Royal Dutch Shell Plc will cut $15 billion of investment over the next three years as the crash in oil prices saw fourth-quarter profit miss forecasts.
Shell, the first of the world’s largest oil companies to report earnings following the slump in crude to a five-year low, will defer or cancel about 40 projects worldwide, Chief Executive Officer Ben van Beurden said today. Exploration will also be curtailed.
I think SDRL will runup slowly. Going to the $40 range is going to take time. But SDRL is strong and can get to the $20s in the coming weeks. Shorts will be covering and the stock price will respond fast.
The bottom of the rig/rate business market may not have been reached. But that does not speak for the SDRL stock price which may well have already overshot a reasonable downside level, based on news, fear and a canceled dividend. SDRL and ESV are now looking promising for the coming couple of years of stock price recovery in anticipation of the business recovery starting in 2016, followed by dividend increases.
From Energy Point's 2014 customer satisfaction survey:
Asia - Pacific Rim - Seadrill
Middle East - Rowan
Sub-Saharan Africa - Noble
Latin America - Mexico - Ensco
North Sea - Ensco
Deepwater Wells - Ensco
Harsh Climate Applications - Ensco
Health, Safety, and Environment - Ensco
Horizontal and Directional Wells - Ensco
Shelf Wells - Ensco
Special Applications - Ensco
Technology - Ensco
HPHT Applications - Rowan
Job Quality - Noble
Performance and Reliability - Noble
Total Satisfaction - Ensco
Customers definitely appreciate all that money poured into the latest and greatest ships and technology.
And this is how most of the "Majors" are slashing cap ex. UDW spending will be higher this year than ever in the past. Check how many UDW rigs are drilling right now as compared to any time in the past. Oh, I should mention that there are many more UDW rigs than at any time in the past. Mid water and deep water is getting cut and those rigs are getting scrapped and replaced by Gen 6 UDW rigs.
I beleave its due to RIG still has not cut div , this is giving the stock abump so to speak. Everytime oil makes a move up RIG seems to move up much more than SDRL. I also think that rig will at least cut div if not sup it, when that happens likley they will trade closer. SDRL has cut divy witch I think is smart . Everyone waiting for the other shoe to drop at RIG then likley 10 also.
I think he has given enough abuse and also suffered from it. He has gone to other boards to spread his insights and that's okay with me. I had him on ignore and just seeing he posted something got me mad, even when I didn't read it. Just seeing that grayed out name was upsetting. So back to the business at hand. I declare the bashers winners by default.