Shell in Early Talks to Acquire Rival BP in Landmark $80 billion deal.

@WSJ reports talks are active, with BP “considering the approach carefully.” The industry has its doubts a deal will be done.  Acquiring BP would put Shell more on par with its larger US competitors Exxon Mobil XOM & Chevron CVX.

Bloomberg & CNBC have reported that a deal for the whole company is unlikely, but the sale in parts could be on the table.

Oil cooling off following Iran's capitulation

US Gas & Crude Oil Prices

After surging +20% in the past month, Oil cooled off following Iran's capitulation in the face of Israeli & US bombardments. Their pre-announced "retaliation" against the US base in Qatar was all the market needed to shed its gains.

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MasterEnergy
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Is the US Handing Over Venezuela’s Oil Sector to China on a Silver Platter?

Following the reimposition of sanctions on Companies operating in Venezuela, Reuters has already reported that crude that was produced in joint ventures with Chevron has been on its way to East Asia…The only problem is how much PDVSA gets paid, when there is only one buyer on the block—a monopsony.

It is unlikely Chinese companies will be taking over Chevron's operations in the near to medium term. More than anything else, because it does not need that to happen for Beijing to expand its influence and control— ditto for Moscow or Iran.

First, investors have plenty of options before them, from greenfield opportunities to mature fields that only need repairs. Venezuela has thousands of square kilometres with billions of barrels of oil underneath. And most joint ventures are effectively dormant: just 20 out of 64 areas of operation are producing more than 10,000 barrels per day of crude, while most are stuck at 0 or below the 1,000 mark.

Second, regime officials will prefer to keep the fields where Chevron invested for themselves. 240,000 barrels per day is a great business opportunity. This means millions of dollars in contracts for goods and services, that used to be managed by a foreign corporation—not anymore, courtesy of President Trump.

Read the whole article on OilPrice.com here:

https://oilprice.com/Energy/Energy-General/How-the-US-is-Handing-Over-Venezuelas-Oil-Sector-to-China.html

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