Oil & Gas

Bob Dudley has made decent lemonade from BP lemons

30 Sep 2019

The oil major’s chief executive may step down next year. The company is in tolerably good shape given the scale of the Gulf of Mexico mess that he inherited nine years ago. Breaking with Dudley’s cautious approach to climate change would allow his successor to usher in a new era.

Exxon Mobil quits North Sea with bags full of gold

27 Sep 2019

The U.S. oil major is shifting capital from high-cost fields to higher-growth areas closer to home. That’s sensible, and a $4.5 bln price tag for its Norwegian operations is a good exit. It’s some consolation for investors antsy about Exxon’s laid-back approach to climate change.

The Exchange: Lord John Browne

23 Sep 2019

The former BP boss-turned-renewable-energy-supporter-turned-gas baron stops by to discuss “Make, Think, Imagine,” his new book that’s part an explanation of and part an ode to the benefits of engineering. As UN Climate Week kicks off, he also discusses his take on global warming.

Climate strikes give governments cover to act

20 Sep 2019

Millions are downing textbooks and tools to demand more action against global warming. People power fueled a mass aversion to plastic. And many ideas and financing vehicles to enable the climate fight already exist. The worldwide protests allow politicians to take a tougher line.

Viewsroom: Not your mother’s oil shock

19 Sep 2019

Saudi Arabia is quickly repairing the damage drones inflicted on its oil industry. But the fallout has implications for everything from security to U.S. shale drillers to climate change-driven alternative energy. Plus: Why are AB InBev and ESR restarting Hong Kong listing plans?

Saudi Aramco is back, and a little less valuable

17 Sep 2019

The oil giant thinks its supplies will have fully recovered from drone attacks by the end of the month. That’s good for Aramco’s credibility, and also for a balanced global market. Yet investors now have a new risk to price in, and oil prices are more likely to remain subdued.

Oil market may help shale, not vice versa

16 Sep 2019

Producers of U.S. oil would struggle to ride to the rescue after attacks on Saudi oil fields put a question mark over the security of future supply. Even so, sustained high prices would be a happy outcome for companies that have a habit of digging themselves into a cash hole.

First oil cut isn’t the deepest for world economy

16 Sep 2019

Crude prices jumped almost 10% after weekend attacks on Saudi oil facilities took out over 5% of global supply. Though the spike is bad for already slowing global growth, reserves can make up for the shortfall. Escalating threats of Middle Eastern conflict would do more damage.

Drones detonate Saudi Aramco’s renewed IPO hopes

16 Sep 2019

Air strikes by Houthi rebels knocked out half the oil giant’s output. The drop should be temporary, and Saudi and OPEC peers need to cut production anyway to gee up crude prices amid weaker demand. Still, it’s another reason for investors to mind the risks of an Aramco listing.

Big Oil’s climate smokescreen is about to clear

13 Sep 2019

Exxon Mobil and others often cite a well-worn global warming scenario to imply their models are sustainable. A major study, by a body whose signatories represent $86 trln of assets, should make that harder. Especially as it will soon shine a spotlight on individual companies.

Some Aramco IPO banks look more equal than others

12 Sep 2019

The Saudi oil giant has picked nine banks as global coordinators for its revived listing. They all get bragging rights. Yet despite the implied equality, they won't all do the same job. Banks that led the first stab at the IPO, like JPMorgan, will still probably call the shots.

GE’s Larry Culp is playing a bad hand well

11 Sep 2019

The CEO is selling what he can to save what he must. Ceding control of oil services firm Baker Hughes will mean a hefty writedown for the conglomerate, but it brings divestments to nearly $20 bln on his watch and reduces leverage. That buys Culp time to fix GE’s troubled core.

Saudi’s new oil tsar makes a bad reshuffle worse

9 Sep 2019

Khalid al-Falih’s abrupt removal as energy minister follows the appointment of Crown Prince Mohammed bin Salman’s ally as chairman of oil juggernaut Aramco. The king and MbS call all the shots. But having a royal as the new oil supremo undercuts any gains from the new structure.

Carmakers’ antitrust probe is more smoke than fire

6 Sep 2019

A pledge by BMW, Ford, Honda and VW to cut emissions has caught the eye of a U.S. watchdog. Some aspects of their deal may deserve scrutiny. But competition between the four, and the industry, is fierce. It’s hard to see how their plans would leave consumers worse off.

European oil majors’ relative green halo slips

6 Sep 2019

The likes of Shell, Total and BP sound more serious than U.S. peers about curbing emissions to accord with the 2015 Paris climate agreement. New research shows that in the most important sense they aren’t. Increasingly, investors may do oil boards’ jobs for them.

Viewsroom: How money really can grow on trees

5 Sep 2019

Done right, reforestation can capture much of the carbon causing climate change. It would improve crop yields and water quality and lessen the power of floods and storms like Hurricane Dorian. There are good financial returns to reap, too. Plus: the Alibaba competitor to watch.

Russian oil group’s cash gusher could stay capped

5 Sep 2019

Surgutneftegaz shares have surged on reports of a new subsidiary, which may unlock its $50 bln cash pile. Yet the boss of the secretive $24 bln energy company is under U.S. sanctions and it’s at risk of fresh ones. The bonanza could just remain a buffer against bad news.

Exxon CEO risks fueling unholy investor alliance

4 Sep 2019

Darren Woods reckons human progress and the unreliability of alternative energy sources justifies investing more in emissions-laden fossil fuels. But his argument ignores the $293 bln driller’s poor returns. That may give financial investors common cause with climate activists.

New Aramco chair bears small plus and bigger minus

3 Sep 2019

The Saudi oil giant has appointed the boss of its sovereign wealth fund to head its board. Potential IPO investors might appreciate Aramco being distanced from the energy ministry. They may not be so keen that the new appointee looks even closer to the kingdom’s crown prince.

China’s oil and gas titans heed the call to spend

30 Aug 2019

President Xi Jinping called for a boost to energy security, and first-half figures suggest state giants were listening: $81 bln Sinopec, for one, nearly doubled capital expenditure. That contrasts with caution abroad. U.S. sanctions only add urgency to national service.