Energy & Industrials

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Pulp production expands in China

February 8, 2012

Analysis by: GLG Expert Contributor

Chinese pulp mills increasingly have to rely on imported wood chips for their wood fiber needs. In 2011, record volumes were imported, mainly from hardwood plantations in Vietnam, Thailand and Indonesia. Imported wood chip costs from Vietnam have gone up 40% in two years and are closing in on the cost of chips shipped from Vietnam to Japan.

BP reorganized in 2011 to give greater value to shareholders

February 8, 2012

Analysis by:Michael Lynch, Consultant,

Analysis of:BP Raises Dividend as Operational Momentum Returns | www.bp.com

Reporting on Q4 and full year results, BP CEO Robert Dudley said that operational momentum and improved cash flow during 2011 gave the company confidence in its ability to grow shareholder value. Operating cash flow for 2011 was $22 billion. BP announced a 14% increase in the dividend. In his presentation to the financial community, Dudley said that payments into the Gulf of Mexico Trust Fund (created after the Macondo incident) would be completed by year end 2012.

Newfield Exploration selling assets to rapidly become an oil company

February 8, 2012

Analysis by:Michael Lynch, Consultant,

Analysis of:Newfield Exploration Updates GOM-Stake Sale | www.rigzone.com

Newfield has been selling non-strategic assets to concentrate on drilling for crude oil and other liquid-rich plays on land. Last year the company disposed of assets worth $400 million and is planning additional sales this year of $335 million. Newfield plans to continue to focus on oil growth. The emphasis will be developing long-lived onshore resource plays. The company plans no further exploration in the Gulf of Mexico.

Exports of logs and lumber from the U.S. and Canada to China reached a record $2.6 billion dollars in 2011

February 8, 2012

Analysis by: GLG Expert Contributor

The U.S. and Canada exported record volumes of logs and lumber to China in 2011. Exports in 2011 are likely double those seen in 2010 to reach an estimated value of $2.6 billion. Lumber shipments from Canada alone will reach almost over $1.1 billion. The North American share of softwood log and lumber import volumes to China increased from 5% in 2005 to 37% in 2011.

ExxonMobil's acquisition of XTO was a long term bet on natural gas

February 7, 2012

Analysis by:Michael Lynch, Consultant,

Analysis of:ExxonMobil's Natural-Gas Push Could Hit Small US Producers | www.rigzone.com

ExxonMobil’s decision to maintain its current production of natural gas could possibly drive some smaller producers to the wall. Such consolidation could make ExxonMobil even more powerful than it already is. The news that the energy giant has no plans to curtail gas production puzzled some analysts. Others think the ExxonMobil decision will have little impact because the company operates only 30 rigs in the gas shale regions.