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Deep waters obscure case for oil investment

Financial Times

By Neil Hume

Published: June 25 2010 18:47 | Last updated: June 25 2010 18:47

Extracts:

At the very least investors should now be more wary of investing in a sector where a company the size of BP can see its share price halve in a little over two months and come under such political pressure that it feels the need to halt dividend payments and set up a $20bn compensation fund.

Shell has a more diversified portfolio and most of its important developments – the Pearl gas to liquids plant in Qatar and Canadian oil sands – do not involve deepwater drilling. Even so, it still has material operations in the Gulf of Mexico.

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Copyright The Financial Times Limited 2010.

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