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Sat next to an Aussie Mining Engineer, on an internal flight from Sydney last week. Asked what impact Net Zero ambitions were having on his Industry. Leaving out profanities the jest of his reply was they occasionally talked about it but left that for others to worry about, believing the Country had always been Net Zero due to their vast forests absorbing far more CO2 than they’d ever produce. Plus whilst ever a market existed for Gas / Coal / and everything else they could squeeze out the ground, they’d supply it and add-on, free of charge, any emission issues to go with it.

On later checking it seems he was perhaps right as reports suggest Australia sequesters 5x more CO2 than it produces due to their vast forests but as the Worlds biggest exporter of LNG, plus he said they currently ship over $1bn of Coal monthly to China, it shows the marked contrast others have in protecting their own Industries. The UK really is a minnow.

Others will surely sit up now, such data just can’t be ignored.

One has to accept Labour wish to see the NS O&G Industry taxed out of existence, and to a degree our SP now reflects that reality. Thankfully our tax credits will help justify sticking around a while longer than many, and as others are prepared to take a hit to escape, there must surely be a few bargains popping up now and again. It’s been a painful journey but I suspect I’m not alone in believing the worst is behind us. Just don’t expect Labour to show compassion.

Agree that Shein, & Temu in particular are taking large slices out of their Market that have left Mgmt here flat footed and in all likeyhood haven’t the skills to redeem the situation.

The US will likely veto any attack by Israel on Iran’s Oil infrastructure as the last thing the Democrats want is a rising OP. Our main hope relies on AB pulling off a decent deal but first we need that Budget out the way but not expecting any relief for the Industry from Labour, they’re only interested in Wind !

Probably just Bin those who recently welcomed the SP drop into the mid sixties, so could buy more, and now ponder why those Short are still keeping their positions open . Need to separate the science from daily trading trends.

So the company update yesterday wasn’t good enough for you. Guess the problem is those two elephants in the room…kill those and you may be ok, but I speak as a non SH, so GL.

Analyst’s are never the brightest, as today’s extreme valuations show, albeit with any popular Retail Stock they know the influence they can carry without holding responsibility, and a bit like Politicians !

With rumours that Labour will now remove the Inheritance Tax Relief on AIM listed Securities, it will likely dampen some enthusiasm, to push new money in here, before clarity is given.

A nice little teaser from Cristina today.

Enjoyed the Webcast and remain impressed with our top team. Clearly AB was keeping his cards hidden but would be surprised if we don’t get some M&A news by early 2025, we just need Budget clarity first. I’m with Sekforde, not going away anytime soon, 7 figure holding, loss currently immaterial albeit not the best investment ever made !

Agree with Dumbly, the electorate gifted Labour & Ed.Milliband the power to destroy the O&G Industry via fiscal strangulation, which aligns with the Energy Sec’s ideology of keeping us on life support whilst he works out alternative energy solutions. Will be interesting to see what Rachel Reeves does with Investment Allowances, as she’ll be under pressure to remove them by Ed. The ease and cavalier attitude he now displays in the HoC, dismissing opposing views shows how entrenched his position is in reaching Net Zero, at any cost.

Rom. I thought Andrew Benitz ( CEO of Neo ) today summed up the absurdity of Labours position and the Supreme Courts ruling quite neatly ;

“ Whilst demand for hydrocarbons continues during the energy transition, homegrown energy is the right solution. A project like Buchan has the potential to produce some of the lowest emission barrels of any project globally. Emissions arising from the combustion or use of those hydrocarbons will result in the same emissions as comparable barrels regardless of where they are produced. Homegrown energy should always trump imports, creating domestic economic growth, jobs and valuable UK tax receipts."

I’m hoping not all Labour politicians are quite so dumb as Ed.M and will start to exert some pressure, realising current transition timeframes are woefully too short and continued NS support is vital.

I see NEO Energy are the latest to review their NS activities following the UK Government's recent announcement concerning its plans for a consultation on new environmental guidance for oil and gas firms. The Government has determined that such guidance is necessary in light of the recent Supreme Court "Finch" ruling requiring regulators to consider the impact of hydrocarbon combustion, Scope 3 emissions, in the Environmental Impact Assessment for new projects.

The kicker here being the Government is aiming to conclude its consultation by the Spring of 2025 !. So no rush then.

Little surprise its BioNTech ( COVID ) trialling that vaccine, SkY News are also highlighting this as some sort of breakthrough. Long way to go for them but shows what good PR buys you.

Frustrating as it is the Industry must now be awaiting Labours first Budget before considering next moves, and suspect AB is likewise holding back. Remember his May Op’s Update comments “ with the foundations set for a pivot to growth during 2024, we are focused on delivering that growth through transformative acquisitions; utilising our differentiated operating capability and advantaged tax position ”. I believe we’re still in a reasonably strong position as others around us struggle ( Waldorf ) . Brent has held up, we’re still making cash and Labour should be eternally grateful to us, for having steered thro a negative Oil Price to now be in a position to gift them chunks of money to waste. I need a coffee.

Labour are no longer hiding their dislike of the O&G Industry, just sending a junior minister to Aberdeen to buy time. Starmer & Milliband are now on the same page crying ‘clean energy by 2030 ‘ whatever that means, except we know whose pockets they’re stealing from in that attempt. At least Brent is holding up, about the only positive currently.

Impressive set of numbers, will do for me. Quite a jump in Gen. Ins premiums of 15% no doubt offset by claims inflation but now realise why so many in the UK were complaining about cost of Motor / Home Ins.

Typical politician bullsh*t we’ve come to expect, saying ongoing WFT talks ahead of budget. The guy ( James Murray ) just wanted to escape back South no doubt, having been told to ‘get up there’ and smooth the waters. The Treasury are in desperate need of tax, and Milliband will be happy to see penal terms applied to an Industry he wants rid from the NS, sooner than later.

Think we have to accept we lost that fight, not that much opposition seems to have been put up

Need to hold all subsequent meetings out on an Oil Rig, preferably when a Storm Force 10 is due, maybe then they’ll sign anything off just to get back on shore. We’re currently making their lives too cosy !