Oil & Gas

Shell might win new energy race by wanting it more

15 Feb 2019

The UK oil major is acquiring German energy-storage group Sonnen. Utilities, carmakers and big tech groups are all converging on the residential-power market. Shell’s need to move quickly to hedge against peak oil demand may give it an edge.

Nigeria challenger is lesser of two outmoded evils

15 Feb 2019

Voters in Africa’s most populous nation must choose between an ageing ex-military ruler and old-school political tycoon. Both are four times the country’s median age. Challenger Atiku Abubakar’s talk of relaxing the state’s economic grip at least has a whiff of the 21st century.

Khashoggi is ghost at Milken’s Abu Dhabi confab

15 Feb 2019

Financiers at the billionaire’s annual Gulf shindig adopted a Trumpian shrug over Saudi agents’ murder of the dissident journalist. Lucrative forthcoming Aramco deals and White House support for the regime explain why. But the issues raised by Khashoggi’s death still linger.

Aramco’s new tangent more rational than it looks

12 Feb 2019

The Saudi oil giant wants to develop oil and gas projects overseas. Like its planned purchase of SABIC, that sits uneasily with other strategic goals. But emphasising lower-carbon gas while burnishing global credentials is sensible.

Chevron climate pay plan may get more out of less

7 Feb 2019

The $230 bln oil giant is tying compensation to emissions cuts. The details may seem less ambitious than Shell’s, and pay is still partly linked to production. But the scheme targets methane, includes most Chevron workers and sets a potent challenge for U.S. rivals.

Total can pay up for Eneco – and may have to

7 Feb 2019

The French oil major could well bid for the Dutch utility. As annual results show, it has the financial heft to pay a big premium. Yet so does Shell, which is equally keen to diversify into power – and with the potential trump card of home advantage.

EQT fight shows never too late to fix a bad deal

5 Feb 2019

A merger with rival natural gas producer Rice always looked overambitious. It has turned out to be a total dud. Now Rice’s founders want control. Their plan looks like it could have saved EQT before the merger. Listening to them now isn’t ideal, but it’s better late than never.

BP beats Rosneft in valuation, not operations

5 Feb 2019

The UK oil major and the Russian group of which it owns 20 pct both delivered strong full-year results. But despite producing more with fatter margins, Rosneft trades on a much lower earnings multiple. Fears of tougher sanctions and exposure to Venezuela mean that will persist.

Breakdown: How to fix Venezuela

4 Feb 2019

The oil-rich Latin American country resembles a failed state. It may need $80 billion in loans and investment if embattled President Maduro departs. At 2013 pumping levels and $50 a barrel, that’s two years’ output for state oil firm PDVSA. A U.S. invasion would be a mistake.

Exxon’s earnings beat creates its own headwinds

1 Feb 2019

The $320 bln oil giant’s Guyana discoveries are swelling, Permian production is booming, and restructuring efforts are paying off. That helped it top quarterly earnings expectations. But CEO Darren Woods’ efforts are adding to a global oil glut, which will limit future success.

Falling prices only hurt Shell in the long term

31 Jan 2019

Despite a crude downturn in the final quarter, the UK oil major hiked output and earnings. Given prices should stay high enough for free cash flow to cover dividends, that’s sustainable. The main cloud is Shell and peers have less to invest to wean themselves off fossil fuels.

Sinochem’s backtrack sends a fresh IPO warning

31 Jan 2019

The Chinese chemicals and oil giant has paused plans to float its refining and trading unit in Hong Kong. Beijing’s behemoths once listed regardless of market conditions, thanks to government-backed peers. The $2 bln U-turn should worry hopefuls without state support.

U.S. oil boom good for everything but profit

30 Jan 2019

Slowing growth and rising American production have knocked nearly 30 pct off Brent crude prices since October. Companies like Chevron and Exxon have responded by ramping up investment in the Permian, but that’s merely aggravating the glut – and making earnings growth elusive.

Abu Dhabi’s $6 bln oil deal is a three-way hedge

29 Jan 2019

The emirate has sold 35 pct of its oil group’s refining arm to two European producers. Italy’s Eni gets to offset a heavy reliance on exploration, while Austria’s OMV gets non-European refining. Abu Dhabi hedges its dependency on crude by turning crown jewels into cash.

U.S. intervention in Venezuela carries retro risk

28 Jan 2019

Uncle Sam is sanctioning state oil firm PDVSA in a bid to spur regime change. President Maduro’s woeful record has united much of the hemisphere in demanding his ouster. But a U.S. history of regional meddling means the Trump administration must avoid arrogance to retain allies.

Venezuela’s Maduro caught in pincer movement

23 Jan 2019

Protesters are demanding the socialist leader’s ouster. Opposition leader Juan Guaidó has, with U.S. blessing, declared himself interim president. But a self-inflicted wound will get Maduro in the end: By tanking oil output, he robbed himself of a key means of clinging to power.

Saudi’s sunny debt offer belies gathering clouds

10 Jan 2019

Riyadh’s successful $7.5 bln bond sale suggests investors have moved on from the Khashoggi murder. Yet long-dated Saudi debt trades at an implied discount to its rating. With the kingdom too optimistic about oil prices and facing peak demand, markets won’t always be so friendly.

Norwegian $800 mln oil swoop succeeds if it fails

8 Jan 2019

DNO, chaired by Bijan Mossavar-Rahmani, offered a low price for Faroe Petroleum. Investors could reject the bid, but the magnate likes to control companies with minority stakes, and already owns 31 pct of the North Sea driller. Any hopes for a big bump may be disappointed.

Hapless oil bets will drive airline M&A

4 Jan 2019

Air operators are divided into two camps on fuel prices. Ryanair and Lufthansa are prepared for a hike after locking in hedges. Smaller carriers are hoping for a fall. If their bet goes wrong, they could be gobbled up.

Saudi oil will grease China’s currency ambitions

4 Jan 2019

Shanghai’s crude contract is nibbling at dollar benchmarks: a win for Beijing, which wants to increase the yuan’s global clout. Riyadh can help it along by pricing more oil in the currency, as Russia moves in the same direction. The benefits for both sides outweigh the risks.