Analysts say the decade of rising oil prices is over
Posted by Josephine Moulds Thursday 18 October 2012 13.25 BST guardian.co.uk
Oil companies dipped as Goldman Sachs came out with a downbeat note on the sector, saying the past decade of escalating oil prices was all but over.
The analysts wrote:
European integrated oils have undergone a period of falling returns and deteriorating free cash flow, despite rising oil prices. As we now expect the decade-long rise in oil prices to come to an end owing to a revival of non-OPEC supply led by shale oil, this deterioration is likely to accelerate, in our view.
They estimate the industry needs the average oil price to top $110 a barrel in order to fund dividends and capital expenditure out of cash flow from existing businesses. As a result, they cut their view on the entire sector to ‘cautious’, from ‘attractive’, concluding that: “Only material exploration success or shale oil with scale can lift big oils out of their difficulties in our view.”
Within the sector, the analysts downgraded Shell to ‘sell’, sending the shares down 1.2% to £22.05.
Shell has almost fully delivered on its big three projects, bringing to a close the investment cycle started in 2006, and starting a new one. This new cycle will be more capital intensive and will likely lead to lower returns.
They said BG Group remained the clear winner in the sector and reiterated their ‘conviction buy’ recommendation. The shares inched lower, down 0.2% at £13.42.
This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.BG continues to screen as a key industrial winner, given 160% cash flow uplift over the next five years, a low decline production base and exposure to a tightening LNG market on our estimates.
Royal Dutch Shell conspired directly with Hitler, financed the Nazi Party, was anti-Semitic and sold out its own Dutch Jewish employees to the Nazis. Shell had a close relationship with the Nazis during and after the reign of Sir Henri Deterding, an ardent Nazi, and the founder and decades long leader of the Royal Dutch Shell Group. His burial ceremony, which had all the trappings of a state funeral, was held at his private estate in Mecklenburg, Germany. The spectacle (photographs below) included a funeral procession led by a horse drawn funeral hearse with senior Nazis officials and senior Royal Dutch Shell directors in attendance, Nazi salutes at the graveside, swastika banners on display and wreaths and personal tributes from Adolf Hitler and Reichsmarschall, Hermann Goring. Deterding was an honored associate and supporter of Hitler and a personal friend of Goring.
Deterding was the guest of Hitler during a four day summit meeting at Berchtesgaden. Sir Henri and Hitler both had ambitions on Russian oil fields. Only an honored personal guest would be rewarded with a private four day meeting at Hitler’s mountain top retreat.
IN JULY 2007, MR BILL CAMPBELL (ABOVE, A RETIRED GROUP AUDITOR OF SHELL INTERNATIONAL SENT AN EMAIL TO EVERY UK MP AND MEMBER OF THE HOUSE OF LORDS: 
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A head-cut image of Alfred Donovan (now deceased) appears courtesy of The Wall Street Journal.
