We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Exxon & Shell JV to Oppose Lower Production Cap at Groningen
Read MoreHide Full Article
According to Reuters, Nederlandse Aardolie Maatschappij or NAM – a joint venture between ExxonMobil Corporation (XOM - Free Report) and Royal Dutch Shell plc – announced that it is going to oppose a plan of the government of Netherlands to lower production cap at the Groningen natural gas field by another 10%.
The reason behind the Dutch government's decision is high number of tremors due to depletion and subsidence in the Groningen area that are triggered by NAM’s work. The area otherwise does not fall under a natural earthquake zone.
Investors should know that the majority of the gas production in Netherlands is from the Groningen field where ExxonMobil has 30% interest. The most recent cap was announced by the government in May. It also stated that no model can predict the acceptable level of production for the Groningen area. The production cap will decrease gas production to 21.6 billion cubic meters (bcm) per year from Oct 2017 from production of 53.9 bcm in 2013.
Along with the National Coordinator Groningen, a government set up, NAM studies how seismic risks can develop in the future to reduce risks in the long run. With the growing demand for natural gas in the region, NAM is striving to deliver due to the production caps and safety standards.
The hearing process for NAM will start on Jul 13, 2017, at a Council of State, where environmentalists, who believe the production cap should be lowered, will also be heard.
About the Companies
Irving, TX-based ExxonMobil is one of the world’s largest publicly traded oil companies, engaged in oil and natural gas exploration and production, petroleum products refining and marketing, chemicals manufacture, and other energy-related businesses. Approximately 83% of Exxon’s earnings come from its operations outside the U.S. The company divides its operations mainly into three segments: Upstream, Downstream and Chemicals.
Shell divides its operations into four major segments: Upstream, Downstream, Corporate and Integrated Gas. The 3 year commodity bear market has adversely affected Shell’s earnings and cash flows, particularly at its upstream unit. It is headquartered in The Hague, Netherlands.
Enbridge’s sales for the second quarter of 2017 are expected to increase 13.2% year over year. The company delivered a positive earnings surprise of 128.6% in the first quarter of 2017.
Canadian Natural Resources’ sales for the second quarter of 2017 are expected to increase 26.9% year over year. The company pulled off a positive earnings surprise of 30.8% in the first quarter of 2017.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Exxon & Shell JV to Oppose Lower Production Cap at Groningen
According to Reuters, Nederlandse Aardolie Maatschappij or NAM – a joint venture between ExxonMobil Corporation (XOM - Free Report) and Royal Dutch Shell plc – announced that it is going to oppose a plan of the government of Netherlands to lower production cap at the Groningen natural gas field by another 10%.
The reason behind the Dutch government's decision is high number of tremors due to depletion and subsidence in the Groningen area that are triggered by NAM’s work. The area otherwise does not fall under a natural earthquake zone.
Investors should know that the majority of the gas production in Netherlands is from the Groningen field where ExxonMobil has 30% interest. The most recent cap was announced by the government in May. It also stated that no model can predict the acceptable level of production for the Groningen area. The production cap will decrease gas production to 21.6 billion cubic meters (bcm) per year from Oct 2017 from production of 53.9 bcm in 2013.
Along with the National Coordinator Groningen, a government set up, NAM studies how seismic risks can develop in the future to reduce risks in the long run. With the growing demand for natural gas in the region, NAM is striving to deliver due to the production caps and safety standards.
The hearing process for NAM will start on Jul 13, 2017, at a Council of State, where environmentalists, who believe the production cap should be lowered, will also be heard.
About the Companies
Irving, TX-based ExxonMobil is one of the world’s largest publicly traded oil companies, engaged in oil and natural gas exploration and production, petroleum products refining and marketing, chemicals manufacture, and other energy-related businesses. Approximately 83% of Exxon’s earnings come from its operations outside the U.S. The company divides its operations mainly into three segments: Upstream, Downstream and Chemicals.
Shell divides its operations into four major segments: Upstream, Downstream, Corporate and Integrated Gas. The 3 year commodity bear market has adversely affected Shell’s earnings and cash flows, particularly at its upstream unit. It is headquartered in The Hague, Netherlands.
Both the companies belong to the Zacks categorized Oil and Gas – International - Integrated industry.
Zacks Rank and Stock to Consider
ExxonMobil presently has a Zacks Rank #3 (Hold), while Shell currently has a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the oil and energy sector include Enbridge Energy, L.P. and Canadian Natural Resources Limited (CNQ - Free Report) . Both these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Enbridge’s sales for the second quarter of 2017 are expected to increase 13.2% year over year. The company delivered a positive earnings surprise of 128.6% in the first quarter of 2017.
Canadian Natural Resources’ sales for the second quarter of 2017 are expected to increase 26.9% year over year. The company pulled off a positive earnings surprise of 30.8% in the first quarter of 2017.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>