A billion dollars -- that's fairly sizeable, but not in the scheme of things in respect to the Texas City refinery. |
Absolutely, I'm worried about that. |
Both those companies are probably going to have to make some moves. One of them is going to be an acquirer and one's going to be acquired. |
BP is a very upstanding company and they make every effort to insure safety. It's a very dangerous operation. You're dealing with a lot of volatile materials. |
I believe OPEC will be forced into a situation to raise production if prices remain at high levels. |
I expect the integrated oil sector to help support the market if it goes down. Aside from the fact that oil prices are expected to be volatile, a lot of these major oil companies are big defensive plays. I expect to see a move into the integrated oil companies stocks throughout the course of next week going forward. |
In a perfect world, you'd take the premium out, and you're looking at an oil price in the lower- to mid-30s. But it is not a perfect world. |
It's a fabulously run company. |
Knowing that the oil sands projects are capital-intensive, companies are signaling that oil prices will remain high and that supply and demand will remain tight. |
Production growth for most companies has been very elusive or nonexistent. Keeping it flat is a major feat. |
There's a lot more value in both the integrated and independent exploration and production companies. They haven't moved at nearly the same pace as the oil service companies. |
There's concern that Iraq knows it's in a position that if it pulls its production off the market it would have significant implications on moving oil prices sharply higher. |
There's significant upside for the entire sector. The earnings potential will be huge going into next year. They'll be able to pay down a significant part of debt, buy back stock. |
This is something that has never been tested before. Will the FTC allow BP to be the dominant producer on the (Alaskan) North Slope? |
We don't think oil prices are going to rebound sharply. I think the deal that Mobil's doing is suggesting just that. I think most companies are hunkering down and they expect that prices are going to remain low for the next possibly one to three years. In this event, you may start to see more mergers occur. |