Member Info for MR.Spacetomato

Pluto's, where did you find a 2.5p CLN reference? I couldn't find it anywhere. As you rightly said, the sp will be higher by Jan so expect a higher CLN ************** rate.

I couldn't care anyway regarding this CLN as I invested here to see the black gold in the end. Saw the geology seismic work and am convinced we have billions down there. Boy I wish I was on that drill ship.

:0)

And Harryoffdocks, you are now filtered. No need to reply with personal attacks. Starchild is one of the most informative and helpful posters here. I never read one single contribution from you, and now, desperate de-ramping to get back in.

Pathetic.

Good morning, Starchild.

I agree with you regarding Harryoffdocks. The lad sold to buy cheaper today like many swing traders. But has to make sure he does so he writes his speal here. At least be descent and kep quiet on the sidelines like many do, but now. Anyway, my shares he's not having. As far as I am concerned he will have less shares when he buys everything back.

Great RNS and as expected by me. All things set in place to make sure this time the drilling happens, covid or no covid! I am smell crude oil already! No spill though, by the way. :0)

ST

No. Heading to Freeport.

Titan,you forgot the rest of the article:

As the Bahamas struggles to recover from the damage caused by Hurricane Dorian, the monster storm that struck parts of the archipelago with punishing 185 mph sustained winds and 25-feet storm surges in September last year, oil production has emerged as a way to boost economic activity and create jobs.

The storm caused an estimated $3.4 billion in damage, according to a November 2019 report by the Inter-American Development Bank. The economy’s rising debt and persistently high unemployment were exacerbated by Dorian, the IDB said. The COVID-19 crisis further depressed economic activity in the islands as the abrupt halt in tourism caused unemployment to jump and GDP to fall to record low levels.

The argument for economic diversification by investing in the oil and gas industry is gaining strength, especially after ExxonMobil discovered large offshore reserves near Guyana in 2015. Caribbean countries such as Jamaica, Barbados and Grenada have increased efforts to test their basins in recent years. Cuba and Trinidad and Tobago are already producing oil from offshore fields, and the Dominican Republic last year organized its first licensing round for oil exploration contracts.

Simon Potter, BPC’s CEO, said oil and gas exploration can be “economically transformative” for the Bahamas.

“It could ultimately contribute billions of dollars in royalty revenues to the national treasury, at a time when the dual impact of recent hurricanes and the COVID-19 pandemic has been especially hard-felt by most Bahamians,” he said in a statement.

sum66, so you are saying that 6p to 7p last time the share went that high is not possible this time? Did we have the Icemax was on it's way to the Bahamas fully loaded and a bunch of hungry Bruce Willis and his crew, like in the film Armageddon, craving for a multibillion oil field and maybe a nice bonus on a successful result? The closer we get we shall see if there is any shares left for sell.

That's why it will never go ahead. Fund raising opportunities I think then money used somewhere else.

I was wondering, if I were one of the green activists and their QC chum thinking what would happen to them financially should their threat becomes a reality and they lose it in the end? How much would they have to fork out to the other party? Is it $1ml a day alone for delays on the icemax plus other loses? I would seriously think my options here if not find someone with deep pockets to fund their legal threat.

...green super-technology – to combat China – but it will not fund Joe Biden’s $1.7 trillion shopping list of windmills, solar panels, EV charging points, and the like. Nor will it fund his $7.9 trillion Rooseveltian expansion. 

The US Federal Reserve lacks the legal authority to deliver compensating monetary stimulus with rates at zero and with QE magic wearing off. It is pushing on a string. “It can’t make the real economy take off like a rocket,” says former Fed governor Randall Kroszner.

The European Central Bank said in its monthly bulletin that eurozone fiscal policy will be “contractionary” in 2021. Most countries are not spending enough to avoid permanent scarring from the pandemic. The EU Recovery Fund is too small and will come too late to make much difference in 2021 or 2022. 

The ECB can keep mopping up Club Med bond issuance to avert a sovereign debt crisis, but it too is pushing on a string with negative yields across the board. It can keep lending cheaply to banks but that does not prevent a slow-motion solvency crisis as post-Covid defaults do their worst. 

As Chancellor Rishi Sunak said on Wednesday, the pandemic hangover in Britain will be long and grim. Most of the world faces some sort of legacy damage. 

There will be another resource supercycle. The rhythms of the commodity market are as old as the Pharaohs. But this one may be less exuberant and more sluggish than the last one. History never quite repeats itself. 

Read more: Why fossil fuel dinosaurs may still have life in them yet.

...already visible today even in a downturn. “Nearly every commodity is in deficit despite lockdowns,” it said.  

This includes oil once you strip away the distortions of the pandemic. Upstream investment in new oil and gas fields neared $900bn a year in the glory days. It halved after Saudi Arabia flooded the crude market in 2014 and prices crashed.

Then came the Paris climate accord. The advent of electric vehicles and talk of stranded assets scared the bankers away. The capital markets began to shun Big Oil.

The International Energy Agency said investment remained stuck at $480bn in 2018 and 2019, and will barely reach $300bn this year.  The IEA's Fatih Birol says well depletion is eroding 3pc of global supply annually. “We’re losing one North Sea each year,” he said.

Eventually, there must be a crunch. Goldman Sachs says that moment is coming sooner than generally supposed. The Covid second wave is a “speed bump” that will not prevent a rebalancing of the crude market as the glut is cleared next year.

Mr Currie thinks Brent prices will reach $65 by the fourth quarter. From there, presumably, it is off to the races since he calculates that 8pc of global supply will vanish by 2025.

America’s nimble frackers in the Permian shale basin have stepped in quickly with fresh supply in previous mini-cycles but this time they are under much tougher financial discipline, and their best seams have mostly been tapped.

Westbeck Capital said the oil market is heading for a perfect storm. Insider buying by oil executives has reached record levels. There could soon be a buying scramble to unwind hedge contracts – de facto short positions – setting off a feedback loop. China and India are rushing to acquire stocks while crude is still below $50. “All the stars are aligning for a powerful bull market,” it said.

Biofuel substitution kicks in once oil prices go much above $60, which in turn squeezes grain supplies and tightens the agricultural market. The process ultimately risks a repeat of the 2011 food shortages, which set off global riots and ignited the Arab Spring.

Electric vehicles are not going to change the immediate equation for oil, even if 31pc of new car sales in Germany last month were EVs or hybrids. It will take years to whittle down the global stock of petrol and diesel vehicles on the road. 

The great green switch can happen in parallel with another crude price spiral. The paradox of net-zero is that it almost guarantees an oil price shock on the way. I suspect that we will see $100 again at some point before we all rush out to buy ever-cheaper EVs, and the oil industry goes into faster run-off. 

My own view is that Goldman Sachs is right about the commodity supply crunch – up to a point – but the jury is out on the putative global spending boom and the return to inflationary economics.

Gridlock in Washington heralds austerity-lite. The Republican Senate will agree to some infrastructure stimulus and a splash o

The next commodity supercycle may already be underway

Goldman Sachs says the world is in the very early stages of a supply crunch that will drive resource prices through the roof.

Goldman Sachs is replaying its best-selling hit: it has just proclaimed the start of another commodity supercycle.

We are in the very early stages of a supply crunch that will last for years and ultimately drive resource prices through the roof – or so goes the argument.  

A global monetary and fiscal reflation boom will collide with the delayed effects of chronic under-investment in oil, mining and agriculture over the last decade. 

The bank’s commodity chief Jeff Currie – the world’s most closely followed energy guru - says we are entering a new phase akin to the pre-Lehman noughties when the industrial revolutions of Asia were devouring resources and raising fears of peak oil, peak copper, and peak food.

All the major economies have abandoned austerity and declared a collective war on inequality. The planned spending surge on green deals and social welfare in Europe, America, and the OECD bloc will be buttressed by a consumer spending expansion in China.

The combined largesse will match the “BRICs” investment bubble of the 2000s in scale and outrun the supply of  “almost all commodities”.   

That is the broad thrust. If correct, the vaccine catch-up rally for unloved commodity stocks over the last three weeks is just an amuse bouchebefore the supercycle gets going in earnest. The Bloomberg commodity index has fallen 60pc since its last hurrah in 2011. In synthetic terms, it is back to half-century lows.  

Goldman Sachs says there is no political appetite for the hairshirt debt-reduction policies seen after the global financial crisis: whether the Tea party and the fiscal sequester in the US; or Osbornian austerity in the UK; or the draconian Schäuble cuts of Europe’s lost decade.  

It predicts something more like the “guns and butter” policies of Lyndon Johnson in the 1960s, the era of the Great Society and the welfare programmes of the War on Poverty. LBJ’s Keynesian deficit spending was coupled with the Vietnam War and the budget-busting costs of Soviet containment. 

This time the strategic imperative is to counter China and the Xi-Putin axis. We already see it in the rising British defence budget, with the once unthinkable backing of Labour. Military, technological, and cyber rearmament is the new Western consensus.  

The bull case is that central banks will accommodate this fiscal expansion much as they did 50 years ago (bar the Bundesbank), deliberately letting their economies run hot to achieve “escape velocity” after the long malaise of secular stagnation.   

Goldman Sachs says this revival of inflation will lead to the “revenge of the old economy”, and the effect will be turbo-charged:  a V-shaped recovery in demand will collide with a structural supply shortage, something normally seen only towards the end of the busine

Christ, you had me going for a while, Harryoffdock, with your opening sentence: "When I were a lad". I thought you were now a "she"

Great find, EggChaser1. That settles it for me. Strong assertive words and well put. Our job is to say there is in them hills, plus the bit that is seeping out of the ground already. :0) To steal the words of our muppet prime minister...let's get the job done.

Mr. Starchild, that's why they are full of threats so far. Just land the damn legal case and we are done with the Mr QC, or are you just wind and pomp!

Thanks Zag. Truly appreciate it. :0)

Is anyone selling now at 2.8p having to buy at 2.95p? I haven't got cash to do a dummy trade now, unfortunately. Cheers in advance.

Tribune Business Editor

#nhartnell@tribunemedia.net

"A Bahamas-based oil explorer yesterday said it will "pay double the royalties that the law provides for" to the Government should it strike success when exploratory drilling starts in less than a month".

It keeps getting better for the Bahamas. Well played Potter.

VIX is looking good for the USA. Oil turned positive too; it's above $44 now. AstraZeneca's vaccine looking good.

themuir01, same feeling here regarding avct. I am not looking at these shenanigans more than they deserve. I never heard of oil drilling getting good vibes from Greenpeace anyway. I only had a better experience in imperial energy in Siberia many many years ago. Anyway holding for black gold now. Geology looks really good and the size of these fields are lovely.

Good luck mate.

ST

Well done Daveh582...guts and glory!