Energy

US security fears push oil in wrong direction

2 Aug 2004

It seems every day the oil price hits a new record. But the latest spike doesn't make sense. An AlQaeda style attack would lead to lower, not higher prices.

International Power in $5.5bn deal

30 Jul 2004

The UKbased powergenerator s jv with Mitsui is buying plants on four continents from troubled Edison International. But international power generation remains an unproven strategy. Just look at IP's problems in the US.

Shell settles probes into oil reserves

29 Jul 2004

Ramping up exploration efforts may help. But Shell will probably have to look at acquisitions too. That gets rid of one problem for the oil giant. But it doesn't solve the underlying problem of falling production.

Oil supermajors lose ground to smaller rivals

23 Jul 2004

ConocoPhilips may become the latest middling oil company to do a big deal in Russia, while the likes of ExxonMobil are left out in the cold. That s partly because smaller players are becoming more aggressive. The advantages of scale are becoming less clear cut.

Yukos saga takes a nasty turn

21 Jul 2004

By putting the Russian oil company s main operating asset on the block, Moscow is digging itself deeper into a hole. The Kremlin might still minimise the damage if it goes for fair value. Otherwise, Russia will be hardpressed to attract investment.

Edison minorities should watch out

20 Jul 2004

The chances of investors in the Italian power group being taken out at a juicy premium look slim. EdF wants to delay the put options that might trigger a mandatory offer. But even if the puts were exercised, it could fight a full buyout.

Shell ought to think radical

14 Jul 2004

The oil and gas giant has now hired two investment banks to beef up its corporate governance review. It is a sign that Shell might actually consider overhauling its cumbersome doubleheaded structure. That would be the cleanest solution.

Oil majors heading for record Q2.

8 Jul 2004

It doesn t get much better than the second quarter for the oil industry: soaring oil and gas prices and stellar refining margins. Investors have been bidding up shares, but momentum may stall. The chance to ride the rally indiscriminately has probably passed.

Putin should come clean on Yukos

6 Jul 2004

The Russian government keeps sending conflicting signals about what it plans to do with the country s largest oil company. That may suit the Kremlin s purposes to some extent, but it is wreaking havoc on the Russian market.

Shell gets a wake-up call from investors

28 Jun 2004

The oil giant managed to pull through all its resolutions at the AGM, but not without embarrassing protest votes. Even so, Shell can t ignore calls for change for much longer.

National Grid looking at £1bn broadcast tower buy

25 Jun 2004

The UK electric network wants to add 3,500 mobile phone and TV masts to its existing stable. The price may appear a bit punchy. But given some reasonable synergies and the company s track record, it would be a good buy.

British Energy turns on low power recovery

17 Jun 2004

The nuclear generation group is near the end of its restructuring and no longer teetering on the edge of bankruptcy. But investors are ignoring reality the company won t generate much cash for a long, long time.

Sarkozy plays smart politics with EDF

16 Jun 2004

France s finance minister is being populist by postponing EDF s privatisation, just as he was when he delayed Alstom's day of reckoning. But there s a difference: in EDF's case, Sarkozy's populism will probably lead to a better outcome for the market.

Kremlin turns the screw on Yukos

15 Jun 2004

That s possible but doesn't seem rational. More likely, Moscow is just trying to squeeze all it can from Yukos. Moscow appears to be ruling out any compromise in their tax dispute, making some think it wants to drive the oil company into bankruptcy.

Khodorkovsky, not Yukos, faces show trial

8 Jun 2004

The distinction is important: some investors fear the oil company will receive the same summary treatment as its majority owner. That s unlikely. President Putin s dispute with the oligarch was always political.

Khobar could bring oil prices down

1 Jun 2004

The Saudi government has serious problems, but these should not have any effect on oil production. Indeed, the oil supplydemand imbalance is easing. As grim reality catches up with panic psychology, oil prices could start to fall.

Saudi attacks highlight security failings

31 May 2004

This weekend s terrorist atrocity raises fresh questions over Saudi Arabia s ability to protect expat workers. With four major attacks in a little more than a year, the possibility of an exodus is growing.

Yukos looks cheap

28 May 2004

The Russian oil company has been asked to pay a $3.4bn tax bill. And fears of bankruptcy have driven its shares down. Yukos' fate ultimately does depend on the Kremlin s will. But it's not likely to go over the edge.

National Grid should return more cash

20 May 2004

The power distribution company increased its dividend by 15% and promises to increase payout by 7% until 2008. But it could easily do more especially if it sells its gas distribution networks. It should pay at least part of proceeds to investors.

Opec’s quota rise won’t cool the oil price much

19 May 2004

With the oil prices hovering around $40, the oil cartel has little choice but to spring into action. The snag is that actual supply of oil can t go much above current levels.