68.83 +0.01 (0.02%)
Pre-market: 9:28AM EST
|Bid||69.01 x 900|
|Ask||69.38 x 4000|
|Day's range||68.80 - 69.58|
|52-week range||66.31 - 83.49|
|Beta (5Y monthly)||1.00|
|PE ratio (TTM)||20.05|
|Earnings date||30 Jan 2020|
|Forward dividend & yield||3.48 (5.04%)|
|Ex-dividend date||06 Nov 2019|
|1y target est||78.24|
Description: Tensions in Iraq seemed to have cooled in recent days, but many oil majors still face difficult decisions regarding their short and mid-term plans in the conflict stricken nation
Noble Energy's (NBL) Leviathan field starts commercial operation per schedule, and is expected to drive performance of the company over the long term.
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. Representatives of two top business groups warned that it’s getting increasingly harder for foreign companies to put their money in Mexico and said that messages from President Andres Manuel Lopez Obrador’s government that hinder investment need to stop.In a rare critique of the current administration, Carlos Salazar, head of one of the largest Mexican business groups, CCE, said companies need a message of certainty from the Lopez Obrador administration to move away from conflicts.At the same event in Mexico City, Claudia Janez, the head of a group representing global businesses, spoke out even more forcefully against government interference in investment, saying it’s the main cause of economic stagnation in Mexico.Mexico’s gross domestic product remained flat last year in large part because of the “systemic change of rules to doing business and the constant political messages against the markets and companies,” said Janez, president of the Executive Council of Global Companies (CEEG).The economy even dipped into a slight recession in the first half of 2019 after Andres Manuel Lopez Obrador scrapped a $13 billion airport project before becoming president in December, and then suspended private oil auctions once in power. His government staged a months-long dispute with several pipeline operators after it decided to change the terms of natural gas contracts signed with the previous administration.“Companies make long-term investment decisions. Changing rules doesn’t help growth,” said Salazar, who has served as a liaison between the business community and the government.Mexico’s AMLO Still Working to Win Over Private Sector SkepticsIn recent months, Lopez Obrador has been trying to win over private sector skeptics, but hasn’t delivered what they want, which is mainly a return to business-friendly policies such as the oil auctions. Gross fixed investment, which includes spending in factories and machinery, has fallen for nine consecutive months through October, the longest losing streak since the 2009 recession.Janez, who is also president for Latin America at DuPont de Nemours Inc., stressed Mexico needs to be clear on why it deserves investment over other countries and that free trade deals will mean nothing if the country doesn’t address its security issues.She said security has become the number one concern for many companies operating in the country and that some of them are now spending an extra 30% to 40% of their fixed costs to protect themselves. “Insecurity should not be the new normal,” she said.Decisions to allocate money for Mexico became even harder in the second half of 2019, Janez said, an unusual situation considering that the country was expected to become a natural destination for investment amid the China-U.S. trade war. Members of her business group include Exxon Mobil Corp. and AT&T Inc.Salazar said he remains optimistic Mexico can reach growth goals in the future. He cited an infrastructure plan from November as a token of hope.Salazar is helping broker a second investment plan, this time for the energy sector, that could be announced this month or next.(Adds comments from Janez and Salazar starting in 10th paragraph.)To contact the reporters on this story: Cyntia Barrera Diaz in Mexico City at firstname.lastname@example.org;Andrea Navarro in Mexico City at email@example.comTo contact the editors responsible for this story: Nacha Cattan at firstname.lastname@example.org;Ney Hayashi at email@example.comFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The oil market may seem complicated to those not in the industry, but what impacts oil prices is fairly simple. Three major factors--supply, demand, and geopolitics--drive the price of oil.
Fears of World War III and a major crisis in the Middle East appear to have vanished entirely from the oil trader radar, as concerns of oversupply now weigh on oil prices
ExxonMobil announced today that ExxonMobil Catalysts and Licensing LLC and Axens have signed a licensing alliance agreement to allow Axens to provide ExxonMobil’s FLEXICOKING™ technology and integrated resid conversion solutions.
By devising new plans and extensions, Equinor (EQNR) is creating a new ''late life'' wherein it will find innovative methods to enhance operations with low carbon footprints from late-life fields.
(Bloomberg Opinion) -- Broad new horizons in key markets are opening for the world’s energy companies. Don’t expect to see a land rush any time soon. China will allow all large domestic and foreign companies to apply for oil and gas exploration licenses that were previously only open to state-owned enterprises, the country’s resources ministry said at a briefing Thursday. In India, regulators will also let private and international companies bid for a group of coal blocks it’s putting up for auction starting this month, the country’s coal and mines minister Pralhad Joshi said this week, chipping away at a near-monopoly enjoyed by state-controlled Coal India Ltd.A decade or so ago, such announcements might have caused international energy companies to salivate with excitement. All the fear back then was that state-owned giants like Saudi Arabian Oil Co. and Petroleos de Venezuela SA controlled all the viable assets to fuel a coming era of ever-increasing fossil fuel demand, leaving listed businesses running out of reserves. How things have changed.For one thing, it’s national governments rather than independent companies that are now worried about supply shortages. China’s domestic oil production has fallen about 10% since peaking five years ago. India’s coal output is still edging up, but not fast enough to meet demand: Net imports have accounted for about a quarter of consumption in recent years, up from 10% a decade ago.Meanwhile, energy companies are awash with supply. The revolution in fracking means that America’s shale patch would count as one of the world’s top three oil producers if considered on its own. It briefly overtook Saudi Arabia for the number two spot behind Russia after an attack on the Gulf country’s oil facilities in September.Conventional oil and gas discoveries are booming, too, hitting a four-year high of 12.2 billion barrels of oil equivalent last year, according to consultancy Rystad Energy AS. Storied oil majors Exxon Mobil Corp., Total SA, BP Plc and Eni SpA chalked up some of the year’s best discoveries. On the demand side, consumption of petroleum may peak as soon as a decade from now, well within the lifetime of most conventional oilfields.As a result, the interests of fossil fuel producers and the energy-hungry governments seeking to attract them are fundamentally opposed. Beijing and New Delhi ultimately want to boost domestic output at all costs, and hope that foreign businesses can sprinkle some innovative magic that local giants can’t muster. International oil companies, on the other hand, are ruing a decade when they chased barrels to the exclusion of all else. They’re now much more focused on developing only the most profitable fields, wherever they’re to be found.It’s probably unfair to characterize the state-owned Chinese and Indian companies as lazy behemoths, too. PetroChina Co.’s capital spending is bigger than that of Exxon Mobil and BP put together, and about half the wells it drills each year are in the Changqing field, where most new development is in difficult formations similar to those in the U.S. shale patch. Coal India, likewise, is hampered by the fact that most of the country’s coal is high in ash and low in energy, and dependent on a creaky rail network to make it to power stations.The problem, instead, is that the remorseless facts of poor geology make it nearly impossible to develop domestic reserves profitably, especially when government targets are driving state-owned companies to increase output with little regard for cost.Take the Qingcheng field, a corner of the Changqing deposit that counts as PetroChina’s largest single shale find. Even after recent efforts to drive down costs, the internal rate of return for Qingcheng wells is now only 8% to 9%, Cathy Chan, an analyst at CCB International Holdings Ltd., wrote in an October note.It’s fanciful to think this would tempt foreign investors. Such returns barely cover PetroChina’s own cost of capital. In Texas’s Permian basin, comparably low returns were last seen in early 2016, when the local fracking industry was on the brink of collapse. IRRs of 20% to 40% are typical for unconventional petroleum in the U.S. Given the substantial political risks that come from operating in China these days, it’s very hard to see the attraction here for international energy businesses.The best path to energy security for China and India is to encourage their own renewable energy and electrified transport industries — an approach that will improve the health of their populations, reduce climate risks, and leave them far less dependent on imported fuels. That’s a much better idea than wasting money trying to get blood from a stone, or hoping that clever foreigners will be able to find hidden deposits where local talent has failed.To contact the author of this story: David Fickling at firstname.lastname@example.orgTo contact the editor responsible for this story: Rachel Rosenthal at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Equatorial Guinea will add 20,000 barrels per day (bpd) of oil production by October, the country's oil minister said on Sunday. "We expect an increase this year of around 20,000 bpd additional because of the new discoveries," Gabriel Obiang Lima told reporters on the sidelines of an energy event. Equatorial Guinea, a member of the Organization of the Petroleum Exporting Countries (OPEC), currently produces 120,000 bpd.
(Bloomberg) -- New York won’t appeal a ruling by a judge who rejected the state’s claim that Exxon Mobil Corp. misled investors for years about the oil giant’s internal planning for risks associated with climate change.New York Attorney General Letitia James, a Democrat who took office after the suit was filed, announced the decision late Friday without giving a reason. James nevertheless hailed the trial in state court as a landmark -- “the first time in history” Exxon was forced to answer publicly for its messaging around climate change.“As we have done for the last year, my office will continue to fight to ensure companies are held responsible for actions that undermine and jeopardize the financial health and safety of Americans across our country,” James said in a statement.Read More: Exxon Says N.Y. Used Fraud Claims to Score Political PointsExxon has never taken the economic impact of climate change on its business seriously, “and that truth was laid bare at trial,” she said.James’s defiance belies the decision by New York Supreme Court Justice Barry Ostrager, who rejected all the state’s claims.In its securities fraud suit, filed in October 2018, New York accused Exxon of lying to shareholders about its use of a “proxy cost” for carbon in its internal accounting to prepare for future climate change regulations. That alleged lie suggested to the public that Exxon was being more prudent about climate risks than it really was, the state said.Ostrager, in a 55-page ruling in December, said the attorney general’s office “failed to prove, by a preponderance of the evidence, that Exxon Mobil made any material misstatements or omissions about its practices and procedures that misled any reasonable investor.”Read More: Former Exxon CEO Says Climate Change ‘With Us Forever’Irving, Texas-based Exxon previously accused New York of filing the lawsuit in a politically motivated attempt to target the company. That argument was bolstered on the final day of the trial when the state dropped its two most serious fraud claims against the company after failing to back them up with any evidence during the trial.On Friday, a non-profit energy industry organization filed a motion to intervene in the case in an effort to unseal communications between the Attorney General’s office and a well-known plaintiffs lawyer who is involved in various lawsuits against the energy industry.Energy Policy Advocates, based in Washington state, said in its filing that the lawyer, Matt Pawa, shopped around anti-Exxon litigation strategies in pitches to various AG’s office, including Massachusetts, which has also sued Exxon.“Documents filed in this matter will shed light on the important ongoing debate about the propriety of the New York Attorney General’s actions in this matter,” the group said in its filing. “Regardless, they will show how such costly if failed litigation came to pass, or at least key influences.”Neither the New York Attorney General’s office nor Pawa immediately responded to requests for comment on Saturday.(Updates with comment from the New York attorney general.)To contact the reporter on this story: Erik Larson in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: David Glovin at email@example.com, Ros Krasny, Linus ChuaFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
(Bloomberg Opinion) -- Larry Fink, boss of $7 trillion asset manager BlackRock Inc., has long prided himself on being a bit of a populist-whisperer. He frequently lectures the world’s CEOs on the need for a “social purpose” to go with profits, warning them that an increasingly angry public expects firms to meet higher social and ethical standards. Trust in institutions is down, he says; social-media pressure is up.Yet of all the knock-on effects of Fink’s crusade to make passive low-cost investing more activist, the one he surely didn’t expect was public ire at BlackRock itself. A firm that was supposed to be the opposite of the Goldman Sachs Group Inc.“vampire squid” — no banking relationships, no conflicts of interest, no rapacious fees — is being targeted by protesters on a range of issues, from pensions to climate change. Instead of being held up as a tool of people power, offering dirt-cheap investments, it’s become a punching bag.The sight of protesters storming BlackRock’s headquarters in Paris this week in anger at French President Emmanuel Macron’s flagship pension reform is the latest example of how messy BlackRock-bashing has become. Brandishing flares and singing slogans, the group labeled BlackRock a “pension fund” (which it isn’t) and said that Macron’s reforms were designed for its benefit (which they weren’t). As a conspiracy theory, it's unimpressive: Macron’s bid to level the playing field by replacing 42 different systems with a points-based one doesn’t actually change the way pensions are funded in France by those in work. But as a piece of agit-prop, it’s clever: The catchy name of a U.S. multinational travels far better than dry actuarial tables. For a strike-weary populace, it sticks in the mind.Yet it’s also a sign that BlackRock’s approach to preaching the gospel of passive investment and millennial ethics isn’t quite working. Populist politicians like France’s Marine Le Pen and social-media campaigns have seized on BlackRock not just because it’s big and foreign, but because the company’s specific views on retirement and pension planning are entirely public and easy to find. Unsurprisingly, they call for more investment. In 2018, BlackRock’s French head, Jean-François Cirelli, said the general approach of the Macron administration was a good one in that it encouraged people to think about their pension and start saving. That he was recently put on the honor list for France's highest distinction, the Legion of Honor, only served to fuel the outrage.The very same “anxiety and fear” about retirement that Fink has warned CEOs about is now being used against his own firm and its core product, at least in France.Elsewhere in Europe, pesky millennials have other bones to pick with BlackRock. Last year, Extinction Rebellion’s climate activists poured ash in front of BlackRock’s London headquarters to protest its holdings in fossil fuels. As a target, the firm might seem slightly off-center given the way passive investing works: If the job of a tracker fund is to track an index, a $200 billion BlackRock fund tracking the S&P 500 isn’t going to arbitrarily drop Exxon Mobil Corp. on climate concerns. And the protesters failed to acknowledge Fink’s own governance message to other CEOs, for whom “environmental risks” are flagged as top priorities for 2019. While BlackRock wants to hold management’s feet to the fire, it’s finding out that in today’s world, some people would rather it change its own core investment practices as well.These may be pockets of ire for now, but they point to increasing pressure on BlackRock’s “license to operate” from its stakeholders (another term used by Fink). Over the past decade, criticism of BlackRock has largely come from other finance types preoccupied with technical issues like systemic risk. Its defenders pointed to the index-fund revolution as a tool of empowerment for consumers, which, to be fair, it has been. But as my Bloomberg News colleagues write elsewhere, BlackRock begins the new decade as a corporate overlord — one of the Big Three — with the voting power to change the world, even if there’s no robber-baron motivation behind it. Maybe the next letter Fink writes on how to deal with growing social and governance pressures should be addressed to himself.To contact the author of this story: Lionel Laurent at firstname.lastname@example.orgTo contact the editor responsible for this story: Melissa Pozsgay at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Lionel Laurent is a Bloomberg Opinion columnist covering Brussels. He previously worked at Reuters and Forbes.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Apache saw its stock surge 27% in a single day earlier this week, and the secret behind this massive stock increase may well transform the way companies report on new oil discoveries
EIA's Weekly Petroleum Status Report revealed that crude inventories rose by 1.2 million barrels, compared to the 3.7 million barrels decrease that energy analysts had expected.
Shares of newly-listed Saudi Arabian Oil Co., or Saudi Aramco, have suffered on fears of all-out war between the United States and Iran, but there are unique features that should prevent an outright selloff. That's according to IPO Edge Editor-in-Chief John Jannarone, who spoke to Cheddar TV in an interview available here. Jannarone explained that […]
The oil and gas industry had a rough 2019, but this year is already looking more promising and some companies are poised to pay out some mouth-watering dividends
China National Petroleum Corp (CNPC), a top investor in Iraqi oil, has withdrawn about 20 employees from the West Qurna-1 field operated by U.S. major Exxon Mobil because of tensions in the region, a company source familiar with the matter said. CNPC made the move on Sunday after last week's killing of Iranian general Qassem Soleimani in a U.S. drone strike in Iraq, the Beijing-based source said, adding that the state firm has kept staff in place at two other fields. Tehran retaliated with missile attacks on U.S.-led forces in Iraq on Wednesday, stoking fears of a wider war.