GdF Suez beginnings boosted by high energy prices 1 Sep 2008 With operating profit up 20%, the new French energy giant, born in July from the merger between Suez and Gaz de France, can look ahead with confidence. But investors will need more details about the capex plan and the merger s execution before they can form a serious opinion.
Battlefield Georgia serves Russia’s energy goals 14 Aug 2008 Russian planes did try to bomb the BakuTbilisiCeyhan pipeline, the Wall Street Journal has found. By making Georgia unsafe, Moscow wants to make sure Western countries will think twice before trying to bypass Russia for their energy supplies.
Georgia crisis may not stop oil price drop 11 Aug 2008 How much difference a month makes. In July, crude was about to cross $150 a barrel. Then a Caucasus war would have strewn panic in the market. Now, with oil at $115 and sliding, war has only caused a minor tremor. Unless things change, the bull case for oil is in serious trouble.
OMV wakes up to reality 6 Aug 2008 The Austrian oil and gas group has dropped its $23bn bid for Hungary's MOL after getting a thumbsdown from the EU. OMV shareholders will welcome the end of a long and unwinnable battle. But OMV s record of two failed major deals in as many years looks downright sloppy.
EDF might yet square the nuclear circle 5 Aug 2008 The French power group s offer for British Energy was rejected as too low by some of the UK nuclear generator s shareholders. EDF might be able to bridge the gap with a quirky security the contingent value right. Getting the structure right looks tricky, but not impossible.
Centrica’s hand looks weak in British Energy deal 4 Aug 2008 The owner of British Gas might covet a merger with the UK s main nuclear power operator. But it can t pay cash and a paper bid isn't likely to succeed. The trouble is, a backseat role in EDF s rebuffed approach to British Energy doesn t offer a solution to Centrica s problems.
Nuclear fiasco shows up flaws in UK energy policy 4 Aug 2008 The collapse of the deal between EDF and British Energy is a symptom of a deeper malaise. UK energy policy is becoming increasingly dysfunctional. That s primarily because the country has drifted into a publicprivate entanglement which hampers longterm policy making.
British Energy price demands are unrealistic 1 Aug 2008 The UK nuclear group rejected EDF s £12bn bid as being too low after last minute pressure from shareholders. A higher price relies on heroic assumptions about oil prices and the reliability of British Energy s ageing reactors. It s hard to see EDF returning with a higher offer.
UK nuclear programme is short-circuited 31 Jul 2008 The sale of British Energy to EDF was meant to launch an ambitious UK nuclear energy programme. The government wanted to boost nuclear power generation, cut emissions and improve energy security. Joint venture deals are still possible, but they may be slower and costlier.
ExxonMobil squeezes out a record profit 31 Jul 2008 It s hardly astounding with the oil price peaking above $140 a barrel in the second quarter. But if crude prices hold lower, the $11.7bn profit could be the oil giant s best results for some time and its falling production and rising costs could become a more obvious challenge.
What should ACS do with its E7.6bn windfall? 31 Jul 2008 The Spanish construction company has just made a packet from the sale of 45% of Union Fenosa. There are plenty of good ways to spend the cash say repaying debts. But after making 58% on one utility investment, the temptation to do another Iberdrola might prove irresistible.
Gas Natural pays through nose for Union Fenosa 30 Jul 2008 Spain s largest gas supplier is paying a whopping E17bn to get its hands on the country s thirdlargest utility a 57% premium to the undisturbed value. Having failed twice to buy an electricity generator, Gas Natural was not about to let this one get away.
British Energy sale might spark UK industry 25 Jul 2008 The nuclear power company is reportedly close to being bought by France s EDF and the local Centrica for £12.4bn. The deal would recognise France s technological lead. But it could give Britain a chance to reverse decades of neglect and rebuild part of its manufacturing base.
US campaign against oil speculators needs refining 23 Jul 2008 Legislation that determines who can trade oil futures is gaining steam. But even the futures regulator says speculators aren t driving prices. Yes, the watchdog could use sharper teeth. But with oil well off its recent highs, the new law could do more harm than good.
Oil plunge wouldn’t be unalloyed joy 16 Jul 2008 Sure, if the bubble bursts, it will take some of the heat off inflation allowing central banks to focus on fighting recession. But bursting bubbles normally cause collateral damage. It wouldn t be surprising if the already crippled financial sector was in the firing line.
US energy plans should embrace consumption cuts 15 Jul 2008 President Bush and oilman T. Boone Pickens want to tackle America's reliance on imported oil by trying to increase domestic supplies or substitute other energy sources. It may be politically tough, but they shouldn't forget the demand side of the equation.
Gazprom’s world push underlines domestic problems 10 Jul 2008 The Russian gas giant says it is ready to buy all of Libya s available oil and gas. From Africa to Alaska, Gazprom is casting a wide net. This is because domestic production is stagnating, as years of underinvestment are catching up with the company.
Conoco’s UAE win is a blow to Shell 9 Jul 2008 Shell's failure to win a $10bn gas contract follows other highprofile losses to US rivals. In the past, Shell could rely on historical ties and technical expertise. But as the race for resources heats up, it needs to be more aggressive or it could find itself out of gas.
Australia and Canada lose confidence 9 Jul 2008 The two countries, and their currencies, have profited from soaring mineral and oil prices. But inflation has become a problem, especially in Australia, where house prices have bubbled. Corrections look probable, but modest ones unless the commodity boom crumbles.
Cnooc pays up for strategic growth 7 Jul 2008 The Chinese oil group s purchase of Norwegian oil services outfit Awilco Offshore looks pricey. But it fits with China s strategy of expanding its presence across the global oil market to lock up supplies. It also suggests Cnooc expects the oil market to remain tight.