Energy Biz Recap: BP’s New Gas Field, Exxon’s Prediction

Sinopec (NYSE:SNP) and PetroChina (NYSE:PTR) urged for hikes on China’s domestic fuel for the first time in ten months to match the increased costs for international crude. The government in China faces an ongoing battle between its effort to keep inflation under control by setting energy prices low and keeping margins at state-owned refinery companies in positive territory. However, China did acquiesce to SNP and PTR’s pleas.

Patriot Coal (NYSE:PCX) is the leader of the coal stock pack that are shooting up due to investor sentiment that production cuts will lead to higher prices. PCX outperformed and James River Coal Company (NASDAQ:JRCC), Westmoreland Coal Company (AMEX:WLB), and Alpha Natural Resources Inc. (NYSE:ANR) are all chipping in with solid gains of their own. The Market Vectors-Coal ETF (NYSE:KOL) is also up.

Investing Insights: Precious Metals Edge Lower: Gold Performs Well in Both Inflation and Deflation.

BP (NYSE:BP) will develop a major new gas field in the Gulf of Mexico with partners Chevron (NYSE:CVX) and BHP Billiton (NYSE:BHP). The plans are phase two of the partnership’s Mad Dog development. The Mad Dog development is a field capable of producing 120,000 -140,000 barrel of oil equivalent per day. BP has a 60.5% working interest in the project followed by BHP with a 23.9% stake and Chevron with 15.6%.

Exxon Mobil (NYSE:XOM) states that by 2040 ninety percent of the world’s transportation fleet will be powered by liquid petroleum fuels. The energy source gives the biggest band for the buck with an “energy density” unmatched by other energy sources. Highlighting the point in today’s parlance: “All of the energy concentrated in one gallon of gasoline is enough to charge an iPhone once a day for almost 20 years.”

Atmos Energy (NYSE:ATO) share price drops. First fiscal quarter comes up short of estimates, and net earnings fell 7.4% year-over-year. Higher operating expenses and a 39% drop in gross profit from its non-regulated segment are responsible, but its regulated operation’s revenue grew with the help of rate increases and regulatory enhancements.

Don’t Miss: Dividend Changes: BP, Coca-Cola Enterprises, Teekay Tankers, Mastercard, Nicor.

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