Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
@mr c
"I believe technology is required. Generally the things you are probably against, in your pursuit of perfection. Nuclear, CCUS, DAC, blue hydrogen, electrification. Those are the big hitters and buy time. "
Sounds alot like ESG. Do you believe this will happen by itself? You need to spend money and effort to reach the goals.
What part of ESG are you against? Is it wind and solar?
The effort and money put into this have reduced the price of electricty so
that they cost of electricty from these are competitive. There is storage issue.
But that will not be solved by bashing ESG.
The only one I have bashed is Romaron and Enquest IR.
Could you please specify what you mean with bashing oil supplier.
We need to reach net zero and Enquest can be a good investment, both can be true.
Oil is a wonderful resource and we need to stop using it over the next decades, both can be true.
So what are sensible oil prices? To me anything above 90 is high.
I want as little suffering as possible. Since you seem to know everything could you say what oil price is the best to have the lowest suffering for the next 50 years?
Are you one of those that believe that the need to go to net zero is just a hoax? Currently the rich countries have agreed to lead the way. Do you agree with that or you think transition to net zero will happen by it self?
So you wish for low oil prices? Wonder why you invested in Enquest which has high BE.
Things do not change immediately with higher oil prices. But activity has increased. Below is from Odfjells Q1 presentation.
Market outlook General
• High oil prices resulting in increased demand for the Odfjell Drilling fleet
• Need for continued exploration and production of oil and gas to bridge the increasing energy demand as new energy sources take time to implement
• Europe’s target to obtain a more independent energy supply is positive for the markets in which Odfjell Drilling operates
• Increased appetite for field development and production across markets
And btw mr c what you write make sense.
It is romarons blame everything on ESG that I find hard to digest. And in addition he writes post as he paid by the word and just ramblings on ESG and how it is the curse of all evil.
I think if there is profit to be made there will be investment.
ESG has raised the discount rate for new fields but believe it has had zero effect compared to oil prices for already developed fields.
So far I am convinced that major reason for reduced capex has and hard to get financing for O&G has been low oil prices. Maybe in 5-10 years the major reason will be ESG taxes on carbon.
You can just look what magically has happened with rig day rates this year.
Hmmm, wonder what happened this year. Do you believe it is due to ppl abandonding ESG or high oil prices?
Also at some point we will stop using oil one way or the other. We can choose the Mad Max way or try to convert to ESG.
By the way how many here would be invested if the multiples would be like 10-20 PE multiples? I definately would not, for sake of everybody I hope we stop using oil as soon as possible. The transition will be faster with higher oil prices, so for my the sake of the world and my wallet I wish for high oil prices for a long time.
@mr c r a z y
So you actually really think that ppl would have not invested in new production if we had 150$ oil
for the last ten years?
Mr Romaron has actually said fields have closed due to ESG. If you really believe that was the reason instead
of low oil prices, please give an example. Did Enquest close any fields because of ESG?
From what I have seen O&G could care less about ESG, they care about gettting
ROI which has been very hard to achieve the last ten years. And it has nothing to do with ESG.
Or what do you think oil prices would have been if ppl ignored the oil prices and invested massively in oil production. Do you think we would have 100$ oil today?
If you have read romarons post one would think ESG is the one to blame for the Corona virus as well.
@romaron
"Don't really understand it but I'm not even at "O" level standard when it comes to oil."
Very obvious from your posts that your expertise lies in ESG and not oil. LOL
Once again please explain how low ESG manged to cause low oil prices?
Romaron why do you care. Let ppl spend their time where they want.
You clearly like to write essay after essay of ESG posts. Which does not really add much value.
Could you please once again explain how ESG for the last 10 years managed to drive the oil prices so low that ppl did not want to invest in O&G.
LOL
https://www.theguardian.com/politics/2022/jul/06/new-uk-chancellor-nadhim-zahawi-to-review-corporation-tax-rises
'Zahawi, a former oil industry adviser, is known to be a supporter of lower taxes and most recently opposed a windfall tax on oil and gas companies operating in the north sea. He told Sky his priority was to “rebuild and grow the economy”.'
Maybe there is a chance that is at least revised and allow to use tax losses. One can always hope..
"They were run down or closed without adequate replacemnt due to a belief that renewables would take over. That isn't going to happen."
You really believe ESG did that and not low oil prices?
And why did we have unsustainable low oil prices for long periods the last 10 years? Do not think it had anything to do with ESG.
MrC clearly you can not read.
I have not requested more frequent reporting.
Please reread thread.
Put more burden om Enquest IR. You make me laugh.
For example if they had fix dates for OUs they would not need to answer every PI
on mail for question on when the OU is expected. That would reduce work.
Also how it adds burden to report within 45 days instead of 68 days I have no idea. Could you explain why this would be the case?
Enquest IR are just a lazy bunch of ppl that have no idea on how to work effectively.
Romaron in what way for a business that thinks long term is it an advantage to:
Not have fixed dates for OUs
Take more than two months to report result
I am not asking about more frequent information. Just that they actually
provide information in reasonable time. One month after multinationals report is not reasonable.
And you know what I can do alot by myself. But maybe Enquest IR should actually do what they are paid for. Or maybe they can hire Tarmak and Therapist and fire the current IR
Regarding EPL I think it really does not matter as long as we report after BP and Shell.
I would be quite happy if Enquest managed to report H1 6 of august instead of 6 of september.
But my point was I do not understand how Enquest could need 30 days more to report result compared to multinational oil companies that have more complex operation in one country than all of Enquest.
Hopefully somebody from Enquest reads this board and just realize how bad IR/accounting is run and do some changes.
Not sure how things work in UK. Can not shareholders request changes that they need to answer officially?
I can easily come up with a couple of things in regard of information to shareholders they should commit to:
OUs should have committed dates
OUs should have results and net debt for Q1 and Q3
Reports/OUS should come out at most 45 days after ending of quarter.
These are not huge things but quite annoying that they can not follow such in my opinion basic things.
@northernmonkey
Only a fool can only keep one thought in their head.
Enquest is cheap that is why own it.
But that does not mean that Enquest IR is one of the worst out there.
IMO they are because of their multiple rookie mistakes, slowness and inefficiency.
And worst of all a 12 year old would be better at selling the story.
On second thought maybe that is the reason for the low SP I should be thankful that they are worthless so I could by cheap. The thing though I have bhought now and think the should chang and actually start working.
H1 has ended and Enquest IR are working day and night so that they can deliver half year result in the incredible short time of 68 days.
We all know how super efficient and compent IR and 68 days is the fastest possible time to go through financial for a small NS operator.
As comparison
BP manges to report Q2 after 32 days.
Shell in 28 days.
They are ofcourse much simpler operation.
Enquest IR is a joke.
As always Romaron alot of words that do not say much.
So you want the cleanest air and cheapest energy. Wonder who the nut case is?
If you accept we need to stop using fossil fuel. Please say when and when we should start. It will not be done in the forseeable future if ppl would listen to you.
And you really think the situation would not have been better if 70% of Germanyd energy would be from nuclear. Never said it was cheap but is reliable and one of the solution to stop using fossil fuels.
Romaron as always against ESG but without being able to state what the correct long term action is.
ESG push has reduced the effects of mad man Putins war not the other way around. The main issue with Germany is that they do not consider nuclear ESG.
If Germany had pushed nuclear in same way as France Putins war would had a much smaller effect. I wonder even if we would have had a war.
Instead of just bashing ESG maybe you can give your view on how we should remöve reliance on fossil fuel.
It is not ESG. It is transition to EV that makes nobody want to invest massive amount in refenires just for transition.
Tought this article was very interesting. There is refinery in US for sale but nobody wants to buy it because of the massive investment.
https://www.washingtonpost.com/business/2022/06/20/refineries-profit-gas-prices/
Not free article.
January do you have any reference?
Looking in the ARA I see this stated:
""Impairment of tangible and intangible assets The recoverability of asset carrying values is a significant area of judgement. These impairment tests are underpinned by assumptions regarding:
• 2P reserves;
• Oil price assumptions (based on an internal view of forward curve prices of $75/bbl (2022), $70/bbl (2023), $70/bbl (2024) and $60.0/bbl real thereafter);"
The NAVis based on these oil prices. Would be very strange if NAV was not based on oil price assumption.