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is now the time to invest in oil stocks?

  • Last Updated:
  • Oct 18th, 2017 11:36 am
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Newbie
Jan 27, 2016
84 posts
30 upvotes
Toronto, ON
2018 i believe will be the new leaf for oil prices, going to be a lot more bullish

France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects

As part of efforts to support energy transition, France’s biggest listed bank, BNP Paribas, said on Wednesday that it would no longer do business with companies whose main business is exploration, production, trading, or marketing of oil and gas from shale or tar sands projects.

In one of the latest signs that the banking industry is evaluating the wisdom of doing business with the oil and gas industry in the face of mounting pressure from investors, BNP Paribas also said that it wouldn’t finance any oil or gas exploration or production projects in the Arctic region.

The bank will also no longer finance LNG terminals that predominantly liquefy and export gas from shale projects, and choke off funding for pipelines that carry oil and gas from shale and/or tar sands.

It doesn’t stop there. BNP Paribas won’t finance coal mines and coal-fired power plants either, and will be no longer support coal companies that are not pursuing a policy of diversifying their energy sources.


“BNP Paribas will continue to actively support clients in the energy sector who are committed to being part of the energy transition,” the bank said.

The lender is targeting an increase in its total financing for renewables to US$17.7 billion (15 billion euro) by 2020, and invest US$118 million (100 million euro) in start-ups working on innovative solutions for energy transition such as energy storage and energy efficiency.

“BNP Paribas is committed to bringing its financing and investment activities in line with the International Energy Agency (IEA) scenario, which aims to keep global warming below 2°C by the end of the century. To achieve this goal, the world must reduce its dependence on fossil fuels, starting with oil and gas from shale and oil from tar sands whose extraction and production emits high levels of greenhouse gases and has harmful effects on the environment,” BNP Paribas said.

Related: Oil Giants At Odds As Saudi, Russian Ties Improve

“We’re a long-standing partner to the energy sector and we’re determined to support the transition to a more sustainable world. As an international bank, our role is to help drive the energy transition and contribute to the decarbonisation of the economy,” said BNP Paribas chief executive Jean-Laurent Bonnafé.

Another France-based bank, Societe Generale, said last year that it was stepping up support for renewable projects, and stopped financing coal-fueled power plants or related infrastructure anywhere in the world.

By Tsvetana Paraskova for Oilprice.com
Deal Addict
Nov 2, 2013
4728 posts
860 upvotes
Edmonton, AB
loopy1984 wrote:
Oct 12th, 2017 11:58 am
2018 i believe will be the new leaf for oil prices, going to be a lot more bullish

France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects

As part of efforts to support energy transition, France’s biggest listed bank, BNP Paribas, said on Wednesday that it would no longer do business with companies whose main business is exploration, production, trading, or marketing of oil and gas from shale or tar sands projects.

In one of the latest signs that the banking industry is evaluating the wisdom of doing business with the oil and gas industry in the face of mounting pressure from investors..
That's part of the problem. All the banks lending money to these shale drillers flooded the market. The market will correct itself. Overtime investors/lenders should get frustrated and gradually lend less money to these outfits and current ones will stop growing. Some will go under. Will just take time.
Jr. Member
Jun 28, 2016
197 posts
83 upvotes
FirstGear wrote:
Oct 14th, 2017 1:30 pm
That's part of the problem. All the banks lending money to these shale drillers flooded the market. The market will correct itself. Overtime investors/lenders should get frustrated and gradually lend less money to these outfits and current ones will stop growing. Some will go under. Will just take time.
It's already correcting. The US rig count has been slowly dropping all through the third quarter. This includes the number of active rigs in the Permian, which have been flat or dropping almost every week. Although still way above last year's low, the US rig count has basically been flat since early June. The international ex-US rig count is actually down year over year now, having shed 21 rigs between August and September.
Member
Feb 26, 2017
246 posts
62 upvotes
I'm pretty close to selling half of my holding of my IPL as well as all of KEY (looking to sell ahead of them announcing their Q3 results in November) . The reason I'm planning on selling is to reduce my exposure to energy which is currently about 24% of my self directed portfolio. I bought both in 2010 and have also added significantly since the initial purchases. I'd like 40 for KEY and 27 for IPL but I'll see if there is any more momentum left in their current rally.
Newbie
Jan 27, 2016
84 posts
30 upvotes
Toronto, ON
China offers to buy the IPO from saudi's...interesting times
Deal Expert
User avatar
Sep 19, 2004
20129 posts
3042 upvotes
Waterloo
Another, IMO, bullish report from EIA today
EIA Petroleum Inventories
EIA Petroleum Inventories: Crude -5.7M barrels vs. -4.2M consensus, -2.8M last week.
Gasoline +0.9M barrels vs. +0.3M consensus, +2.5M last week.
Distillates +0.5M barrels vs. -1.5M consensus, -1.5M last week.
Futures +0.69% to $52.24.

WTI is relatively flat ~$52 USD

and of course, TSX Energy goes down, especially the pipelines, why? NAFTA?
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Newbie
Jan 27, 2016
84 posts
30 upvotes
Toronto, ON
Come on $60 plus oil in 2018!

jerryhung wrote:
Oct 18th, 2017 10:59 am
Another, IMO, bullish report from EIA today
EIA Petroleum Inventories
EIA Petroleum Inventories: Crude -5.7M barrels vs. -4.2M consensus, -2.8M last week.
Gasoline +0.9M barrels vs. +0.3M consensus, +2.5M last week.
Distillates +0.5M barrels vs. -1.5M consensus, -1.5M last week.
Futures +0.69% to $52.24.

WTI is relatively flat ~$52 USD

and of course, TSX Energy goes down, especially the pipelines, why? NAFTA?

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