT what anyone is saying ... just putting the market under a magnifying glass and taking a look at market perceptions!! Don't take the pills ...
Bloody hell you lot. Log in and I find you have all concluded that my long term holding in HUR is down the pan and probably worthless.
Just off to get the vodka and pills.
Might have a choccy egg first, it is Easter after all.
Biffa
Alternative opinions are still permitted on the BB. I dare saying can believe in the long term bear case for oil and still see the potential for HUR to increase in value.
However, that increase in value is inevitably tempered by the move of capital from fossil fuels to renewables in some allocation strategies. The potential for orphan reserves with no demand to.support extraction is real and is why BoE are considering how to stress test exposure to the carbon economy for UK banks.
HUR's problem is exacerbated by the market perception a out how long it will take them to.prove the porosity of the basement WoS and how.long it takes subsequently to build an FFD solution if using fixed platforms.
Happy to hear the above debunked from a technical perspective but not just an assertion that I'm a bear trying to influence the share price of a billion pound company for my own benefit which is barely credulous.
Divecentre
Agreed, likely at least 20 years away, but in the meantime some great innovating happening with new materials. All it takes is a breakthrough and miraculously mankind has pulled it out of the bag so far ... I'm still hoping they'll figure out transporters aka Star Trek!
Albi1
Even with developments in battery storage commercial electric aircraft are many decades away. Barring some entirely new revolutionary way of storing electrical power it will very likely never happen. It just might become possible for (very) short haul but not long haul and even then I doubt it could compete with conventional jet power. To start with electrical power can only be converted into thrust by a propeller. 300-400mph is about the maximum speed that could be achieved with propulsion by propeller because speeds above this require such a massive power increase that the electrical energy would be consumed in too short a duration for viable commercial flight.
I’m interested in the concept but commercially I don’t see it happening. Electric power has become very popular in model airplanes but only because there is no requirement for long duration flight.
Biffadog
I don't really understand why you are getting so upset? I am not Nigwit! I have been increasingly invested in Hurricane since January 2018 and am currently entirely in Hurricane because, as I have repeatedly stated I believe in its business case and prospects.
I am interested in the market Hurricane exists in and interested in the views of others who are also invested here. Believe what you like, personally I'd recommended reality!