Oil & Gas

Pricey oil gives Kazakh investors emergency cover

7 Jan 2022

Russia sent troops to quash a revolt in its neighbour. Even if President Tokayev keeps his job, energy majors like Chevron and Shell will fear fallout from the unrest. With the state reaping the rewards of oil at $80 a barrel, there’s less incentive to renegotiate their terms.

Exxon CEO’s big problem is Texas, not just climate

6 Jan 2022

The drum beat to replace Darren Woods, who took over the $280 bln oil major in 2017, is increasing. Oil prices are higher now than then. But capital intensive, shale drilling isn’t what the world needs as it transitions. His big bet on the Lone Star state may be his undoing.

Kazakh gas revolt is timely canary in the coalmine

5 Jan 2022

The central Asian state’s government has fallen after it removed a price cap on liquefied petroleum gas. Kazakhs have a host of local grievances other than energy costs. But commodity spikes will also cause fireworks in European states unless politicians cushion the blow.

EU’s anti-greenwashing crusade takes a risky turn

5 Jan 2022

The bloc’s new draft of its green taxonomy includes gas and nuclear power. The risk is a tool intended to make sustainable financing less prone to greenwashing does the opposite. A lot hinges on whether investors properly differentiate between clean and “transition” activities.

The Exchange: Environmentalist on Exxon’s board

28 Dec 2021

Kaisa Hietala was one of the directors elected by shareholders in May through activist Engine No. 1’s successful campaign to green up the $250 bln oil giant. The former Neste executive from Finland sat down with Rob Cox to explain her vision for creating sustainable businesses.

Nordic $20 bln deal sets high bar for oil mergers

22 Dec 2021

Aker BP is acquiring Lundin Energy’s fossil fuel assets using cash and stock. Both sides emerge with a stake in a low-cost big hitter, better able to negotiate oil’s decline. The billionaire Lundin brothers get a smoother path out of the sector, and arguably a small premium.

Europe tightens energy noose round its own neck

17 Dec 2021

Germany will not certify Nord Stream 2 until the second half of next year. The Baltic pipeline is a hugely flawed solution to Europe’s energy security shortcomings. But the main losers from delaying its launch are likely to be its own consumers, rather than Russia or Gazprom.

Fortescue unearths transition leadership challenge

10 Dec 2021

The Aussie miner’s CEO will step down, a year after Chairman Andrew Forrest unveiled his bold green-hydrogen plans. Straddling iron ore and new energy is no easy feat. Others trying to remake themselves for a new era also will wrestle with finding the right person for the job.

Exxon and activists have one point in common

9 Dec 2021

Some of the fossil fuel giant’s investors think the new board isn’t making enough progress on carbon targets and want boss Darren Woods to go. With oil prices above $70, the board can resist most of their demands. But both sides have an interest in keeping investment in check.

Aramco pipeline is net win for BlackRock and Saudi

7 Dec 2021

The oil giant is raising $15.5 bln by selling 49% of the cash flow from its gas pipes to the fund giant and partners. Backing from blue-chip investors helps Riyadh unlock international finance. For BlackRock, a 10%-plus return compensates for supporting a major carbon emitter.

Exxon climate pledges pick low-hanging fruit

1 Dec 2021

The oil giant will meet its 2025 goal for cutting carbon emissions four years ahead of schedule. It now plans to cut company-wide output by 20% by 2030, without lowering returns on investment. New activist directors have more to do if Exxon is to catch up with European peers.

Capital Calls: Wise, Swedish oil

30 Nov 2021

Concise views on global finance: The 8 bln pound money-changer raised its revenue targets; $10 bln Swedish oil company Lundin Energy may be considering M&A options.

Capital Calls: Remy Cointreau, African petrol

25 Nov 2021

Concise views on global finance: With profits soaring, the cognac maker will face mounting pressure for M&A; commodity trader Vitol buys out minority shareholders in London-listed fuel distributor Vivo.

Joe Biden constructs a club of oil guzzlers

23 Nov 2021

The U.S. president along with China, India, and other nations that consume about half the world’s crude will tap stockpiles. Despite banding together, these fossil fuel users will have less impact than OPEC in the near term. But striking such alliances makes sense longer term.

Capital Calls: Eni spinoff

22 Nov 2021

Concise views on global finance: The $50 bln Italian oil group has a new name for the renewable energy and retail arm it plans to partially list.

Reliance-Aramco no-deal is sign of the ESG times

22 Nov 2021

A Saudi plan from 2019 to invest $15 bln into the Indian company’s refining arm is being re-evaluated as Reliance’s green ambitions complicate matters for both sides. The impasse reflects the hectic pace of the energy transition, and the cheap capital available to fund it.

Icahn’s Southwest Gas mixtape has all the hits

19 Nov 2021

The activist is blasting overspending, making a hostile tender offer, criticizing a major deal and pushing for a breakup in his campaign at the $4 bln U.S. utility. They are classic Icahn tactics. But history suggests investors might do best if he gets only some of what he wants.

Viewsroom: European bank M&A, De-Dutching Shell

18 Nov 2021

Big lenders in the euro zone are doing deals, but not the kind investment bankers dream about. BNP Paribas is in U.S. retreat, BBVA bulks up in Turkey and KBC goes Bulgarian. Liam Proud explains. George Hay explains why the Anglo-Dutch oil major is dropping the Dutch bit.

Belarus’ gas muscle-flexing is self-sabotage

16 Nov 2021

President Lukashenko may regret his threats to disrupt flows of Russian gas to Europe. The pipeline crossing his territory is already of waning importance. By potentially hastening the opening of Russia’s Nord Stream 2 line to Germany, he’s bringing forward its retirement.

Shell’s Dutch exit comes with legal side benefits

15 Nov 2021

Shifting its tax residency to the UK, along with its head office and CEO, simplifies the $170 bln oil major’s structure. It also makes it easier to reorganise for the energy transition. The implied snub to the Dutch court which ordered Shell to cut emissions is an added bonus.