Cold snap chills prospects of U.S. coal subsidies 9 Jan 2018 The federal energy regulator nixed Energy Secretary Rick Perry’s proposal to prop up nuclear and coal power. Instead grid operators will be asked how to improve energy reliability. That’s more logical, especially after bad weather showed no fuel source is immune from disruption.
Sutherland embodied ups and downs of globalisation 8 Jan 2018 Former European Commissioner, trade chief and BP chair Peter Sutherland, who has died at 71, worked to make it easier for goods, capital and people to cross borders. His triumphs were blotted by corporate failures. Yet his legacy deserves to survive the current backlash.
Oil bulls look to Trump rather than Iran protests 4 Jan 2018 A tightening global balance of supply and demand for crude means geopolitical shocks could push up prices. Anti-government protests in Iran seem unlikely to disrupt production. A looming U.S. decision on whether to revisit sanctions could have a bigger impact.
Our 2018 predictions on Reuters TV 31 Dec 2017 From the CEOs who should run for U.S. president, to the banks that ought to be sizing up mergers, our writers give their take on the coming year in a series of Reuters video reports.
Icahn wins SandRidge battle but war isn’t over 29 Dec 2017 The oil driller has dropped its $746 mln bid for rival Bonanza, something the activist and others wanted. But its poison pill – which bars Icahn from upping his stake and makes a takeover more difficult – remains in place. The investor should see this fight through to the end.
Big Oil’s discipline reinforces shale’s swing role 22 Dec 2017 OPEC’s restraint has put a floor under the price of crude, but big oil companies will put a lid on it in 2018. Majors worried about oversupply will tighten budgets and focus on areas with quick payback. U.S. shale will be the big beneficiary, reinforcing its global influence.
Viewsroom: Saudi Aramco’s path may lead to China 21 Dec 2017 That the Hong Kong Stock Exchange will join Riyadh in hosting the world’s largest IPO is one of Breakingviews’ 2018 predictions. We also explain the method to our fortune-telling and lay out why China will win the 5G standards race and why Wall Street will learn to love bitcoin.
Oil shareholders try capping sorry governance well 21 Dec 2017 SandRidge adopted a poison pill to fend off investors unhappy with a recent deal. Hess faces another fight with Elliott. Exxon is only now allowing owners to talk to the board. The shareholder pushback is welcome, but the industry’s slow response leaves it exposed to other risks.
M&A deal finds Saudi diversity but few believers 18 Dec 2017 McDermott is barely paying a premium for CB&I. Yet the transaction reduces the energy-infrastructure firm’s reliance on the turbulent Middle Eastern kingdom, and should yield cost savings worth over $1.5 bln. Investors are skeptical any player can thrive given oil’s troubles.
Exxon climate U-turn deserves wary investor cheers 12 Dec 2017 The $350 bln oil firm is finally planning to comply with shareholder demands – approved months ago - to disclose how global warming will affect its business. That’s welcome. But Exxon’s reputation for fobbing off such concerns means investors need to not just trust, but verify.
Crude-backed crypto-coin is mostly snake oil 8 Dec 2017 An ex-CFTC commissioner is launching a digital currency backed by the commodity. His promise of stable value sits oddly against bitcoin’s wild ride. While it offers a tax edge over oil-backed ETFs, it’s hard to imagine this coin existing if not for the wider crypto craze.
BASF’s odd oil deal may create a valuable compound 8 Dec 2017 The 87 bln euro German chemicals firm agreed to merge its oil unit with Russian billionaire Mikhail Fridman’s DEA. It’s a complex transaction, with a messy structure. Yet pooling the business will create savings and may eventually help BASF shed its huge conglomerate discount.
China’s aspiring Glencore will drill deep 7 Dec 2017 Beijing wants a seat at the oil trading table. State firms like Chinaoil are no lightweights, but private CEFC could become the first independent player to challenge the likes of Vitol. Its supply deals, political ties and financial backing make it a rival to contend with.
Icahn knows a playbook to avoid with SandRidge 4 Dec 2017 As the governance-challenged driller did last week, CVR Energy tried to fend off the activist with a poison pill back in 2012. Icahn ended up bidding for the refiner and still owns 82 pct of it. It’s an experience neither he nor other shareholders will relish repeating.
Saudi needs OPEC cuts to work, but not too well 30 Nov 2017 The oil cartel agreed to extend cuts until the end of 2018. Its moderation has drained inventories and lifted prices. Further cuts won’t boost prices enough to balance Saudi’s budget. Then again, that gives the crown prince a reason to continue with his challenging reforms.
Oil patch can use Icahn’s tough love 27 Nov 2017 The activist joined another angry investor to stop oil driller SandRidge's $746 mln acquisition of rival Bonanza. SandRidge adopted a poison pill to block him. It is an egregious example of oil companies chasing size at shareholders’ expense. On principle, it’s worth the battle.
BASF oil exit belatedly admits flaws of diversity 27 Nov 2017 The chemicals giant may merge its oil and gas unit with DEA, owned by Russian billionaire Mikhail Fridman, before an IPO. Cost savings of 1 bln euros partly make up for low oil prices. A broader lesson is that when companies try to span different industries, shareholders suffer.
Market will trump politics on Keystone pipeline 20 Nov 2017 Nebraska’s green light for the controversial project is a victory for President Trump but doesn’t guarantee it will be built. Years of delays have let rivals steal a march while low prices sap interest in drilling Canadian oil sands. The economic grounds for proceeding are soft.
Norway’s oil exit is a wake-up call for industry 16 Nov 2017 The country’s $1 trln sovereign fund wants to unload oil and gas stocks for diversification. It makes sense given the state’s dependence on fossil fuels, but the world’s biggest equities holder is sending a broader signal: petroleum majors need to prepare for a low-carbon future.
Buyout of Australia’s Santos looks a long shot 16 Nov 2017 A private equity-backed outfit could bid about $11 bln including debt for the oil and gas firm, after an initial pitch was rejected, a newspaper says. With Santos’s balance sheet on the mend and a rosy production outlook, even a sweeter offer might struggle to win over investors.