Fat Prophets Says BHP Won't Sell All Oil Shale Assets

The video discusses BHP's plans to divest its US shale unit, possibly in response to pressure from investors like Paul Singer and Elliott. The company has previously considered selling some shale assets, but not all. The sale could yield $8-10 billion, attracting major US players due to the long-life nature of the assets. The timing is considered opportune as oil prices have improved, making it a favorable moment for BHP to sell. The video also explores potential buyers, market conditions, and the impact of rising US oil production.

What is the main reason behind the company's consideration to divest its US shale unit?

• Increase in shale production costs

• Decline in global oil demand

• Pressure from external investors

• New government regulations

Which type of buyers are most likely to be interested in the US shale assets?

• New market entrants

• Existing players in the shale sector

• Technology firms

• International oil companies

Why might larger companies be more interested in acquiring the shale assets?

• They want to exit the shale market

• They are looking to diversify into new sectors

• They are under government pressure

• They have a strong financial position

What recent market change makes the timing of the divestment favorable?

• Introduction of new technology

• Reduction in environmental regulations

• Increase in oil prices

• Decrease in shale production

How has the market cycle changed compared to 12 months ago?

• It has declined significantly

• It has remained the same

• It shows a firmer outlook

• It has become less stable