State firms to dominate oil markets in 2005 30 Dec 2004 In the 1990s, $30 a barrel proved a ceiling for oil prices. Now it looks like a floor. But the biggest beneficiaries of higher oil prices are likely to be stateowned oil companies rather than western oil majors.
Putin shows his roots over re-nationalisation 23 Dec 2004 The Russian premier's attitude to markets comes straight from Lenin and the oligarchs. And their idea of a normal market is pretty cruel. There is a rough justice in renationalisation. And rough tends to beget rougher.
Political reality holds back Russian dreams 22 Dec 2004 The setback in Ukraine and the destruction of Yukos are sign of a dysfunctional government. Oil revenues are not changing the culture. Putin wants to centralise, and is not concerned about foreign interests. Investors have few reasons to be confident.
Yukos show-auction lacks only confessions 20 Dec 2004 The pantomime sale of Yugansk is an instructive farce. The Russian government is showing that it won't be deflected by outside pressure. This drama is not yet a tragedy. The oligarchs have mostly left the country and energy exports continue. It could easily get worse.
EDF challenges Italy over Edison 17 Dec 2004 The French utility threatened to walk away from its investment in the Italian utility unless Italy drops a law capping EDF voting rights. But it would take some creative financing for the group to walk away from its obligation to buy out minority shareholders. Selling would be difficult. But the threat could indirectly give the group leverage in Rome.
Investors play with fire in Gazprom share trade 7 Dec 2004 Gazprom's share price has rocketed this year even though the Russian state is about to become the gas monopoly's majority owner. That looks illogical, given Moscow's scant regard for investors' right in the recent past. Yet ironically, it is Gazprom's main attraction.
Singapore derivatives scandal is a warning sign 2 Dec 2004 China Aviation Oil racked up mega losses on derivatives, despite the existence of apparently strict internal controls. This may have been a naive corporate out of its depth. But at least four major investment banks have also suffered fallout.
Oil price premium continues to unwind 2 Dec 2004 Panic buying and speculators drove the oil price higher this year. Saudi Arabia s oil minister reckons this added $15 to the long run price. That s a fair estimate. It also shows how big the premium has become: about 40% over oil s long run price. No wonder prices are falling.
Political meddling at Eni and Enel needs to stop 29 Nov 2004 The latest rumours have Enel s boss being parachuted into Eni, to replace the oil firm's CEO. Both men have their merits. But the real conclusion from this game of politicoindustrial musical chairs is that it should stop.
Putin likes Ukrainian oligarchs, just not his own 25 Nov 2004 Russia's president has fought oligarchs at home, but his preferred candidate in Ukraine's elections has huge support from local oligarchs. The difference is explained by how privatisation spoils were shared in the two countries.
EDF doesn’t need immediate capital injection 22 Nov 2004 The French utility's supposed capital requirement is a fiction aimed at getting unions to back an IPO. The state is trying to offload a problem on to the markets. Investors may wish to play this game. But they must impose careful terms.
EdF expected to stay in Italy 19 Nov 2004 French minister Nicolas Sarkozy is expected to agree with a governmental commission which backs EdF developing its foothold in Europe. This makes it more likely that the French electricity giant will buy out its Italian partners and minority investors in Edison.
Russia delivers Yukos’ coup de grace 19 Nov 2004 Until now, everything that Moscow has done to Yukos its escalating tax bills, even Khodorkovsky s imprisonment was reversible. Moscow s decision to auction off Yukos key oil unit in December truly marks the beginning of its end.
National Grid cheats US curse 18 Nov 2004 Many European utilities have come a cropper in the States. The Grid has avoided the same fate so far by buying shrewdly and cutting costs. That doesn't mean its US adventure can be declared a complete success just yet. There are still plenty of efficiencies to extract.
Repsol ex-chairman gets monster goodbye deal 11 Nov 2004 Alfonso Cortina has reportedly received an E19m payoff after he was forced to quit from the Spanish oil group last month. This is hardly a reward for success: Cortina led Repsol s disastrous YPF acquisition. It s the price of political interference in Spain.
Areva IPO a step in right direction 11 Nov 2004 Partial privatisation of the French nuclear group, previously used as a tool for intervention in groups like Alstom and Sagem, is healthy. But don t get overexcited. The state doesn t need full ownership to engage in dirigisme.
Oil prices may have peaked 10 Nov 2004 Three times this year oil prices have lurched downwards as investors called the top of the market, each time mistakenly. Now there s been another drop. This time, though, the fall in the oil price seems to be supported by fundamentals.
EDF considers Italian exit 2 Nov 2004 Staying would be expensive and politically hazardous. But it is hard to see EDF avoiding a hit if it sells out. The French electricity giant's new boss Pierre Gadonneix is to decide whether to stay in Edison, the Italian utility, or try to sell out.
Shell, Exxon sell Dutch gas business for E2.8bn 1 Nov 2004 The two oil giants are getting out of Holland's gas pipes business, which they are selling to the government. The payment is spilt evenly between Exxon and Shell which needs to raise funds for its $45bn investment programme.
Political merry-go-round spins at Repsol 28 Oct 2004 Out goes one political appointee, Alfonso Cortina, and in comes the new government s man La Caixa's Antonio Brufau. This looks like the precursor to a politically motivated bid for Gas Natural. That s not good news for shareholders.