Sapan Ghai, CCO at Sovereign Metals, discusses their superior graphite test results. Watch the video here.
Anyone shelling out would be taking a view just as we have done. They might consider it a bargain. The (local) political uncertainty may well be an illusion as gov incumbent is faced with reality and U-turn is baked in. The global uncertainty has not eased which is bullish for POO and likely to focus minds on energy security and removing dependencies on unreliable/hostile regimes.
"...it's not a U-turn for Labour to clarify this in a more advantageous way."
-100% agree. From where we were to where we are it's easy to see the sky falling in, but all is not lost and the market has yet to adjust to the new realities. Just imagine if Labour DIDN'T win!!! As I said the other day, I'm sure Labour will back off from their perceived loopholes. They will 'moderate' their position; we haven't touched on paying for a 20-50% increase in defence spending to counter mad-Vlad's ambitions. I think O&G is already sucked dry from a HMG revenue perspective and they will turn their attention to banking 'windfall' profits. Hasn't anyone noticed that raised rates and consumer inertia has left banking rolling in the green stuff?
For some reason I got truncated in mid flow. Most uncomfortable. I went on to write........ at less than £8 and since then a great deal has been achieved. I see the issues as almost entirely political. Labour and the current lot communicate in words of one syllable to rally the tabloid reading masses. For many 'just stop oil' is a coherent strategy. There is another discourse only accessible to those prepared to apply effort and intellect. Once Labour get into power the front bench, most of whom have no real world experience of government, will be confronted with the actual realities. This is how u-turns happen.
"...on the back of what?"
I think the OGA plan has some influence too. It looks like a bit of 'whip-cracking' from the NSTA. Does anyone see anything in it more +ve or -ve for JOG?
Potential acquirers of our company get a fully compliant project which has put effort into going with the regulatory flow rather than complaining about change (or just leaving the UKCS). I think Neo and Serica must have seen JOG and the GBA as being the way forward without any legacy non-compliant clutter.
Labour figure out that Offshore wind will be expensive and will need lots of steel which in turn will need lots of energy which means they need even more wind turbines.
https://theenergyst.com/21291-2/
'OGA plan' which has been in circulation in draft since last autumn is due any day according to
https://www.energyvoice.com/oilandgas/north-sea/550570/nsta-oga-plan-published/
Some observations from NSTA Ops Dir cited.....
"... investment in emissions reduction goes hand-in-hand with the need for new oil and gas projects."
...OEUK) has previously said 90% of operators have slashed investment due to the policy.
"......platforms originally designed for 100,000 barrels per day are now producing a tenth of that – but still with the same level of emissions." Doh!
DO, if it's just 'rotten luck' and/or the fault of the
Conservative Anti- Democratic Socialists (CADS), then why are you so harsh towards our BoD and CEO? There's a certain similarity in your posts to the late JS . I might argue we have exactly the right experience to deploy the war chest effectively in the current BoD. Perhaps you can name an idle exec or two who you would be happier to see at the wheel.
Labour will back-pedal. Milliband will be appointed minister for bacon sandwiches. In the campaigning phase Labour will have to explain their policy in detail to workers in Aberdeen and elsewhere in the O&G industry. Labour want Scotland back. The unions will not go along with rapidly dismantling the industry, not that I'm saying they are obdurate mind. Once in actual danger of having to face forming a government Labour's economic advisors will draw a Laffer curve on a flip chart and explain that we are already on the down slope. The ease with which existing NS players can refocus their resources on Norwegian waters will be explained.
The Wood Mackenzie report discussed in the Telegraph article alsoppc posted on 28th Feb gets to the nub of the issue for Labour.
"Accelerated decommissioning will reduce tax receipts from foregone production and bring forward tax relief for the decommissioning costs. A double blow for the exchequer."
Also "Another significant risk is the potential for operators to halt investment on producing assets."
Quoting the Chief Exec of Offshore Energies UK, the article says he accused Labour of being unable to “do the maths” around energy taxes.
"It will undermine the very industry, which can and must play a critical role in delivering a homegrown energy transition.”
Now all this is self evident to those of us who have thought it through. Nevertheless Labour will need zillions of our, by then, utterly devalued pounds. Their solution is plain to see. Now the conservatives have set the precedent Labour can pick out any arbitrary industry for a special rate of corporation tax (for that is all the EPL is) . Their obvious, and potentially very lucrative, target will be banking. Perhaps after them defence sector companies or pharma. Sell Lloyds, buy JOG.
I'm not an AB basher and I'm very pleased to see AB get out there and promote the company as DU has previously suggested. His presentation skills are weak but he interviews much better. His personal fortunes may well be enhanced by investing in a presentation skills course - it's a learned skill like much else. I know my old corporate employer, even at my lowly level, would not have let me in front of customers with that level of presentation skill. That said, he's kicked off some valuable communications to a wider investor catchment. He might enlist his co-directors help if they are more comfortable than he with further such efforts.
Surety, it does depend on what you perhaps want to hear.
He clearly indicated that the wider area was next in line after the Buchan project was up and running. There is vision beyond Buchan albeit there's enough on their plate for now. A bidder needs to remember there is more, or am I being greedy? I just think 7 quid, whilst newsworthy doesn't mean it's a fair value.
I think the backdating was always virtue signalling . The industry wouldn't take that without a long and expensive legal challenge. Hopefully the industry has made it clear to labour that their tax revenues will decline in the face of increased rates - more must be ready to up-sticks and go elsewhere. Others can always soft-pedal the extraction plans so profits are pushed out until govt of the day play fair. My guess is the debate about the Laffer Curve (https://en.wikipedia.org/wiki/Laffer_curve) will be raging within two quarters of NS production profits & tax revenues once Starmer et al are in power.
Greener, I doubt there'll be any hitches with the NSTA. JOG is the one company that has been completely on-message vis-a-vis greener extraction. Whereas other cos have taken their ball back and stomped off to the Gold Coast or Mexico or wherever, JOG have gone with the flow and are now a poster-child for the way the industry needs to be.
If labour put more spokes in our wheel then they will already have shut down the rest of the offshore industry and thousands of workers will be marching from Aberdeen to London. Given the inevitable crash of the GB£ the cost of the imported O&G will destroy what is left of our economy. All just in time for next winter. If you thought Truss' govt was short lived.
Alibro, I suspect you might regret not getting in with something more than "a small amount": I mean what's the worst case scenario? I wrote a long while back that Sir K and his lot were the real threat to JOG - the Conservatives didn't understand that a mere glass of wine would seal their fate. So naive. Now that is all priced in as a racing certainty. Now I suspect the key influence to the SP other than those factors close to the project are Putin and his fellow disruptors to the world order (Rocket Man & an Ayatollah or two). Their influence may well be very, very positive to the SP. It's sad that serious world disorder might be the thing that kicks our SP into the stratosphere. I expect the oil price to climb and stay there and options for global supply diversity to shrink. The JSO mob will look so, so stupid even to the masses.