Oil & Gas

High gas prices demand creative climate thinking

13 Sep 2021

The rising cost of the fossil fuel in Europe risks bigger energy bills for households. Public ire would make it harder to secure a decent deal at November’s global climate summit. Politicians can avoid that by taking steps to shield the poorest from the costs of decarbonisation.

UAE oil IPO looks safer than Saudi for foreigners

6 Sep 2021

Two years after largely spurning Aramco’s listing, international investors have another chance to buy into a Gulf national oil group. At a potential $11 bln, ADNOC’s drilling arm is smaller and in a less tricky locale. A successful sale would confirm the UAE’s overseas appeal.

Capital Calls: U.S. jobs, $7 bln tax settlement

3 Sep 2021

Concise views on global finance: Slow U.S. job growth signals caution for the Fed; meanwhile, a giant deal between hedge fund executives and the IRS gives legs to President Biden's tax plans.

BHP brawl tips why nickel will cost pretty penny

1 Sep 2021

The miner’s agreed deal for Noront must contend with billionaire Andrew Forrest. His Wyloo Metals’ new offer tops BHP’s by 27% and would keep the Canadian company listed. A hot market for electric-car batteries makes buying even rocky projects like ones in the Ring of Fire tough.

Capital Calls: Pfizer M&A, Uber driver status

23 Aug 2021

The drugmaker has agreed to acquire Trillium Therapeutics for $2.3 billion, looking to its broader post-coronavirus strategy; a California judge has struck down a law exempting tech companies from treating drivers as full employees, complicating their push to keep costs down.

BHP climate parcel pass would oil buyer’s regret

16 Aug 2021

The miner is in talks to sell its petroleum unit to Woodside for a mooted $15 bln. It’s a decent price for the seller, and cost cuts would make it stack up for the bidder. But there’s a big risk these assets are sharply devalued on carbon concerns sooner rather than later.

Aramco’s tricky balancing act gets easier

9 Aug 2021

The Saudi oil giant’s ultimate boss, Crown Prince Mohammed bin Salman, wants it to help fund the kingdom’s pivot away from crude. A strong first half makes it easier to do that and pay dividends. Unlike last year, Aramco can also meet its various demands without debt spiking.

Cox: Saudi may have a super-green future after all

5 Aug 2021

At a recent G20 summit, the kingdom didn’t just align with U.S. and European climate crusaders. Its delegates even tried to break an impasse with India on coal. It’s a sign of how confident Saudi has become in its ability to manage, and profit from, the energy transition.

BP’s oil price boon is a mixed blessing

3 Aug 2021

Rising crude values allowed the $84 bln UK group to raise its payout and give CEO Bernard Looney more funds to pivot away from fossil fuels. But the bonanza could focus investor minds on less speedy rivals with scope to pay higher dividends, like Shell. That may hurt BP’s appeal.

Capital Calls: Aussie oil deal, Fund services M&A

2 Aug 2021

Concise views on global finance: Santos’ improved and agreed offer for Oil Search comes at a discount to its rejected first attempt; Sanne’s dealmaking poker face looks set to be vindicated.

Exxon saves oil that will have nowhere to go

30 Jul 2021

The $250 billion giant booked its highest profit in more than a year as oil prices top $75 a barrel. Darren Woods’ firm is showing restraint, getting more from pumping less. That’s important to sustain profit now. When the party ends, Exxon may have squandered an opportunity.

Big Oil’s generosity has limited shelf life

29 Jul 2021

Royal Dutch Shell and Total will return billions of dollars to investors. High crude prices mean they can cut debt, invest in green energy and crank up payouts. Such largesse may get harder given growing pressure to cut emissions. Prudent payouts will limit future disappointment.

BHP’s oil exit would be better sooner than later

21 Jul 2021

The mega-miner is reported to be mulling a $15 bln sale of its petroleum arm. The subsidiary’s status as a profit engine amid rising energy prices makes it a tough decision. But even if done at a knock-down rate, CEO Mike Henry can burnish BHP’s allure with oil-hating investors.

Aussie oil deal drills into some messy territory

21 Jul 2021

Embattled Oil Search rejected a $6.5 bln offer from rival Santos. A merger would help clear up the target’s poor governance and improve the bidder’s balance sheet. And yet a takeover looks a financial stretch for Santos and could devolve into a value-destructive bidding war.

Elliott aims for a more bite-sized Duke Energy

20 Jul 2021

The activist investor wants the large U.S. utility to split in three. That might help the parts to be better run, but they would also be easier to sell, and regulators might be more likely to let such deals through. A carve-up could be the cure for Duke’s underperformance.

Capital Calls: Chinese hacking, Tencent

19 Jul 2021

Concise views on global finance: When the only response to China hacks is harsh words, companies will pay the price; the $680 billion technology giant places a heavyweight bet on UK gaming group Sumo.

Oil nudging the $100 mark is not a terrible thing

6 Jul 2021

Crude prices have topped $75 a barrel as the recovery drives demand and a lack of investment hits supply. Higher prices should give majors like BP and Exxon a cash windfall to aid their green transitions. They will also drive big consumers to think about energy alternatives.

OPEC spats are less important than its sweet spot

6 Jul 2021

The UAE stymied a deal to unwind oil output cuts. That will further strain relations with Saudi Arabia, but Riyadh will probably find a compromise. Meanwhile, the cartel and its allies have unusual scope to keep crude prices high without losing market share to U.S. producers.

Viewsroom: Wall Street is open again and booming

24 Jun 2021

From Morgan Stanley to BlackRock, the world’s top investment banks and money managers are back in their offices and super busy with mergers, IPOs, LBOs and other activities thumping. Plus, Soho House and Wise go public and green hydrogen megalomania on the Congo river.

U.S. gas tax should be guzzled while it can

18 Jun 2021

America’s truck obsession is partly due to fuel prices that are among the lowest in the world. Upping the toll could help pay for a $1.2 trln infrastructure plan. Plus combustion engines are becoming obsolete and fuel usage is falling. Lawmakers might as well seize the moment.