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Jerre Foo, Corporate Development Executive, Silkroad Nickel

Jerre Foo
Corporate Development Executive | Silkroad Nickel
50 Armenian Street #03-04, 179938 Singapore (SGP)

enquiries@silkroadnickel.com

+65 6327 8971

Silkroad Nickel: 'The course is set for dynamic profit growth.'


Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG

Dr. Thomas Gutschlag
CEO | Deutsche Rohstoff AG
Q7, 24, 68161 Mannheim (D)

info@rohstoff.de

+49 621 490 817 0

Interview Deutsche Rohstoff AG: "We can imagine additional investments in the field of electromobility."


Steve Cope, President, CEO and Director, Silver Viper

Steve Cope
President, CEO and Director | Silver Viper
1055 W Hastings St Suite 1130, V6E 2E9 Vancouver (CAN)

info@silverviperminerals.com

+1-604-687-8566

Interview with Silver Viper: Future price drivers and takeover fantasy


26. March 2020 | 06:29 CET

BP, Royal Dutch Shell, Saturn Oil & Gas - now positioning for the oil rally

  • Oil
Photo credits: pixabay.com

Russia and Saudi Arabia are in the middle of an oil war. This was preceded by negotiations on a joint reduction in production volumes in order to ensure price stability in connection with the Corona Crisis and the accompanying decline in demand. Russia has belonged to OPEC+ for three years in an extended circle. This has now come to an end, as no consensus decision has been reached. Saudi Arabia reacted with disgruntlement and has announced that it will increase its production volume. The oil price level now reached of less than USD 25 per barrel for WTI not only makes the US energy economy unprofitable, but also endangers the energy independence of the largest oil consumer. There is therefore enormous pressure to act.

time to read: 3 minutes by Mario Hose


Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG
"[...] China's dominance is one of the reasons why we are so heavily involved in the tungsten market. Here, around 85% of production is in Chinese hands. [...]" Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG

Full interview

 

Author

Mario Hose

Born and raised in Hannover, Lower Saxony follows social and economic developments around the globe. As a passionate entrepreneur and columnist he explains and compares the most diverse business models as well as markets for interested stock traders.

About the author


Setting an example in the Presidency

In 1999, the G7 decided to establish a wider circle of countries in order to be able to react jointly to crises. The founding meeting of the G20 took place in December 1999 in Berlin. Since then, the presidency has changed every year and this year Saudi Arabia is chairing the group. This year's G20 Summit will take place on November 21 and 22 in Riyadh.

In the meantime, the focus is not only on joint crisis management, but also on long-term issues such as energy, health and climate. Russia is also a member of the G20 and pressure is growing on Saudi Arabia to ensure that the world community works together to find solutions in difficult situations. The presidency of Saudi Arabia is at the same time an opportunity to act responsibly and to bring the price of oil back up to a sensible level.

Massive price losses on the stock market

The shock following Saudi Arabia's announcement to increase production was huge and sent not only the oil price plummeting, but also the stock prices of most listed companies. The value of BP shares halved within a few weeks from over EUR 5.00 to under EUR 2.50. Royal Dutch Shell's share price development in the past four weeks was similar. The value of the shares also halved from over EUR 24.00 to under EUR 12.00.

Suncor Energy's share price developed even more dramatically in the same period, as it fell from over CAD 40.00 to under CAD 15.00. Chevron's share was also unable to escape this development and its value fell from over 112.00 USD to below 52.00 USD. As a result, the company has already announced a production cut of 125,000 barrels per day. With a price drop from CAD 4.20 to CAD 0.41, or over 90%, Torc Oil & Gas leads the field of losers.

Sustainability and human rights

The young Canadian oil producer Saturn Oil & Gas announced yesterday that the company has hedged half of its production volume until February 2021 at a price of over CAD 65.00. This is a forward-looking measure that will ensure attractive sales for the management for around a year. The company has recently appointed Jim Payne, CEO of dynaCERT, to the Board of Directors to be at the forefront of ESG in the future. dynaCERT has developed a hydrogen retrofit technology that will enable diesel engines to save fuel while reducing emissions of pollutants. The cooperation results in advantages for both sides. dynaCERT gains direct access to the oil industry and Saturn can not only save costs but also protect the environment.

The environmental regulations for the oil industry in Canada are among the strictest in the world. In view of the fact that modern society will continue to need oil in the future, it is only a matter of time before value is placed on particularly sustainable production and respect for human rights. A huge opportunity for Saturn Oil & Gas and the investors.

US government under pressure to act

A low price for oil also makes itself felt at the petrol station and can help to ensure that households have more money left over for the consumption of other things. In the context of the Corona Crisis, however, this effect does not occur, as a large proportion of people in the countries affected are restricted in their mobility and can consume less. The US government is under enormous pressure to ensure the independence of the domestic energy supply.

In addition to the friendly option of agreeing closer cooperation with Saudi Arabia, there is also the pressure to impose an embargo if necessary or to make foreign oil more expensive through taxes. For example, the US government could justify an embargo on the grounds that there are doubts about compliance with general human rights in various OPEC countries and Russia. Then such a measure would certainly also find broad approval among the domestic population. So in the election year not only jobs are in danger, but also votes.


Author

Mario Hose

Born and raised in Hannover, Lower Saxony follows social and economic developments around the globe. As a passionate entrepreneur and columnist he explains and compares the most diverse business models as well as markets for interested stock traders.

About the author



Conflict of interest & risk note

In accordance with §34b WpHG we would like to point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH may hold long or short positions in the aforementioned companies and that there may therefore be a conflict of interest. Apaton Finance GmbH may have a paid contractual relationship with the company, which is reported on in the context of the Apaton Finance GmbH Internet offer as well as in the social media, on partner sites or in e-mail messages. Further details can be found in our Conflict of Interest & Risk Disclosure.


Related comments:

12. April 2021 | 11:43 CET | by Carsten Mainitz

BP, Saturn Oil + Gas, BASF - Fuel for the portfolio: lots of good news!

  • Oil

Opinions on the markets about where the oil price will stand in the short, medium and long term are becoming increasingly diverse. But there is also a lot happening strategically and operationally, which is easily lost in the jumble of information. Last week, British oil giant BP reported that it would reach its planned net debt target much earlier - as early as the first quarter. The highlight: The Group announced that it would again be buying back a large number of shares when it reached its target. How does Moody's rating change fit into the picture with an upgrade for the short-term and a downgrade for the long-term outlook? Below, we will take a closer look at the BP share, BASF's oil and gas shareholding developments and Wintershall Dea and its stock market plans. Also exciting is the opportunity presented by emerging Canadian oil and gas producer Saturn, which could enter a new dimension with a takeover.

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  • Oil

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25. March 2021 | 08:15 CET | by Nico Popp

Gazprom, BP, Saturn Oil + Gas: Which oil stock is the best?

  • Oil

The oil price has long since left the crisis behind. Even though North Sea Brent crude prices have fallen somewhat in recent days, the outlook remains bright. At a time when everyone is talking about renewable energy, market experts emphasize that fossil fuels will continue to play an important role in the world. The energy transition is a process, not an event. Above all, oil producers that act sustainably could continue to score points. We present three stocks.

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