Trump’s OPEC smackdown more relevant than it looks 20 Apr 2018 The president slammed the oil cartel for production cuts that spurred the highest oil prices since 2014. Whatever his intent, members meeting in Jeddah should be wary of leaving the field open for rivals. A U.S. shale-drilling frenzy would hurt prices more than a tweet.
Cuba rings changes while trying to stay the same 18 Apr 2018 Raul Castro's coming handover of Cuba's presidency is an effort to prolong beyond his own life span the communist revolution he built with late brother Fidel. Trying to modernize could also destroy it, though. And with neighbor Venezuela getting less able to provide cheap oil, economic reform can't wait.
Mercuria/ChemChina oil each other’s strategies 16 Apr 2018 The Swiss commodities group looks set to get a stake in the Chinese state-owned giant’s refining assets, a rare coup. In return, ChemChina gets shares and a boost for Beijing's campaign to gain clout in global trading. It's a deal where both can profit.
Texas downgrade worry is a good problem to have 12 Apr 2018 The Lone Star State’s comptroller reckons its increasingly underfunded pension obligations risk a credit markdown. Texas’ rainy-day fund helps give it more leeway than many states. Others face bigger problems because, as the U.S. economy has improved, their budgets haven’t.
Icahn sets himself tough task at SandRidge 5 Apr 2018 The investor wants a new board at the $500 mln oil group to ensure it’s sold for top dollar. He may even bid himself. Icahn has proved stubborn at Newell, Herbalife and elsewhere. But with another big shareholder, Fir Tree, thinking differently, SandRidge could test his patience.
Harbour closes in on $10 bln Santos at a price 3 Apr 2018 The private equity-backed outfit is offering 43 pct more for the Australian gas group than it did in August. That’s bold, even if energy prices have risen and the target is in better shape. Harbour must have re-run its spreadsheets, but Santos is wise to engage at this point.
Permian deal shows peril of wildcat discount 28 Mar 2018 West Texas-based Concho’s stock tumbled as it bought rival shale driller RSP for $8 bln. This is the first deal of its kind, and comes just as investors are becoming more risk-averse. But assuming scale does bring some benefits, it’s better to be early than late.
The Exchange: CDP’s water boss 23 Mar 2018 Cate Lamb works with shareholders managing some $90 trln of assets to push companies to address water-scarcity and flood risks. She explains what can be done to mitigate the problem – and how doing too little costs businesses billions and can sink economic growth.
Duke Energy draws power from climate activism 22 Mar 2018 America’s largest electricity generator plans to phase out coal and slash carbon emissions. Gas and renewables make business sense regardless of the Trump administration’s policy-reversal efforts, it claims. Duke’s stance and transparency put Exxon’s climate disclosures to shame.
Cox: Aramco and Amazon encourage bad behavior 15 Mar 2018 Global financial capitals are prostituting themselves to accommodate the Saudi oil giant's IPO. Amazon's competition for a second HQ is provoking U.S. municipalities to similarly ingratiate themselves. This "Aramazon" effect exemplifies how races to the bottom get started.
Oil can do better than “shale, stale and male” 9 Mar 2018 The energy industry has an abysmal record of hiring women – and the CERAWeek energy confab in Houston reflected rather than addressed the problem. But as oil companies move jobs from the well to the lab, hiring women is logical as well as right.
Shell investors could live with a BHP shale punt 9 Mar 2018 The Anglo-Dutch oil major may bid with Blackstone for the miner’s $10 bln U.S. shale assets, Sky says. The business would be less risky for Shell’s balance sheet than drilling for traditional oil. And private equity’s high return targets could reduce the danger of overpaying.
Oil-obsessed U.S. is drilling itself into a ditch 8 Mar 2018 Shale producers are tilting the market such that international oil drillers will scramble for some time. That’s provoking creative thinking. From Aramco to BP, large international oil firms are planning credibly for a lower-carbon world. Eventually, Americans will come up short.
Anglo-Saudi trade love-in starts from low base 8 Mar 2018 Crown Prince Mohammed bin Salman and Prime Minister Theresa May are aiming for 65 bln pounds of new trade and investment. The kingdom’s liberalisation push could help post-Brexit Britain. But bilateral trade is just 8 bln pounds a year. And both leaders face challenges at home.
Trade tensions curb spirits in U.S. energy sector 5 Mar 2018 OPEC is breaking bread with U.S. shale producers at an industry confab in Houston. It’s a sign of American wildcatters’ influence on the global market. But infrastructure bottlenecks and Trump’s new tariffs threaten to prevent drillers from taking full advantage of their clout.
Exxon is running out of convenient excuses 1 Mar 2018 The $320 bln oil giant is ending its Rosneft partnership, blaming U.S. sanctions. CEO Darren Woods hopes investing $50 bln stateside will charm investors. But they’re concerned about returns and climate change. Exxon’s 10 pct stock drop this year suggests Woods is striking out.
Chesapeake solidifies shale role as OPEC sandfly 22 Feb 2018 The shale producer pumped more crude at lower costs in the last quarter – then sold it for more money. It can partly thank oil cartel OPEC, which has helped prices edge up. The Oklahoma-based driller joins a growing list of little wildcatters that are becoming a big annoyance.
CVC’s $5 bln Spanish gas punt is more than hot air 22 Feb 2018 The buyout shop is using its newly-raised 16 billion euro fund to buy Repsol’s 20 pct holding of Gas Natural. Acquiring minority stakes in listed utilities is not the stuff of private equity lore. But leverage and board seats could still deliver a respectable return.
EQT embarks on ignominious cleanup 21 Feb 2018 The $14 bln gas company’s breakup plan provides simplicity that’s much needed after the purchase of rival Rice. But with three pending transactions – all negotiated separately – shareholders face a tortuous process, run by a management that hasn’t proved it’s up to the job.
Venezuela’s crypto-currency reeks of snake oil 21 Feb 2018 President Maduro says early sales of its oil-backed petro raised $735 mln. Investing in the virtual coinage is tantamount to a bet on the increasingly autocratic administration’s probity, transparency and basic grasp of economic reality. Good luck with that.