Energy Stock Recap: Exxon’s Outlook, Chevron Boosts CapEx
Exxon’s (NYSE:XOM) closely-watched outlook report is due out later today, and among the predictions are that by 2025, natural gas will replace coal. If this happens and natural gas is seen as the leading fuel for generating electricity in the U.S., it will be the world’s No. 2 fuel source overall. As well, global energy demand will grow 30% by 2040.
BP (NYSE:BP) is in peace talks with its Russian billionaire partners in its TNK-BP JV, the FT reports. Both sides under any deal would reaffirm their commitment to the venture and cease all outstanding legal action, and BP would transfer some assets to TNK-BP. A key board meeting is due for tomorrow.
Investing Insights: Goldman Sachs: Oil Services Stocks are Attractive for These Reasons.
Chevron’s (NYSE:CVX) move to boost 2012 capital spending by 26% to $32.7B came in higher than expected, Barclays Capital tells clients. Management had previously indicated 2012 spending would be above 2011, but Barclays thinks the shares may nevertheless come under short-term pressure “due to the significant increase in expected cash outlays.”
Eni (NYSE:E) drops after the CEO says he’s concerned that Iranian oil payments may be jeopardized by a potential EU ban, for previous work its done in the Islamic republic. The EU is considering an oil embargo against Iran as part of sanctions against the country’s nuclear program.
Encana (NYSE:ECA) shares get the hiccups after the EPA says in a draft report the aquifer in a Wyoming gas field operated by the company “contains compounds likely associated with gas production practices, including hydraulic fracturing.” EPA says Encana has been funding the provision of alternate water supplies to the area since 2010.