Posted on 12/18/2014 7:07:14 AM PST by thackney
Exxon Mobil Corp., ConocoPhillips and Canada-based Suncor Energy Inc. The parcel is in the Flemish Pass offshore Newfoundland in northeast Canada. That's where Norway-based Statoil ASA (NYSE: STO) last year made a major oil discovery, its third in the Flemish Pass Basin.
The record-breaking bid comes as oil prices have fallen to their lowest levels in years, though production is still going strong, Houston Business Journal previously reported.
The news helped boost ConocoPhillips' stock on Dec. 16, when it reached $64.94 per share, up nearly 6 percent, before closing at $63.24, up 2.5 percent.
Similarly, Exxon's stock jumped to $89.14 per share, up nearly 3 percent, before closing at $86.41, down about 0.6 percent.
Irving, Texas-based Exxon and Houston-based ConocoPhillips — along with the Alaska Gasline Development Corp. and affiliates of TransCanada Corp. and BP PLC — also are collaborating on a proposed liquefied natural gas export project in Alaska.
Exxon, TransCanada, BP and Statoil all have a significant presence in Houston.bid $559 million Canadian dollars for exploration rights in Canada, according to local regulators.
That's the largest bid on a parcel in the history of the Newfoundland-Labrador offshore area, according to the Canada-Newfoundland and Labrador Offshore Petroleum Board. It's equal to approximately $480.86 million in U.S. dollars.
ExxonMobil Canada Ltd. has a 40 percent stake in the bid, and ConocoPhillips Canada Resources Corp. and Suncor have 30 percent each.
Canada
So Big Oil isn’t going out of business any time soon? They’re actually taking a long term view of the business? Imagine that!!!
CEO says Exxon Mobil can be “successful” with $40 oil
http://www.freerepublic.com/focus/f-news/3233422/posts
December 3, 2014
Note, I read “sucessful” to mean survive. That won’t be the case for all the little ones that took on too much debt. They will be selling assets to companies like ExxonMobil. My past business with them showed risk management may be a higher concern than production.
Also keep in mind, ExxonMobil refines more than twice the amount of oil they produce. They buy more oil than they produce themselves.
How much of XOM is chemical’s, plastics, etc? Low oil would be a boon to such biz, I would think.
Several years ago, I quoted a job in the Baton Rouge Polyolefins Plant. Lots of infrastructure there.
I recall when some of the first exploration and drilling took place off Canada’s east coast. One of the companies had boats pushing icebergs out of the way of the rigs...
The Hibernia platform is uniquely designed to resist the impact of sea ice and icebergs. It can withstand the impact of a one-million tonne iceberg with no damage. It can withstand contact with a six million tonne iceberg, estimated to be the largest that can drift into that water depth and only expected once in 10,000 years, with repairable damage.
I saw a pix of this project at an oil show in Calgary some years ago.
After 6 years of record high gas and energy prices, I am glad the industry has fought back against Luddite neanderthals, bitter liberal clingers, who have tried to stop energy production and make it affordable to Americans.
FINANCIAL HIGHLIGHTS
Earnings After Income Taxes (millions of dollars)
Upstream 26,841
Downstream 3,449
Chemical 3,828
Canada Ping!
my newfie nephew-in-law just got a job on a rig. God bless them!
Good for him!
Couple months ago....I fished right near this rig in the GOM...
http://www.bing.com/images/search?q=Perdido+Rig&qs=n&form=QBIR&pq=perdido+rig&sc=8-11&sp=-1&sk=#view=detail&id=DC74DD8B721FBABB68A77093E4E14F7E806E64A1&selectedIndex=0
http://fuelfix.com/blog/2014/12/18/exxon-mobil-shows-why-u-s-oil-output-rises-as-prices-plunge/
Existing wells remain profitable even as benchmark crude futures hover near the $55-a-barrel mark because operating costs going forward are usually $25 or less, Tom Petrie, chairman of Petrie Partners Inc., said in a Dec. 15 interview on the Bloomberg Surveillance television program.
That’s why prices that have tumbled 47 percent from this year’s peak on June 20 haven’t prompted any American oil producers to shut down wells, said Petrie, a U.S. Military Academy at West Point graduate who has advised Saudi Arabia, Alaska and the U.S. government on energy issues.
The average cost to operate an existing well in most parts of the U.S. “is about $20 a barrel,” Petrie said. “It might be $5 higher or it might be $5 lower, that’s the out-of-pocket costs that we’re talking about. Until you dip into that and start losing money on a cash basis day in, day out, you don’t think about shutting in” wells.
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Big difference over not drilling new wells versus keeping the existing ones flowing.
Cool, one less Newf that’ll have to go to god-forsaken Fort MacMurray, Alberta, to make a living. Alberta has its good and bad points, but it’s certainly an expensive place to live these days, and Fort Mac in the winter definitely makes Newfoundland winters look pretty good by comparison.
I spent a year or so in Edmonton one week last winter, lol.
he is a neuf so he’s home. edmonton sounds like i would like it if they get snow and have hills. I keep telling my sister to go to canada but she’s a caps fan. Says it all, eh? (hubby could get a really good job)
Imagine that!!!
XOM and its predecessors back to Standard Oil have not reduced a dividend in 100 years, much less go out of business.
That includes a depression, a great recession, 5 oil busts, and a meddlesome federal government.
Two World Wars, Spindletop, East Texas “Black Giant,” North Sea, North Slope, Texas Railroad Commission, and Jimmy Carter.
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