Volatility in the markets appears to be exaggerated in the energy sector, at least to my untrained eye. There is a little good news this morning as one of my oil company, Europa’s [LON:EOG], drilling programmes reaches a milestone referred to as ‘spudding’. This sounds good, like potatoes, which is confirmed by a small hike in the share price. The majority of this Romanian concession is owned by another company, however, whose shares are if anything a little deflated at the news, so I’ll have to wait and see if this thing goes anywhere.
I had a look at this other company, Aurelien’s [LON:AUL], news backlog and noticed some similarities with my lot, such as innate volatility, new share issues to fund drilling programmes and changes at the top. Just for fun, I tracked the share price against the news of the retirement of the Chairman at Aurelian and what do you know, the price doubled, spiking briefly, two months before he announced his retirement. It was a less dramatic spike than the one that occurred when the CEO at Europa did the same thing [TBB 6.11] but the timing was remarkably similar.
Now I’m no expert, as I keep repeating, and I would love someone who knows to comment, but it seems clear to me that it is part of the expectation of anyone in a position of power and influence to exercise that muscle, provided nothing illegal comes of it. It’s no conspiracy theory, just an observation, and frankly one yet to show any particular merit.
As I write, Europa's share price returns to its familiar, depressed level and the excitement ebbs away. Good news in the field counts for little, it seems, unless it's big potatoes, like one of those oil fountains they had in the movies in the 1950s. It makes me wonder what mechanisms these directors may have had at their disposal then, if my suspicions are true? Or did they simply wait for the right moment, in an admittedly volatile market, to close out their retirement deals? All I can do is ask the question, not having sufficient knowledge or understanding to answer it. It's frustrating, constantly banging up against my limits, I feel there is more to the story and that there are connections to the wider world to be made.
Today, though, is more special than any of this. It's our second baby's due date. We've watched her grow and squirm at home in her mother's body and it's time she moved out. We can't wait to meet her, face-to-face. I feel as if I already know something of her, she's feisty, determined and ready. It's going to be a big shock for her to break out into the world and she's going to need all the help we can give to get her on her way. It seems to me an increasingly lonely journey as you get older but that you get more resilient with it, for the most part, and so a balance is achieved. But anyway, good luck Jane and god bless little Liza. We love you and we're with you, all the way.
