Shell Share Discussion Threads

[xxxxxy] 04/1/2022 20:26

New energy crisis talks as cold snap sends gas prices soaringBusiness Secretary is scrambling to avoid another string of supplier collapses following last year's crisisByRachel Millard and Helen Cahill4 January 2022 • 7:57pmKwasi Kwarteng is to hold crisis talks with energy companies on Wednesday amid pressure to prevent a further string of corporate collapses, after wholesale gas costs jumped 25pc as cold weather set in across Europe.The Business Secretary is scrambling to head off fresh chaos in the market following the failure of 26 suppliers last year.Consumer energy bills are expected to rise 56pc or more in April when months of soaring wholesale costs hit households, fuelling a growing cost of living crisis. Wholesale gas prices had started to fall over the past two weeks as traders secured shipments of gas from the US, sparking hopes the worst might have passed. But they jumped 24pc to 214p on Tuesday, well above long-term averages of around 50p, as supplies from Russia to Europe via Ukraine fell. The industry is pushing for measures ranging from removing the 5pc VAT charged on energy bills to setting up a £20bn loan fund so suppliers can spread wholesale costs over several years to lessen the impact on consumers.... Daily Telegraph

[geckotheglorious] 04/1/2022 20:25

Ariane,
"and Read up on Suez and the part played by USA"

Well aware of the Suez Crisis thanks. 1956.
What's that got to do with the French discussion?

Other than being a diversion!

:)

[ariane] 04/1/2022 19:53

These are 2 of my best-performing FTSE 100 investments in 2021

Manika Premsingh | Friday, 31st December, 2021 |
.

Among my stock market investments this year, those that have stood out are the FTSE 100 oil biggies BP (LSE: BP) and Royal Dutch Shell (LSE: RDSB). No points for guessing why. Oil stocks are classic cyclicals. Such stocks are those where demand is sensitive to where we are in the economic cycle. So when the economy is in doldrums, as we saw in 2020, the oil price crashes. And during times of recovery, it picks up. This time around, perhaps even more so. The economic slowdown associated with the pandemic also brought all travel to a halt. As a result, there was a big impact on these stocks. It was natural then, that as the recovery ensued, oil prices rallied and along with that, these stocks’ prices.
More upside to come?

I do not think that we have seen all the upside to these stocks that we are going to. Think about this. We are still under the cloud of the pandemic. Travel remains restricted and consumers are being cautious too. Once these trends are behind us, I think we could see even higher oil demand. Also, continuing economic recovery will increase oil demand. This could further boost both BP and Shell’s financial performance.







Their improved finances could, in turn, result in higher dividends. These stocks boasted fairly high dividend yields pre-pandemic. But at present, they are nowhere near the highest dividend-payers. BP’s current dividend yield is 4.7% and Shell’s is 3.7%. These are not bad and are higher than the FTSE 100 average yield of 3.5%. But they are far from the 10%+ levels seen for the highest yielders. However, I am optimistic that their yields could rise.

Moreover, these stocks offer me a nice hedge against inflation. The UK’s inflation is on a tear and is expected to remain so through next year. Many FTSE 100 and FTSE 250 stocks could be impacted by this as their costs increase. But the oil giants are on the right side of inflation. They are actually beneficiaries from it. So, even if other stocks in my portfolio suffer, these can offer a stabilising impact.


What I’d do now

The big risk to oil stocks is another lockdown in 2022. If another variant of coronavirus emerges, who knows what could happen next? And if the last two years have taught us anything, it is to expect the unexpected. But I have to make my investment decisions based on the most predictable outcomes that I can see, and not on outlier events. Based on these, both oil stocks look quite good to me for at least the foreseeable future. Considering that their share prices are still below pre-pandemic levels, I think I am going to add to my holdings of these stocks in early 2022.


Manika Premsingh owns BP and Royal Dutch Shell B. The Motley Fool UK has no position in any of the shares mentioned.

[ariane] 04/1/2022 18:58

nothing wrong with French people

[geckotheglorious] 04/1/2022 18:35

Ariane

It's full of french people!
otherwise it'd be superb.

:)

[ariane] 04/1/2022 17:51

nowt wrong with France

VIVA LA FRANCE

[adg] 04/1/2022 17:11

Play another record you boring insipid pathetic old fart - blah blah blah blah……
Just because you are stuck in France after moving there for the greener grass and now want to return to old Blighty but can’t because you can’t afford to isn’t a reason to spout your worthless boring (yawn yawn) repetitive drivel and diatribe on various ADVFN bb’s non stop
Behave yourself you boring old codger !

[xxxxxy] 04/1/2022 16:16

Brent crude has hit $80 a barrel after Opec and its allies opted to maintain their policy of modestly increasing output.The producer alliance said it would add 400,000 barrels per day in February – sticking to its plan to gradually restore the cuts made at the height of the pandemic last year.Opec has resisted pressure from the US to open the taps more widely to ease surging energy prices and is hoping demand for fuel will hold up despite the spread of the omicron variant.Brent crude gained 1.9pc to top $80 a barrel, while West Texas Intermediate rose 2pc..... Daily Telegraph

[tornado12] 04/1/2022 12:14

This should already be north of £18. Let’s hope the world gets its act together on a fair and balanced energy policy and DS starts to make extra billions to cover invests, divi (+ incr 5%) , and SBB … 2022 should be a transformed balance sheet !

[xxxxxy] 04/1/2022 09:33

John Redwood@johnredwoodIn the third quarter of 2021 wind, solar and hydro produced just 24% of U.K. electricity thanks to the weather. We need more reliable power to keep the lights on. Government should stop closing power stations that work and back more technologies not weather dependent.

[steve73] 03/1/2022 11:33

As regards, oil/energy consumption per capita, China are well down the list.

I have previously calculated some data for 2015 which shows China in 44th place for total energy consumption of 2.2 Te(oil equivalent) per person per year.. cf. Qatar (the highest) of over 23. US (10th) of 7.1, UK (32nd) 3.0, India 0.6TeOe, Bangladesh 0.2 (similar to "most of Africa", i.e. excl. the 3 highest African Users, SA, Egypt, & Algeria). Global average is 1.8 TeOe/pp/yr.

The 9 countries that use more than the US (1.3% of global population) consume 7% of global energy, US alone (4.4% pop'n) a further 18% of energy. The next 22 countries (to and incl. UK, with 11% pop'n) a further 25% of the energy. Hence 18% of the population consume c. 50% of the global energy.

The top 40% of the population (down to incl. China) consume 80% of global energy.
By the time we include India to 77% of the pop'n, we're upto 97% of global energy.

Or looking at it the other way, the "poorest" 23% of the global population (by country/region) consumes just 3% of global energy.

If it were possible to consider the distributions of energy usage WITHIN each country it would be even more extreme than this.

Oil consumption alone shows a similar profile.. Global usage 95 Million bbl per day, 4.8 bbl/person/yr average. Max was Singapore @ over 80 bbl/p/yr, Min Bangladesh @ 0.2 bbl/p/yr.

[grupo guitarlumber] 03/1/2022 11:07

excellent point Steve

also certain countries say they might produce more at home thereby reducing reliance on China

stay safe

[steve73] 03/1/2022 11:03

ammons - don't forget also that much of the CO2 that China generate is for the purpose of manufacturing "goods" for the rest of the world.

So the western developed nations, US, Europe, Australia, etc. have effectively reduced their own CO2 emissions to China, whilst maintaining their consumerist lifestyle.

[waldron] 03/1/2022 10:44

extract from thisismoney

At the heart of these concerns is the controversial Russian pipeline, Nord Stream 2.

The 745-mile pipeline project, which runs from Russia to Germany under the Baltic Sea, is still awaiting regulatory approval from the West.

Some observers claim gas supplies have been deliberately held back in an attempt to get the pipeline rubber-stamped.

James Huckstepp, managing analyst at S&P Global Platts, highlighted Russia’s influence over Europe’s energy market when he said: ‘Russian flows through Europe are 30 per cent lower than the three-year average.’

Huckstepp added that Europe’s wholesale energy prices could fall by about 50 per cent if Russia increased its gas flows this winter.

But the question of whether Russia can do so remains unanswered, particularly as Gazprom must fill its storage facilities in preparation for the worst of the winter.

Thomas Rodgers, European gas analyst at Icis, said: ‘There’s not a lot of transparency about what has happened in Russia.

‘Some people say Russia is holding back supply to get Nord Stream 2 finished. But it is important to understand that Russia has had its own issues in terms of [prioritising] the domestic market.’

[waldron] 03/1/2022 09:35

Good point ammons

i do believe it would put China lower down the list as might land mass

Try googling

I have only come across per capita

All the best

take care

chuckle and cheers

[ammons] 03/1/2022 09:06

cant believe that i would ever agree wholeheartedly with anything said by john redwood but on this occasion i do. except for comments about china. they may be the largest co2 producer by far but they are the worlds largest population as well so, per head of population, where would they be in the co2 league tables??

[xxxxxy] 03/1/2022 08:27

John Redwood's DiaryAnyone submitting a comment to this site is giving their permission for it to be published here along with the name and identifiers they have submitted.The moderator reserves the sole right to decide whether to publish or not.Net zero did not even make it to ChristmasJANUARY 3, 2022 12 COMMENTSThe road to net zero is meant to be a thirty year commitment. The three leaders or main players in favour of the whole speeded up plan were the EU, the USA and the UK at COP 26. The USA and the EU have already pulled back substantially from what they said and promised at the summit.The ink was hardly dry on the compromise conclusions before an increasingly unpopular President decided he needed to take action to cut US petrol and diesel prices which were becoming inconvenient to motorists and business alike. He pledged to sell some of the US strategic oil reserve to help get the oil price down. More importantly he had words with his allies the Saudis to get OPEC to pump some more.No thoughts here to use higher prices to force more people and businesses off fossil fuels.Also alarmed by the huge surge in European gas prices for home heating and industrial use, he decided to keep US gas prices way below European stressed levels. He issued 3091 drilling permits for more gas, and is auctioning 80 million acres of the Gulf of Mexico for oil and gas exploration. He is now happy by implication that his predecessor Mr Trump  had provided a big boost to US gas output and is dining out on that success and boosting it further with his drill baby drill policy. The Greens see this as tearing up his good intentions and promises at COP 26.It is the reason US gas prices are so much lower than Europe's.It took the EU a bit longer after COP 26. Faced with a disastrous shortage of gas, a sometime shortage of wind power, and closures of coal and nuclear generating stations, the EU has decided to make a major pivot back to fossil fuels in the form of gas. They have now decided to buy up as much gas as they can in world markets to keep the factories turning and the lights on.They have also decided to designate gas as a green fuel which makes an important difference.The US and EU pledges made for COP 26 did not make it unscathed to Christmas. China artfully avoided getting on the road to net zero anytime soon.The U.K. should respond to the decision of two of the three largest generators of CO 2 in the world to change course like this. As the U.K. is still running on EU rules transposed into U.K. law this is one occasion when we should follow the EU lead and re designate gas. Unlike the EU we should not tie ourselves more to their shortage of domestic energy and gas but should use our independence to extract more of our own gas alongside imports from Norway to make our supplies of this recently greened fuel more secure. China of course, the world's largest CO 2 generator by far, was happy to see the west pledged to net zero whilst making clear China plans to increase its CO 2 output for most of the rest of this decade.Germany is closing all its nuclear stations within a year and all its coal stations this decade. France has several older nuclear plants temporarily closed. This will worsen the EU's energy shortage.  The U.K. cannot rely on imports from the EU. We  need to rely more on ourselves and have enough gas to heat our homes and to power U.K. industry..... John Redwood

[tornado12] 02/1/2022 11:41

Dropping North Sea development will be the biggest own goal by a UK government in modern times. People will not accept 50-100% energy increases and the Government will be out in next 2 yrs or before. If you need it switch taps on, if not keep reserves as your strategic backup. The impression today is that energy is not considered strategic enough and that’s absolute bonkers. In fact the Germans are even worse than us as they switch of nuclear today and rely on even more gas from the Russians. Gasprom rubbing their hands with extra 20 b$ profits. It’s serious incompetence and spread of ESG virus which is medium term more dangerous than Moronic covid !

[waldron] 02/1/2022 08:48

Royal Dutch Shell Trades at a Significant Discount to U.S. Peers. The Stock Is One of Barron’s Top Picks for 2022.

By Andrew Bary
Jan. 2, 2022 3:00 am ET



Energy supplies could be tight and prices high for years. Royal Dutch Shell (ticker: RDS.B) stands to capitalize as one of the world’s top energy operations. It trades at a significant discount to its U.S. peers, Exxon Mobil (XOM) and Chevron (CVX).

Shell’s U.S.-listed shares trade around $43, just seven times projected 2022 earnings, against...

[xxxxxy] 02/1/2022 08:37

John Redwood@johnredwoodThe idea that we need a windfall tax on U.K. oil and gas is dangerous. We are short of energy so we need to allow and encourage the production of more UK gas to increase supply. Taxing UK sources means more dependency on Mr Putin's gas and sky high european prices.