Energy

UK nuclear programme is short-circuited

31 Jul 2008

The sale of British Energy to EDF was meant to launch an ambitious UK nuclear energy programme. The government wanted to boost nuclear power generation, cut emissions and improve energy security. Joint venture deals are still possible, but they may be slower and costlier.

ExxonMobil squeezes out a record profit

31 Jul 2008

It s hardly astounding with the oil price peaking above $140 a barrel in the second quarter. But if crude prices hold lower, the $11.7bn profit could be the oil giant s best results for some time and its falling production and rising costs could become a more obvious challenge.

What should ACS do with its E7.6bn windfall?

31 Jul 2008

The Spanish construction company has just made a packet from the sale of 45% of Union Fenosa. There are plenty of good ways to spend the cash say repaying debts. But after making 58% on one utility investment, the temptation to do another Iberdrola might prove irresistible.

Gas Natural pays through nose for Union Fenosa

30 Jul 2008

Spain s largest gas supplier is paying a whopping E17bn to get its hands on the country s thirdlargest utility a 57% premium to the undisturbed value. Having failed twice to buy an electricity generator, Gas Natural was not about to let this one get away.

British Energy sale might spark UK industry

25 Jul 2008

The nuclear power company is reportedly close to being bought by France s EDF and the local Centrica for £12.4bn. The deal would recognise France s technological lead. But it could give Britain a chance to reverse decades of neglect and rebuild part of its manufacturing base.

US campaign against oil speculators needs refining

23 Jul 2008

Legislation that determines who can trade oil futures is gaining steam. But even the futures regulator says speculators aren t driving prices. Yes, the watchdog could use sharper teeth. But with oil well off its recent highs, the new law could do more harm than good.

Oil plunge wouldn’t be unalloyed joy

16 Jul 2008

Sure, if the bubble bursts, it will take some of the heat off inflation allowing central banks to focus on fighting recession. But bursting bubbles normally cause collateral damage. It wouldn t be surprising if the already crippled financial sector was in the firing line.

US energy plans should embrace consumption cuts

15 Jul 2008

President Bush and oilman T. Boone Pickens want to tackle America's reliance on imported oil by trying to increase domestic supplies or substitute other energy sources. It may be politically tough, but they shouldn't forget the demand side of the equation.

Gazprom’s world push underlines domestic problems

10 Jul 2008

The Russian gas giant says it is ready to buy all of Libya s available oil and gas. From Africa to Alaska, Gazprom is casting a wide net. This is because domestic production is stagnating, as years of underinvestment are catching up with the company.

Australia and Canada lose confidence

9 Jul 2008

The two countries, and their currencies, have profited from soaring mineral and oil prices. But inflation has become a problem, especially in Australia, where house prices have bubbled. Corrections look probable, but modest ones unless the commodity boom crumbles.

Conoco’s UAE win is a blow to Shell

9 Jul 2008

Shell's failure to win a $10bn gas contract follows other highprofile losses to US rivals. In the past, Shell could rely on historical ties and technical expertise. But as the race for resources heats up, it needs to be more aggressive or it could find itself out of gas.

Cnooc pays up for strategic growth

7 Jul 2008

The Chinese oil group s purchase of Norwegian oil services outfit Awilco Offshore looks pricey. But it fits with China s strategy of expanding its presence across the global oil market to lock up supplies. It also suggests Cnooc expects the oil market to remain tight.

Visa move shows Russia still needs BP

3 Jul 2008

Some of TNKBP's British employees have been granted visas, just as BP withdraws some of its staff from Russia. This shows that the dispute over TNKBP isn t a goodvsevil one. The Russian government doesn t want to kick BP out. But Russian shareholders want control of the JV.

Halliburton rightly sent packing by UK courts

25 Jun 2008

The US oil services giant failed in an attempt to delay court approval for the sale of UK rival Expro to Umbrellastream a move that it hoped would allow it to reenter the fray. This was a clear attempt to circumvent UK Takeover Panel rules and the court was right to say no.

BG wise to put squeeze on Origin Energy

24 Jun 2008

It makes sense for the UK gas firm to go hostile. The Australian target had originally given BG the comeon, which will make it tough to make an aggressive defence. The challenge will be to persuade both sets of shareholders that the $13bn deal makes sense.

Spanish politicians create absurd electricity market

17 Jun 2008

Spanish power producers are forced to sell electricity at low regulated prices that don t cover their costs. The gap will reach a cumulative E15bn by the end of this year. Madrid ought to raise prices sharply, but doesn t have the guts to do it.

French state is GDF Suez’s party-pooper

16 Jun 2008

The marriage of Gaz de France and the FrenchBelgian utility has taken two years and is due finally to be consummated in July. They should make a beautiful couple. But the new company is born of political compromise and the French state s weight will handicap it.

British Energy investors too bullish

10 Jun 2008

The spike in power prices has made investors in the UK nuclear power group more bullish on value. But bidders are likely to be more cautious. Rather than sell, British Energy may end up bringing in partners for the new nuclear build. This might be good for everyone.

EU reform of energy competition is sensible

9 Jun 2008

The EU Commission s plans for radical unbundling have been amended. Energy producers will be allowed to keep their distribution assets if they are separately managed. This commendable compromise should allow them to focus on other priorities, such as energy security.

BP won’t lose its shirt in Russia

6 Jun 2008

The oil giant's TNK joint venture is not nearly as important to BP s future as the 10% drop in its share price in two weeks suggests. Russia already rakes off most of the profits, making the stake worth only about £6bn. Besides, taking a back seat need not be such a bad deal.