Big Oil’s well-plugged holes do their job, for now 27 Oct 2017 Exxon, Chevron and Conoco all posted decent earnings for the third quarter. And they’re ramping up production - even Conoco, despite cutting capex. That’s proof their endeavors to adapt to $50-a-barrel oil are paying off. Improving from here, though, could prove tricky.
Kool-Aid on tap in Saudi Arabian desert 26 Oct 2017 The crown prince’s vision for a $500 bln mega-city may have generated even more buzz than the mooted IPO of oil behemoth Aramco. But any kind of success depends on people wanting to do business and live there. The kingdom faces a tough uphill road on competitiveness and freedom.
Saudi utopia plan is so bonkers it just might work 26 Oct 2017 The nation’s crown prince plans to build NEOM, a shining $500 bln city on the Red Sea where entrepreneurs draft the rules and robots outnumber people – and which one day will be a publicly listed company. Dreamers are welcome, but he'll need capable doers above all else.
Western oil drillers flirt with OPEC-style dilemma 25 Oct 2017 U.S.-focused producers may be targeting higher returns over pumping more crude. Majors like Exxon and Chevron know the trade-off, too. Selling less oil at a higher price is appealing if everyone joins in. But the cartel’s internal tensions show how easily self-interest prevails.
Chinese oil major CNOOC tests limits of self-help 25 Oct 2017 Results show the Chinese state-owned oil giant has clambered out of a hole. An ill-timed 2013 acquisition of Canada's Nexen forced relentless cost-cutting which is now paying off. Stubbornly weak crude prices, and China's electric vehicle push, could cap investors' appreciation.
Cox: Aramco clouds Saudi’s coming-out party 24 Oct 2017 The kingdom’s crown prince is hosting a mini-Davos this week to showcase Riyadh's charms as a financial center. From Masayoshi Son to Steve Mnuchin, participants may mostly avoid questions about one of his key goals: the touted but uncertain market debut of oil giant Aramco.
Noble’s bid for survival takes humbling turn 23 Oct 2017 The stricken commodities trader is offloading oil-liquids, one of the better bits of its shrinking business. A long list of terms, however, suggests buyer Vitol capitalized on the distress. Efforts to raise $1 bln more to pay off debt amid a big loss could face similar hurdles.
Guest view: Chinese oil can fuel North Korea talks 16 Oct 2017 Nothing will concentrate the minds of North Korean leaders more than a Chinese oil embargo, argues William Rhodes, a former Citigroup executive and co-chair of the G30’s steering committee on bank culture and governance.
China is third-best option for Saudi Aramco 16 Oct 2017 With its $2 trln public offering in the balance, the Saudi oil giant may bring in a Chinese investor. That would provide cash the state doesn’t urgently need. The other perks of an international IPO, like regional influence and financial discipline, aren’t to be found in Beijing.
Aramco IPO logic is going up in smoke 13 Oct 2017 With oil prices under pressure and OPEC potentially extending cuts, the Saudi oil company’s IPO always seemed a stretch. Aramco had yet to pick an exchange, and would have had to get its books into shape. With private capital abundant, there's little purpose to all the hand wringing.
U.S. oil production squabble misses price point 12 Oct 2017 Tycoon Harold Hamm says aggressive government forecasts skew where Texas crude trades. Inventories are falling, but it's a weak trend. Shale momentum will be hard to stop and Shell's electric-car bet sends a fresh signal on future demand. Expect about $50 a barrel to be the norm.
China’s oil giants brace for electric car crash 9 Oct 2017 Beijing's move against gasoline means tough times ahead for the country's oil majors. The rapid push into new energy vehicles will curb demand for imported hydrocarbons, but at the expense of state giants like Sinopec and PetroChina. It might also pressure crude prices.
Brazilian oil auction gives Temer some validation 28 Sep 2017 The president is doing his country's economy good even as his popularity craters over graft charges. A less nationalist energy policy paved the way for a record haul in a drilling-rights auction and bodes well for more. It may leave Mexico and its oil deals battling for bids.
Electric vehicles lack killer spark – for now 27 Sep 2017 BHP reckons battery-powered cars are reaching a tipping point. Even vacuum maker Dyson is building one. And driverless vehicles could make EVs a huge money-spinner. High costs and concerns over raw-material supplies, though, will keep the combustion engine purring for years.
Anadarko signals its future is out of its hands 21 Sep 2017 The oil firm is spending $2.5 bln to repurchase stock. Yet it’s unlikely to make money until 2020 and has $15 bln of debt. The buyback plan is an admission it can’t find profitable investments. It also implies CEO Al Walker is hoping for the oil price to rise or a takeover.
Exxon’s M&A machine faces Permian dilemma 15 Sep 2017 Buying a West Texas driller is the quickest way for the $337 bln oil giant to catch up with peers on replacing reserves. Valuations have fallen a third or more while Exxon’s remains steady. The trick for CEO Darren Woods is to find enough cost cuts to justify paying a premium.
D.E. Shaw’s rare activist shot falls short at EQT 14 Sep 2017 The hedge fund is calling for a breakup of the natural-gas company, echoing Jana Partners. Yet it’s content to let the company first buy Rice Energy for $6.7 bln despite the deal’s flaws. It’s an unconvincing foray into activism for a fund better known for computerized trading.
Viewsroom: Ray Dalio taps his inner communist 14 Sep 2017 Bridgewater’s founder thinks his kindred spirit resides in China’s anti-corruption czar Wang Qishan. Both seek radical transparency – though Dalio’s hunt is tied to forging a business in the Middle Kingdom. Plus: Exxon’s salvation may lie in the oil fields of West Texas.
Saudi can afford to scrap Aramco IPO plan 14 Sep 2017 Achieving the desired $2 trillion valuation for its crown jewel is going to be tricky. Instead of rushing the job, Riyadh may delay listing 5 percent beyond next year. Even then, political and pricing problems will remain. If it wants money, the kingdom has better alternatives.
Retailer Next confronts last corporate taboo 14 Sep 2017 The UK clothes chain has sketched out a scenario where high-street store sales keep shrinking until they can’t cover their cash costs. Even in that dismal situation, Next would be worth only a third less than now. Few companies consider their own demise in this way; more should.