Bp Share Discussion Threads

[thewealthofsocrates] 16/10/2014 22:19

Why has food prices risen over the last few years?BP's & other's "Green" investments drove them up!http://www.bp.com/en/global/alternative-energy/our-businesses/biofuels/why-biofuels-.html

[thewealthofsocrates] 16/10/2014 22:13

What if the payout is forced up for this previous disaster?http://www.truthdig.com/report/item/25_years_after_exxon_valdez_the_hidden_culprit_was_bp_20140323

[thewealthofsocrates] 16/10/2014 22:03

I think I'll buy Exxon...http://www.bloomberg.com/news/2013-05-21/exxon-refocusing-algae-biofuels-program-after-100-million-spend.html

[thewealthofsocrates] 16/10/2014 22:00

BP is still the Tesco of Energy stocks IMO.

[thewealthofsocrates] 16/10/2014 21:51

The cost of running an electric car is about 1/2 or less than that of a petrol car.In the not so distance future, the rise of Tesla will inspire other car manufacturers to switch to electric. When that happens, oil shares will drop into oblivion. http://www.dailyfinance.com/2013/06/24/gas-vs-electric-cars-cost-comparison/The easy oil won't last forever. BP will have to go further out to far away places to find it.Costs will rise & rise until the situation is untenable.BP needs to change strategy & think about long term stability. They should buy up & utilise the small firms that have been developing algae oil or other alternative fuels.Here's two examples: "Solazyme" & "Cella Energy".BP needs to reinvest in renewable fuels.It's not just because their green, it's because they'd be good investments. Solazyme has US Navy interest because they want a sustainable fuel & they can make oils for food & beauty products.http://solazyme.com/Cella Energy can store hydrogen in microcapsules that can flow like petrol & can burn in combustion engines like petrol.http://cellaenergy.com/BP needs to hedge their investments away from fossil fuels because that way the company itself will be more sustainable.

[thewealthofsocrates] 16/10/2014 21:19

5% minimum yield for me because that's about the highest interest rate I can get in a bank current account.

[extrovert] 16/10/2014 20:30

Nice bounce off the lows on 50m volume.

[supermarky] 16/10/2014 14:59

As long as ukx stays above 6000 I am happy.

[alphahunter] 16/10/2014 14:44

JMF,

It would see it as the opposite: the lower the market cap, the more material the Rosfnet stake and Spill payout are. The former, because it was already in financial stress at $110 bbl for its WCR, the second because the fine to be paid in either scenarii is not linked to the price of oil / market cap.

I am disappointed that bookbroker could not give me his view on BP's dividend policy and how it is funded. I do my best to write in English though.

[robertfaulkner] 16/10/2014 14:08

Will the gov allow all of the crude price drop to reach the forecourt, or will they resurrect the fuel price escalator, to help pay off the deficit?

Be rather clever just before the election, Labour can't complain(they introduced the FPE and built up the deficit.

Lib Dems must agree, it's a green tax

[bookbroker] 16/10/2014 13:38

The oil price will bounce back,it always does, unfortunately BP still has this shadow of litigation hanging over it, it is just crazy that cos. have to put up with this, all it does is enrich legal teams and it's a major distraction for the co. Sure organisations have to be accountable for their actions, but there is a point at which these persistent claims should stop.

[johnmfrancis] 16/10/2014 13:21

Bookbroker Yes I understand that.

A big fall is expected on Walls street today a question of how far and I would expect most large FTSE100 companies to fall/rise broadly in line with wall streets extremeties.

the general market selling needs to flush itself out across the board
before stability returns.

The 2 main reasons in my mind why BP and the energy sector is tanking are
overall market weakness and the crude oil price.

To me the Rosneft stake and the Spill payout are becoming less important
in the grand scheme of things.

Big Falls and Volatility are generally accompanied by wild swings in the
other direction too and I expect to see that in the energy sector in the
near future as well.

I have always found it very frustrating how the overall market performance in general seems to dictate the direction of the large companies and its dependence upon Wall Street but that's always been the way and always likely will be.

[bookbroker] 16/10/2014 12:50

John francis - why an earth would BP. fall any further because of Wall Street, do you not realise that markets are correlated, the FTSE reflects the falls on the S&P, wise up pal!

[johnmfrancis] 16/10/2014 11:40

Irecall almost exactly 3 years ago we saw a similar collapse in the energy sector. That was the time I think when Europe was on the point of total collapse.

That £4 level is looking very vulnerable now. You have to think is that
where a lot of funds and investors stops are at ?

Will we dive thru it and quickly hit 3.90 ?

Very very interesting to watch !

[mreasygoing] 16/10/2014 11:33

£3.60 soon. May even go lower. Patience.

[johnmfrancis] 16/10/2014 11:03

I see IGINDEX are anticipating Wall street down around 200 points at the open so It looks a good chance we could see BP break the 400p level today.

It will be interesting to see just how much Shell falls in line as I last bought them around $14.50 back in 2009. If it crosses the £20 level I think
that would be quite significant.

Be interesting to watch this. Exxon only showing down 1.5 % or so at them moment.

[johnmfrancis] 16/10/2014 09:43

Alphahunter thanks for the excellent tip on

Blackrock commodoties income trust

hxxp://www.hl.co.uk/shares/shares-search-results/b/blackrock-commodities-income-it-ordinary-1p

Its dropped in the last 3 minths to jsut around a £1 and is giving an excellent
6% plus yeild and its top 10 investments are all top class energy / oil / commodtiy companies so looks an excellent SIPP investtment at current levels.

BHP Billiton Ltd 6.79%
Chevron Corporation Common Stock USD 0.75 6.77%
Exxon Mobil Corp Comm Stk NPV 5.44%
ENI NPV 3.76%
Rio Tinto plc Ordinary 10p 3.60%
Bp 3.60%
Freeport-Mcmoran Copper & Gold Cl A 3.41%
Statoil Nor Com 2.5 3.38%
Royal Dutch Shell Plc A Shares EUR0.07 3.30%
Total 3.17%


A riskier one I have in my SIPP
hxxp://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/a/artemis-global-energy-class-i-accumulation

Down an incredible 20% in 6 weeks !

[johnmfrancis] 16/10/2014 09:39

Of course other major beneficiaries of a falling oil price are airlines and cruise companies (Carnival, Royal Caribbean etc). Also watch out for cheaper airline tickets - yes I know the tax is a major part of the price anyway these days but certainly I would expect to see Airlines and Cruise operators making major hedging investments to secure these lower crude prices in the knowlege that prices fall furhte they can just keep on doing it with increased profits.

[1gw] 16/10/2014 09:34

People have short memories when it comes to oil prices. Who remembers China Aviation Oil (link below)? Essentially having won on betting the oil price would increase, when it got to high levels (somewhere over about $30/bbl) they started betting the oil price would fall, but without appropriate risk controls. When they were carried out feet first, there was a comment attributed to one of the staff something along the lines of "$50/bbl was just wrong" (i.e. ridiculously high). BP ended up putting money into the company to rescue it and taking a stake.

[johnmfrancis] 16/10/2014 09:12

bookbroker yes I agree.

The way I look at it if BP and other oil majors keep falling then all the main indexes are going to come down drastically and you will continue to see more and
more bargains. I feel comfortable buying BP at these levels as if I get it wrong I know the dividiend is good and there will be many more bargains around. And also of course in the non-energy sector (checkout Vodaphone and Glaxo at the moment !!)

I keep tabs on a lot of the medium and smalled energy companies as well (mainly US). Some I have just been checking out after recent heavy falls to me just look absolute screaming bargains.

Has everyone foregotten US's record cold winter last year ? Perhaps this year wont be as bad but its certainly bound to be extremely cold again thus rocketing
natural gas and oil demand.

Take a look at few Chesaspeak 17.50 (30+ high), Devon Energy 55(80 high), Apache, Anardarko, Ultrapetroleoum, Whiting etc etc.

In the very small companies Bellatrix and Pacific Ethanol look very attractive now.

BP had to sell off assets to fund the MAcondo spill payouts I recall Apache getting some. I seriously think BP ought to consider buying our some of the small/medoium American Companies to get assets back at a lower level. Of course
I have no idea what takeover regulations are in place and no doubt Exxon and other majors like Chevron may provide stiff competition in buying any.

UK had a very mild winter last year we are certainly due another bad one. SO I am thinking Total, Centrica, SSE are going to benefit the most should we get one. I believe Total and Centrica are the 2 main major beneficiaries of UK fracking so certainly long term build holds in pension portfolios.

Back to BP. Perhaps the market may realise that whatever the spill payout ends of as its really quite insignificant compared to the major risk BP has and that's simply the oil price !!! Hard to see it staying low for too long. Its always been volatile and likely always will be. Seems to me over a long term it just makes sense to invest when we get energy sector crashes such as now.

[bookbroker] 16/10/2014 00:53

If these end up at 400p, then the FTSE will be under 6K., do not see that happening, oil is going to rise sooner than later, conspiracy theories aside!

[johnmfrancis] 15/10/2014 22:59

wow I go away for most of the day and come back and the slide continues in the energy sector. I am totally emotionally detached from investements in my sipp as once I pay money in cannot touch it for years so a long term investment decision is easier to make. BP to me looks now to have a good chance of sliding with the general market to well below 400p. This is only good for the companys share buyback progam.

ALso you can look at most of the energy sector now and its all tanking. If BP mamnagement want to just consider that it may well be possible to look at actually look at some very attractive other smaller companies to consider acutally buying and taking over. Theres a lot to choose from.

These are indeed exciting times if you take a medium/long term view.

Keep an eye on BP / Statoil / Total / Exxon / Chevron / Shell / Conoco Phillips/ PetroChina / CNOOC /Centrica /BG group and of course all the Oil Drillers whose sector is very very down. Theres a lot to choose from and consider !

Theres something else to consider low oil prices will benefit us thru lower diesel and petrol prices and feed thru to lower shop prices.

Take a long term view and select carefully energy investments.

I usually spread my SIPP contribitions evenly throughout the year until April but keeping a keen eye on all this and considering bring some forward as the bargains continue to appear !!