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Shell could buy BP for just £5 a share

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Comments

  • Andy_L
    Andy_L Posts: 13,160 Forumite
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    worldtraveller wrote: »
    The rumoured deal, if realised, would complete one of the most ignominious falls for the once great Persian Oil company that powered Britain’s Navy to victory during the First World War.

    Weren't WW1 era warships coal fired rather than oil burners?
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 8 December 2014 at 10:39PM
    wotsthat wrote: »
    Is it different this time or just numbers going up and down?

    Doesn't seem yesterday when many were complaining that oil companies could just put up prices whenever they fancied.

    Game of poker perhaps. Not for the faint hearted.

    Oil at over $100 a barrel has incentivised people to consume less.

    North Sea oil production is around 1.4 million barrels a day. So at current price levels the oil companies are losing over £20 million a day.
  • worldtraveller
    worldtraveller Posts: 14,013 Forumite
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    Andy_L wrote: »
    Weren't WW1 era warships coal fired rather than oil burners?

    Many were being modernised to oil fired just prior to WW1. Infact it was Winston Churchill, as First Lord of the Admiralty, who, just before the war, negotiated with the Anglo-Persian Oil Company (origin company of BP) as part of a program to modernise the British navy. Interestingly, he was also trying to reduce our reliance on....guess which company? Royal Dutch-Shell! :)
    There is a pleasure in the pathless woods, There is a rapture on the lonely shore, There is society, where none intrudes, By the deep sea, and music in its roar: I love not man the less, but Nature more...
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
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    Presumably shell could buy them for a fair bit less now!?

    Interesting how oil has fallen so far. I would assume alongside lower demand, politics is well and truly at play here?
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    share price seems to be about £3.73 at the moment
  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    CLAPTON wrote: »
    share price seems to be about £3.73 at the moment

    At the close of the market you could buy shares for 373.3p each.

    As the oil price falls, Shell's shares also fall in value so it makes a deal no more likely to happen as Shell would be forced to 'pay' for BP in shares mostly.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    Graham_Devon wrote: »
    Interesting how oil has fallen so far. I would assume alongside lower demand, politics is well and truly at play here?

    Increased production has had an impact. Saudi Arabia needs the US market to buy it's light sweet crude.

    US fracking operations have based investment, i.e. taken on debt to finance future production. US debt market for oil stocks runs into billions of dollars.

    The bumpy ride continues it appears. As the global credit bubble slowly deflates.
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