Bp Share Discussion Threads

[mortlolc] 17/7/2023 15:42

True, the new Shell CEO is a different breed to last one, the fact he mentioned no decisions on a potential move for 3 years, for me is a sign that he will do it if things don't change here in the UK. I like the fact he said 3 years as it gives him chance to see what happens politically after the GE here and the Presidential Election in the USA.

[meb123] 17/7/2023 15:25

We already had that with Shell when it moved it's main listing and HO to London from the Netherlands . Circumstances different granted .

[mortlolc] 17/7/2023 15:14

I think BP don't want be seen to be deserting the UK - Shell's new CEO recently was asked about the "value gap" between here & listings in the USA, he said "Shell has no plans to leave London" adding that he refused to rule out a future move."I would never rule out anything that could potentially create the right circumstances for the company and its shareholders,Ultimately, I am in the service of shareholder value."If things don't improve here in the next few years with the share price it won't shock me for the big fund managers to start to apply pressure to the board to move the listing to the USA - if Shell go then BP won't be far behind them.

[veryniceperson] 17/7/2023 14:35

Yes indeed, meb. Bloody frightening. Hopefully, revolt shareholders revolt maybe?

[meb123] 17/7/2023 13:32

If it has a big trading arm in the UK makes sense to move it somewhere else . But given its corporate woke nature, I think it wants to pay UK windfall taxes lol

[waldron] 17/7/2023 10:55

Thanks for the response Mort

appreciated

Have great week

[mortlolc] 17/7/2023 09:23

The reason I think the EU would be more of an issue is purely on the assets BP has within the EU & the potential job losses ,closures in the name of synergies and decreased competition in a much bigger market.BP doesn't really have many assets in the UK anymore & those it has ( thinking offshore assets) it's been slowly trying to get rid of - exception being Claire Ridge 1 & 2. It's trading arm is huge here, perhaps that could be a big issue here for the UK?

[scruff1] 17/7/2023 07:49

Not good data from China - seems to have affected the oil price. No doubt another day of losses

[waldron] 16/7/2023 15:13

Would not be surprised to see the likes of BP and Shell splitting out its assets and becoming less fossil fuel orientated

In other words

THE SUM OF THE PARTS WILL BECOME WORTH MORE THAN THE CURRENT WHOLE

Smaller and more refined

[waldron] 16/7/2023 14:26

Mort

what makes you speculate that,i would have thought it would be the UK initiating the first hurdle

Certainly makes one wonder which company would turn up to the party

If the EU could intervene,would it not be protecting UK from its self

Apparently over the years the UK has sold off the countries assets on the cheap,primarily to the Yanks

Mortlolc
16 Jul '23 - 13:48 - 8203 of 8203
0 0 0
If there was a T/O or merger the EU would be the biggest obstacle for any deal.

[mortlolc] 16/7/2023 13:48

If there was a T/O or merger the EU would be the biggest obstacle for any deal.

[viscount1] 16/7/2023 11:13

WindEurope is a lobby group of the wind industry. Their argument does not actually make any logical sense, they are just trying to get lower lease costs.

[adrian j boris] 16/7/2023 09:22

How Big Oil Hijacked Germany’s Multi-Billion-Dollar Offshore Wind Auction


By Alex Kimani - Jul 14, 2023, 6:00 PM CDT

BP secured leases at two North Sea sites off the coast of Helgoland with total generating potential of about four gigawatts, paying a total of $7.5 billion.

TotalEnergies--through local subsidiaries--secured the other two sites for a total of $6.5 billion.


The U.S. government is considering opening 30 million acres of the Gulf of Mexico near Texas and Louisiana to offshore wind energy projects.


European oil and gas supermajors BP Plc (NYSE:BP) and TotalEnergies (NYSE:TTE) have won all of the capacity on offer in Germany’s 7GW offshore wind auction, the country’s biggest in history.


BP secured leases at two North Sea sites off the coast of Helgoland with total generating potential of about four gigawatts, paying a total of $7.5 billion.


The new sites--BP's first offshore wind projects in Germany--will nearly double the company’s global offshore wind pipeline.


Meanwhile, TotalEnergies--through local subsidiaries--secured the other two sites for a total of $6.5 billion. Germany currently has 8.4GW of operational offshore wind capacity.

“These awards are a huge milestone for BP's decarbonization plans in Germany and are a strong reflection of our wider strategy.

The renewable power we aim to produce will anchor the significant demand we expect for green electrons for our German operations," Anja-Isabel Dotzenrath, BP's EVP for gas and low-carbon energy, said.

But not everyone is particularly pleased with these giant clean energy projects. Multiple bidders, including the winning bids, pledged to build without any subsidies or state support aka ‘‘negative bidding’’;, thus triggering an additional “dynamic bidding procedure”. Negative bidding creates additional costs for offshore wind developers, which they pass on either to the supply chain, already struggling with inflation, or to the consumers, who are grappling with higher electricity prices and costs of living.


Indeed, WindEurope has called for an end to financial bid auctions after BP’s and Total’s historic wins:

“Crucially the European Union wants to strengthen its energy security with competitive and home-grown renewables. The EU needs as much new wind energy capacity as it can get, as fast as it can get it. All the money paid in negative bidding is money our companies cannot invest in other wind energy projects. European governments should therefore not follow the German example of negative bidding. For example the industrial capacity for the construction of wind turbines, foundations and the installation vessels. But investments are also needed in grids, ports and skilled workers. Negative bidding is unhelpful here. Companies along the wind energy supply chain will have to work with even tighter margins, as developers pass on the extra costs of negative bidding to them,” the trade body said.

Gulf Of Mexico Gearing For Massive Offshore Wind Scheme

Back in the United States, the offshore wind sector is beginning to garner some serious attention after receiving more than its fair share of flak by the former president. Last year, the Biden administration outlined a range of clean energy initiatives, key among them plans to hold the largest-ever sale of offshore wind leases in U.S. history and accelerate the deployment of new power lines to transmit renewable electricity across the country.

At the center of the offshore push was the sale of six commercial leases in the New York Bight between Long Island and New Jersey, the most successful offshore wind lease auction in history. The 488,000 acres offshore wind lease auction fetched a record $4.37 billion from companies looking to develop the waters, with the installed capacity expected to be between 5.6 GW and 7 GW, enough to power 2 million homes. The Department of Energy also launched a Building a Better Grid initiative that will tap billions of dollars in funding from the $1T infrastructure law passed in November to finance new lines and grid upgrades.

Well, the Biden administration is planning to roll out a giant offshore wind project that will dwarf New York Bight.

According to Politico, the U.S. government is considering opening 30 million acres of the Gulf of Mexico near Texas and Louisiana to offshore wind energy projects, part of Biden’s goal to build 30 gigawatts of wind power capacity by 2030, enough to power more than 10 million homes.

According to a report by the National Renewable Energy Laboratory (NREL), the U.S. will need more than 2,100 wind turbines, at least 2,100 foundations, more than 11,000 kilometers of cables and five wind turbine installation vessels to achieve its offshore wind energy target. Currently, the country has more than 70,000 existing wind turbines listed in continental U.S.

Perfect Fit

Though the Gulf’s waters haven’t sprouted any wind turbines yet, there are several reasons why the Gulf of Mexico is a perfect fit as an offshore wind hub.

First off, the Gulf Coast also has an abundance of companies and workers with decades of experience in producing energy offshore. According to the Energy Information Administration, Gulf of Mexico federal offshore oil production accounts for 15% of total U.S. crude oil production. Major fields include Eugene Island block 330 oil field, Atlantis Oil Field, and the Tiber oilfield (discovered 2009) while notable oil platforms include Baldpate, Bullwinkle, Mad Dog, Magnolia, Mars, Petronius, and Thunder Horse.

“We have a really mature base for energy. We’ve got the know-how,” Lefton said. The people, the companies, the manufacturers that know how to do [Outer Continental Shelf] energy development are in the Gulf of Mexico,” the Interior Department’s Bureau of Ocean Energy Management director Amanda Lefton has told Politico.

According to Hayes Framme, government relations manager for North America at Danish wind giant Ørsted A/S (OTCPK:DNNGY), the Gulf’s existing oil and gas infrastructure represents “a historic expertise.”

“One of the things that makes the Gulf area attractive is the fact that you’ve got a workforce that is accustomed to working on rigs in the ocean. It’s not like you have to build an industry. What you have to do here is basically help an existing industry evolve,’’; Dennis Arriola, CEO of the renewable energy company Avangrid Inc. (NYSE:AGR), has said.

Michael Hecht, the president and CEO of Greater New Orleans, says jobs in the Gulf’s traditional oil and gas industry have declined during the past decade, creating a sense of urgency to make a transition that allows people to retain their skills.

The Gulf could also become an important hydrogen hub, with wind power being used to generate green hydrogen to reduce greenhouse gas emissions from industries such as long-haul trucking, fertilizer manufacturing and aviation.

By Alex Kimani for Oilprice.com

[veryniceperson] 16/7/2023 09:07

It's very close to 1.31 hellscream . You're right.

[hellscream] 16/7/2023 08:55

just took a look on the currency converter... wow what a hit on the dividend, interest rates are far higher.

[veryniceperson] 15/7/2023 13:13

They have just started pumping from a new well in the GOM called Argos, I think. When fully operational, 1040,000 barrels a day. They are doing alright. Low share price helps when buying back for cancellation. Hang in there. They will come good.

[viscount1] 15/7/2023 11:38

On the point about BP debt: I am not worried about that:
1. The gross long term debt is well off the highs.
2. Cash cover is generous. Their cash generation has been impressive recently, and I am not sure how they managed it.
3. The trading operation is world-class and spins out cash even in a downturn.
4. Their culture is for very prudent debt management.

So there are pros and cons to holding BP but debt is not their issue.

[viscount1] 15/7/2023 11:31

No chance of BP being taken over: the "free-market" Tory government would not allow it.

[gwatson56] 14/7/2023 20:22

US oil rigs down another 3 this week (down 5 last week)



The Saudi's are reducing the whole of the 1MBO/day at the US market. I expect the EIA / API number's to reflect this during July and that will focus traders minds. Perhaps Brent will continue its rise next week.

Either way the BP share price is looking good value given that we might (well should) get an increase in dividend on 1/8. The £ increase vs $ has cancelled out some of the gains though this can reverse (as I expect).

[hellscream] 14/7/2023 16:46

just keep pumping that dividend in, i want £7.

[veryniceperson] 14/7/2023 16:28

All this weeks gains gone. Always next week. Oil rising hopefully up by next Friday.

[meb123] 14/7/2023 14:55

Trouble is when oil goes up this share moves up by a few pennies . Not the reverse ie today as I write oil is down 0.5% yet BP is down 2%.

[veryniceperson] 14/7/2023 09:04

They realise how expensive it is to set up and not get a good return. Hope BP follows suit.

[scruff1] 14/7/2023 08:39

Interesting headline in DT

Shell considers selling green energy stake in move back to oil and gas

[adg] 14/7/2023 06:20

Brent up 15% from recent lows, bp barely a few percent off recent lows - strange times but value will out it always does