Energy

China’s nuclear outlook is sunny and windy

6 Sep 2022

A hydropower crisis in drought-hit Sichuan province has some calling for more reactors to hit clean targets, but building plants in arid regions will be tricky. It’s easiest to double down on renewables now while pushing research into less water-intensive atomic energy.

Trussonomics may freak out the markets

5 Sep 2022

If the UK’s new prime minister was only planning big energy subsidies, investors might not worry too much. But Liz Truss is also planning tax cuts – and may pick fights with both the Bank of England and European Union. If so, the pound could be clobbered, says Hugo Dixon.

Putin shoves Europe over the energy rubicon

5 Sep 2022

By shutting the Nord Stream 1 pipeline, the Russian president has ensured the continent faces sustained high power costs. States have so far stopped short of drastic market interventions. All are now wising up to the need to freeze prices, ration demand, and tax windfall profits.

Shell’s next boss looks a shoo-in

2 Sep 2022

The $192 bln energy group’s veteran CEO Ben van Beurden is likely to depart next year. Shell’s heads of oil drilling, refining, and finance all merit consideration. But gas and renewables boss Wael Sawan, who holds the key to Shell’s future revenue growth, is the logical choice.

Europe’s energy cap requires surgical precision

1 Sep 2022

The EU wants to curb surging power costs to avoid a recession. Capping wholesale gas prices will unavoidably dampen the market’s clear signal to reduce demand. Doing the same to electricity prices, especially in a focused and temporary way, looks smarter.

Climate both dries and drowns case for hydropower

31 Aug 2022

The IEA and others reckon hitting net zero requires doubling the energy source’s output. But aridity from China to the Americas highlights a big vulnerability. Flood risk is even more widespread. Add environmental degradation and hydropower is often more trouble than it’s worth.

Capital Calls: Uniper’s credit request

30 Aug 2022

Concise views on global finance: the German utility asks for a 4 billion euro credit line just weeks after securing a 15 billion euro bailout. But with gas demand easing and a German government levy on consumers yet to go into force, Uniper’s situation may improve.

UK tax cut drive has narrow path to avoid big mess

30 Aug 2022

Candidates to replace Prime Minister Boris Johnson are debating lowering levies by up to 30 bln pounds. Inflation may help by raising tax revenue faster than spending. But future receipts are uncertain, and a likely energy bailout will add to the burden. It’s an ill-timed gamble.

It’s time to worry about Greece again

26 Aug 2022

A bugging scandal threatens Prime Minister Kyriakos Mitsotakis’ government and renewed political instability. It’s not a re-run of the Grexit crisis. But the country’s high deficit and debt are a cause for concern when interest rates and energy prices are rising, says Hugo Dixon.

Private jet crackdown is idea that could fly

25 Aug 2022

The French government is mulling clamping down on corporate flights, on both environmental and societal grounds. Whether it imposes punitive taxes or strict restrictions, the plan has few obvious downsides. It would be even more effective if other European countries hop aboard.

Once people ditch oil, they won’t come back

22 Aug 2022

The 1973 crisis sent oil prices spiraling and knocked U.S. demand onto a permanently lower trajectory as economic growth became less energy intensive. High prices three decades later caused gasoline demand to stall entirely. This time around the result will be lasting shrinkage.

UK energy’s looming bailout implies a quid pro quo

22 Aug 2022

Britain may subsidise EDF, Centrica and others to curb customers’ utility bills. Power groups are largely not to blame for the mess. But with taxpayers possibly on the hook for over 100 bln pounds, the industry could face blowback like pay curbs and dividend restrictions.

Paris and Berlin’s windfall tax timidity is futile

19 Aug 2022

France and Germany oppose a raid on firms profiting from the energy crisis. Berlin could borrow more, and President Macron has pledged not to hike taxes. Yet given it won’t make investors see either country as way more business-friendly, the reluctance makes little sense.

Atlassian CEOs give Elon Musk mission-creep lesson

1 Aug 2022

The $53 bln software company’s two bosses are using their own cash for dealmaking side projects. They’re avoiding getting too distracted from their day job by having experts mostly run the show. It’s a useful example of how the Tesla chief can avoid a repeat of his Twitter mess.

Russia is giving German industry a slow puncture

27 Jul 2022

Industrial users of gas are in the firing line as Moscow halts supply. Companies like BASF face a hit from higher input costs and energy rationing, rather than a Uniper-style bailout. The problem for Berlin is that sustained high prices could make production head elsewhere.

GE is fine, it’s everyone else that’s the problem

26 Jul 2022

Inflation, war and supply problems knocked 5% off the industrial firm’s second-quarter revenue and about one-fifth off its profit. In turn, GE boss Larry Culp will miss a key cash-flow target. If not for Culp’s tireless tinkering under the hood, though, things would be worse.

Global food crisis demands urgent Western response

25 Jul 2022

Russia’s invasion of Ukraine has pushed up food and energy costs around the globe. The most urgent problems are in poorer countries, write William Rhodes and Stuart Mackintosh. Rich nations offered insufficient help for Covid-19. International bodies can do better this time.

Berlin spreads pain in 15 bln euro Uniper bailout

22 Jul 2022

That’s how much equity and debt the government may pump into the gas importer driven to near-bankruptcy by reduced Russian supplies. Diluted shareholders, Finnish owner Fortum, and German taxpayers will share the burden. So will consumers who will pay higher prices for gas.

Climate fight can take heart from an old oil maxim

20 Jul 2022

Sages say high crude prices are their own cure. Similarly, hot weather now may avoid worse warming in future, if baking conditions at home make the West honour its pledge to finance developing states’ climate change struggle. That might get stalled net-zero plans back on track.

Australia green fail is global net-zero liability

20 Jul 2022

Canberra is pledging action after a grim report detailing Down Under’s deteriorating environment. But coal and gas exports help fuel disasters at home and abroad, like Europe’s wildfires. Refusing to tackle it sends a gloomy signal about countries’ willingness to cut emissions.