Oil & Gas

Ohio oil promises new bonanza for Texas bankers

7 Sep 2011

The first takeover deal in the Utica shale may be modest, but it’s only a start. Some $38 bln of shale-related deals this year account for 80 pct of U.S. exploration M&A. If Ohio’s rock formation yields even half its touted oil trove, energy financiers should be sitting pretty.

Tony Hayward joins risky Kurdish oil rush

7 Sep 2011

The ex-BP boss’s M&A vehicle has landed its first target, a $4 bln merger with Kurdistan’s top oil producer. The deal is part regulatory arbitrage, and part a bet that Iraqi politics will turn good for oil firms. On conventional metrics, it’s a bargain. But it brings major risks.

Libya should adopt oil-wealth transparency

5 Sep 2011

The country’s new leaders must decide how to manage Libya’s oil wealth after funding reconstruction. Opaque handouts might be a tempting way to win tribal loyalties. But it would be better to copy oil-rich Norway and create a transparent and accountable sovereign fund.

Tar sands pipeline environment fears are overdone

30 Aug 2011

Despite a sanguine State Dept, there’s heavy opposition to a $7 bln pipeline bringing Canadian oil to Texas. But oil sands are less dirty than their reputation, and the U.S. buys crude from worse polluters. There are better ways to control emissions than boxing in Canada’s oil.

Big oil faces big unknowns in Libya

24 Aug 2011

With Brent crude at more than $100 per barrel, foreign entities have a strong incentive to restart production as soon as security is ensured. But Libya’s new rulers may want to reshuffle the cards. Even once the fighting stops, oil companies should expect a bumpy ride.

End game in Libya could herald oil slump

22 Aug 2011

The rebel push into Tripoli came sooner than expected. Libyan oil exports should follow suit. The possibility of regional unrest remains. But global growth concerns, and IEA and Saudi moves to make up for the disruption, could turn tight markets into oversupplied ones.

Mexico needs to open door to its oil wider

19 Aug 2011

Bringing foreign firms into a few wells is a positive, if overdue, development. But more radical action is needed if the country is to make the most of its reserves. Only juicier deals for outsiders and better management of its state monopoly Pemex will revive ailing output.

Europe shouldn’t dally on Syrian oil boycott

17 Aug 2011

Proceeds from the country’s oil exports are helping to prop up an increasingly brutal regime. Global markets can withstand the loss of Syria’s supplies. Even if there is a chance that Syria can circumvent sanctions, they remain the best tool available to weaken the regime.

Over-reaction to BP Gulf spill costing U.S. jobs

16 Aug 2011

Oil regulators may have swung from gung-ho to too cautious. Painfully slow drilling approvals mean America could be missing out on 230,000 jobs - and tax revenue, too. Safety matters. But with unemployment and the deficit top national concerns, red tape should be kept in check.

Fretting frackers restrain economic opportunities

12 Aug 2011

Critics of the controversial drilling process contend its hazards have been downplayed and the benefits exaggerated. A new U.S. report suggests just the opposite. Yet until safety concerns are tackled, as with New York’s proposed cleanup fund, shale’s potential won’t be realized.

E.ON rejig is big on ambition but thin on detail

10 Nov 2010

The German energy giant plans to sell 15 bln euros of assets by 2013. But new CEO Johannes Teyssen's strategic review raises as many questions as it answers. And the shares' bounce on the news has done little to compensate for their lacklustre performance since he took over.

Gazprom-Naftogaz deal is political fantasy

4 May 2010

Putin has caused a stir by proposing a merger of the Russian and Ukrainian gas giants. The plan, which would in fact be a Russian takeover, is a nonstarter. Putin can make life hard for Ukraine if he wants. But that's unlikely to make Kiev surrender control of this key asset.

Plummeting natural gas trips producers, investors

19 Aug 2009

A price spike in one product should increase demand for alternatives. But despite oil s rise, natural gas is at a sevenyear low. They may come from the same fields, but they re not interchangeable. And a growing supply glut is causing the gas market a lot of indigestion.

EU must take firm lead in Ukraine-Russia gas row

23 Jun 2009

The European Union is reportedly talking to the IMF about lending money to Ukraine to buy gas from Russia. It seems Europe has finally woken up to its responsibility to intervene in the longstanding row between the two countries. But a resolution must involve more than money.

Enel’s E8bn cash call more than enough

12 Mar 2009

The Italian utility plans to raise up to E8n in a rights issue, probably more than it needs to keep its A credit rating. It also plans to squeeze dividends, sell assets and cut capex. In these turbulent times, erring on the side of caution makes sense.

Exelon puffs chest in dance with NRG

12 Nov 2008

The US utility s $6bn hostile offer for its rival appears shaky it has yet to line up financing. Yet NRG s defences aren t bulletproof either. Exelon may be trying to force a friendly deal and to put a cap on how much it has to lift its bid.

On US petrol tax, there’s only one grownup in the race

1 May 2008

The gas tax holidays of Senators McCain and Clinton are economically nonsensical. They'd increase consumption, worsen dependence on the Middle East, raise oil prices and speed global warming. Clinton s Exxonbashing further distances her from the economicallysensible Obama.

Gazprom’s Nigeria talks challenge, but don’t threaten Europe

8 Jan 2008

The Russian gas giant wants to help develop Nigeria s gas reserves. A state monopoly, it could do so with scant regard for its bottom line. But as its failed partnership with Algeria has shown, Gazprom doesn t always win.

Gazprom tries to muscle in on UK energy market

9 Aug 2007

E.on is interested in a stake in a promising gas field. In exchange the Russian gas giant wants some of the German group s UK assets. But Gazprom is a Kremlin arm. European countries should think hard before they let it roam their energy markets.

Loews still has plenty of hidden value

6 Jun 2007

The Tisch s conglomerate is the sort of outfit Wall Street loves to hate. A mix of assets, it trades at a discount to the sum of its parts. While investors cheered its $4bn natural gas deal with Dominion, and the stock is near an alltime high, there is still more value in Loews.