Oil & Gas

US linkup with Saudi could cause OPEC shift

10 Oct 2023

Spiraling conflict in the Mideast could spur tougher US sanctions on Iran. That might lead to a US-Saudi rapprochement. Power, then, moves away from the rest of OPEC. Saudi is in a tough spot, but the US could grow even mightier in the fossil fuel market.

Exxon $60 bln deal would mark shale’s middle age

6 Oct 2023

Buying Pioneer, a huge producer of oil in the US Permian, would be a mega-acquisition even for Exxon, but a rational one. It could offer a reasonable return, and the ability to exploit future oil-price spikes. For a maturing Pioneer, now isn’t a bad time to settle down.

China is swing factor in diesel’s global squeeze

5 Oct 2023

Russia’s export ban on the fuel may prove a temporary scare. But low inventories in the US and Europe, spiking crude prices and a colder winter could keep it in short supply. The key variable, though, is whether China helps ease the pressure by raising export quotas.

Oil spike offers only a brief boon for Fed and MbS

21 Sep 2023

Crude prices are up 25% since July, swelling the Saudi crown prince’s budget. Fed boss Jay Powell wins too: he can use it to justify inflation-busting high rates. Yet long-term, a surfeit of energy demand over supply will complicate life for both central bankers and oil tsars.

Big oil lawsuits are riskier than quitting tobacco

18 Sep 2023

California is suing fossil-fuel companies, alleging tens of billions in climate-related damages. Decades of litigation forced tobacco firms to pay up. The tension is that, while global warming’s ravages imply higher costs, US oil production is crucial amid tightening supply.

BP CEO exit raises strategy and board questions

14 Sep 2023

Bernard Looney resigned after he failed to disclose past relationships with staff. In this Viewsroom podcast, Breakingviews columnists debate what that means for the oil giant’s commitment to net zero, and whether BP’s board did all it could have done.

BP succession fail puts spotlight on its board

14 Sep 2023

Chair Helge Lund and his colleagues could have lined up a replacement for now-departed boss Bernard Looney when issues over his conduct surfaced last year. They didn’t. Before rushing to appoint a new CEO at the $110 bln oil group, they should interrogate their own performance.

BP CEO’s exit brings strategic impasse to a head

13 Sep 2023

Bernard Looney quit as the $112 bln oil group’s boss over past relationships with colleagues. BP shares lagged rivals during his tenure due to an ill-timed pivot to green energy. His replacement will have to decide whether to stick with the strategy, or pivot back to oil and gas.

Time to target fossil fuel demand, not supply

11 Sep 2023

Climate activists want countries and companies to stop producing oil, gas and coal. It would be more effective to focus on cutting demand for fossil fuels – by campaigning for carbon taxes, green subsidies and faster licences for renewable energy, says Hugo Dixon.

Double defensive gas deal offers relative cleaning

6 Sep 2023

Canadian pipeline firm Enbridge wants to reduce dependence on transporting oil. Dominion Energy wants to concentrate on clean electricity. Selling retail gas distribution businesses for $9.4 bln to Enbridge doesn’t directly reduce emissions. But it does make both look cleaner.

African coups will exacerbate grab for resources

30 Aug 2023

Military revolts in Niger and Gabon are destabilising two resource-rich nations. That’s bad news while the continent struggles with rising interest rates, no market funding and poor governance. Uncertainty will intensify global powers’ rivalry for control of oil and minerals.

Aussie gas strike risk has market fighting old war

24 Aug 2023

Possible industrial action on key rigs added 41% to the fossil fuel’s European price. Yet with storage nearly full, it trades at a fraction of last year’s peak. Real fear of a new supply crunch would lift it far more. No wonder Woodside and Chevron are taking talks to the wire.

OPEC’s oil sweet spot may not last long

11 Aug 2023

Crude prices have risen some 20% since the cartel and Russia extended supply cuts in June. The spike owes much to falling inflation and hopes of a soft landing. Yet risks around China and US growth persist, and seasonal demand will soon fade. Oil producers may need to do more.

Capital Calls: Uber’s road trip to redemption

1 Aug 2023

Concise views on global finance: The $95 bln ride-sharing firm notched its first operating profit and more than doubled free cash flow, but its valuation is lagging.

Shell may as well try green plug for valuation gap

27 Jul 2023

The $204 bln group’s shares have outperformed US rivals since it flagged a renewed focus on oil, but still lag Chevron and Exxon Mobil. New boss Wael Sawan could try to close the gap by listing his green energy bits. It’s not certain to work, but is better than more buybacks.

Glencore deal epitomises net zero’s reduced status

27 Jul 2023

The $75 bln miner used to argue it was better to wind down its coal assets than sell them to a less responsible owner. Now CEO Gary Nagle wants to buy a rival and spin off the enlarged coal unit. Investors, distracted by energy security and fat profits, are unlikely to stop him.

Fading Russia windfall will test Ambani’s ambition

24 Jul 2023

Earnings at the Indian tycoon’s $210 bln Reliance disappointed. The high crude refining margins driven by the dislocation in energy markets are evaporating. As weak global demand bites, scrutiny will intensify on the conglomerate’s newer consumer-facing businesses.

Russian crude imports expose India forex struggle

18 Jul 2023

The UAE is the Modi administration’s new target as it tries to make the rupee a global trading currency. Sanctions-hit Russia wasn’t keen, so refiners like Indian Oil have to settle deals with Moscow in yuan. New Delhi has yet to show it’s offering more than a speculative bet.

Warren Buffett flaunts his green investment thumb

17 Jul 2023

Berkshire Hathaway is paying $3.3 bln for control of a liquefied natural gas facility. The conglomerate’s utilities now account for about half the conglomerate’s capex. Regulated returns help, but the Oracle’s funding devoted to energy transition should be a sign to laggards.

European gas security rests on a fragile balance

14 Jul 2023

Mindful of last summer’s mad price rally, EU states have lots of the fossil fuel in storage. This, plus higher Chinese purchases, may keep European contracts below Asian ones. But that may prompt US cargoes of liquefied gas to head East, lifting European gas prices again.