Oil & Gas

China’s Russian energy pause looks very temporary

8 Apr 2022

Companies are holding off new oil purchases to avoid stumbling into secondary sanctions. But the Chinese are top owners of Russia’s key gas export facilities in the strategic Arctic. Beijing has a strong incentive to resist disruption to its long-term energy security plans.

Capital Calls: Buffett’s HP bet, Gambling M&A

7 Apr 2022

Concise views on global finance: Berkshire Hathaway takes a hefty stake in the computer and printer maker; Betting group 888 negotiates a better price for buying UK bookie William Hill.

Gazprom sale fumble triggers canny German pounce

5 Apr 2022

Berlin took control of the Russian group’s key European unit after it tried to engineer a quick sale. The move stabilises critical assets like gas storage facilities and energy suppliers. It avoids the upfront cost of a nationalisation, and buys time for a longer-term fix.

Time for Europe to break energy sanctions taboo

4 Apr 2022

Alleged Russian atrocities against Ukrainian civilians are set to trigger a harsher EU response. Dependency on Russian oil and gas makes Germany and others reluctant to back a full energy embargo. Taxing hydrocarbon imports is a halfway-house option that still hurts Moscow.

Buy gas now, pay later is a hard tiger to ride

1 Apr 2022

Fintech firms Klarna and Zip are offering U.S. punters interest-free instalments as a way to manage higher fuel bills. The fact that consumers use loans to afford mere essentials raises the risk of defaulted payments. And unlike discretionary sales, Klarna isn’t getting a fee.

China jitters, energy decoupling and Russian gold

31 Mar 2022

The war in Ukraine is spurring investors and governments to act fast. In this Viewsroom podcast, Breakingviews columnists discuss foreign cash fleeing Beijing, the West’s rapid plan to de-Russify its energy mix and Vladimir Putin’s options for his $140 billion gold chest.

Uber, Lyft grease driver’s pockets with surcharge

29 Mar 2022

The ride-hailing firms added a 55 cents per-trip surcharge to offset a 50% spike in fuel prices. That should cover the bump in gas and then some. Both firms are competing in a tight labor market, so it’s a start. But they may find they have to open their wallets, too.

Germany’s oil embargo block is short-sighted

29 Mar 2022

Berlin is opposing a European ban on Russian energy. A gas embargo would take months to manage. But stopping oil imports now would be doable, while depriving Moscow of resources to fund the war. And Germany could afford the economic price.

Petrol forecourts can shift to fuel-free future

28 Mar 2022

Despite a push to phase out gas-guzzlers, Britain’s Motor Fuel Group may fetch 5 bln pounds. Selling pricey coffee to drivers charging electric cars offers relatively zippy returns. But beside the threat from home chargers, retailers are muscling in with the same idea.

Russian gas gets harder to buy, but easier to snub

25 Mar 2022

Vladimir Putin’s call for Moscow’s hydrocarbon customers to pay in roubles puts Europe in a quandary. Still, Washington and Brussels are fleshing out a valid Plan B to Kremlin gas. That implies the Russian leader’s power to make market prices go haywire may start to wane.

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.

Total becomes unlikely Russia sanctions poster boy

23 Mar 2022

The French group has belatedly started to pull out of its Russian business. Although it’s not selling local assets or exiting gas, it will stop buying oil. That strengthens the private-sector boycott of Moscow’s crude and puts pressure on governments to take tougher measures.

Energy windfall taxes are messy, unfair, and vital

23 Mar 2022

Europe can theoretically raise hundreds of billions of euros from utilities benefitting from soaring energy prices. To get near that this year, some utilities could be shaken down inefficiently or unjustly. Public anger at rising energy bills means states still have to try.

Aramco health adds spice to Saudi’s yuan dilemma

21 Mar 2022

Riyadh’s $2.3 trln oil giant is looking to hike output. If the kingdom starts to price some crude sales in yuan instead of dollars, higher Chinese exports could increase its stocks of renminbi. That could focus Saudi minds on whether to hitch its future to Beijing or Washington.

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.

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.

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.

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.