Energy

EU energy crisis is a 130 bln euro joint problem

17 Mar 2022

That's how much it could cost to wean the bloc off Russian gas, at a time when energy bills are already soaring. States could tax energy companies or draw unused pandemic loans to offer subsidies. Common grants look like a better option.

Russia punches economic hole above its weight

16 Mar 2022

The country that was a trade minnow during the Cold War became a big commodities exporter. That’s why the isolation of an economy smaller than Texas is pushing up global prices of energy, wheat and other goods. Though some countries can help fill the gap, consumers will suffer.

The climate revolution is underhyped

15 Mar 2022

Kleiner Perkins Chair John Doerr outlines in his new book a plan to reach net-zero emissions by 2050. As an early backer of Amazon and Alphabet, he also explains how saving the planet is a business opportunity akin to the internet in this episode of The Exchange podcast.

Gas guzzlers face reckoning from Ukraine shock

14 Mar 2022

Prices of raw materials and fuel have soared after the Russian invasion. That could push drivers to swap big cars like the Jeep Wrangler for more energy-efficient rides. With big vehicles currently bringing in roughly half of sales, that’s a problem for the $4 trln auto industry.

U.S. shale won’t wean the West off Russian crude

11 Mar 2022

Fracking transformed the U.S. oil patch and made America a net exporter. But even with high prices, there are limits. Public companies are wary of over-investing, and even private firms are finding land is scarce. They may struggle to replace more than 10% of Russia's output.

Dixon: War boosts need for “green Marshall Plan”

11 Mar 2022

The West needs more allies, not just to turn Russian President Vladimir Putin into a global pariah, but to show China what will happen if it too throws its weight around. A good way to do this is to supercharge its embryonic plan to help developing countries grow in a green way.

Gauging the global backlash against Russia

10 Mar 2022

The shockwaves from President Vladimir Putin’s invasion of Ukraine are reverberating around the world. In our Viewsroom podcast, Breakingviews columnists debate the country’s isolation, the impact on Asia, Europe’s plan to wean itself off Russian gas, and the fallout for banks.

Capital Calls: Americans accept inflation for now

10 Mar 2022

Concise views on global finance: U.S. prices rose a whopping 7.9% year-on-year in February. Even so, Russia’s invasion of Ukraine has improved President Joe Biden's approval ratings. It may not last.

Venezuela gives Washington lesson in realpolitik

9 Mar 2022

The Latin American country’s oil could conveniently replace U.S. imports from Russia. But the regime of Nicolás Maduro has been under U.S. sanctions since 2017. Easing them would amount to accepting the lesser of two evils, with nearly 30 million Venezuelans as pawns.

It’s time for Macron to pull Total out of Russia

9 Mar 2022

French governments usually don’t hesitate to meddle in corporate affairs. The oil major’s refusal to sell its 19% stake in oligarch-controlled Novatek suggests uncharacteristic modesty from President Macron. Given the damage to France’s reputation, this doesn’t make sense.

Ukraine speeds global rush to self-sufficiency

9 Mar 2022

Sanctions cutting off Russia’s access to chips and payments systems, plus spiking food and energy prices, will prompt governments to rethink trust in free trade, already rattled by the U.S.-China trade war and Covid-19. An inefficient protectionist era may be in the offing.

U.S. Russian oil ban ineffective without partners

8 Mar 2022

Russia produces about 10% of global oil. Given most of its exports go to Europe and Asia, an American import ban is relatively economically easy, especially if other unpalatable foreign policies are considered. But hitting Russian pockets needed much greater coordination.

Russian debt coin toss will get harder to call

8 Mar 2022

Gazprom and Rosneft are repaying bonds despite fears Moscow may renege on its own debt. The depressed prices of Russian corporate debt mean investors who rightly bet on repayment can double their money. Yet rising tensions and murky workouts mean the trade will get riskier.

EU charts expensive path towards energy freedom

8 Mar 2022

The European Commission wants to lop over 70% off Russian gas use this year by ramping up LNG purchases, green energy and gas storage. It implies Europeans consuming less energy and paying more than feared for what they use. Pooled EU resources may be needed to cushion the blow.

Capital Calls: Danone

8 Mar 2022

Concise views on global finance: The French yoghurt maker’s new CEO presents underwhelming new financial targets.

West’s loaded oil weapon points to power rationing

7 Mar 2022

The U.S. and Europe could ban Russian crude imports to increase pressure on President Vladimir Putin. While oil is a better target for sanctions than gas, alternative supplies are far from assured. Companies and consumers may have to reduce demand, possibly by government decree.

Russia’s reverse globalisation will test Putin

7 Mar 2022

The country spent three decades integrating into the global economy. The president’s invasion of Ukraine threatens to wind the clock back within weeks. How the nation copes without Western technology, capital and consumer goods will help decide whether Vladimir Putin backs down.

Brookfield flips AGL out of furnace into coal fire

7 Mar 2022

The Canadian fund manager and its tech billionaire partner are abandoning a green takeover plan after their sweetened $6 bln bid was rejected. It leaves the Aussie power producer grappling with a weak demerger proposal and a pushy investor. Boss Graeme Hunt will feel the heat.

Oil self-sanctioning is unstable weapon for West

3 Mar 2022

Traders and utilities are refusing to buy crude and gas from Russia, even though sanctions allow it. Insofar as this turns up the heat on the Kremlin, U.S. and EU leaders may not mind. The danger is that spiking prices alarm voters and lead to strains in the Western alliance.

Capital Calls: Snowflake’s no snowflake

3 Mar 2022

Concise views on global finance: The data warehouse firm doubled revenue, but the stock was whacked. Snowflake’s solid finances mean missteps are valuation conundrums, not existential threats.