Oil & Gas

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.

Is Italian real estate key to Tamoil deal?

6 Jun 2007

US private equity shop Colony Capital paid Libya E1bn more than the market expected for a big chunk of its oil marketer, Tamoil. Colony is buying into refining at the top of the market. But the deal could make sense if it can sell Tamoil s Italian service stations.

Is Gazprom getting too big?

30 May 2007

The Russian gas monopoly is taking on evermore ambitious projects, raising questions about its ability to handle the risk. But even if these projects take longer to develop, Russia may not care much. After all, it is playing a longterm game.

Suez ‘s move on Gas Natural could be its plan B

15 May 2007

The French utility's merger with GdF is in jeopardy, while the Spanish gas group's own takeover of Endesa failed. Increasing its stake in Gas Natural to 11% is a small step. But given Suez's close relations with La Caixa, further steps seem likely.

Newest private equity threat: antitrust scrutiny

30 Jan 2007

The Federal Trade Commission viewed the firm s overlapping interests in the energy sector as a threat. This may just be the start. The buyout industry boom has created behemoths with potential for market abuse. That s the read from last week s Carlyle crackdown.

Time for Suez to call off the merger with GdF

1 Dec 2006

A French higher court decision has postponed the deal until July 2007. This looks like the final nail in the coffin. For Suez shareholders, seven months would be too long a wait. The company should call it quits and look for other ways to maximise value.

Russian gas cartel all too plausible

14 Nov 2006

The Kremlin certainly uses gas as a political weapon, as Nato suggests. It squeezed Ukraine and is now trying to get Georgia. But the EU is not at Russia's mercy. Moscow needs its goods and goodwill.

Belgium is another monkey on Suez’s back

3 Oct 2006

Before approving Suez's merger with GdF, the country wants a golden share. That's on top of France's golden share. Having two countries potentially meddling in its affairs could turn Suez into the energy equivalent of Airbus.

UK shouldn’t jump on protectionist bandwagon

18 Apr 2006

News that the UK considered changing the law to protect Centrica from a bid by Gazprom isn t just embarrassing, it s also confusing. It would be a shame if the UK followed its neighbours down the protectionist road. If it plans to do so, it should explain its new approach.