Fossil Fuels

Breakdown: Uneven CO2 prices are better than none

11 Dec 2015

Plenty of governments and executives support a uniform carbon emissions cost. Yet it’s unlikely one will emerge from the U.N. climate change confab. That’ll leave a hodge-podge of local schemes in place. As the need for energy innovation rises, it beats having nothing.

Fossil fuels deserve dispassionate analysis

1 Jul 2015

Coal, oil and natural gas are dirty and contribute to global warming. They also make the global economy hum. Substitutes remain more expensive. That matters most in poor countries where GDP growth does the most good. A wise climate policy would count up both sides of the ledger.

U.S. oil chiefs march offbeat to carbon drum

8 Jun 2015

Even as the G7 tries to phase out fossil fuels and Europe’s corporate titans push to price emissions, bosses like Chevron’s John Watson snub the idea, saying “customers want affordable energy.” The steady beat for change means U.S. companies may cede the chance to shape policy.

Coal IPO may buck broader U.S. industry downturn

1 Apr 2015

Consol is preparing to float some anthracite assets. Coal is a troubled business, but the $6 bln U.S. energy group’s mines need little investment and make money at current low prices. And the stock offering is also being packaged as an MLP, which brings some handy tax benefits.

Encana’s pirouette demands greater fanfare

29 Sep 2014

The Canadian driller’s $7 bln acquisition of Athlon Energy cements a commitment to move from gas to shale oil. It’s paying a full price, especially after the recent fall in crude to $94 a barrel. If Encana can get the transition right, though, its valuation will deserve a lift.

Fed adds urgency to Indonesia’s fuel reform test

20 Aug 2014

President-elect Joko Widodo’s first big challenge will be to rethink the country’s $30 billion energy subsidy. Though higher fuel prices will be unpopular, the handout boosts the trade deficit. That makes Indonesia extra vulnerable to capital flight when U.S. interest rates rise.

RWE, E.ON gain little from German energy revamp

8 Apr 2014

Coal and gas power generators might hope to profit from a reform of costly subsidies for solar and wind power. But while the government is trying to cut costs, the target - almost doubling the share of renewables by 2025 - hasn’t changed. RWE and E.ON will continue to suffer.

German push to green power is brave but risky

24 Apr 2013

Europe’s industrial leader wants to wean itself off nuclear power and fossil fuels, so Germany will become the world’s test laboratory for renewable energy. The policy is farsighted, but in urgent need of more German efficiency to keep costs under control.