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Royal Helium CEO Andrew Davidson on NASA, SpaceX and the path to dynamic growth

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Alex Kent
Managing Director | Aspermont Limited
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Aspermont shows the success of digitalization - Alex Kent has an agenda

24. February 2021 | 08:29 CET

Saturn Oil & Gas, Royal Dutch Shell, BP, Plug Power - The oil specialists!

  • Oil
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Oil prices are currently moving at the upper edge of the annual range. In the case of oil, market participants expect a pioneering indication of the economy's state after Corona. Price buoyancy came once again from the US, where freezing winter weather led to logistical problems in the oil supply. There is a general trend of rising commodity prices, and successively all segments are affected. Commodity experts at the US investment bank Goldman Sachs expect oil prices to rise further in the coming months. Accordingly, the Brent price could rise to USD 70 per barrel in the second quarter and reach USD 75 in the summer months. Goldman Sachs has thus raised its previous forecast by USD 10 per barrel.

time to read: 4 minutes by André Will-Laudien



André Will-Laudien

Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.

About the author

Saturn Oil & Gas - The specialist from Canada

Just over a week before the next OPEC meeting, there is still no uniform line for future oil production policy. According to a Bloomberg news agency report, the oil giant Saudi Arabia wants to keep production constant, while the second oil giant Russia intends to expand production. Currently, Saudi Arabia, in particular, is helping to support prices with reduced production.

Saturn Oil & Gas Inc. can watch this hustle and bustle calmly because it produces oil at about USD 12 in Saskatchewan. Saturn currently produces about 700 barrels per day, no matter what the decisions in Vienna. Meetings are usually held twice a year, but the board is very conflicted. Particularly explosive this time is the agreement on a medium-term oil production rate until 2025 because global mobility trends are moving away from oil as a raw material.

In such times, the hour of the specialists strikes. Saturn Oil & Gas can adjust its production rate to demand because the wells' pressure naturally decreases over time, i.e., the initial production rate of a fresh well (approx. 70-120 barrels) gradually goes down over time. Thus, if oil demand increases dramatically, new wells are tapped to increase production. If demand falls, costs go down simultaneously because no new money is invested in exploration. Operational management thus leads to cash flow maximization.

Saturn Oil & Gas is considering expansion through acquisitions. Due to the rising demand, especially in North America, Saturn is monitoring its environment very closely and is also in a position to acquire new properties. Jean-Pierre Colin, the new strategy advisor, is responsible for this, and we would be surprised if several deals have not already been in the pipeline since his appointment. The Saturn Oil & Gas share has recently become quieter, trading stably between CAD 0.12-0.15. But those who get in now are buying a lot of potential. According to the 2019 strategic plan, production is to be increased by over 200%.

Royal Dutch Shell PLC - Sale of properties in Alberta

Alberta is Saskatchewan's neighboring state, and this is where significant portfolio sales by Royal Dutch Shell PLC are taking place. The oil multinational announced that it has sold its Duvernay shale light oil position in Alberta to Crescent Point Energy Corp. for a total amount of about USD 700 million. The transaction is subject to regulatory approvals and is expected to close in April this year.

Shell said the transaction includes the transfer of approximately 450,000 net acres in the Fox Creek and Rocky Mountain House areas, currently producing approximately 30,000 barrels of oil equivalent per day. The properties consist of about 270 wells, and associated infrastructure is part of the deal. A Shell statement said of the sale that it is optimizing its upstream portfolio to generate cash. Shell is apparently in a divestment phase, which could also interest neighboring Saturn Oil & Gas.

Shell plans to focus more on the Permian Basin in the future, and the portfolio should be more resilient and less risky.
Royal Dutch shares are stable in the market at EUR 16.8, up 70% since October 2020.

British Petroleum PLC - Commitment to geothermal energy

BP is breaking new ground in its energy mix and focusing on sustainability. With other investors, BP is committed to Eavor Technologies, which describes itself as a leader in scalable geothermal technology. The current round of funding is worth over USD 40 million and is attracting huge interest.

Investors in the round included BP Ventures, Chevron Technology Ventures, Temasek, BDC Capital, Eversource and Vickers Venture Partners. Eavor emphasized that the investments and associated partnerships are critical to the commercialization of its technology. Eavor's technology, known as the "Eavor Loop," uses the earth's natural heat like a giant rechargeable battery, according to the Company's website. What sets this technology apart from other forms of geothermal energy is a scalable "go anywhere" solution. In other words, applications can be used around the globe regardless of location.

BP is taking another step into the green energy economy with this investment. Since the "Deep Horizon" disaster, BP has invested over USD 50 billion in environmentally friendly projects. A promising sign of making amends for a disaster. At EUR 3.27, BP shares are about 30% above the sell-off lows of October 2020.

Plug Power - corrective movement gains momentum

In many posts, we had pointed out the overvaluation of the stock Plug Power. The entire hydrogen sector is correcting almost daily in 5-10% discounts. For Plug Power, this means a loss of around 30% from the beginning of the month high of EUR 60. Since the price-to-sales ratio is still out of this world at 30, the correction is likely to continue for a few more weeks. The stock market community had probably overinvested in hydrogen in recent months and the valuations are reminiscent of the year 2000. Those who have been invested here for a long time are still sitting on historic gains that are unparalleled even in the best stock market decades. The level is still high enough to exit, but the chart technique indicates further downside potential.


André Will-Laudien

Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.

About the author

Conflict of interest & risk note

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Related comments:

17. February 2021 | 11:54 CET | by Stefan Feulner

BP, Deutsche Rohstoff, va-Q-tec - here we have extreme catch-up potential!

  • Oil

Oil marches and marches. Since the Corona crash last April, when Brent crude bottomed out at USD 17.01, the black gold has now climbed back above the USD 60.00 mark to currently USD 63.00. The prospects of an easing in the pandemic, and thus a revival of the economy, promise even higher prices in the medium term. In addition to the major oil producers such as Exxon Mobil, BP and Total, smaller companies also need to catch up in terms of share price. They were able to act more flexibly during the crisis and thus even emerge as profiteers.


29. October 2020 | 13:36 CET | by André Will-Laudien

ENI, Royal Dutch Shell, Saturn Oil & Gas - scandals and crash!

  • Oil

Six months ago, leading oil producers and the G20 energy ministers met to coordinate an emergency package of production cuts. The aim was to at least compensate for the drop in demand caused by the COVID-19 pandemic. At that time, it was impossible to know how significant the damage from the pandemic would be and for how long a real recovery would take. Now the production is somewhat lower, and existing oil stocks are gradually fading, but the uncertain prospects remain, as can be seen from the very low forward prices. In the longer term, producers are currently not very encouraged, as the curve shows that prices are unlikely to reach the USD 50.00 per barrel mark by the end of 2023. Those who want to bring about a shortage in the oil market have a monster task ahead of them, because "there is plenty of oil and a slowing economy".


22. October 2020 | 11:15 CET | by Stefan Feulner

JinkoSolar, Saturn Oil & Gas, Plug Power - Here comes the second chance!

  • Oil

The markets are correcting on a broad front. Hydrogen and fuel cell stocks, which have been booming for months, are taking a breath of fresh air. In a long-term trend, this is good and quite the norm. It is time to take a look at the fundamental aspects once again, in addition to the chart support zones and trend formations. Some companies have managed to position themselves broadly and can continue to grow solidly in the future. Others have only swum with the current and will go down in time. Now it is time to put the pearls into the account.