Posts under ‘Chevron’

Chevron Vs. Shell: Chevron Wins By A Landslide

Bill Zettler: Oct 20, 2020

• Over the last 5 years, Chevron has consistently outperformed Shell.
• On financial metrics, Chevron looks much better than Shell.
• Shell’s share count goes up, Chevron’s goes down.
• Chevron’s dividend continues to go up while Shell cuts its dividend.

Shell’s zero-emission goals will limit profit potential.

According to Seeking Alpha (see here), Chevron (CVX) has replaced Exxon (XOM) as the largest oil company by MV (Market Value). In many ways, this is more a race to the bottom than a race to the top with CVX falling 39% YTD while XOM is falling 52%.

Another oil company in the doldrums is Shell (RDS.A) (RDS.B) whose price has fallen by 56%.

I have recently compared Exxon to Chevron “Exxon Vs. Chevron: Exxon Wins By A Nose” and Exxon to Shell “Exxon Vs. Shell: Exxon Wins By A Dividend.” read more

Investing in oil: I wonder if a BP-Shell merger could be a possibility?

By Julian Lee | Bloomberg: Oct. 11, 2020 at 1:54 p.m. GMT+1

Covid-19 may do for Big Oil what the Chicxulub asteroid did for the dinosaurs when it struck Earth 66 million years ago.

BP Plc plans to cut 10,000 jobs, equivalent to 14% of its workforce; Shell will shed 9,000 workers, or 11%; and Chevron will reduce its payroll by 6,000, a 13% reduction. 

Much like the “terrible lizards,” Big Oil was already in decline before the novel coronavirus hit. The world in which they thrived is changing around them and they face multiple threats to their future health. But the outbreak’s impact has accelerated the process. read more

Shell Plans to Cut Thousands of Jobs Amid Shift to Carbon Neutrality: What Investors Need to Know

Shell’s job cuts are just the latest unsettling news for Wall Street’s least-loved oil major (shares of Shell are down more than any other integrated oil and gas company so far this year).

BY Daniel Foelber:(TMFpalomino2) Oct 10, 2020 at 7:54AM

The case for why the job cuts are the right decision for investors.

To say it’s been an off-year for big oil would be an understatement. Shockwaves of volatility and lower energy demand have rippled through global markets. An added threat is the increasing role of renewables in the energy mix as wind and solar companies continue to gain market share — and oil companies lose it. read more

Bloomberg: Fossil Fuel Firms Not Doing Enough on Emissions, Funds Say

Laura Hurst: Wed., October 7, 2020, 8:55 a.m. GMT+1

(Bloomberg) — None of Europe’s largest oil, gas and coal companies are on track to limit global warming to within 2 degrees Celsius, according to a report by money managers overseeing more than $22 trillion.

Energy and mining companies have been under increasing pressure, from both environmental groups and their own investors, to demonstrate how their business models align with the Paris climate agreement and to show they’re taking action to curb their emissions. read more

Op-ed: A $100 billion Big Oil divestiture plan is coming

• The largest oil and gas companies, including ExxonMobil, Royal Dutch Shell, Chevron and BP, are projected to sell a combined $100 billion in oil and gas assets around the world as they focus on top-performing regions, particularly the U.S. shale, according to a new analysis from consulting firm Rystad Energy.
• Climate change and renewable energy investments are forces that these Big Oil firms need to respond to strategically, but their own carbon divestiture campaigns will be motivated by factors distinct from the push from climate activists. 

Energy transition has climbed towards the top of the agenda in the boardrooms of the world’s largest oil and gas companies. With electrification and renewable energy on the rise, Big Oil is striving to adapt to a transformation that could eventually render their business obsolete if they don’t latch on to the opportunities it brings. The result could be a massive sell-off of assets as the biggest petroleum players concentrate their oil and gas production to the countries where oil and gas is cheapest and easiest to produce. read more

Shell on Wednesday announced a major reorganization that will see thousands of jobs lost. The last major reorganization dates back to 2016 when Shell cut 10,000 jobs after the acquisition of BG Group.

English translation of an article published by the Dutch equivalent of the Financial Times.

Thousands of jobs at stake in Shell reorganization, not spared

Bert van Dijk

IN BRIEF

Shell on Wednesday announced a major reorganization that will see thousands of jobs lost. The restructuring is also reportedly hitting the top layers of management. The restructuring is needed to reduce costs as oil prices have fallen sharply and the outlook has deteriorated. Shell is also working on it. a new strategy. This will be revealed early next year. read more

Supreme Court takes up energy companies’ appeal over Baltimore climate suit

By Lawrence Hurley: OCTOBER 2, 2020

WASHINGTON (Reuters) – The U.S. Supreme Court on Friday agreed to hear an appeal by energy companies including BP PLC, Chevron Corp, Exxon Mobil Corp and Royal Dutch Shell PLC contesting a lawsuit by the city of Baltimore seeking damages for the impact of global climate change.

The justices will weigh whether the lawsuit must be heard in state court as the city would prefer or in federal court, which corporate defendants generally view as a more favorable venue. The suit targets 21 U.S. and foreign energy companies that extract, produce, distribute or sell fossil fuels. read more

Big Oil’s $110 billion asset sale target could prove big ask

By Ron Bousso: October 1, 2020

LONDON (Reuters) – Leading energy companies are hoping to sell dozens of oil and gas fields and refineries worth more than $110 billion to curb both their ballooning debt and their carbon footprints.

But with the outlook for oil and gas prices uncertain because of the coronavirus pandemic and a shift to cleaner energy, finding buyers and striking deals might prove tricky.

“This is not a very good time to sell assets,” Total CEO Patrick Pouyanne said while presenting the French giant’s strategy to switch to renewables on Wednesday. read more

Should you ditch energy giants as the age of oil ends? Or try to clean up as they go green?

By RACHEL RICKARD STRAUS, FINANCIAL MAIL ON SUNDAY

PUBLISHED: 21:50, 26 September 2020 | UPDATED: 12:30, 27 September 2020

There has been talk of the demise of oil and gas for decades. But you know that things are getting serious when even the boss of oil giant BP, Bernard Looney, warns that demand for oil may peak in the next few years and then decline.

The so-called energy transition from fossil fuels to renewables is gaining momentum. read more

Shell looking to sell stake in Philippines’ Malampaya gas project

By Reuters Staff: SEPTEMBER 24, 2020/ 11.02 AM

MANILA (Reuters) – Royal Dutch Shell PLC RDSa.L is looking to sell its 45% stake in the Malampaya gas-to-power project in the Philippines, a key power source for the country’s main island of Luzon, its local unit said on Thursday.

“As part of an ongoing portfolio rationalisation to simplify and increase the resilience of its business, Shell is exploring its options with a view to divest its interest” in Malampaya, a spokeswoman told Reuters. read more

‘Stranded Assets’ Risk Rising With Climate Action and $40 Oil

By Laura Hurst | Bloomberg:

September 18, 2020 at 7:55 a.m. GMT+1

What had seemed like an abstract debate about leaving oil, gas and coal in the ground to fight climate change has suddenly become real. Environmental activists have long fought for lower fossil-fuel production. Now, with the pandemic crippling economies and reducing energy use and prices, drillers and miners are coming to grips with projects that are no longer viable. Some companies are even abandoning investments, leaving deposits worth billions of dollars in the ground to languish as so-called “stranded assets.” While environmentalists applaud, fund managers, banks and regulators worry that project financing could sour and collateral become worthless. read more

Big Oil’s green makeover

Every so often, corporations confront questions of life or death.

IBM did it in the 1990s, when its hulking mainframe computers faced the challenge of next generation PCs. A new chief executive successfully shifted IBM to services and software. Netflix did it — three times. It first played the role of disrupter, offering movie DVDs by mail and then mastering the business of online streaming. Then it changed again, generating its own content.

Now, BP, one of the world’s largest oil and gas companies, is aiming to ride the waves of disruption instead of being crushed under them. read more

Delaware joins list of states and localities suing Big Oil

Defendants in the lawsuit include Exxon Mobil, Chevron, ConocoPhillips, BP, Royal Dutch Shell and the American Petroleum Institute.

By Randall Chase | AP: September 10, 2020

DOVER, Del. — Delaware has joined the list of state and local governments that have sued the petroleum industry in an attempt to hold oil producers accountable for costs related to climate change.

The attorney general’s office joined forces with a California law firm that has sued the industry on behalf of other state and local governments in filing a Superior Court complaint Thursday. read more

Big Oil just isn’t as big as it once was

ExxonMobil’s expulsion from the Dow Jones industrial average is just the latest sign that major oil companies aren’t as important to the economy as they used to be

A dozen years ago, ExxonMobil was the bluest of blue-chip companies. Raking in record-breaking profit, it spent every quarter of 2008 as the world’s most valuable publicly traded company.

Not anymore. The oil giant’s market value today is a third of what it was in 2008, when it was worth over $500 billion. That slide culminated last month with Exxon ending its 92-year run on the Dow Jones industrial average. read more

Big Oil’s patchy deals record casts shadow over green makeover

When Shell bought BG Group for $54 billion in 2016 in the midst of the price crash, Chief Executive Ben van Beurden made a compelling case to investors…: Speaking in July, Shell’s CEO stood by the deal. “The company did get stronger, but indeed the company was not able to withstand the onslaught of COVID if we wanted to adopt a prudent stance … I remain convinced it was the right move,” van Beurden told reporters. read more