Shell to take over Encana Rumours

[Bring_Back_Shantz]

Bigger than Shell Canada, but dwarfed by Shell on the whole.

[Frank the Tank]

I heard this on the news on the way into work this morning and thought the same thing as Fotze. Then I looked up Shell on the net and realized that it is a very very very large company globally. Plus they make really cute commercials with fish as traffic lights!

[Clarkey]

Boo to this.

[browna]

The question we all have is:
Could I then use Airmiles to buy Encana stock?

If Shell does do this, its likely best that they keep the majority of their hands off, as far as culture goes, with Encana.

Not that its that similar, but BP ran what little was left of Amoco into the ground, in part due to polluting and disenfranchising the remaining employees.

[Agamemnon]

Damn... any idea what this will do to the new Encana building that supposed to go up??

[Frank the Tank]

Originally posted by fotze@Oct 20 2005, 10:11 AM
I know shell world is huge, but just wondering on how they would meld them together in Canada. They are completely different cultures and assets. Shell wouldn't know what to do with shallow sweet gas. I would assume that Shell would just become another business unit of Encana.

Ha! Oh I hope I didn't come across as thinking you didn't know how huge Shell was. I was the one without a clue. Really. I had NO idea how massive a company Shell is. None. Learn something new every day.

[Bring_Back_Shantz]

Originally posted by fotze@Oct 20 2005, 09:11 AM
I know shell world is huge, but just wondering on how they would meld them together in Canada.# They are completely different cultures and assets.# Shell wouldn't know what to do with shallow sweet gas.# I would assume that Shell would just become another business unit of Encana.

Ah technically Encana would become another business unit of Shell, that's how takeovers work, the smaller company ie EnCana, bets integrated into the larger one ie Shell.

Shell wouldn't know what do do with shallow sweet gas?????
Dude, I think you may have some misconceptions about Shell (the worlds larges producer of natural gas..meaning they probably know a think or two about shallow sweet gas) and Encana (North America's largest producer of unconventional gas, much of which, particualrily in the US, comes from deep zones).

Granted I'll give you that Shell likely doesn't have the expertise to do what Encana does. Not because it is shallow sweet gas, but because it is in fact much different than the conventional thinking behind that type of production.

[Incinerator]

Shoulda bought a whackload of EnCana shares....

[Bill Bumface]

Argh... bad time to be on an open ended contract with EnCana.

[Bring_Back_Shantz]

Originally posted by fotze@Oct 20 2005, 12:06 PM
What are you talking about. Shell in Canada is all about very deep and usually very sour gas. When they drill a well it is a big mutherfudger. I joke with them all the time about not knowing what the hell they would do if they ever happened upon a sweet gas well. They are just starting to get in to the CBM scene in the past few years but they stick to the foothills almost exclusively. My comment was that they are pretty different on a whole, with their safety policies (from sour drilling) they couldn't drill a cheap well if they tried (of course in jest a bit).

Also Shell has about 500 wells compared to 32,000 for Encana in Alberta alone. Which is why I would think in this case they possibly do it the other way somehow. I know the Shell policies would all be implemented but it would probably go more smooth if they just added something like a foothills group.

I agree that their production is very different, hence the comment about not having the expertise to do what Encana does. The big point was that from a technical standpoint (as I don't know how the company works internally) that for them to do conventional shallow gas is a far cry easier than what they do and that they could easily pick it up. But that isn't what Encana does, in the last few years Encana has gotten rid of most of it's conventional assets and is focusing on unconventional assets.

Could Shell do shallow gas (from a technical standpoint) of course, anyone can.
Could they do what Encana does? Likely not.

[Clarkey]

Encana made a press release that they have not talked to Shell and plan to stay on their own.