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Spights, "I think that the soaring price of Brent crude might be about to send BP shares higher".
Is this the same BP oil production that Bernard Looney is comitted to cutting by 40%. Total madness. Cut your proven revenue stream and replace it with unproven windmills.
Y11-shx. Your post is very self centered. There are lots of shareholders who have seen their investments badly affected by the course of action taken by Mr Looney. The markets have BP marked down 25% against our peers due to his actions. Those investors who bought BP pre Looney were investing in the £5-5.50 range.
BP today stands in a very stable position and awash with cash due to the oil price. Mr Looney has made various pr blunders that has cost us all dearly, let's hope he starts rewarding the loyalty of longstanding share holders and substantialy up the divi.
Longtimeinvestor, yes the Deepwater Horizon tragedy cost BP billions. Most people can remember the darling of the left Barack Obama wanting to stamp on the neck of BP.
The resultant court case as I remember talked about a culture of cost cutting and lean engineering processes, championed by a former CEO. Hopefully BP has sufficiently strengthened their engineering practises to ensure there is no recurance.
Sharefall, at the start of Looney' s tenure at BP massive writedowns were made of various assets. As the North Sea was considered not of significant importance at that time going forward, I wonder if these writedowns included North Sea assets.
I too would love to see the oil & gas business spun out of Looney's green dream. We could then maximise real shareholder value.
Let's not forget the North Sea is a small part of BP's portfolio of assets. It is not long ago that we had Alex Salmond talking about an "arc of prosperity" stretching from Norway to Iceland and encompassing Scotland in his independence rhetoric. Then came the financial crash, followed by a couple of years later a massive fall in the price of oil. The result was supermajors massively reducing their presence in the North Sea, as it was producing ever diminishing returns.
My point is that the North Sea area is only now of interest because of the high oil price. What is the point of BP investing heavily in an area where they may be left with stranded assets if the price price of oil collapses.
Meoryou, Bumble1968
China, India and the developing world all acknowledge the necessity for cheap energy. Manufacturing costs have spiralled out of control leading to the de-industrlization of heavy industry in lots of countries. The energy crisis we are experiencing has been exacerbated by the 25% green levy on peoples elec/gas bills.
God knows what Richie is going to hit us with, possibly 500M.
Stu100. Isn't it a bit hypocritical of all those greenies jumping on board an oil company to live off dirty oil profits. I thought the green business model was supposed to be a massive cash generator and self funding. Lol.
Let's hope it is to help with splitting BP into two entities.
1. The oil & gas business which could relocate HQ to a more welcoming environment.
2. The green business which could stay in the UK.
With Shell touching £24 per share, under Bob Dudleys leadership BP would be at approx £6.
It's no good usernames "meoryou" "spights" and others spouting regarding new developments for tomorrow. The city require cast iron guarantees regarding green profitability. Untill that happens we will be the energy cart horse under Looney s stewardship.
Can't believe I'm writing this, but I think it's possibly time BP offers to pay a windfall tax on profits derived from the UK only. The calls will only get louder. Too many people have sat on there backsides during the lockdowns gorging on other people's money. It was and is the pensioners that were the most affected, with dividend slashed or cancelled with no furlough cash to soften the blow.
It is also time BP supported the thousands of pensioners who have invested in BP as a substantial part of their pensions. The dividend is woeful when compared as a percentage of original investment.
Gents, the problem with a voluntary windfall tax is that money hungry people will always ask or more. It is an extremely bad precedent to set. I travelled home from work this morning listening to a guest on GB News complaining that O&G companies had made in excess of 700 billion in profits over 10 years. No mention of where those profits came from or how they were made. It is becoming very childish and and an easy target to demand cash from a successful company. If the government indeed imposes a windfall tax it must be accompanied by a substantial reduction in green taxes. It is these green taxes which are the real villain.
Is it possibly time for a new corporate image and rebrand, such as undertaken by Statoil becoming Equinor. I think too many people think that as the company formerly British Petroleum has British in its title they don't realise that BP earns most of its revenue from overseas operations.
Tophat, can you address the reason why we are trading at a substantial 25-30% discount to our peers. This occurred before the Rosneft situation.
You argue that BP's peers have adopted a green policy. That maybe true. From what I can remember BP has had various ventures into green energy in the past.
But when a company announces to the market that is giving up 40% of its revenue stream with no proven way of replacing it, is it any wonder the share price has suffered. Then to announce that the company is a cash machine has only brought ridicule from politicians for a windfall tax. BP is still a fabulous company but you must agree that the last two years could have been managed by the BOD slightly better.
Let's be optimistic for future growth in the share price.