SaraRacano
17 Oct 2018
Nice dollops Also you have potential (huge) litigation if fracking is proven to be carcinogenic. I know if I lived in Lancashire, I would be damn right protesting against the frackers. Potentially house prices could crash & have little to no value if no insurer will give buildings insurance after these earthquakes cause structural damage. Massive lorries going down country lanes, bad smells. Jesus! These frackers have been known to use dynamite. You just have to type to fracking into youtube, & you´ll see locals not taking well to these things? There are huge questions about fracking (it´s not conventional) the costs are far higher, with incredible toxic waste. Of course it doesn´t mean it´s not profitable. Tesco builds a hypermarket, it probably takes 10 years to turn the thing into profit. But it´s not like an oil rig, where a massive ship comes & takes the crude to refineries. You need costly infrastructure in place But what happens when rates rise? The Fed has really kept them low which has allowed the fracking industry to prosper.
J_Westlock
17 Oct 2018
Nice dollops SaraRacano: Yes! Again you need to go back to central bank policies (FED). Many if not all these frackers have borrowed heavily. As far as I am aware fracking has never been a profitable enterprise. Yes, I’m sure you are right that many would have borrowed heavily. Borrowing doesn’t mean that they aren’t all profitable though. Oil has been well over $50 for a year now and that is well enough for most to be profitable. I do agree though that most outfits in the US are naturally picking the low hanging fruit first… and there’s not an unlimited supply of such sites… so say a year from now you will find that their costs may start going up and unless the oil price maintains a price well above say $50 then some companies will cease operating.
shareordie
17 Oct 2018
Asset Sale $1.9bn [[link] Royal Dutch Shell has agreed to sell its Danish upstream business to Norwegian Energy in a deal valuing the assets at $1.9 billion, as part of its wider divestment strategy, the company said on Wednesday. …]([link] Royal Dutch Shell has agreed to sell its Danish upstream business to Norwegian Energy in a deal valuing the assets at $1.9 billion, as part of its wider divestment strategy, the company said on Wednesday. …)
SaraRacano
15 Oct 2018
Nice dollops Are you suggesting Hardcore that the modern fracking of the last 20 years hasn’t made money in the US? Yes! Again you need to go back to central bank policies (FED). Many if not all these frackers have borrowed heavily. As far as I am aware fracking has never been a profitable enterprise. LLOY - Are you sure? What happens to the SP when the buy-back ends? Are there any solvent banks in the UK. I agree that Brexit aside, it looks massively undervalued on its current trading performance. You come out with all these statements without any substance. Britexit! Yeah! Yeah! It´s Britexit, again & again I will ignore the UK fundamentals.
frog_in_a_tree
15 Oct 2018
Nice dollops Agree Dregor. “Never sell Shell†is true and the same goes for BP. The drop in their share prices was unwelcome but the right decision was to hold. As for LLOY, I agree that Brexit aside, it looks massively undervalued on its current trading performance. With the end of PPI in sight and an expected divi hike to 3.3 p/share there should be impetus for a rise. Cheers, Frog in a tree
dregor
15 Oct 2018
Nice dollops Likewise Frog. At least the divis are there to provide some cheer amidst the market turmoil!
frog_in_a_tree
15 Oct 2018
Nice dollops I am well aware that fracking is comparatively expensive. BP and Shell draw their oil from wells which produce oil more cheaply than fracking. The demand for oil will vary with the world economy and that is part of the risk. For me, the demand for oil is not about to drop off a cliff anytimesoon. From memory US fracked oil becomes unprofitable below 50$ per barrel and so I expect that it is being produced profitably at the moment. It is a small proportion of total production and so the big producers through OPEC can influence the oil price by controlling supply. As a long term investor I continued investing through the oil price crash and certainly am not losing any sleep. I ride the waves. Cheers, Frog in a tree
J_Westlock
15 Oct 2018
Nice dollops SaraRacano: Fracking, has fracking ever made a profit before? Huge costs, also getting fracking oil to market is not that simple as the U.S. firms have found out, simply because the infrastructure just is not there. Are you suggesting Hardcore that the modern fracking of the last 20 years hasn’t made money in the US? If you are… I know first hand that is untrue. It may be the case for some outfits but certainly not most.
SaraRacano
15 Oct 2018
Nice dollops Again Frog, first you need to do historical probability ratios of stocks that yield comparatively high against the rest of the market, historical averages, it can be just random. The market (if you believe the price sensitive nature) is telling you that Shell/BP carry with them high risks. Fracking, has fracking ever made a profit before? Huge costs, also getting fracking oil to market is not that simple as the U.S. firms have found out, simply because the infrastructure just is not there. Remember in part what caused the great recession of 2008, an extremely high oil price. The world economy just couldn´t handle it. Thus can the world really support prices that would make fracking profitable?
J_Westlock
14 Oct 2018
Nice dollops Mmmm… and are we really trying to get to grips with Climate Change? It seems that it isn’t all on the big Oilers to do something about it: BBC News Is meat too hot for politicians? Climate scientists say we must eat less meat but the UK government will not sell that message. Maybe cut out the meat eh?
frog_in_a_tree
16 Sep 2018
Nice dollops Looking forward to some nice dollops of divi money next week on these two. For all the worries about deisel cars, climate change, EVs and fracking and over and under supply these two will keep delivering the goodies for many years while the world gets to grips with climate change.
misia_newsome
23 Aug 2018
O/T - LK Hyman - Alive and Well Such a shame that LK is no longer to be found on this board. I really miss him and all your banter with him and RAFT. It helped me a lot when I started share trading when my mum died 9 years ago, I have been following since then and it gave me a lot of confidence. I will continue to look out for him. He should start his own website or go on facebook I am sure there would be thousands of readers! I don’t think I will stay on ii much longer the boards are almost impossible to navigate and all the best posters seem to have gone somewhere else.
J_Westlock
01 Aug 2018
CEO Comment on Q2 Results [link]
johnlawsonmoorlandminerals2
27 Jul 2018
19bn Buyback Lawson 76, H2 thanks for that clear update, having had a substantial holding in RDS for many years, I do not lose sleep over it, although I view these share buy backs, with a lot of scepticism!
Bowman
27 Jul 2018
O/T - LK Hyman - Alive and Well In_the_dark_yet_again: no doubt Mr Hammond will, at some point, start coming after the ISAs and it will have all been pointless. I do not worry so much about Hammond, it is McDonnell that we should all worry about. John McDonnell has admitted he wants to “overthrow capitalism†and replace it with a “socialist society†from his position on Labour’s front bench. Related article It will give the Remainers something different to belly-ache about and something extra to blame on the Conservatives (rather than themselves!).
