Total Share Discussion Threads

[adrian j boris] 17/1/2020 10:26

Angola’s Oil Drilling Finally Picks Up

Paul Burkhardt, Bloomberg News








BC-Angola’s-Oil-Drilling-Finally-Picks-Up

BC-Angola’s-Oil-Drilling-Finally-Picks-Up , Paul Burkhardt

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Angola’s ailing oil industry got a shot in the arm this week, with Eni SpA and Total SA both showing their commitment to the OPEC producer.

Eni started production at the Agogo-1 deepwater field and won exploration rights to Block 28 in the Namibe Basin, while Total, active in Angola for more than 60 years, was awarded Block 29. New discoveries are vital if the southwest African country is going to revive faltering output, according to consultants Rystad Energy AS.

“Adding significant resource through new discovery seems to be the only way out,” Rystad said in a report. Without fresh finds, volumes could drop below 1 million barrels a day by 2025, it said.

Oil production in Angola has slumped by a third in the past decade to less than 1.4 million barrels a day, reflecting years of underinvestment in new projects. The government, which relies on oil exports for most of its revenue, has introduced reforms such as tax relief and a standalone regulator as part of efforts to lure investment and reverse the decline.

The number of rigs in Angolan waters has increased in recent months, with Total positioning itself to be the country’s top foreign operator. The French major plans to drill the world’s deepest offshore well in a campaign that begins in the next few weeks.

Italy’s Eni and its partners have started pumping 10,000 barrels a day at Agogo-1, and expect to double that volume in the coming months, Angola’s oil-industry regulator said Thursday.

Production from Angolan projects that started in the last five years will peak in 2022 at about 549,000 barrels a day, according to Rystad.

To contact the reporter on this story: Paul Burkhardt in Johannesburg at [e-mail]

To contact the editors responsible for this story: James Herron at [e-mail], Amanda Jordan, Christopher Sell

[sarkasm] 16/1/2020 19:49

How the six major oil companies have invested in renewable energy projects

Features & AnalysisWindOil & Gas

By James Murray 16 Jan 2020

Some of the oil majors have invested heavily in renewables, such as wind and solar, as they look to transition towards cleaner energy sources
Wind turbine

Major oil firms have been investing in wind capacity (Credit: Tom Corser)

Oil and gas is often painted as the dirtiest sector within the energy industry, but major companies have begun to invest in renewable technologies in a bid to clean up the economy.

Of the six “super-majors” – BP, Shell, Chevron, Total, Eni and Exxon – many of them have pumped billions into clean energy projects, although question marks remain over whether they are doing enough.

Despite the growth in renewables, “big oil” only spent 1% of its combined budget on green energy schemes in 2018.

Matthias J Pickl, economics professor at King Fahd University of Petroleum and Minerals in Saudi Arabia, wrote a report in November 2019 discussing whether oil companies are transforming themselves into energy firms.

Titled The renewable energy strategies of oil majors – From oil to energy?, it highlighted how wind and solar are taking an increasingly important role in the energy industry, and that oil majors are “progressively positioning themselves for the proclaimed energy transition”.

“Oil firms are essentially attempting to figure out how the best presently available cash cow in the world can be replaced for the benefit of their own sustainable future,” he wrote in the report.

“Furthermore, growing concerns about climate change following the Paris Agreement may provide an additional drive for such strategy to hedge against hardening investor sentiment towards carbon emissions.”

Here, NS Energy looks into how each of the six oil majors have invested in renewable energy projects.


Major oil companies’ investments in renewable energy projects
BP

BP was the first oil major to commit significant capital to renewable projects, such as wind and solar, from 1980 onwards.

Formerly known as the British Petroleum Company, it rebranded to Beyond Petroleum in 2001 with a look towards other energy sources beyond oil.

In the aftermath of the 2010 Deep Water Horizon oil spill incident in the Gulf of Mexico, BP closed most of its previous green energy investments, believed to be worth about $8bn to $10bn.

But the company still has more than 2200 megawatts (MW) of wind capacity in the US and has started to re-invest in renewables in recent years.
bp greenwashing
BP has been investing in solar power in recent years (Credit: Mike Mozart/Flickr)

It spent $200m in 2017 on acquiring a 43% stake in Lightsource, which has rebranded to Lightsource BP and is Europe’s largest solar power project developer.

In 2018, the firm made three investments to prepare for a low-carbon future.

The first of which was a $20m investment in StoreDot, an Israeli developer of rapid-charging batteries.

BP then made a $5m investment in US company FreeWire, which makes fast-charging infrastructure for electric vehicles.

And finally, $160m was spent on acquiring Chargemaster, the UK’s leading network of charging points.

This allowed the oil firm an opportunity to combine Chargemaster’s 6,500 charging points network with its 1,200 petrol stations.


Shell

Shell’s investment target for green energy projects was set between $4bn and $6bn for the period from 2016 until the end of 2020 – but with less than a year to go, The Guardian says the sum is “well below” those figures.

The Anglo-Dutch firm’s 2016 New Energies strategy covers several areas including electricity, wind and solar, electric vehicle charging, and initiatives to encourage the adoption of hydrogen fuel cell electric vehicles.

It spent a reported $2bn on setting up a low-carbon energy and electricity generation business in 2016 – ensuring it was on course to meet its targets at the time.

The following year, it acquired UK-based electricity and gas provider First Utility, as well as Europe’s largest electric vehicle charging company NewMotion.

In 2018, Shell bought a 44% stake in US solar power firm Silicon Ranch for $200m and made a $20m equity investment in India-based renewable power company Husk Power Systems.


Total

Total’s plan for renewables is to invest $500m a year in clean energy technologies.

That figure is about 3% of the French oil major’s total capital expenditure, with plans in place to ramp that up to 20% over the next 20 years.
Lightsource BP solar
Total is aiming to become a global integrated leader in solar power (Credit: Flickr/Dept of Energy Solar Decathlon)

Over the past 10 years, it has made a number of strategic investments, which included $1.4bn being spent on acquiring a 60% stake in US solar firm SunPower in 2011.

Total is aiming to become a global integrated leader in solar power and has 1.6 gigawatts (GW) worth of capacity, and plans to increase that to 5GW over the next five years.

In 2016, it purchased French battery manufacturer Saft for $1.1bn and bought Belgian green power utility Lampiris for $224m.

Total acquired a 74% stake in the French electricity retailer Direct Energie for $1.7bn in 2018, propelling the company forward into being one of the top utility providers in France.


Eni

Although Eni is not quite up to speed with its rival oil majors, the Italian company has plans in place to invest further in renewable technologies.

In 2014, it launched the world’s first conversion of a traditional refinery to a biorefinery that produces jet fuel, green diesel, green naphtha and liquid petroleum gas.

With an eye on growing its onshore and offshore wind capacity, Eni formed partnerships with France-based GE Renewable Energy and Norwegian energy company Equinor.

Clean energy sources play a key role in the firm’s corporate strategy and it is targeting to deliver 1GW of installed renewable power capacity between 2018 and 2021 by investing €1.2bn ($1.3bn), with a long-term goal of reaching 5GW by 2025.


Chevron

Chevron’s investments in renewables have been relatively scarce, with no target in place for a move to cleaner technology.

The US firm has invested in solar, wind and geothermal projects over the past 20 years but, following low returns, the focus has remained on its oil and gas business.

In 2018, Chevron launched a Future Energy Fund, with an initial commitment of $100m set aside to invest in breakthrough technologies that will reduce carbon emissions and provide cleaner energy.


ExxonMobil

Like its US counterpart, Exxon has shown very little interest in investing in renewable energy technologies, with no budget or time-scale planned for future projects.

The company’s strategy revolves around reducing greenhouse gas emissions, advancing biofuels, and carbon capture and storage (CCS).

Exxon holds interests in about a third of the world’s CCS capacity and captured 6.9 million metric tonnes of carbon dioxide for sequestration – the process of separating the gas from the atmosphere – in 2015.

In 2019, it announced plans to develop carbon capture fuel cell technology, which produces power and captures and concentrates CO2 for storage – resulting in potential cost reductions.

[waldron] 16/1/2020 17:07

Brent Crude Oil NYMEX 64.83 +1.30%
Gasoline NYMEX 1.66 +0.84%
Natural Gas NYMEX 2.11 +1.39%
(WTI) 58.82 USD +1.24%

FTSE 100
7,609.81 -0.43%
Dow Jones
29,202.47 +0.59%
CAC 40
6,039.03 +0.11%
SBF 120
4,755.34 +0.12%
Euro STOXX 50
3,772.58 +0.19%
DAX
13,429.43 -0.02%
Ftse Mib
23,912.99 +0.63%


Eni
13.888 +0.65%

Total
48.79 +0.43%

Engie
14.98 +0.54%

Bp
497.85 +0.54%

Vodafone
155.68 -1.44%

Royal Dutch Shell A
2,255 -0.33%

Royal Dutch Shell B
2,273 -0.68%

[waldron] 15/1/2020 17:08

Brent Crude Oil NYMEX 64.05 -0.68%
Gasoline NYMEX 1.65 -0.68%
Natural Gas NYMEX 2.09 -2.74%
(WTI) 57.78 USD -0.50%

FTSE 100
7,642.8 +0.27%
Dow Jones
29,114.65 +0.60%
CAC 40
6,032.61 -0.14%
SBF 120
4,749.42 -0.05%
Euro STOXX 50
3,765.36 -0.22%
DAX
13,432.3 -0.18%
Ftse Mib
23,770.7 -0.66%



Eni
13.798 -0.55%


Total
48.58 -1.18%

Engie
14.9 +0.61%

Bp
495.2 -0.14%

Vodafone
157.96 +0.91%

Royal Dutch Shell A
2,262.5 +0.24%

Royal Dutch Shell B
2,288.5 +0.75%

[ariane] 15/1/2020 11:02

01/15/2020 | 10:26
Analyst Berenberg confirms its 'buy' recommendation on the title of the Total group, despite the announcement this morning of a drop in the margin on variable costs, refining Europe (refining margin), to 30.2 dollars per tonne at last quarter 2019, against $ 47.4 in the previous quarter and $ 40.8 a year earlier.

"The company remains well positioned in 2020, benefiting from the strong ramp-up in production until 2019", appreciates the broker, who nevertheless adjusts some of his estimates to the margin.

Berenberg also confirms its price target of 60 euros.

[waldron] 15/1/2020 08:47

Total Petrochemicals & Refining USA on Tuesday reported a tripped compressor that led to above-normal gas emissions at its refinery in Port Arthur, Texas.

"The Wet Gas Compressor at the Delayed Coker Unit (Unit 860) tripped, sending process gases to the flare gas recovery system, which was overwhelmed and sent the process gases to the North, South and East flares," the refinery said in a statement to the Texas Commission on Environmental Quality. "In order to minimize emissions, Total stabilized the unit and restarted the Wet Gas Compressor."

The emissions of some 75,000 pounds of sulfur dioxide began Monday evening and continued into Tuesday morning, lasting a total of about nine hours, the refinery said.

Total's 225,000-barrel-a-day Port Arthur refinery is 95 miles east of Houston.



Write to Dan Molinski at [e-mail]



(END) Dow Jones Newswires

January 14, 2020 16:56 ET (21:56 GMT)

[waldron] 14/1/2020 17:21

Brent Crude Oil NYMEX 64.86 +1.03%
Gasoline NYMEX 1.67 +0.52%
Natural Gas NYMEX 2.19 +1.53%
(WTI) 58.49 USD +0.67%


FTSE 100
7,622.35 +0.06%
Dow Jones
29,019.03 +0.39%
CAC 40
6,040.89 +0.08%
SBF 120
4,751.71 +0.08%
Euro STOXX 50
3,774.88 -0.04%
DAX
13,456.49 +0.04%
Ftse Mib
23,913.14 +0.07%


Eni
13.874 -1.18%



Total
49.16 -0.81%

Engie
14.81 +0.07%

Bp
495.9 -0.24%

Vodafone
156.54 +3.24%

Royal Dutch Shell A
2,257 -0.49%

Royal Dutch Shell B
2,271.5 -0.37%

[the grumpy old men] 14/1/2020 08:15

Total: Berenberg remains with BUY

TARGET objective raised from 56.50 to 60 EUR.

[waldron] 13/1/2020 17:41

Brent Crude Oil NYMEX 64.50 -0.74%
Gasoline NYMEX 1.65 -0.31%
Natural Gas NYMEX 2.14 -1.43%
(WTI) 58.47 USD -0.73%

FTSE 100
7,617.6 +0.39%
Dow Jones
28,907.28 +0.29%
CAC 40
6,036.14 -0.02%
SBF 120
4,747.97 -0.02%
Euro STOXX 50
3,779.68 -0.30%
DAX
13,451.52 -0.24%
Ftse Mib
23,873.71 -0.61%



Eni
14.04 -0.43%


Total
49.56 -0.45%

Engie
14.8 +0.30%


Bp
497.1 +0.37%

Vodafone
151.62 -0.01%

Royal Dutch Shel Al
2,268 +0.20%

Royal Dutch Shell B
2,280 +0.44%

[waldron] 10/1/2020 17:49

Brent Crude Oil NYMEX 65.29 -0.12%
Gasoline NYMEX 1.68 +0.90%
Natural Gas NYMEX 2.17 +1.02%
(WTI) 59.2 USD -0.54%


FTSE 100
7,587.85 -0.14%
Dow Jones
28,889.16 -0.23%
CAC 40
6,037.11 -0.09%
SBF 120
4,748.7 -0.10%
Euro STOXX 50
3,789.52 -0.11%
DAX
13,483.31 -0.09%
Ftse Mib
24,038.14 +0.09%



Eni
14.1 -0.28%

Total
49.785 -0.35%

Engie
14.755 -0.37%

Bp
495.25 +0.65%

Vodafone
151.64 -0.21%

Royal Dutch Shell A
2,263.5 +0.13%

Royal Dutch Shell B
2,270 +0.02%

[the grumpy old men] 10/1/2020 08:46

Congo covets Gertler's oil blocks on Ugandan border - Bloomberg
Jan. 9, 2020 1:18 PM ET|About: Tullow Oil plc (TUWLF)|By: Carl Surran, SA News Editor

The Democratic Republic of Congo government is forming a plan to take back two oil blocks from sanctioned Israeli billionaire Dan Gertler and sell them, and has talked to Tullow Oil (OTCPK:TUWLF) about purchasing a stake in licenses along the country's border with Uganda, Bloomberg reports.

The blocks could be a natural fit for Tullow and Total (NYSE:TOT) - which reportedly has showed some interest - since the two companies already share rights to adjoining areas on the Ugandan side of Lake Albert, where more than 1B barrels of oil have been discovered.

The Congo licenses have long been viewed as potentially holding large discoveries, but proper exploration has been held up for years by legal and political disputes.

[florenceorbis] 10/1/2020 07:53

HSBC remains with BUY ,target raised from 53.30 to 57 EUR.

[waldron] 09/1/2020 17:23

Brent Crude Oil NYMEX 65.37 -0.11%
Gasoline NYMEX 1.65 -0.06%
Natural Gas NYMEX 2.14 +0.19%
(WTI) 59.35 USD -0.97%

FTSE 100
7,598.12 +0.31%
Dow Jones
28,979.29 +0.81%
CAC 40
6,042.55 +0.19%
SBF 120
4,753.41 +0.20%
Euro STOXX 50
3,795.88 +0.64%
DAX
13,495.06 +1.31%
Ftse Mib
24,019.48 +0.79%


Eni
14.14 -0.46%

Total
49.96 -0.56%

Engie
14.81 -0.40%

Bp
492.05 -0.46%

Vodafone
151.96 +3.02%

Royal Dutch Shell A
2,260.5 -0.66%

Royal Dutch Shell B
2,269.5 -0.92%

[waldron] 09/1/2020 16:23

Although Exxon and Shell are fairly similar in their business models, Exxon is the larger of the two and operates with a lower net debt position. Exxon has also raised its dividend for 36 years in a row while Shell hasn't raised its dividend since 2014. That being said, Shell's cash flow and P/E ratio aren't just better than Exxon, they are better than other supermajors including Chevron, BP, Total, and Eni. Shell also has one of the highest dividend yields of the bunch at over 6%. Shell's P/E ratio places the company in value stock territory, especially considering the strength of its earnings power. That being said, Shell is unlikely to raise its dividend anytime soon given the current high yield and focus on other expansion efforts on the renewable side.
The winner

ExxonMobil and Shell are both solid oil and gas companies, but Shell's gradual shift into natural gas and renewables and strong LNG portfolio are positioning the company to be an all-encompassing energy company in the future, not just oil and gas. Exxon's history of dividend increases and devotion to oil and gas is probably a good investment for anyone focused on income rather than growth. That being said, Shell's low P/E ratio and over 6% yield is something every investor can get behind, making Shell the better buy of the two.

[waldron] 08/1/2020 17:19

Brent Crude Oil NYMEX 65.52 -4.03%
Gasoline NYMEX 1.65 -4.09%
Natural Gas NYMEX 2.11 -1.90%
(WTI) 60.01 USD -7.51%


FTSE 100
7,574.93 +0.01%
Dow Jones
28,772.38 +0.66%
CAC 40
6,031 +0.31%
SBF 120
4,743.78 +0.30%
Euro STOXX 50
3,772.56 +0.26%
DAX
13,320.18 +0.71%
Ftse Mib
23,832.02 +0.46%


Eni
14.206 -0.80%


Total
50.24 +0.26%

Engie
14.87 -0.13%



Bp
494.3 -0.90%

Vodafone
147.5 +0.57%

Royal Dutch Shell A
2,275.5 -0.65%

Royal Dutch Shell B
2,290.5 -0.37%

[sarkasm] 07/1/2020 22:54

Conclusion

Total S.A. isn’t a risk free investment. As we saw above, the markets are changing, and if the world chooses to focus on climate change, that could result in oil and natural gas demand going down. However, the company is prepared for that and has a strong portfolio of assets. The company has been focused on both lowering costs and taking advantage of quality cheap assets to improve its portfolio composition.

Going forward, I expect the company to continue to focus on improving its portfolio and lowering costs. That combined with the company’s strong and growing production means significant cash flow. The company already pays a dividend of more than 5% and anticipates increasing that at the mid-single digits over the next 6 years. Those dividend payments alone make the company a strong dividend.

Overall, Total S.A. is the ignored oil supermajor and I recommend investing in the company for the long run.

[waldron] 07/1/2020 18:06

Brent Crude Oil NYMEX 67.88 -1.49%
Gasoline NYMEX 1.72 -1.88%
Natural Gas NYMEX 2.15 +0.75%
(WTI) 62.35 USD -0.95%


FTSE 100
7,573.85 -0.02%
Dow Jones
28,611.7 -0.32%
CAC 40
6,012.35 -0.02%
SBF 120
4,729.76 +0.04%
Euro STOXX 50
3,759.25 +0.23%
DAX
13,226.83 +0.76%
Ftse Mib
23,723.38 +0.60%

Eni
14.32 +0.03%

Total
50.11 -0.65%

Engie
14.89 +1.26%


Bp
498.8 -1.05%

Vodafone
146.66 -0.29%

Royal Dutch Shell A
2,290.5 -0.80%

Royal Dutch Shell B
2,299 -0.63%