Exxon activists banished best with vote, not court 22 Jan 2024 The $385 bln oil giant wants a judge to stop a shareholder proposal urging stringent emissions limits from going to a vote. Similar measures failed before. Fighting rather than letting this one fall flat amplifies dissent and echoes past doomed dismissals of investor concerns.
Red Sea oil tension may revive Russia-Saudi spat 22 Jan 2024 Exchanges of fire between Yemen’s Houthis and the US military have hiked costs for Moscow to ship oil via the Suez Canal to China and India. One upshot could be Russia loses market share to Saudi Arabia. That may reopen the sort of tensions that led to the duo’s 2020 price war.
Global risk pile-up penetrates Davos bubble 18 Jan 2024 Nearly 3,000 movers and shakers have converged on the Swiss resort amid crises in the Red Sea, Gaza and Ukraine. In this Viewsroom podcast, Breakingviews columnists discuss how Davos-goers unable to ignore these perils are nervously anticipating another Trump presidency.
BP’s business-as-usual vibe can only go so far 17 Jan 2024 The UK oil major has appointed Murray Auchincloss to the top job. While the ex-CFO seems to want to stick with BP’s current strategy, that might not help its valuation discount. Ways that conceivably could – like spinning off his transition assets – are worth his consideration.
Chesapeake $7.4 bln deal finds safety in numbers 11 Jan 2024 The gas company’s bid for Southwestern looks investor-friendly, with a low premium, cost savings and the prospect of cash payouts. Amid a wider energy M&A rush, boss Nick Dell’Osso can also take comfort from being neither the first nor surely the last to take an acquisitive leap.
Shell will be tempted to join US M&A party 5 Jan 2024 With rivals Exxon Mobil and Chevron doing chunky deals, the $214 bln European oil major may wish to follow suit. A pitch for $30 bln Permian player Endeavor is affordable and arguably logical. But it would test how far CEO Wael Sawan can realistically pivot back to fossil fuels.
Wintershall saga reaches logical $11 bln endgame 21 Dec 2023 After flirting with a listing and rival suitors, the BASF-owned German oil group is to merge with $3 bln Harbour Energy. The UK-listed buyer gets a relatively cheap way to bulk up in gas assets. The sellers get to stick around for the ride, courtesy of some funky financing.
Capital Calls: Angola and OPEC 21 Dec 2023 Concise views on global finance: The African state’s decision to quit the oil producer group isn’t a huge deal in the short term, but will raise fears of more meaningful exits.
BP and Equinor will find common ground 20 Dec 2023 The British oil major is undervalued against peers and is in a leadership vacuum. That makes it vulnerable to a takeover as US mega-mergers shake up the sector. Daring to tie up with Norwegian ally Equinor offers a powerful hedge and a springboard.
Backlogged M&A pipeline will burst in 2024 19 Dec 2023 Even normally chipper bankers are wary as merger activity heads for a second straight drop from its $5.7 trln peak in 2021. And yet stabilizing capital costs, bulging cash reserves and adjusting valuation mindsets should help spark enough pressure to ignite a deals resurgence.
Global energy fissures are a risk for the West 12 Dec 2023 Falling oil prices despite recent cuts imply a weak OPEC+. Yet the producer group may increasingly align with other emerging market states on areas like Russia and climate change. In this Exchange podcast commodities expert Helima Croft says that’s an issue for Europe and the US.
Occidental ratchets up race to tame the shale boom 11 Dec 2023 The oil giant’s $12 bln CrownRock deal further consolidates the Permian, where rich finds have helped increase US oil production by a fifth since 2020. A focus on returns will restrain growth in the driller’s output. As more buyers crowd in, the shale explosion will be tempered.
COP28 oil-fest still has a path to credibility 8 Dec 2023 Unlike Glasgow’s COP26, Dubai’s version of the global climate meet has involved polluters like Exxon Mobil. COP28 President Sultan al-Jaber’s dual role as an oil boss has also come under intense scrutiny. Yet his renewables goals also imply global crude output may soon wane.
COP28 wrestles with the nuances of binning oil 7 Dec 2023 The global climate conference in Dubai has seen its fossil fuel-rich UAE host criticised for appearing to contest the need to phase out crude. In this Viewsroom podcast, Breakingviews columnists discuss how the picture is a bit more complex.
OPEC+ is a weird club for Brazil to want to join 30 Nov 2023 Latin America’s largest economy is mulling joining the 23-strong oil producer group. But OPEC+’s latest 2 mln barrels of daily cuts are not needed to balance the market, will rile the US at a sensitive time, and may increase internal strife. It seems more like a club to leave.
ADNOC German oil deal has bad timing, good logic 28 Nov 2023 Abu Dhabi’s energy giant may bid for BASF-owned Wintershall, in a deal worth $11 bln. As the UAE prepares to host the COP28 climate shindig, that’s a bad look. But buying the German group’s pipeline network may suit ADNOC’s wider aim to bulk up in European petrochemicals.
Shell’s shrinking green pledge risks backfiring 2 Nov 2023 The $217 bln oil major has upped by 40% a quarterly buyback plan while curbing unprofitable low-carbon activities. CEO Wael Sawan’s focus on fossil fuels has shielded him from the troubles ensnaring BP and Orsted. The strategy can work only if volatile energy prices stay high.
Sluggish BP earnings exacerbate its green dilemma 31 Oct 2023 The $105 bln UK giant missed quarterly net profit forecasts by 20% after weak gas results and a big wind writedown. That casts doubts on its clean energy division’s profitability while adding pressure to up its oil and gas game. Tackling both challenges requires creativity.
US oil deals create big fish in vast ocean 30 Oct 2023 Exxon’s $60 bln deal for Pioneer and Chevron’s $53 bln Hess offer will make the giants even bigger. But they will only have 12% of US petroleum production and 5% of global share. Success depends on higher commodity prices. Big Oil may not control as much as it wants.
Capital Calls: Big Oil, Intel 27 Oct 2023 Concise views on global finance: Exxon returned $8 bln of cash to investors in the quarter, while Chevron returned some $6 bln. With investment rising and M&A on the table, investors are competing with new priorities; Intel shares jumped 10% after slowing declines in revenue.