Energy

Red Sea oil tension may revive Russia-Saudi spat

22 Jan 2024

Exchanges of fire between Yemen’s Houthis and the US military have hiked costs for Moscow to ship oil via the Suez Canal to China and India. One upshot could be Russia loses market share to Saudi Arabia. That may reopen the sort of tensions that led to the duo’s 2020 price war.

Capital Calls: Microsoft’s Russian hacker

22 Jan 2024

Concise views on global finance: The $3 trln tech firm disclosed that a nation-state hack accessed leaders’ email, saying it showed the need for potentially “disruptive” measures. It’s a worrying acknowledgement of the still-vague costs of geopolitical tensions for tech giants.

Global risk pile-up penetrates Davos bubble

18 Jan 2024

Nearly 3,000 movers and shakers have converged on the Swiss resort amid crises in the Red Sea, Gaza and Ukraine. In this Viewsroom podcast, Breakingviews columnists discuss how Davos-goers unable to ignore these perils are nervously anticipating another Trump presidency.

Carbon markets have a long shot at redemption

18 Jan 2024

The US hopes to raise over $200 bln using carbon credits to help emerging markets cut emissions. The idea of enabling firms to offset pollution with cuts elsewhere has long been flawed. Washington’s wager is that a lack of green cash for developing states is a bigger evil.

Time for EU to assist its solar panel industry

17 Jan 2024

Meyer Burger’s stock tanked 35% after it threatened to shut Europe’s biggest photovoltaic plant unless it gets German incentives. Stuck between US subsidies and cheap Chinese products, continental players are weak. Turning support for fossil fuels into green aid would help.

EU’s energy security drive may have gone too far

11 Jan 2024

The bloc’s pivot away from Russian pipeline gas has worked. But Europe’s fast-rising capacity to import the fossil fuel in liquid form will surpass its total gas needs by 2030. LNG infrastructure’s public and private backers have a stark choice: scale back, or risk writedowns.

China’s auto exports can hold the fast lane

10 Jan 2024

The country has displaced Japan as the world's largest shipper of cars abroad, sending more than 5 mln overseas last year, per an industry group. Companies best known for gas guzzlers are among the winners. But EV makers like BYD are gaining share and will drive the trend on.

Shell will be tempted to join US M&A party

5 Jan 2024

With rivals Exxon Mobil and Chevron doing chunky deals, the $214 bln European oil major may wish to follow suit. A pitch for $30 bln Permian player Endeavor is affordable and arguably logical. But it would test how far CEO Wael Sawan can realistically pivot back to fossil fuels.

Aussie tycoon will blaze new green activist trail

2 Jan 2024

Atlassian co-CEO Mike Cannon-Brookes has already used some of his billions to tackle climate change, like battling the country’s top carbon emitter. Quitting the software firm would make him more effective. Other wealthy moguls may then join him in the activist trenches.

Capital Calls: Eni’s green sale

22 Dec 2023

Concise views on global finance: The Italian energy major’s 10 bln euro valuation for its retail-and-renewables arm Plenitude is more likely to be recreated or exceeded if it avoids a rushed listing.

Capital Calls: Angola and OPEC

21 Dec 2023

Concise views on global finance: The African state’s decision to quit the oil producer group isn’t a huge deal in the short term, but will raise fears of more meaningful exits.

Green investors will learn the art of stockpicking

21 Dec 2023

Wind and solar stocks had a torrid 2023, as stars like Orsted crashed. But renewables investment is strong, input cost inflation is abating and rates may have peaked. Investors able to pick developers in the right sector, or suppliers in the right regions, may find bargains.

BP and Equinor will find common ground

20 Dec 2023

The British oil major is undervalued against peers and is in a leadership vacuum. That makes it vulnerable to a takeover as US mega-mergers shake up the sector. Daring to tie up with Norwegian ally Equinor offers a powerful hedge and a springboard.

Biofuels comeback will give West a rare energy win

20 Dec 2023

Propellants from plant waste and animal fats have lost out amid an e-mobility push. Yet the difficulty of using electricity for planes and ships, and the rise of non-edible crops as feedstock, will offset food supply fears. Western groups like BP, Total and Eni will benefit.

Santa puts coal stocks in stockings for last time

19 Dec 2023

Producers of the dirty fuel, like Peabody and Arch Resources, have generated excellent returns over the past two years, a trend that may continue in the near term. But government policies are rapidly eroding demand. Fewer investors will want the shares in Christmases future.

COP28 deal just about keeps net zero on the road

13 Dec 2023

Nations at the climate shindig agreed to start transitioning away from fossil fuels. The wording could have been tougher and clearer, and the world still faces harmful warming. But the Dubai meeting could have yielded a damaging standstill, rather than a baby step forward.

Global energy fissures are a risk for the West

12 Dec 2023

Falling oil prices despite recent cuts imply a weak OPEC+. Yet the producer group may increasingly align with other emerging market states on areas like Russia and climate change. In this Exchange podcast commodities expert Helima Croft says that’s an issue for Europe and the US.

Woodside-Santos energy merger hurdles look high

8 Dec 2023

The Aussie duo are discussing a $52 bln deal. Both are industry laggards, paying a big premium would be hard to justify and regulators may object even though Big Oil is consolidating in the US. That could hand foreign rivals like ConocoPhillips and BP a dealmaking advantage.

 

Energy transition investing is caught in traps

8 Dec 2023

COP28 attendees pledged to triple renewables, but there’s still no plan to quit fossil fuel. Brookfield’s $13 bln joint bid for Aussie emitter Origin lined up a poster child deal for how companies can make the leap. Its failure has lessons for the world’s broader efforts.

Capital Calls: KKR’s green bargain

7 Dec 2023

Concise views on global finance: The buyout group is offering 1.4 bln pounds for battery and smart metering company SMS. It’s a cheap price. Yet the high rates that have pummelled the stock may soon ease.