They're pressing the company not only to accept a proposal by activist investor Elliott Management to spin off its US petroleum business, but to fully demerge all of its oil and gas assets.
Shale Oil Mining News
Activist investor Elliott's proposals to break up BHP are riddled with “major flaws” and could end up costing far more to implement than they would save, the company said.
Analysts expect BHP to argue that a demerged petroleum business would need to fund offshore growth projects by raising debt. It may also contend that a stand-alone division won’t have the same ability to defer production until oil prices improve.
Company says the associated risks of spinning off about $22 billion of its US oil assets and listing them in New York would significantly outweigh any potential benefits.
He has instruct has ordered the Environmental Protection Agency (EPA) to review and rewrite it.
US President Donald Trump has outlined his goals in terms of energy and mining, leaving out specifics about how exactly he aims to achieve them.
He said he had intended to announce his retirement last year but chose to stay on while BHP dealt with the aftermath of the Samarco mine disaster in Brazil.
BHP is not the first major player to flag green shoots in the mining industry. Caterpillar, the world's largest heavy machinery maker, said the same last month.
The company believes the market is set to move back into balance in 2017, with demand to exceed global supply.
The world’s largest miner announced Friday a roughly $7.2 billion pretax charge against its U.S. onshore energy assets
The gloomy outlook comes as the International Energy Agency predicts crude oil won't reach $80 a barrel until at least the end of the decade.
More than a dozen energy companies have been pressing U.S. authorities to lift the nation's four-decade moratorium on oil exports.
The agency believes U.S. tight oil supply will sink by nearly 400,000 barrels a day in 2016.
The world's No.1 miner will continue boosting its iron ore output, adding to a global glut and keeping pressure on prices.
With this impairment BHP will have written down its oil and gas business by more than $4 billion since 2011.
The government also published a list of answers to common questions about crude exports, providing guidance in a matter plagued by confusion.
The stock closed in Sydney below the $30 mark, which is the lowest it has traded in the last five years.
The move is considered another sign that Washington’s decades-old federal ban on crude exports is crumbling.
The two documents released Tuesday conclude the debated extraction process just needs to be closely monitored and properly regulated.
US tight oil production averaged 3.22 million barrels per day over the past three months.
In a country that celebrates “Oil Industry Nationalization Day,” the energy package approved last night has automatically become Mexico’s most significant and controversial economic reform since the NAFTA.
But not a long-term threat to the OPEC.
Frank Holmes and Brian Hicks of U.S. Global Investors view shale oil plays as integral to an energy renaissance.