Encana’s pirouette demands greater fanfare 29 Sep 2014 The Canadian driller’s $7 bln acquisition of Athlon Energy cements a commitment to move from gas to shale oil. It’s paying a full price, especially after the recent fall in crude to $94 a barrel. If Encana can get the transition right, though, its valuation will deserve a lift.
Cheniere pay deal is Coca-Cola with added sugar 2 Jun 2014 The board wants up to 16 pct of the $16 bln energy company’s shares handed to staff over five years. That’s more dilutive than the recent Coke plan that irked Warren Buffett. Charif Souki was also last year’s best paid U.S. CEO, with $142 mln. Shareholders can justifiably worry.
U.S. LNG exports set for boost from Ukraine 28 Mar 2014 Though liquefying America’s plentiful gas for export makes business and economic sense, approvals are enmeshed in politics. U.S. gas wouldn’t reach Europe for years, but the energy implications of Kiev’s standoff with Moscow provide cover for lawmakers to give projects the nod.
Repsol’s Gas Natural sale shows Caixa the exit 13 Sep 2013 Repsol might shed its 30 percent holding in Gas Natural, the Spanish utility. The stake never made much sense. The sale would dilute the oil group’s relationship with its largest shareholder, Caixabank. Parting ways makes sense for all involved.
New energy map underpins $20 bln Petronas gas punt 12 Jun 2013 The U.S. is buying less gas from Canada. That’s an opportunity for the Malaysian giant, which is running low on product at home, to sell its new Canadian supplies in Asia for more money. The costly plan is a sign the upheaval wrought by fracking and the like is going global.
Export approval may rev up U.S. natural gas prices 29 May 2013 Rates have fallen to a low idle since peaking five years ago. But renewed overseas sales should boost demand and give prices some oomph. Freeport LNG just received the first export license granted since 2011. With more on the way, drillers finally have reason to cheer.
Yamal LNG set to inflict pain on Gazprom 24 May 2013 A gas project in Russia’s far north could crack the state giant’s export monopoly. The Kremlin is expected to decide soon whether to allow Yamal LNG’s backers to ship its production abroad. It may only approve sales to Asia. But even limited exports would hurt Gazprom.
Floating LNG offers good economics, tough politics 15 Apr 2013 Woodside Petroleum is the latest energy group to examine building a floating gas facility to salvage an otherwise uneconomic mega-project. The cost savings could be substantial. But the newfangled technology creates fewer jobs than onshore LNG. Host governments won’t like that.
Cyprus will struggle to make gas math work 22 Mar 2013 The struggling island is thinking about bundling future gas revenues into a fund to stave off financial collapse. But Breakingviews calculations suggest the recent discoveries off the country’s south coast won’t be enough to plug a 5.8 billion euro funding gap.
Elusive future gas riches can’t help Cyprus now 20 Mar 2013 Even if early estimates of huge gas reserves prove right, recent finds off the Mediterranean island’s coast will take time and money to exploit. The dicey politics of exporting gas from Cyprus also poses risks to development. For now, Cyprus’ natural gas potential remains just that.
Eni’s $4.2 bln gas deal has something for everyone 15 Mar 2013 Offloading 20 percent of a big Mozambique gas field to China’s CNPC cuts the Italian major’s development risk. China gets access to huge new energy supplies, at a price that vindicates Shell’s decision to pass up a more expensive deal last year. Mozambique wins, too.
Weakened Gazprom still packs a punch 19 Feb 2013 Gazprom’s grip on European markets is weakening, and it may soon face more competition from fellow Russian producers. But the gas exporter’s customers and rivals can’t get complacent. Gazprom may be a hegemon in retreat, but it’s not a spent force yet.
Silver lining tarnishes for U.S. gas drillers 31 Jul 2012 The likes of Chesapeake and Devon have long struggled with soft natural gas prices. Associated liquids like propane used to provide crucial cash for investment. But in the last year these products’ prices have tumbled by nearly half. Expect to see the companies’ earnings suffer.
Repsol making the best of a bad situation 20 Jul 2012 The Spanish oil major is shedding non-essential assets and striking clever financing deals in the wake of the YPF fiasco. Selling cash-cow liquefied natural gas assets could raise up to 3 bln euros to plow into upstream growth. It’s not a bad response to tricky circumstances.
BG investors right to be nervous about cost creep 3 May 2012 Profits are up, production is the envy of peers and a $5 bln disposal plan is on track with the $1.8 bln sale of Comgas. But the dip in BG’s shares after the gas giant raised capex guidance shows that even the best aren’t immune to the spiraling cost of big petroleum projects.
Qatar’s cash cow can ride out a global gas glut 3 May 2012 The emirate’s grip on gas markets will weaken by the second half of the decade due to oversupply. That might knock some of the swagger out of the energy-dependent state. But Qatar’s low production cost, long-term contracts and significant market share should limit the fallout.
Fracking shale could cause global geo-tremors 1 May 2012 Shale gas accounts for less than 1 percent of worldwide energy use at present. But fracking is a growth business, and shale oil prospects are also altering the global hydrocarbon equation. The additional supply could change the geo-political and geo-financial landscape.
U.S. gas export advance heralds end of low prices 18 Apr 2012 Less than a week after rates slipped below $2 for the first time in a decade, America approved the nation’s first big liquefied natural gas plant in 50 years. Others will follow. That may signal a bottom for ultra-cheap supply - and should result in a more stable market.
Shell pays up for a foothold in Mozambique gas 22 Feb 2012 The oil giant has offered $1.6 bln for gas explorer Cove Energy – a 70 pct premium but loose change for Shell. The assets are attractive and Shell has the know-how to exploit them. If Asian gas prices stay high and exploration projects deliver, the toppy price could be worth it.
Build cost inflation threatens new gas economics 13 Jan 2012 Australia’s latest liquid natural gas mega-project will cost 70 pct more than initially envisaged. The French and Japanese backers should still be able to justify the $34 billion price. But cost inflation makes life more difficult for U.S. groups planning big LNG export facilities.