Tag Archives: Anadarko Petroleum

News, Politics, Government

Anadarko, Unshaken By Its Deepwater Horizon Legacy, Builds Big In The Gulf Of Mexico

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By Christopher Helman, Forbes Staff

On Tuesday a U.S. district judge in Houston found that Anadarko Petroleum must face up to a lawsuit by investors who allege that the oil and gas giant misled them in the wake of BP’s Deepwater Horizon explosion. Anadarko held a $25 stake in the ill-fated Macondo well. Yet company officials said at the time that Anadarko neither had a hand in designing the well nor was in overseeing the drilling operation and so couldn’t be held responsible for it. Investors seemed placated that any financial hit would be minor. And yet months later Anadarko settled its share of cleanup costs with BP for $4 billion — not an immaterial amount. (More on the new ruling from Bloomberg, here.) …read more

Source: FULL ARTICLE at Forbes Latest

Business, Finance, Occupation & Industry

Why the Rest of the World Can't Keep Up With America's Energy Renaissance

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By Tyler Crowe, The Motley Fool

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The U.S. energy renaissance has been one of the bright spots in American industry, and its success has also brought an unforeseen boom in manufacturing. Much of the recent boom has been from unconventional sources such as shale, a resource that wasn’t even mentioned in the Energy Information Administration‘s Energy Outlook Report 10 years ago. Today, it accounts for more than 30% of total natural gas production in the United States.

We aren’t the only ones with reserves, but we harnessed these unconventional sources effectively and economically, and we did it faster than any other country. According to a panel of experts at the 2013 Energy Forward Conference, only China will be able to effectively match the U.S. in terms of shale gas production for 10 to 15 years.

Let’s take a look at a few reasons we won the shale gas race. 

Regulations and governmental structure
Unlike many other countries around the world, the U.S. has a robust system that protects individual property and patents. According to a Wells Fargo panelist at the 2013 Energy Forward Conference, the U.S. is one of the few countries in the world where an individual landowner has mineral rights for anything found on his or her property, and contract rights can be structured for extraction from that individual landowner.

This negotiation process with multiple stakeholders fosters a competitive environment for drilling companies to be as efficient as possible and create the highest rate of return. In the case of most other countries, a drilling company will need to negotiate with a regulatory body for a petroleum contract that will regulate the amount of costs it can recover from drilling operations, and all land negotiations will need to go through that regulatory body, according to Robert Beck of Anadarko Petroleum.

Another reason that shale gas development has not as quickly developed is a lack of clear patent protection laws, especially in China. While both Schlumberger and Haliburton have expressed an interest in developing Chinese shale gas, a lack of intellectual-property protection has them hesitant to going all in. Rather, both companies have taken minority interests in smaller, Chinese-based companies and plan to take orders of drilling fluids and equipment. These kinds of moves are not necessary in the U.S. and have allowed companies to protect and profit from their expertise.

Costs
Much of the technology that sparked gas boom got started years ago, but it wasn’t until around 2009 when it really took off as a viable source of production.

Source: U.S. Energy Information Administration.

At that time, natural gas prices were high, and the cost for using new drilling technology was still economically feasible. Even though natural gas prices fell for the next couple of years, gas companies got very good at finding high-probability sites for wells and reducing well completion costs. From 2006 to 2012, gas specialist Ultra Petroleum reduced drilling costs by 30%. Today, the average shale gas well costs somewhere in the range of $3 million to $4 million. 

According

From: http://www.dailyfinance.com/2013/04/14/why-the-rest-of-the-world-cant-keep-up-with-americ/

Business, Finance, Occupation & Industry

Peace in the South China Sea Is Vital for the Oil and Gas Industry

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By Matt DiLallo, The Motley Fool

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Regional geopolitical disputes are increasingly becoming international economic issues thanks to our global economy. At first glance, rising tensions in the South China Sea would appear to be no more than a fishing dispute. However, some see this situation as one surrounding supposed gas and oil reserves under the sea.

That, however, is in conflict with some reports that state that there are negligible reserves to be found in the disputed areas. Even if the potential energy reserves are what’s behind the current squabble, it probably won’t be something that’s solved anytime soon. That could mean future flare-ups that affect the energy industry beyond the resources that may or may not be under the sea. So as China, Vietnam, and others debate the territorial rights of two certain islands in the region, let’s look at how future incidents might have the potential to affect the global energy trade.

According to the Energy Information Administration, 15 million barrels of oil per day, or a third of all seaborne oil, traveled through this region in 2011. That puts it nearly on par with the higher-profile Strait of Hormuz, which is responsible for more than 17 million barrels per day. If this situation here were to boil over, it could have a significant impact on the flow of oil through the sea, given China‘s military might. 

As important as the region is for the oil trade, it’s also responsible for more than half of the global liquefied natural gas, or LNG, trade. With growing demand for natural gas in Asia, this dispute could become a big problem for LNG exports from places such as Africa and australia, while putting exports from North America at a competitive advantage. Take a look at the following map, and I’ll explain what I mean.

Source: Energy Information Administration.

In 2011, Africa shipped 0.3 trillion cubic feet, or Tcf, per day, while while australia shipped 0.9 Tcf. However, those numbers are probably headed much higher in the future. Energy companies are spending billions to develop new LNG export facilities designed to tap these highly profitable Asian markets.

For example, Anadarko Petroleum recently joined forces with Eni on a major LNG export facility in Mozambique. The project is designed to support Anadarko’s major natural gas find off the coast. The partners expect the project to begin exporting gas by 2018. While that’s a long way off, geopolitical disputes tend to be recurring themes.

Moving over to australia, ConocoPhillips is moving forward on a major LNG export facility. The company expects to begin exporting in mid-2015. Chevron is working to complete its own LNG projects with its Gorgon project, a joint venture with ExxonMobil and Royal Dutch Shell expected to come online in early 2015. Overall, a lot of gas will be flowing from Australia to Asia in the coming decades. 

If China were to use its military might to shut down shipping lanes, it could conceivably crimp the

From: http://www.dailyfinance.com/2013/04/14/peace-in-the-south-china-sea-is-vital-for-the-oil/

Business, Finance, Occupation & Industry

Hedge Funds Like This Energy Company

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By Taylor Muckerman and Joel South, The Motley Fool

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Investors that might be interested in the purchasing habits of the so-called professionals can glean some insight by examining 13-F filings. Now, while 13-Fs typically are released a bit later than the activities they record, they can offer a nice starting point for research.

During the fourth quarter of 2012, it appears that energy companies were not the belles of the ball. Anadarko Petroleum was really the only widely purchased energy company, almost comparable to the popular companies in the technology and banking sectors. In the following video, Motley Fool analyst Taylor Muckerman breaks down why he thinks this company was the chosen one from the energy space.

But which one has Warren Buffett been purchasing lately?
National Oilwell Varco is perhaps the safest investment in the energy sector due to its industry-dominating market share. This company is poised to profit in a big way; its customers are both increasing the number of new drilling rigs and updating aging fleets of offshore rigs. To help determine if it could be a good fit for your portfolio, you’re invited to check out The Motley Fool‘s premium research report featuring in-depth analysis on whether NOV is a buy today. For instant access to this valuable investor’s resource, simply click here now to claim your copy.

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Big Oil Finds in the Gulf of Mexico

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By Tyler Crowe and Aimee Duffy, The Motley Fool

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We have been drilling in the Gulf of Mexico for a long time, yet somehow, exploration and production companies are still finding more oil. Both Anadarko Petroleum and Chevron have recently reported some fantastic finds. After years of being in the shadow of the Deepwater Horizon spill, these discoveries are helping to swing sentiment in favor of offshore drilling. Thanks to new drilling technologies, we are drilling deeper, going further offshore, and expanding the possibilities of the oil and gas industry.

Today, Fool.com contributors Tyler Crowe and Aimee Duffy check in to give some of the details on these recent finds, how we are pulling it off, and how the scars of the Deepwater horizon spill seem to have faded away.

If you’re an energy investor on the lookout for new opportunities, then you should consider one of the more exciting plays in the space: Seadrill. To help you size up this stock, one of The Motley Fool’s top Stock Advisor analysts has authored a premium research report on the company, covering everything from its strengths and weaknesses to what to expect going forward. Simply click here now to claim your copy and determine whether Seadrill deserves a place in your portfolio.

var FoolAnalyticsData = FoolAnalyticsData || []; FoolAnalyticsData.push({ eventType: “TickerReportPitch”, contentByline: “Tyler Crowe and Aimee Duffy“, contentId: “cms.25757”, contentTickers: “NYSE:CVX, NYSE:BP, NYSE:APC, NYSE:SDRL”, contentTitle: “Big Oil Finds in the Gulf of Mexico“, hasVideo: “True”, …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

These Stocks Couldn't Quite Push the Dow to New Highs

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By Dan Caplinger, The Motley Fool

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The Dow Jones Industrials rose 56 points today as investors looked past the European crisis to focus squarely on domestic concerns. With the Federal Reserve leaving its highly accommodative policy stance largely unchanged, investors took the occasion to send stocks broadly higher. As long as economic conditions continue to improve, it appears that the bull-market run for stocks should be able to continue.

Among Dow stocks helping lift the average was Chevron , which rose three-quarters of a percent to hit another new all-time high of its own. The oil giant today announced that it will join up with fellow natural-gas producers as well as environmental groups to create the Center for Sustainable Shale Development, which will set standards for hydraulic fracturing in the eastern United States. Given the concerns that many stakeholders have about the impact of fracking on air and water quality, the move should help Chevron stay ahead of the curve of potential regulation.

General Electric rose 0.6%, in part on speculation that it might decide to spin off its GE Capital division. GE Capital was responsible for the company’s near-collapse during the financial crisis, but it has recovered strongly over the past four years. Reports after the bell indicated that GE denied having any plans currently to break up the conglomerate, although CEO Jeffrey Immelt had initially responded to the rumors by saying “never say never.”

Finally, outside the Dow, Cobalt International Energy soared 8%. The company is a big beneficiary of what Anadarko Petroleum called a “potentially giant project” today. The good news comes from the Shenandoah-2 test well, which may prove to be the biggest discovery ever in the Gulf of Mexico. But with the well under 5,800 feet of water and drilled to a total depth of nearly 6 miles, it’ll be several years before Cobalt, which owns 20% of the well, and Anadarko, which owns 30%, will get any oil from the find. Anadarko climbed nearly 4% on the news.

Parting way with GE Capital may or may not be in the cards, but the real future for General Electric is in energy and its other industrial businesses. To help you understand everything going on at GE right now, we’re offering comprehensive coverage for investors in a premium report on General Electric, in which our industrials analyst breaks down GE‘s multiple businesses. You’ll find reasons to buy or sell GE today. To get started, click here now.

var FoolAnalyticsData = FoolAnalyticsData || []; …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Today's Top Oil and Gas Stocks

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By Dan Dzombak, The Motley Fool

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Oil prices were on the move today, as the EIA’s Weekly Petroleum report showed U.S. crude oil inventories decreased by 1.3 million barrels in the past week and the Federal Reserve announced that it will continue its purchases of $85 billion of long-term assets every month. Today’s hot topic was a major find in the Gulf of Mexico.

At 4:00 pm ET on Tuesday, Brent crude was up 1.02% to $108.55 and WTI crude was up 0.90% to $93.35. U.S. natural gas was down 0.55% to $3.95.

Today’s top stocks
Today’s leader was Cobalt International Energy , up 8.07% to $27.87. Yesterday after the market closed, Anadarko Petroleum announced a major find at its Shenandoah 2R appraisal well, with more than 1,000 feet of net oil pay, which it operates and holds a 30% working interest in. Other partners in the find include Cobalt, with a 20% working interest, ConocoPhillips , with a 30% working interest, and Marathon Oil and Venari Resources, which each hold 10%. 

Source: Cobalt International Energy March 2013 report.

Anadarko has high hopes for the area, saying that the company believes the Shenandoah Basin has “the potential to become one of the most prolific new areas in the deepwater Gulf of Mexico.” Analysts expect the well to be able to produce between 500 million and 1 billion barrels of oil over its lifetime and add $3 to $6 per share in earnings for Anadarko.

In the joint announcement, Cobalt also announced better-than-expected results at its North Platte discovery, which Cobalt has a 60% working interest in, with the rest owned by French oil giant Total. he company had expected a net oil pay of 350 feet, but the drilling results came in at more than 550 feet of net oil pay. While half as large as Shenandoah 2R, Cobalt’s much larger stake makes this nearly as significant of a find for the company.

Second among oil and gas stocks today was SandRidge Energy , up 5.58% to $5.68. After falling slightly on Monday and 3.6% yesterday, today’s jump takes SandRidge back above where it started the week on no real news. Last week, the incumbent management of SandRidge Energy settled with 7.3% shareholder TPG-Axon instead of going through a proxy battle. While TPG-Axon had been aiming to replace the entire board, in the settlement the company agreed to add TPG-Axon’s four nominees to the board. TPG-Axon was adamant on the management change-up after it was alleged that SandRidge had been allowing CEO Tom Ward’s son to acquire rights and drill wells near SandRidge operations.

Another top oil and gas stock
There are many different ways to play the energy sector, and The Motley Fool’s analysts have uncovered an under-the-radar company that’s dominating its industry. This company is a leading provider of equipment and components used in drilling and production operations and is poised to profit in a big way from it. …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Why Cobalt International Energy's Shares Popped

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By Travis Hoium, The Motley Fool

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Although we don’t believe in timing the market or panicking over market movements, we do like to keep an eye on big changes — just in case they’re material to our investing thesis.

What: Shares of Cobalt International Energy jumped 10% today after Anadarko Petroleum announced an oil discovery.

So what: The oil field is in the Gulf of Mexico and was called a “potentially giant project” by Anadarko’s head of exploration. Cobalt owns 20% of the field, so it will see a big impact if the project is as big as initial testing suggests.  

Now what: Analysts are saying this is the largest discovery  in the Gulf of Mexico and may be twice as big as previous estimates. The well is 6 miles deep, and we’re still quite a way from generating significant revenue for any company involved. Still, this is major progress for Cobalt, and I think the stock can continue to run higher as it gets closer to generating revenue from this huge project.

Interested in more info on Cobalt International Energy? Add it to your watchlist by clicking here.

The article Why Cobalt International Energy’s Shares Popped originally appeared on Fool.com.

Fool contributor Travis Hoium and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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Business, Finance, Occupation & Industry

Oil Companies Dig Deep and Strike Gold

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By Tyler Crowe, The Motley Fool

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Anadarko Petroleum , along with its partners, announced today that it has encountered a very promising oil formation in the Gulf of Mexico at its Shenandoah-2 well. The test well tapped a formation with more than 1,000 feet of economically producible hydrocarbons, and according to Anadarko’s vice president of deepwater and international exploration, it’s “one of the largest discoveries in the Gulf of Mexico“. The Shenandoah-2 well was drilled to a total depth of 31,400 feet.

This is the second well drilled in Walker Ridge block 52. Back in 2009, the first Shenandoah well tapped a formation with about 300 feet of economically producible hydrocarbons. Today’s discovery was located about 1 mile southwest of the previous discovery and about 1,700 feet further down. 

Anadarko is the operator of the two discovery wells and has a 30% ownership in the play. Anadarko and its partners — ConocoPhillips (30% ownership), Cobalt International Energy (20%), Venari Resources (10%), and Marathon Oil (10%) — all plan to continue evaluating the prospects of the Shenandoah field.

The article Oil Companies Dig Deep and Strike Gold originally appeared on Fool.com.

Fool contributor Tyler Crowe and
The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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Business, Finance, Occupation & Industry

What Does ConocoPhillips Gulf of Mexico Discovery Mean for Investors?

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By Matt DiLallo, The Motley Fool

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I’ve recently spent a good bit of time drilling down into ConocoPhillips‘ future plans. Despite spending billions of dollars over the next few years, the company will only be able to grow its production by 3%-5% annually through 2017. A good portion of that development capital will be spent just to overcome the natural decline of the company’s base assets.

Looking past 2017, the company has several exploration and appraisal projects under way. The company is planning to spend about $2.5 billion, or 15% of its capital budget, this year alone in hopes of seeing a return beyond 2017. One of those exploration projects that I highlighted includes the potential of the company’s Gulf of Mexico prospects (see below). That potential is becoming a little clearer as the company and its partners provided an exciting update to the project.

Source: ConocoPhillips Investor Presentation

What happened?
ConocoPhillips, along with partners Anadarko Petroleum , Cobalt International Energy and Marathon Oil , announced a significant oil discovery at the recently drilled Shenandoah appraisal well in the deepwater of the Gulf of Mexico. The partners encountered more than 1,000 feet of net pay, which refers to the thickness of a reservoir capable of producing commercially viable oil and gas. For perspective, the first Shenandoah appraisal well drilled in 2009 encountered about 300 feet of net pay. The well was drilled at a water depth of about 5,800 feet and the well itself was drilled to a total depth of 31,405 feet.

This discovery bodes well for Conoco’s Corondo wildcat exploration well located just 12 miles away. That well, in which it is partnered with Chevron and Anadarko, was drilled to a depth of nearly 32,000 feet in over 6,000 feet of water. The partners are still evaluating the results and it’s likely that additional appraisal wells will be drilled to determine the extent of the resources in place. However, the initial results according to ConocoPhillips are very positive.

What’s it mean?
This has the potential to be a “giant” project according to Anadarko, as the Shenandoah marks one of the company’s largest oil discoveries in the Gulf of Mexico. The 1,000 net feet of oil pay is of much higher quality than anything else discovered in the Lower Tertiary of the Gulf. It has the potential to be one of the most prolific new areas in the deepwater of the Gulf.

Offshore oil and gas production comes with its share of risks; however, the potential payoff from wells like this make the risks worth it. ConocoPhillips has quietly built up a large leasehold position in the Gulf and is now a top-five leaseholder in the deepwater with more than 2 million net acres. The long-term potential is really exciting given the early results from its exploration and appraisal prospects.

My Foolish take
It’s a good day to be a long-term investor in ConocoPhillips. The key to these …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Will Shorts Be Burned by This Natural Gas Company?

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By Matt DiLallo, The Motley Fool

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Investors in natural gas exploration and production company Ultra Petroleum‘s have had a rough couple of years. These investors once basked in the natural gas-fueled rally that saw Ultra’s shares soar more than 6,000% from 2001 to 2008. Many of those same investors were later badly burned as natural gas prices collapsed, sending the company’s shares down nearly 80% since hitting its peak in the summer of 2008.

Some of those same investors are now betting against the company. With the price of natural gas stuck below $4, these investors see continued tough times for the company. At last count, short interest stood at 13.8%. But should investors really be hating this natural gas company?

Why it’s hated
Few companies are more levered to natural gas than Ultra Petroleum. While many of its peers are now focusing on oil and liquids plays, Ultra’s focus continues be on developing its long-life natural gas reserves in the Pinedale and Jonah fields as well as continuing the exploration of the Marcellus shale. Investors shorting the stock don’t believe this is the right path, given the continued low price of natural gas.  

It also didn’t help that it’s exploration in Colorado’s Denver-Julesburg Basin has been a disappointment. According to CEO Michael Watford: “Although our core and log data indicate the presence of oil in the rocks, the petroleum system is immature, under-pressured, and not commercial. … We’ll continue to monitor industry activity in the region but have no immediate plans for additional exploration in the area.” The company built up 139,000 acres in the play and will now turn its exploration capital elsewhere.

The final concern here is the company’s debt. At just under $2 billion, that’s still a lot of debt for a company with a market capitalization of about $3 billion. A further concern here is that until recently, the company was outspending its income. While the company has pulled back the reins on its spending and is now cash flow-positive, investors see a company that lacks flexibility in the face of depressed natural gas prices.

Why it should be loved
The good news, though, is that Ultra is one of the lowest-cost producers of natural gas. The company breaks even at $3 gas, whereas many of its competitors need gas to be north of $6 to turn a profit. With its costs so low, it can drill for gas when its peers can’t. Further, Ultra estimates that it has 17 trillion cubic feet equivalent of future reserves on 4,600 future drilling locations.

Some of its most promising acres are in the Marcellus shale, where it has very strong partners in Anadarko Petroleum and Royal Dutch Shell  to help it along the way. While partnering can be a blessing and a curse, in this case we’re talking about world-class partners. In the short-term, though, the company won’t be doing much work with either company as its Shell venture in …read more
Source: FULL ARTICLE at DailyFinance

News, Politics, Government

The Top Companies To Work For In America

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By Susan Adams, Forbes Staff A survey just released by WorkplaceDynamics, which specializes in polling employees, ranks the 150 firms it says are the “top” companies to work for in the U.S. Number one on the list: Quicken Loans, followed by The Container Store and Anadarko Petroleum. Fourth on the list: a car dealership called Park Place in Dallas, Texas.
Source: FULL ARTICLE at Forbes Latest