Fossil Fuels

Capital Calls: Blowout banker pay helps New York

23 Mar 2022

Concise views on global finance: A 20% surge to record bonus levels across the city’s securities industry reflects a post-Covid rebound and will also boost its coffers.

Nickel gets nixed, French firms linger in Russia

17 Mar 2022

The war in Ukraine is affecting far corners of global finance. In the Viewsroom podcast, Breakingviews columnists explain how the conflict helped bring nickel trading to a halt in London. And why oil giant Total and carmaker Renault are resisting the exodus by Western companies.

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.

Saudi’s MbS will eventually take Biden’s call

10 Mar 2022

America cannot plug the shortfall from cutting off Russian oil. Increased output from OPEC, and particularly Saudi Arabia, is key. De facto leader Mohammed bin Salman isn’t eager to help the U.S. president, but needs the endorsement of Western cash to transform the economy.

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.

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.

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.

Capital Calls: Ford’s private equity playbook

2 Mar 2022

Concise views on global finance: The Detroit automaker’s reorganization plan makes explicit the goal of squeezing its traditional car business for cash to fund its electric future.

How Europe can kick its Russian gas habit

1 Mar 2022

Conflict in Ukraine shows the folly of the continent depending on gas from Moscow. Speeding up renewable energy would help. To get to zero in a decade, however, Europe will also need other sources of gas, more nuclear power, multi-nation coordination and even consumer rationing.

U.N. climate report takes aim at net-zero 2050

28 Feb 2022

The world is moving too slowly to stop global warming, per the multinational body’s latest study. Ditching fossil fuels will reduce natural and man-made disasters. But too many governments and companies use the mid-century emissions targets to delay action. That’s unsustainable.

Capital Calls: Theme park M&A, Energy IPO

16 Feb 2022

Concise views on global finance: Cedar Fair rebuffed a takeover offer from rival amusement park operator SeaWorld, but other buyers may be reluctant to join the ride; The $8 bln Vaar Energi, majority owned by Italy’s Eni, sees its shares dip on their first day of trading.

High power prices are no reason to ditch net zero

14 Feb 2022

Some politicians blame soaring energy costs on the global drive to cut carbon emissions. Yet climate change policies don’t explain the price spike, while investment in oil and gas is high enough. The criticism risks undermining tougher challenges like reducing demand for power.

BP inserts wind in sails of its energy transition

8 Feb 2022

The $110 bln UK group joined oil peers in reporting bumper results. But it also pledged to maintain fossil fuel profitability despite cutting output, and gave new 2030 targets for its low-carbon growth business. That could start to revive its becalmed valuation.

Shell oddly well placed to resist oil’s siren call

3 Feb 2022

The $200 bln UK driller is keeping a lid on new investment, despite $90-a-barrel oil prices. A court order to cut emissions and investors’ desire for cash explain why. But Shell’s recent exit from shorter-life U.S. shale makes a sensible ramp-up of new output harder anyway.

OPEC gets closer to a Wizard of Oz moment

2 Feb 2022

When the curtain fell back, the fairytale character’s powers proved bogus. The cartel’s ability to steer crude prices rests on the market believing it can boost production. Challenged members like Angola make that tricky, raising the risk oil prices soar higher still.

Italy energy firm dive is Rome’s latest hot potato

1 Feb 2022

Oil services firm Saipem may need at least 1 bln euros of fresh equity after warning of a loss just three months into a new business plan. The shock puts pressure on new CEO Francesco Caio. Given the uncertainty, top investors Eni and the Italian state may foot most of the bill.

The Exchange: Hydrogen wave

27 Jan 2022

Can green hydrogen decarbonise big chunks of our economies? Air Products CEO Seifi Ghasemi, who’s backing the carbon-free gas in a major Saudi Arabia project, thinks so. He tells Lisa Jucca how his $61 bln group plans to be the world’s top green hydrogen producer in five years.