RE: New to lse22 Dec 2020 13:22
Paul.
Harbour is definitely pulling the corporate ‘Burning Platform’ stunt (no pun or malice intended). Those who bend most get to keep their job. In effect, Harbour has monopoly power in the FIs. With demand for oil service providers and the like apparently on the wane, an extra penny here and there adds to the coffers. Harbour is sitting pretty in the FI – no one else with any influence will come in to queer its pitch – not for some time anyway. As Ovets reported, although Harbour doesn’t want to appear to be turning the screw, it will anyway.
LLT.
Majors could start to divest oil assets (but not Exxon). However, the Chevrons of this world don’t become the Chevrons of this world by selling cheaply. It’s going to take oil a long time to rise to pip squeak level and many a smaller oiler will bite the dust beforehand (maybe even Pemex). There won’t be many takers when the majors consider it time to sell. Therefore, although they may not invest in oil discovery and production, I should have thought they would keep most of their existing producing assets. Let’s face it; those assets will be extremely profitable in the future.
I think the important phrase on this climate change business is ‘zero net carbon emissions’. It’s a typical political weasel phrase. I was reading a BBC article on the weekend (Arfur’s reputation immediately nosedives) about how Scotland produced 90% of its electricity this year by renewable sources. However, it then mentioned Scotland’s oil, gas and other hydrocarbon energy usage and explained how hard it will be to replace these by renewable sources with existing technology. So to meet Sturgeon’s ‘net zero carbon emissions’ by 2050, more forests will be planted and environmentally friendly materials would be used etc. Looking at that logically, captain, you could even ditch all renewable sources and burn only hydrocarbons as long as you could clean up the carbon emissions in some way. No doubt, the majors will be planting trees to justify their continuing oil production and the Germans will be adding to the Black Forest Gateau aplenty to compensate for Nordstream 2. I doubt if the archbishop of Canterbury will be giving up his BP pension in disgust. All is never what it seems.
Yes, there were some fantastic posters on III. Obviously some had held very prominent positions within the oil industry. One trader, who used to turn up at spud time with his harem, would spend ages giving buy and sell recommendations. If you had followed his advice, you’d have ended the day with something rather unpleasant in your pants (sorry for that). Cont.
Sign In
Follow the stocks
