Shell Share Discussion Threads

[spud] 15/6/2022 14:00

Bernstein yesterday initiated coverage of Shell (LON: SHEL) with an ‘outperform217; rating, and a target price of 3,100p, while Berenberg raised the Shell target price to 2,975p (2,750p), rating it a ‘buy’.

Last Thursday, Credit Suisse also started coverage of Shell with an ‘outperform217; rating and with a target price of 3,000p, highlighting how oil majors are well placed for energy transition towards renewables, the ‘megatrend of our generation’.

The broker consensus is overwhelmingly positive, with only one broker having the stock on ‘neutral’;. At close of trading yesterday, the stock was priced at 2,308p, a return of 42.3% YTD and 58.3% over 12 months.

spud

[aleman] 15/6/2022 11:48

The world has effectively run out of spare capacity to turn crude into usable fuels like gasoline and diesel. As a result, refiners' profit margins have exploded, which in turn means that consumers are paying far more to fill their tanks than oil prices suggest.

The industry measures refining margins using a rough calculation called the "3-2-1 crack spread": Three barrels of West Texas Intermediate crude are refined into two barrels of gasoline and one of distillate fuel, such as diesel. From 1985 to 2021, the crack spread - the gap between the price of crude and the refined products - averaged about $10.50 a barrel. Last week, it surged to an all-time high of nearly $61. Very few new refineries will come on stream in the next 18 months, suggesting that cracking margins may stay sky high for the rest of the year and into the new one.

[the white house] 15/6/2022 10:33

March options now open : long @ 2343

[the white house] 15/6/2022 09:56

NahQ options expiryvolatile period & when you have a jump from 1950 in 3 months some will want a profit Calmer waters will resume shortly & climb wi recommence

[adg] 15/6/2022 09:34

Higher highs, higher lows seems to be the way

[andyadvfn1] 15/6/2022 08:48

Regular pullback, good opportunity to top up ?I'd be buying more if I didn't have enough of them already

[xxxxxy] 14/6/2022 19:57

Anthony Bargain7 MIN AGOScience allows us to calculate the energy available from any light source (including the sun) when the light falls upon a surface. And guess what? At 100% efficiency with zero conversion losses there still isn't enough energy to power a car or any other sort of vehicle from panels mounted on the vehicle. But worse than that, we never get 100% efficiency. In fact Solar panels are usually able to process only 15% to 22% of solar energy into usable energy. This leads to a fact that the marketeers, gullible governments and gullible consumers tend to overlook - the unavoidable reality that solar and all other renewable energy technologies simply cannot generate enough energy to replace fossil fuels. It has been calculated that to provide 100% of the UK's electricity, even at maximum sun output (summer solstice at noon), solar panels 4x the area of the UK would be needed. It remains baffling why so many are fooled by the delusion of battery cars, solar panels, wind farms and heat pumps. It is as though the masses are being intentionally misguided to deliver massive profits to the few. Surely not... ... Daily Telegraph

[xxxxxy] 14/6/2022 17:59

83. Spot on.

[waldron] 14/6/2022 16:37

Pouyanne blames policy makers for the energy crisis


Jun. 14, 2022 12:09 PM ETOIH, XLE, USO, SHEL, BP, FSLR, TTEBy: Nathan Allen, SA News Editor

"Oil and gas companies that have listened to policymakers' calls for less investment in fossil fuels is one of the reasons for current globally tight energy supplies" TotalEnergies (TTE) CEO Patrick Pouyanne said Tuesday.


Total (TTE) has committed to investing ~$3.6b per year in renewables and power through 2025, more than 3x the current investment run-rate of low-carbon leaders like First Solar (FSLR); however, unlike BP (BP) and Shell (SHEL), Total (TTE) has also committed to growing oil production (USO) through 2025.



With the White House scouring the world for energy supplies, from Venezuela to Iran and Saudi Arabia, while companies in the UK and US face policy headwinds at every turn, the statement appears well founded.


However, Mr. Pouyanne's comment may mark a shift in the industry - after reducing investment in fossil fuels for nearly a decade in hopes of winning favor with policy makers and ESG investors, energy companies may finally be preparing to increase investment in oil and gas production.


In the US, shale producers (XLE) have almost uniformly shied away from accelerating production growth in 2022, as supply chain challenges have led costs higher and production lower in the near term.

However, sustained high prices, a meager supply response from OPEC and the prospect of a failed Iran deal could result in a strategy shift from industry later this year; one that would likely benefit service providers (OIH), create a headwind to upstream free cash flow generation, and eventually balance oil markets.

[spud] 14/6/2022 14:14

Unless you're ELO.....

spud

[supermarky] 14/6/2022 14:00

yes cannot expect every day to be blue.

[adg] 14/6/2022 13:18

That’s been my take also - unless there is a further material change to taxation, covid, the war and a few other “world issues” then oil will remain high for the short to medium term and the next few quarters results are nailed on to be record breaking for both Shell and BP

[supermarky] 14/6/2022 12:49

imo the dip is just a dip and the up trend is still very much intact. No worries

[xxxxxy] 14/6/2022 06:02

Shell is pursuing a significant expansion of its business supplying electricity to UK households amid intense volatility in energy markets.The FTSE 100 company wants to supply clean power to five million households and electric car drivers by 2030, up from about 1.5m today, as part of plans to diversify away from oil and gas.Shell plans to invest £20bn-£25bn in the UK over the decade, more than 75pc of which will go towards low carbon energy such as wind turbines and electric car charging points.David Bunch, Shell's UK country chair, said the investments will help "propel the UK closer to net zero and help to ensure security of supply".However, he said the company needs a "stable tax and investment climate" and businesses and government need to "pull in the same direction".It comes after the Government announced a windfall tax on oil and gas producers, to try to raise cash for households struggling with record household energy bills.Shell's core business is drilling for oil and gas but it also supplies about 1.4m UK households with energy via its UK retail business Shell Energy Retail.... Daily Telegraph

[smith99] 13/6/2022 21:55

I'm out! Cracking company. Rising oil but recession coming and share price will suffer. Good luck to us all

[geckotheglorious] 13/6/2022 20:40

Lippy,
They'll be too busy working 24/7 to get cold, and on their down time, they'll live like sardines in small communal quarters...saves on heating costs!

Crime is going to soar.
Burglary.
And that's not the half of it.
If we get blackouts, be afraid.

[lippy4] 13/6/2022 20:10

plus you better get well armed as the crime rate will go through the roof as is happening in oz with the house crashing with gangs of young blacks this is the result of letting in more of the blacks..

[geckotheglorious] 13/6/2022 19:21

lippy4
Post 1857
"i am shocked at gove turning down an opportunity to find gas by exploratory drilling, as a fence recommended by an inspector while the drilling is done will hurt the green belt"

I'm not. They "Both sides of the House" want you proles to die over Autumn/Winter from the cold. Why? So they can import more savages from the African continent to fill your places.

[the white house] 13/6/2022 14:59

Long 2265 December

[garycook] 13/6/2022 10:10

Jrp,Thanks

[jrphoenixw2] 13/6/2022 09:49

@GaryC You'll find the precise answer in the div announcement that had the X-Date, Pay-D and so on. Those announcements state [roughly] that the FX rate is calc'd from the average of the FX rates on the 5 days prior to the P/D.

p.s./Edit.
Make that three days, the RNS with the rate and origin is in the headers of this page: 'Euro and pounds sterling dividends payable in cash have been converted from US dollars based on an average of market exchange rates over the three dealing days from June 8 to June 10, 2022.'