The market is "nervous" about oil drilling in the Arctic, a leading Shell (RDS.A) shareholder...

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wiesje Comments (1017)
 
I agree, i feel Shell is over-stretching in all fields, they are so enormously focused on growth in turnover rather than growth in profits, it's starting to be alarming. Shell is according to Dutch papers information now the world's largest company in turn-over, bigger than Exxon and Apple, for what they gain in turn-over they are lagging in profitability. they have already invested 5 billion in the Artic program and nothing as yet to see for that, on the contrary some of the Board members must be trembling just at the thought that a BP kind of disaster were to happen. i have been a long term investor in Shell, but i reduced big time, i am still holding a bit of stock, but i am getting out. shame i like the company but i fear their present policy of expansion.
6 Jan, 06:09 AM Reply Like

rjj1960 Comments (1033)
 
And they pay a huge dividend as well. This is a good company but every week it seems like they are spending another 3-4 billion on something. Growing reserves are important but at what price. SU has numerous projects that could grow reserves but the profitability wasn't right, so the CEO pushed them out for the benefit of the balance sheet and shareholder equity. In my opinion, Shell would be better served buying smaller energy companies instead of drilling in the arctic. Those projects cost a ton with high risk to boot.
6 Jan, 08:02 AM Reply Like

wiesje Comments (1017)
 
that is a good point, i must admit i was slightly shocked when i learned that Shell was actually borrowing the last few years just to keep being able to continue to afford these high dividends payments, all that because of their extremely aggressive expansion plans, again that is obviously part of their company business plan, but they could just pause for a few years, but they don't, they have an extremely ambitious CEO and again that might not be bad, but it does change the risk/reward picture on Shell, at least for me.
6 Jan, 08:40 AM Reply Like

Bigfloridafish Comments (48)
 
I agree that Shell would be better of doing acquisitions I would think it would be safer. I stay away from them, I just don't like the the big oil just not my cup of tea.
6 Jan, 10:20 AM Reply Like

Venerability Comments (3051)
 
There has also been some very disturbing seismic activity in the area the past three days.

My take is that any setback on arctic drilling worldwide is Bullish As All Get-Out news for the situation in the South China Sea, especially those parts of it, like its far western portion, where some Grand Drilling Coalitions are forming.

ASEAN is now under new leadership - Vietnam - and Vietnam seriously wants to make Nice, Nice with many of the warring parties. So does Indonesia. So, increasingly, does Thailand and even Taiwan.

If Japan is preoccupied with various other problems - very soon - it may well tone down both its rhetoric and its actions. The US should not interfere at all, IMO - though some clearly disagree with me.

Here is one story that agrees strongly with my take on ASEAN and the South China Sea:

http://bit.ly/138RvEi
6 Jan, 01:00 PM Reply Like

wiesje Comments (1017)
 
i think i understand what you are saying ( also the link) but why would that be Bullish, if Artic drilling were to come to a halt. World wide there is drilling everywhere, if anything longer term we are moving to an oversupply in Oil, on top of that alternative energy is starting it's second life and this time without all the crazy hype we seen the first time around. there is so many unexplored Gas Fields in the world from Algeria to the Netherlands, from the North Sea to South America on top of that half of the Sahara is going to be planted with solar shields and WB is looking for the same in the deserts in Nevada. I tell you if there is one large Oil company one should invest into it would be Total, but then you have to deal with the present French Government and that is holding me back, they were ahead of WB investing at really the very lows into Solar Industry or buy shares in the Danish company Vestas, but to invest into Oil exploration is not Bullish to me, what we are witnessing now is the last bull-run in Oil prices, Oil is for the long term a commodity on the way down, not up.
6 Jan, 01:30 PM Reply Like

Venerability Comments (3051)
 
You are spouting Propaganda, pure and simple.

That is your prerogative, but realize that it is dead wrong.
6 Jan, 02:23 PM Reply Like

wiesje Comments (1017)
 
your reaction to my comment is uncalled for, i am not spouting any kind of propaganda and just because i do not agree with your Bullish view does not make me dead wrong, i might be wrong but so might you, time will tell and for a highly respected writer as your self
" noblesse oblige, Madame "
6 Jan, 05:55 PM Reply Like

wiesje Comments (1017)
 
Dear Madame, it is you who are using this forum to express your Political ( Republican) opinion to justify the Artic drilling and express your Bullish sentiment on Oil prices if that were to be abandoned and backing that with possible disputes and unrest in the South China Sea region and it is shameful that you as a distinguished writer are patronizing me to ventilate your opinion. best regards.
7 Jan, 01:23 AM Reply Like

wiesje Comments (1017)
 
you sound offended, that is definitely not my intention, so i don't think i did, but if so i apologize. would you still like to enlighten me as to your view point why i am dead wrong ? i feel Oil will move to a long term oversupply, you seem to disagree. as far as me spouting propaganda, why would i ? i am just expressing a view. i am not into Politics, maybe my English comes across poorly, again if so i do
apologize.

6 Jan, 02:38 PM Reply Like

Bigfloridafish Comments (48)
 
Wiesje, I agree the key word is long term. There is no doubt that with the technology that is coming on with oil extraction and better solar and wind tech and the ever increasing huge supply of natual gas that oil will go to over supply. If we go to another recession which we always do thoughout history you will see a collapse oil back to the 30 dollar range.
6 Jan, 02:49 PM Reply Like

john001 Comments (239)
 
Saudi Arabia, the swing producer in OPEC requires about $80/barrel as a break-even price to sustain their autocratic nation. Other middle East producers require even higher prices. Nigeria requires about $115.
The point is that if OPEC can't manage to hold oil prices much above about $70/barrel investors (and the world for that matter) will have a lot more to worry about then where RDS invests.
6 Jan, 07:15 PM Reply Like

wiesje Comments (1017)
 
very interesting, i would have thought it was at least 25% lower - that is quite frightening actually if one then considers that the price of Natural Gas is virtually at all time lows, that Gap is enormous. what would to your knowledge than be the costs of deep-sea drilling ?
7 Jan, 12:10 AM Reply Like

wiesje Comments (1017)
 
John if i may, with your experience and in your view is Total as such making the right decision to abstain from deep-sea drilling and now focus a lot of their attention to the solar industry , i always wondered why they were getting in to that industry , whereas BP took exactly the opposite position and abandoned that industry ?
7 Jan, 12:17 AM Reply Like

john001 Comments (239)
 
I believe investing in solar has more to do with green washing and CO2 credits, then in a sound economic model. Perhaps Total is just seducing fido with their solar investment because they are loosing focus on their core business. Time will tell.
7 Jan, 03:41 PM Reply Like

The Bearish Bull Comment (1)
 

They should have bought BP when they could.
7 Jan, 02:33 AM Reply Like