B07 Oil and Gas Extraction

Oil prices to stay low for years, JPMorgan warns

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Original article by Matt Chambers
The Australian – Page: 17 : 21-Jan-15

JP Morgan has lowered its 2014-15 earnings forecast for Australian-listed resources group BHP Billiton to $US8.3bn ($A10.1bn), or $US1.2bn less than the consensus. A major factor is that JP Morgan also expects the global crude oil price to fall further, and not recover for two years. Brent crude is now tipped to trade at $US49 a barrel in 2015 and $US57 in 2016, compared with previous estimates of $US82 and $US88 respectively. However the Global Energy Fund of Investec Asset Management has taken advantage of the bargain buying opportunity to acquire stock in energy company Santos

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SANTOS LIMITED – ASX STO, WOODSIDE PETROLEUM LIMITED – ASX WPL, BEACH ENERGY LIMITED – ASX BPT, OIL SEARCH LIMITED – ASX OSH, JP MORGAN AUSTRALIA LIMITED, INVESTEC ASSET MANAGEMENT LIMITED, INVESTEC GLOBAL ENERGY FUND, LUKOIL-NEFTEGAZSTROY, CNOOC LIMITED, CHINA NATIONAL OFFSHORE OIL CORPORATION, PETROBRAS, PETROLEO BRASILEIRO SA

Woodside flags cuts, write-downs

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 13 & 20 : 16-Jan-15

Woodside Petroleum has reported total sales of $US1.76bn for the final three months of 2014, while sales for the full year were 22.5 per cent higher at $US7.08bn. The oil and gas producer has warned of the potential for asset write-downs of between $US250m and $US400m as a result of the decline in the crude oil price. Woodside also expects to scale back its capital expenditure in 2015. Its shares closed 1.35 per cent lower at $A35.06 on 15 January

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, UBS HOLDINGS PTY LTD, MITSUI AND COMPANY LIMITED, MITSUBISHI CORPORATION, PLATYPUS ASSET MANAGEMENT PTY LTD, PAVILION ENERGY PTE LTD, TEMASEK HOLDINGS (PTE) LTD, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES, JP MORGAN AUSTRALIA LIMITED, APACHE CORPORATION

Petrol plunge could hit 85c

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Original article by Andrew Tillett
The West Australian – Page: 1 & 4 : 14-Jan-15

Data from FuelWatch shows that some service stations in Perth are selling unleaded petrol for $A1.06 per litre. The crude oil price has fallen below $US50 a barrel, and Stephen Moir of the Motor Trade Association of Western Australia says it could potentially fall to around $US30 a barrel. He adds that at that price, Perth motorists could be paying between $A0.85 and $A0.90 per litre for petrol

CORPORATES
FUELWATCH PTY LTD, MOTOR TRADE ASSOCIATION OF WESTERN AUSTRALIA INCORPORATED, COMMONWEALTH SECURITIES LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, ROYAL AUTOMOBILE CLUB OF WESTERN AUSTRALIA (INCORPORATED), PUMA ENERGY (AUSTRALIA) HOLDINGS PTY LTD

Oil plunge will stir M&A when price settles

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 11 & 16 : 12-Jan-15

Santos, Senex Energy and Horizon Energy are among the Australian companies whose share prices have fallen sharply in response to the downturn in the crude oil price. Experts say lower valuations in the oil and gas sector is likely to prompt mergers and acquisitions activity, although some suggest that potential suitors will bide their time as the oil price and shares may fall further. The price of Brent oil closed at $US50.11 per barrel on 9 January 2015

CORPORATES
SANTOS LIMITED – ASX STO, SENEX ENERGY LIMITED – ASX SXY, HORIZON OIL LIMITED – ASX HZN, BEACH ENERGY LIMITED – ASX BPT, HERBERT SMITH FREEHILLS PTY LTD, TOTAL SA, INPEX CORPORATION, ROC OIL COMPANY LIMITED – ASX ROC, FOSUN INTERNATIONAL LIMITED, DRILLSEARCH ENERGY LIMITED – ASX DLS, AMBASSADOR OIL AND GAS LIMITED – ASX AQO, MAGNUM HUNTER RESOURCES CORPORATION, NIDO PETROLEUM LIMITED – ASX NDO, BANGCHAK PETROLEUM PCL, METGASCO LIMITED – ASX MEL, ELK PETROLEUM LIMITED – ASX ELK, BP PLC, BP AMOCO PLC, EXXONMOBIL CORPORATION, CHEVRON CORPORATION, TEXACO INCORPORATED, BERNSTEIN AND ASSOCIATES, BRIGHTOIL PETROLEUM, HARBOUR ENERGY LIMITED, TEMASEK HOLDINGS (PTE) LTD, PAVILION ENERGY PTE LTD

Nation to burn past coal quota

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Original article by Peter Hannam
The Sydney Morning Herald – Page: 12 : 9-Jan-15

A study by University College London assesses the limits on carbon emissions needed to ward off dangerous climate change. The research finds that for increases in worldwide temperatures to remain within two degrees Celsius of pre-industrial levels, 82 per cent of global coal and 50 per cent of gas reserves must stay unmined. Julien Vincent of Market Forces says the study suggests that Australia will soon surpass the level of coal output with which a stable climate can cope, it it has not already

CORPORATES
UNIVERSITY COLLEGE LONDON, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, FRIENDS OF THE EARTH, ADANI ENTERPRISES LIMITED, AUSTRALIAN GREENS, MINERAL COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF THE ENVIRONMENT, FAIRFAX MEDIA LIMITED – ASX FXJ, INTERNATIONAL ENERGY AGENCY

AMP strategist says crude likely to hit $US40 before any recovery

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Original article by Matt Chambers
The Australian – Page: 22 : 9-Jan-15

The crude oil price is currently trading at about $US50 a barrel, but AMP Capital’s Shane Oliver says production is unlikely to be reduced until it falls to around $US40. He adds that historical analysis shows that any resulting rebound in the oil price is likely to occur gradually. Meanwhile, Oliver says investors should capitalise on any downturn in share prices as a result of the falling oil price

CORPORATES
AMP CAPITAL INVESTORS LIMITED, AMP LIMITED – ASX AMP, SANTOS LIMITED – ASX STO, OIL SEARCH LIMITED – ASX OSH, WOODSIDE PETROLEUM LIMITED – ASX WPL, KAROON GAS AUSTRALIA LIMITED – ASX KAR, ORIGIN ENERGY LIMITED – ASX ORG, AWE LIMITED – ASX AWE, BEACH ENERGY LIMITED – ASX BPT, CITIGROUP PTY LTD, SENEX ENERGY LIMITED – ASX SXY

Price crash may see BHP pull rigs

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Original article by Amanda Saunders
The Australian Financial Review – Page: 11 & 20 : 8-Jan-15

West Texas Intermediate crude oil was trading at $US48 per barrel on 7 January 2015. Paul Young of Deutsche Bank suggests that BHP Billiton could potentially reduce the number of drilling rigs it operates in the Permian Basin in the US until there is a sustained rebound in the oil price. Young adds that BHP could delay adding additional drilling rigs until the oil price rises to about $US80/barrel, which may not occur until around 2018

CORPORATES
BHP BILLITON LIMITED – ASX BHP, DEUTSCHE BANK AG

Shale oil remains the focus for BHP

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Original article by Matt Chambers
The Australian – Page: 16 : 6-Jan-15

Tim Cutt, CEO of the oil and gas division at Australian-listed resources group BHP Billiton, has reaffirmed plans to divest non-core operations and maintain an emphasis on shale assets in the US. The latter require capital investment worth $US4bn ($A4.95bn) a year, compared with just $US1.5bn for conventional energy projects, and had been purchased for $US20bn in 2011. The strategy is being followed despite the recent rapid decline in the global crude oil price

CORPORATES
BHP BILLITON LIMITED – ASX BHP, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES

Timing off, but BHP split still on: investors

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Original article by Peter Ker
The Australian Financial Review – Page: 16 : 18-Dec-14

BHP Billiton’s Australian-listed shares have fallen by more than 30 per cent since the group revealed plans to spin off its non-core assets. The stock has been hit by the downturn in the prices of commodities on which BHP will focus if the demerger proceeds. Michelle Lopez of Aberdeen Asset Management expects the demerger to go ahead, adding that it would most likely require a sustained decline in commodity prices for the group to abandon the demerger

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SOUTH32 LIMITED, ABERDEEN ASSET MANAGEMENT LIMITED, NIKKO ASSET MANAGEMENT GROUP, UBS HOLDINGS PTY LTD

Woodside’s $4.6bn punt on LNG assets

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Original article by Paul Garvey
The Australian – Page: 26 : 17-Dec-14

Peter Coleman, CEO of Australian-listed energy group Woodside Petroleum, has announced the acquisition for $US3.75bn ($A4.6bn) combined of holdings in two LNG developments from US-based Apache Energy. Woodside will gain a 13% stake in the Wheatstone project offshore Western Australia (WA) and one of 50% in the Kitimat tenements in Canada. The deal will please investors who had been concerned at a lack of new growth assets for the company. At the same time it has, along with allies Royal Dutch Shell and BP, again postponed the roll-out of floating LNG technology at their Browse field off WA

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, APACHE ENERGY LIMITED, ROYAL DUTCH SHELL PLC, BP PLC, CHEVRON CORPORATION