Oil & Gas

Coronavirus infects air over global markets

9 Mar 2020

Monday’s plunge in oil prices and signs that Western nations may act drastically to slow the virus reversed a Chinese stock rally; some major Asian indexes fell 6%. Any benefits of cheaper energy are overshadowed by fear of the unknown in export dependent East Asia and beyond.

OPEC Russian roulette yields circular firing squad

6 Mar 2020

Moscow has rejected the cartel’s pleas for a supply cut to ease a virus-linked demand slump. Given the scale of the oil market imbalance, an inadequate deal was the best that could have been hoped for. But OPEC’s efforts to force the issue look like leaving everyone worse off.

Exxon positions as the climate-doubter’s choice

5 Mar 2020

Boss Darren Woods has reaffirmed he is actively pursuing fossil-fuel projects as rivals cut back. Success would bolster Exxon’s dismal returns. But Woods’ faith in Big Oil’s longevity makes the U.S. oil giant something of an outlier. At least investors have options.

OPEC readies knife for oil demand-slump gunfight

3 Mar 2020

The cartel and its Russian allies are set to curb crude supply again, to counter a virus-induced price fall. But even a 1 mln barrels per day cut may not do the job. To hike prices, OPEC needs Russia to prove helpful, Libya to stay troubled, and the coronavirus to not get worse.

Oil’s plunge ratchets up “peak crude” anxiety

2 Mar 2020

The spread of coronavirus has contributed to a one-quarter plunge in oil prices, and even torpedoed the industry’s global pow-wow in Houston. Demand could decline for the first time in a decade. This new demand shock will steal valuable time from companies preparing for peak oil.

Rio Tinto’s green pivot suffers by new comparisons

26 Feb 2020

The miner wants carbon emissions to be net zero by 2050. That’s good, but unlike BP’s recent goal it doesn’t include CO2 produced by customers. A post-virus stimulus from Beijing will be a boon to the China-dependent Rio, but could strengthen the case for greener credentials.

Texas becomes oil vampire squid

21 Feb 2020

Even though fracking doesn’t produce corporate profits, the Lone Star state’s plentiful oil continues to attract investment. That’s been a boon for state coffers. But much like OPEC, U.S. drillers elsewhere are feeling the squeeze. Texas’s success is at the expense of others.

Viewsroom: BP, Delta shift out of climate neutral

20 Feb 2020

The British fossil-fuel giant and the largest U.S. airline have each pledged to effectively stop emitting carbon over time. The ambition is encouraging and puts them ahead of most rivals. But both fall short on all-important details. There’s plenty of runway to do better.

Rosneft’s sanctions yellow card won’t turn red

19 Feb 2020

The Russian oil giant’s trading subsidiary is the target of the toughest form of U.S. sanctions over Venezuela. Unlike 2018 curbs on Rusal and En+, it shouldn’t hurt Rosneft much. Tougher measures are unlikely given the unwanted surge they might trigger in oil prices.

BP leaves investors in a better sort of limbo

12 Feb 2020

New boss Bernard Looney has unveiled ambitions to largely eliminate the oil giant’s net carbon emissions by 2050. That’s more enlightened than most peers, and better than previous goals. But without a clear road map, shareholders can’t work out what the company will be worth.

Virus reveals China as global oil’s swing consumer

6 Feb 2020

Saudi Arabia may cut output to offset a demand slump due to the coronavirus. The People’s Republic’s thirst for imported oil, and uncertainty about the length and severity of the crisis, make that a tricky call. Getting it wrong risks opening the door to other exporters.

Oil swoon entrenches BP’s strategic quandary

4 Feb 2020

The UK oil major delivered decent 2019 results on CEO Bob Dudley’s last day. New broom Bernard Looney is taking over an improved balance sheet and a hiked dividend. But the virus-led crude price slump makes it harder for him to steer the group away from harmful carbon emissions.

Exxon head-in-sand tactics leave investors wanting

31 Jan 2020

The $274 bln oil giant needed an asset sale to avoid a dismal quarter. Playing catch-up in the Permian is costing it dearly. Boasting about its Guyana project raises questions. And its stock is the worst performer among its fossil-fuel peers. CEO Darren Woods is living in denial.

Shell faces slog to keep least-bad oil major title

30 Jan 2020

The Anglo-Dutch group’s emissions stance is tougher than peers, but rivals like BP may soon catch up. Shell could hold its lead by further embracing lower-yielding renewables. Yet that might add to pressures obliging CEO Ben van Beurden to slow the pace of a $25 bln buyback.

Nord Stream 2 exposes the limits of U.S. sanctions

29 Jan 2020

Washington dislikes the new gas pipeline from Russia to Germany, and tried to stop its construction. But Moscow can bear the likely delays, and sanctions won’t be extended to Nord Stream 2’s users. It’s hard for the U.S. to be tougher when its own Russian stance is muddled.

Virus panic makes OPEC cat-herding even harder

28 Jan 2020

Oil prices have dipped below $60 a barrel on fears the coronavirus will hit growth. The Saudi-led producers group already has a job convincing the likes of Russia to keep supporting cuts agreed in December. The virus jitters might make others, such as Riyadh, want to double down.

Energy debt woes are a canary in the shale mine

27 Jan 2020

U.S. oil and gas group McDermott is filing for bankruptcy and Chesapeake may default after undisciplined deals left them crumbling under piles of debt. Low natural gas prices are a bigger problem than oil right now. But their woes are a warning for the likes of Occidental.

Exxon is climate activism’s great white whale

16 Jan 2020

The $292 bln oil producer is too big to push around, even though it’s at odds with green priorities of investors like BlackRock. Boss Darren Woods almost never shows up for earnings calls. Still, shareholders could land a blow by aiming anew at Woods’ dual chair-and-CEO role.

Occidental CEO gets no deal peace from Middle East

9 Jan 2020

Rising Mideast tensions have lifted both the oil price and the $40 bln driller’s stock. But Oxy is still worth far less than before CEO Vicki Hollub’s pricey Anadarko swoop last year. With Carl Icahn agitating, she needs to boost performance, or risk being ousted.

Aussie petrol station bidding war lacks fuel

8 Jan 2020

UK-based EG Group is interested in buying pump operator Caltex Australia, raising pressure on Canada’s Couche-Tard to up its $6 bln offer. Its costs could already far exceed returns, however. For the target, it’s only a possible relief from a fraught go-it-alone IPO plan.