Hands-off approach wins governments more oil 13 Jun 2013 That’s the lesson from BP’s latest survey, which shows U.S. crude production surging by a world-beating 14 pct in 2012. Another private-sector industry, Canada, came close behind. State-dominated oil giants in Brazil, Venezuela and elsewhere suffered declines. Market forces work.
Centrica’s UK shale punt is suitably restrained 13 Jun 2013 Britain’s biggest energy supplier will pay up to 160 mln pounds for a quarter of a big shale prospect. The price looks fair. Shale could help the UK offset declining North Sea output, but the opportunity is unproven and barriers to industrial-scale production are formidable.
Shale offers China exit from U.S. dependency curse 13 Jun 2013 The Middle Kingdom now imports over half its oil and a fifth of its gas. The U.S. – where shale output is curbing a longstanding reliance on foreign fuel – points to a solution. China needs to overcome water shortages and vague licensing rules to emulate America’s success.
New energy map underpins $20 bln Petronas gas punt 12 Jun 2013 The U.S. is buying less gas from Canada. That’s an opportunity for the Malaysian giant, which is running low on product at home, to sell its new Canadian supplies in Asia for more money. The costly plan is a sign the upheaval wrought by fracking and the like is going global.
Apollo may quadruple its money on oil start-up 11 Jun 2013 The buyout firm is taking Athlon public just three years after drilling $400 mln into it. With EBITDA set to double this year and possibly next, the oil explorer may be worth $2 bln. With such returns, it’s no wonder Apollo boss Leon Black wants to sell anything not nailed down.
Privatisation snag could push back "Grecovery" 11 Jun 2013 Athens will have to lower its privatisation revenue targets for 2013 after a tender for state-controlled natural gas company DEPA attracted no bids. Coming after some good news, this setback will hit confidence as well as revenue. The Greek recovery could be delayed yet again.
Cave-in at home may harden Gazprom resolve abroad 4 Jun 2013 The Russian group has dropped a requirement that its domestic clients pay for the gas they don’t use. That may encourage more European customers to demand the same treatment. But as Gazprom becomes more reliant on overseas profit, it will be less inclined to compromise.
Efficiency revolution would put shale to shame 4 Jun 2013 Even without fancy new technology, better energy efficiency could save Americans 23 million barrels of oil per day by 2050, twice Saudi Arabia’s output. But investments are inadequate, even though they should be profitable today. Blame bad information and skewed incentives.
Total’s investor apathy holds back governance reform 30 May 2013 A $400 mln payment to authorities helps the French oil major avoid a U.S. trial over alleged bribes. While French prosecutors want to put the CEO in the dock, investors are apathetic. That’s too bad, because the imbroglio is an opportunity to rethink Total’s cosy governance.
Export approval may rev up U.S. natural gas prices 29 May 2013 Rates have fallen to a low idle since peaking five years ago. But renewed overseas sales should boost demand and give prices some oomph. Freeport LNG just received the first export license granted since 2011. With more on the way, drillers finally have reason to cheer.
Brazil’s oil ambitions put squeeze on Petrobras 28 May 2013 The government is auctioning a 12 bln-barrel crude field to revive its goal of being a global player. Petrobras is guaranteed a 30 pct stake. That should be good news. But the project will add more debt and expenditure for the already struggling and overleveraged state oil giant.
Frackers ignore German beer angst at their peril 24 May 2013 Germany’s brewers want to make fracking verboten. In the U.S., the gas drilling technique’s economic benefits trump environmental concerns. Whether it’s the British countryside or German lager, threats to cultural touchstones will hold back a similar boom in Europe.
Yamal LNG set to inflict pain on Gazprom 24 May 2013 A gas project in Russia’s far north could crack the state giant’s export monopoly. The Kremlin is expected to decide soon whether to allow Yamal LNG’s backers to ship its production abroad. It may only approve sales to Asia. But even limited exports would hurt Gazprom.
The refining business may yet pay off for Delta 22 May 2013 The biggest U.S. airline’s decision to buy a refinery a year ago looked barmy. Yet there are signs that for the price of a Boeing 777, the deal is helping reduce Delta’s $12 bln fuel bill in meaningful ways. Just shaving a nickel off jet fuel prices justifies the purchase.
Did Brazil miss a trick on Petrobras bond sale? 17 May 2013 President Dilma Rousseff uses the oil giant for many nationalistic purposes, though strengthening domestic capital markets isn’t apparently one. Issuing a slice of this week’s $11 bln bond offering in reais, though costly, would at least have been a better sort of meddling.
Oil probe shows the slippery nature of prices 16 May 2013 Even if the EU probe into the manipulation of published energy prices comes to nothing, it highlights a strange market. In the global energy trade, billions of dollars change hands on the basis of “best guess” benchmarks. More is at stake than fines for rogue traders.
Oil price collusion would be a Libor-scale scandal 14 May 2013 EU authorities are probing whether traders in oil majors conspired to rig published energy prices. Oil benchmarks are supposedly harder to manipulate than bank rates, so this could be a big deal. Even if no collusion is found, it makes a review of arcane price-setting mechanisms more urgent.
Oil patch excesses tar all players with same brush 14 May 2013 Continental’s board reckons it struck the best deal possible when committing $96 mln to a pipeline its own CEO is building. But rival firms’ governance abuses make that hard to swallow. Eschewing all side deals with company bosses is the best way to avoid the taint of conflicts.
Review: Ideology pollutes U.S. oil and gas debate 10 May 2013 Fracking and the sliding cost of renewable energy offer America a chance to curb reliance on foreign fuels and boost growth. But pointless partisanship puts these gains at risk, says Michael Levi in “The Power Surge.” Democrats and the GOP can at least agree to avoid mutual sabotage.
Shell must hope Voser successor mimics his ways 2 May 2013 The outgoing CEO’s anti-bureaucratic style and distaste for corporate adventurism put the Anglo-Dutch major back on course after its 2004 reserves scandal. His tenure shows how the steady approach benefits resource shareholders. Too bad the board couldn’t keep him in post.