Oilexco Share Discussion Threads

[bountyhunter] 22/10/2018 18:16

header rolled to December contract

[maywillow] 22/10/2018 10:48

4 resources shares with growth potential? BP plc, Glencore PLC, Premier Oil PLC and Royal Dutch Shell Plc
Do these stocks offer improving investment outlooks? BP plc (LON:BP) (BP.L), Glencore PLC (LON:GLEN) (GLEN.L), Premier Oil PLC (LON:PMO) (PMO.L) and Royal Dutch Shell Plc (LON:RDSB) (RDSB.L)
October 22, 2018 Robert Stephens FTSE 100




Royal Dutch Shell Plc
Royal Dutch Shell Plc

The long-term prospects for the resources industry are relatively bright in my view, and that’s why I’m taking a closer look at BP plc (LON:BP) (BP.L), Glencore PLC (LON:GLEN) (GLEN.L), Premier Oil PLC (LON:PMO) (PMO.L) and Royal Dutch Shell Plc (LON:RDSB) (RDSB.L).

BP could benefit from further rises in the oil price in my opinion. Geopolitical tension in countries such as Iran and Venezuela could lead to supply disruption, and this may mean that the oil price has further upside potential.

With BP’s share price having a P/E of around 14, I think that it could offer good value for money. A dividend yield of 5.5% suggests to me that it may offer income potential, as well as capital growth prospects over the long run.

Premier Oil may also benefit from a higher oil price. The company has been able to become increasingly efficient in recent years, and this is expected to help improve its cash flow in the second half of the year.

Higher cash flow could be used to reduce debt levels and create a more sustainable business. With the company’s P/E ratio of around 6 suggesting to me that there may be a margin of safety on offer, I’m optimistic about the outlook for the Premier Oil share price.

Glencore’s recent share price performance has been disappointing. Investors may be concerned about the stronger dollar, or by the regulatory risks which the company faces.

I’m optimistic about the long-term future for the world economy, though, and believe that demand for commodities could remain high. With Glencore having improved its balance sheet and efficiency in recent years and it having a single-digit P/E ratio, I think that it could have investment appeal.

Shell’s balance sheet could be set to improve through planned debt reduction, as well as an asset disposal programme. The FTSE 100 company may be able to strengthen its long-term outlook, while also increasing free cash flow over the next couple of years.

With a dividend yield of over 5%, I feel that there could be further upside potential for the Shell share price. With a large and diverse asset base, I believe it could offer a sound risk to reward ratio.




About Robert Stephens 4627 Articles
Robert Stephens is a CFA Charterholder and an Equity Analyst by trade. He is a passionate private investor who has been buying and selling shares for many years, owning a wide range of UK shares in the process. He has written for Citywire and The Motley Fool US and now runs his own business. To contact Robert, please email [e-mail] or use one of the other contact methods available on the 'Contact Us' page

[maywillow] 22/10/2018 09:36

Monday 22 October 2018 9:24am
BP and Shell get green light for North Sea joint venture, drilling for 20m barrels of oil
Share


Joe Curtis
Joe Curtis is the digital editor of City A.M.
Follow Joe

BP Filling Station Signage
The Alligin approval is BP's second go-ahead to drill for oil in two months (Source: Getty)

BP and Shell received approval for their 50-50 joint Shetland venture today, which they predict could produce 20m barrels of oil.

The Alligin oil field in the North Sea should produce 12,000 barrels of oil per day at its peak once it comes on stream in 2020, the oil giants said.

Read more: BP wins approval for North Sea project to produce 30m oil barrels

Ariel Flores, BP's North Sea regional president, said: “We announced our intention to develop Alligin in April and six months later we have achieved regulatory approval. Always maintaining our focus on safety, we are modernising and transforming how we work in the North Sea to fully realise the potential of our portfolio.

“Alligin is part of our advantaged oil story, rescuing stranded reserves and tying them back into existing infrastructure. Developments like this have shorter project cycles, allowing us to bring on new production quicker. These subsea tiebacks complement our major startups and underpin BP’s commitment to the North Sea.”

The fast-tracked development, 140km west of Shetland, was approved by the Oil and Gas Authority (OGA), and will use new subsea infrastructure including gas lift and water injection pipeline systems, with Deepsea Aberdeen’s rig drilling the pair of wells.

Read more: Oil prices fall after US crude inventories boosted by six million barrels

It is BP’s second approval for North Sea drilling in the last two months, after it received regulatory approval for its Vorlich oil field in September, where it hopes to fill 30m barrels of oil.

Meanwhile, its development at its Clair Ridge field is expected to begin later this year, targeting 640m​ barrels of oil and 120,000 barrels of oil a day.

Brenda Wyllie, west of Shetland and northern North Sea area manager for the OGA, said BP and Shell’s Alligin field will benefit from storing oil in its recently built Glen Lyon ship, which can store and offload oil

“[It] is a good example of the competitive advantage available to operators from the extensive infrastructure installed in the UK continental shelf,” she added.