Demand for oil and distillates grew in 2015 and it's extremely likely it will continue to increase in 2016, irrespective of your attempts to spin it otherwise.
@On the demand side, oil consumption was holding firm, with growth in 2015 more than doubling on 2014 as Americans drove more due to low gasoline prices. Demand growth in 2016 would likely not beat 2015 but would still outperform 2014, Yergin predicted.
CS reduced their target price from 5400 to 5000Gp. SHP.L last traded at 4114GBp. That's well off the 52wk high of 5870GBp reached back in Aug 2015, but still ~20% higher than the close today. CS points out that the BXLT ex-US infrastructure could help SHPG boost sales of existing rproducts. Also at a conference today, SHPG CEO explained that internal synergy goals are higher than the $500M figure stated in the announcement.
@CS pointed out that Baxalta's ex-US footprint is much greater than Shire's, offering the potential for the London-listed company to expand its rare diseases infrastructure more rapidly with less incremental investment. "While the deal diversifies much of the generic risk at Shire, the continued uncertainty over future potential disruptive technology, especially in haemophilia, will result in the stock trading at a discount to the sector for some time."
@(Reuters) - Shire says internal synergy goals from Baxalta deal higher --- The chief executive of rare disease drugmaker Shire Plc on Tuesday suggested that the company could achieve much higher cost savings from its planned $32 billion acquisition of Baxalta than what was announced with the deal on Monday. Some Wall Street analysts expressed disappointment with a promise of annual operating cost savings of over $500 million. However, Flemming Ornskov, chief executive of Dublin-based Shire, said his style is to under promise and over deliver. "Our internal synergy goals are much higher," he said at the annual JP Morgan Healthcare Conference in San Francisco. He also said the agreement that ended a six-month pursuit of Baxalta was not driven by cost savings or lower taxes. "This is a growth play," he said
Oops! Correction.... Production in Bakken has been steadily dropping since mid-2015 and Eagle-Ford (NOT Permian!) since early 2015. Permian has been rising through 2015 but is now leveling off.
In any case, even as new-well oil productivity per rig continues to improve, the continued decline in rig count and falling output from legacy wells will combine to result in a steady and perhaps even accelerated drop in US oil production through 2016.
Strange. i read the opposite recently ie. that the futures strip was not getting any steeper with the sharp drop in oil prices lately. I took a quick look at oil futures just now and seems to support that. Right now, the front month contract is trading at 30.55 down 0.85 and Jan 2017 is at 38.47 down 1.30 - Crude Oil Futures Quotes Globex. Not sure what contango level triggers demand for tanker storage but I recall 10+ being thrown around
From the same report, natgas production is estimated to be down ~405 mmcf/day month over month. Haynesville output has been roughly level since early 2015 while Marcellus peaked in mid-2015 and is in a downtrend since then. Niobara has also been dropping steadily since mid-2015. Permian natgas output was tracking the increase in oil production, and now is leveling off there along with oil.
EIA monthly drilling productivity report out yesterday shows an estimated drop in US oil production of ~116 mbbl/day in Feb vs Jan. Production in Bakken has been steadily dropping since mid-2015 and Permian since early 2015. Production in the Permian basin was rising until recently and now appears to be leveling off the last couple of months. At this rate, by 2017 US oil output will be lower by ~1.4 mmbbl/day.
AZPN announced an acquisition today.
@4:57 am Aspen Tech intends to KBC for ~$230 mln (AZPN) : Co announced the terms of a recommended all cash offer for the entire issued and to be issued share capital of KBC Advanced Technologies plc by ATI Global Optimisation, a wholly owned subsidiary of AspenTech. Under the terms of the offer, KBC shareholders will receive 185p in cash for each share. The transaction values KBC at approximately 158 million or approximately $230 million at the current exchange rate. Both companies' boards of directors unanimously support the transaction. The transaction will be funded by cash on hand of approximately $91 million and committed financing. AspenTech plans to replace the committed financing with proceeds from a proposed $250 million revolving credit facility.
sheesh you make more noise than pud, and not even mildly interesting noise at that. into ignoreworld you go.
Not only is SU screwing over COS shareholders who are not interested in being bought out, but through their ill-timed bid for COS, they are also screwing over SU shareholders - Imagine...they were ready to pay even more for COS last summer! Another Voyageur-sized disaster is in the making right before your very eyes. These guys can't execute their way out of a paper bag.