Energy

COP28 wrestles with the nuances of binning oil

7 Dec 2023

The global climate conference in Dubai has seen its fossil fuel-rich UAE host criticised for appearing to contest the need to phase out crude. In this Viewsroom podcast, Breakingviews columnists discuss how the picture is a bit more complex.

Capital Calls: Roche, Brookfield/Origin

4 Dec 2023

Concise views on global finance: The $224 bln Swiss drugmaker is splurging $2.7 bln on obesity drug developer Carmot; the Canadian investment firm’s joint $13 bln bid for Origin Energy has failed. The trick now is to show what lessons it’s learned from its 16-month-plus campaign.

ADNOC German oil deal has bad timing, good logic

28 Nov 2023

Abu Dhabi’s energy giant may bid for BASF-owned Wintershall, in a deal worth $11 bln. As the UAE prepares to host the COP28 climate shindig, that’s a bad look. But buying the German group’s pipeline network may suit ADNOC’s wider aim to bulk up in European petrochemicals.

COP28’s big dilemma: fossil fuel cuts, or fudges

28 Nov 2023

The success of the Dubai climate shindig rests on how much it slashes emissions via cuts to oil production, and how much it relies on carbon storage or removal. In this Exchange podcast, Energy Transitions Commission chair Adair Turner warns against relying on the latter.

Every country needs an Inflation Reduction Act

23 Nov 2023

The US's $370 bln in green subsidies left allies fearing they’d be at a disadvantage. Now they’re realising that adapting the blueprint can unlock private capital, boost economies and speed up the energy transition. Funding remains a challenge, but not an insurmountable one.

Britain solves half of its wind power problem

16 Nov 2023

After a humiliating failed auction, the UK is hiking green energy subsidies. That will draw bidders, and the resulting power should still be cheaper than gas. But to hit a target of 50 GW of offshore wind by 2030, PM Rishi Sunak will need to allot more cash in new bidding rounds.

Siemens Energy solves just one of its many issues

15 Nov 2023

CEO Christian Bruch got 12 bln euros of financial guarantees, including from the German state, which fixes the turbine maker’s urgent problem. But he now faces dividend and bonus restrictions. And reviving the struggling wind-power unit will involve racking up yet more losses.

COP28’s big challenge: green cash for poor states

15 Nov 2023

To hit net zero, rich countries need to find an extra $1 trln a year of public and private cash for the developing world. As delegates head to Dubai for 2023’s key climate shindig, the UAE could bolster its credibility as host by focusing attention and resources on a fix.

Capital Calls: Disney’s Marvel flop, US inflation

14 Nov 2023

Concise views on global finance: Bob Iger’s prized acquisitions Marvel, Pixar and Lucasfilm are losing their mojo, just as his dealmaking mettle is being tested; inflation has eased even as growth looks strong, but warnings from consumers and companies signal potential weakness.

Australia climate refugee policy is hard to scale

13 Nov 2023

Canberra will welcome Tuvalu’s 11,200 citizens as rising seas threaten the Pacific Island country. It’s smart geopolitics from a top fossil-fuel polluter. But unless emissions are cut fast, there will be hundreds of millions of climate migrants clamouring to enter rich states.

Wind woe opens door for alternative green ideas

9 Nov 2023

Shares of Orsted and Siemens Energy are being battered by their inability to boost profits. In this Viewsroom podcast, Breakingviews columnists explain how trouble in offshore wind may encourage investors to back other clean energy segments like battery storage, cables and solar.

Capital Calls: Arm, Insurers’ climate score

9 Nov 2023

Concise views on global finance: The $56 bln chip group said it can’t be sure when certain customer deals will translate into revenue, undermining its quest for a steadier top line; insurers are still too addicted to dirty energy, a new study shows.

Portugal’s crisis threatens growth resurgence

8 Nov 2023

Prime Minister António Costa’s resignation casts a shadow on some of Lisbon’s crucial new energy projects. The relatively vibrant economy was already heading for a slowdown. A swift end to the political upheaval would reassure foreign investors and Lisbon’s EU partners.

Shell’s shrinking green pledge risks backfiring

2 Nov 2023

The $217 bln oil major has upped by 40% a quarterly buyback plan while curbing unprofitable low-carbon activities. CEO Wael Sawan’s focus on fossil fuels has shielded him from the troubles ensnaring BP and Orsted. The strategy can work only if volatile energy prices stay high.

Brookfield’s energy transition Plan C may yet work

2 Nov 2023

The investor’s improved and final $13 bln co-bid for Australia’s Origin looks set to fail after pension fund AusSuper rejected it. A new tweak means the bidders can then launch a tender offer. It would be a desperate messy affair, but Brookfield could emerge with the upper hand.

Orsted’s losing US bets need rethink of UK plans

1 Nov 2023

The Danish wind giant lost a fifth of its value after a surprising $4 bln impairment in the States. That erases most of the capex spent there. Yet it still wants to invest in the world’s biggest economy to meet its lofty targets, a risky gamble that requires restraint in Britain.

Capital Calls: Pfizer pessimism

31 Oct 2023

Concise views on global finance: A glut of vaccines has gutted Pfizer’s valuation, leaving it lower than it was before the pandemic. That’s an over-reaction, even if its Covid-19 therapies prove worthless.

Germany faces tricky call on Siemens Energy aid

26 Oct 2023

The $6 bln firm’s shares slumped 34% on fears banks might not issue guarantees for its projects. Berlin would usually expect investors like parent Siemens, which has a 25% stake, to step in. Yet as Europe ramps up clean energy, there’s a case for state help for existing players.

Real big energy: Exxon and Chevron swim upstream

26 Oct 2023

The two US oil titans unveiled acquisitions worth more than $100 bln combined within weeks of each other. In this Viewsroom podcast, Breakingviews columnists discuss what’s powering the renewed consolidation push, as well as the threats posed to the industry by a greener market.

How to spur investments in greener power grids

24 Oct 2023

Electricity networks need to be upgraded and adapted to a carbon-free world. That means doubling investments to $750 bln a year. With returns uncertain, attracting cash is not easy, Secure Meters CEO Suket Singhal argues in this Exchange podcast. New pricing models would help.