Oil & Gas

China’s majors fill up on gas at the right time

22 March 2019

PetroChina’s losses on gas imports swelled to nearly $4 bln in 2018, thanks to low domestic rates. Yet China’s oil giants are preparing to buy more LNG from U.S. firms. That aids the trade cause. More importantly, it may help lock in supply before a forecast shortfall.

Shale drillers may be singing oil’s swan song

12 March 2019

Cash is flooding into Texas wells, attracted by quick investment returns. Yet the Permian’s short production cycles may hasten the arrival of peak oil. With sustainability investors pressing for cleaner fuels, some industry executives are already planning for a post-crude future.

Big Oil is too quick to rest on its laurels

8 March 2019

Exxon and Chevron paid more attention to climate change over the past year - and outperformed the S&P 500. But new plans to invest in Texas drilling show old habits die hard. Oil buffs gathering for the industry’s annual confab may wonder if the industry is shifting fast enough.

Norway’s mega-fund fluffs move away from crude

8 March 2019

Oslo’s $1 trillion wealth fund will ditch oil exploration stocks, but stay invested in groups that also do refining. As a big producer Norway needs to tread carefully. But accepting the risk of subpar returns could have been a way to show greater climate change leadership.

Nigeria votes for another four years of drift

27 February 2019

Re-elected President Muhammadu Buhari faces a daunting to-do list. His first term suggests most of it will stay undone. Easing the state’s grip on the currency and oil sector could revive growth. That the former general’s main rival backed such reforms means neither is likely.

Norway’s giant oil fund flaunts Achilles’ heel

27 February 2019

The Nordic state’s $1 trillion wealth vehicle lost money in 2018. A political mandate that obliges it to hold more equities rather than diversifying its exposure explains why. Even if these shackles were removed, the fund’s size complicates efforts to rev up performance.

Shell might win new energy race by wanting it more

15 February 2019

The UK oil major is acquiring German energy-storage group Sonnen. Utilities, carmakers and big tech groups are all converging on the residential-power market. Shell’s need to move quickly to hedge against peak oil demand may give it an edge.

Nigeria challenger is lesser of two outmoded evils

15 February 2019

Voters in Africa’s most populous nation must choose between an ageing ex-military ruler and old-school political tycoon. Both are four times the country’s median age. Challenger Atiku Abubakar’s talk of relaxing the state’s economic grip at least has a whiff of the 21st century.

Khashoggi is ghost at Milken’s Abu Dhabi confab

15 February 2019

Financiers at the billionaire’s annual Gulf shindig adopted a Trumpian shrug over Saudi agents’ murder of the dissident journalist. Lucrative forthcoming Aramco deals and White House support for the regime explain why. But the issues raised by Khashoggi’s death still linger.

Aramco’s new tangent more rational than it looks

12 February 2019

The Saudi oil giant wants to develop oil and gas projects overseas. Like its planned purchase of SABIC, that sits uneasily with other strategic goals. But emphasising lower-carbon gas while burnishing global credentials is sensible.

Chevron climate pay plan may get more out of less

7 February 2019

The $230 bln oil giant is tying compensation to emissions cuts. The details may seem less ambitious than Shell’s, and pay is still partly linked to production. But the scheme targets methane, includes most Chevron workers and sets a potent challenge for U.S. rivals.

Total can pay up for Eneco – and may have to

7 February 2019

The French oil major could well bid for the Dutch utility. As annual results show, it has the financial heft to pay a big premium. Yet so does Shell, which is equally keen to diversify into power – and with the potential trump card of home advantage.

EQT fight shows never too late to fix a bad deal

5 February 2019

A merger with rival natural gas producer Rice always looked overambitious. It has turned out to be a total dud. Now Rice’s founders want control. Their plan looks like it could have saved EQT before the merger. Listening to them now isn’t ideal, but it’s better late than never.

BP beats Rosneft in valuation, not operations

5 February 2019

The UK oil major and the Russian group of which it owns 20 pct both delivered strong full-year results. But despite producing more with fatter margins, Rosneft trades on a much lower earnings multiple. Fears of tougher sanctions and exposure to Venezuela mean that will persist.

Breakdown: How to fix Venezuela

4 February 2019

The oil-rich Latin American country resembles a failed state. It may need $80 billion in loans and investment if embattled President Maduro departs. At 2013 pumping levels and $50 a barrel, that’s two years’ output for state oil firm PDVSA. A U.S. invasion would be a mistake.

Exxon’s earnings beat creates its own headwinds

1 February 2019

The $320 bln oil giant’s Guyana discoveries are swelling, Permian production is booming, and restructuring efforts are paying off. That helped it top quarterly earnings expectations. But CEO Darren Woods’ efforts are adding to a global oil glut, which will limit future success.

Falling prices only hurt Shell in the long term

31 January 2019

Despite a crude downturn in the final quarter, the UK oil major hiked output and earnings. Given prices should stay high enough for free cash flow to cover dividends, that’s sustainable. The main cloud is Shell and peers have less to invest to wean themselves off fossil fuels.

Sinochem’s backtrack sends a fresh IPO warning

31 January 2019

The Chinese chemicals and oil giant has paused plans to float its refining and trading unit in Hong Kong. Beijing’s behemoths once listed regardless of market conditions, thanks to government-backed peers. The $2 bln U-turn should worry hopefuls without state support.

U.S. oil boom good for everything but profit

30 January 2019

Slowing growth and rising American production have knocked nearly 30 pct off Brent crude prices since October. Companies like Chevron and Exxon have responded by ramping up investment in the Permian, but that’s merely aggravating the glut – and making earnings growth elusive.

Abu Dhabi’s $6 bln oil deal is a three-way hedge

29 January 2019

The emirate has sold 35 pct of its oil group’s refining arm to two European producers. Italy’s Eni gets to offset a heavy reliance on exploration, while Austria’s OMV gets non-European refining. Abu Dhabi hedges its dependency on crude by turning crown jewels into cash.