Oil barons and tech hipsters share a dark side 7 Jan 2013 They seem so different. But SandRidge’s CEO and some peers jet around at shareholders’ expense, while at Facebook and Google founder-bosses are insulated from owners by super-voting rights. Clubby boards also feature in both sectors. The oil business may prove easier to clean up.
Macondo spill cost Transocean more than money 4 Jan 2013 The U.S. oil services firm will pay Uncle Sam $1.4 bln for its role in BP’s Gulf of Mexico disaster in 2010. That’s a modest sum. But shares in the $18 bln Transocean have lagged those of rivals in the meantime as it avoided heavy investment. It has a lot of catching up to do.
U.S. doesn’t need Washington for economic stimulus 27 Dec 2012 President Obama’s planned one-time jolt has been stymied. But a divisive corner of the energy industry has many hallmarks of a boost to the nation’s wallets. Shale oil and gas production pumped $140 bln into 2012’s economy. It won’t cure America’s ills, but it can ease the pain.
Fading power of oil autocrats will aid growth 24 Dec 2012 Democracies are starting to outclass countries like Iran, Venezuela and Russia in energy production. That should reduce the economic and political influence of such authoritarian states. The West’s booming output should steady fuel prices, a rare boon for the global economy.
Brazil’s ailing oil industry needs a nudge 13 Dec 2012 Petrobras can’t meet output targets. The fallout from Chevron’s spill is making it hard for companies to hire. And Eike Batista overhyped OGX, whose value has plummeted. The country’s once-promising oil bounty is going to waste. A revival may need fresh thinking from Brasilia.
Corporate carbon bubble may start to deflate 12 Dec 2012 Science points to the potential for climate shocks in burning through just current proven oil, gas and coal reserves. Stock-market valuations of miners and oil groups don’t reflect the risk of a policy response. In 2013, investors may wake up to a carbon-constrained future.
Freeport deal triangle gets cozier and cozier 7 Dec 2012 The mining group’s market value has plunged $6 bln following news of its foray into energy. Yet the chairman will come out ahead. Now it seems the boss of one target, Plains Exploration, will collect $130 mln and a pay rise. Freeport’s board owes shareholders an explanation.
Petrobras wrestles with local and global ambitions 6 Dec 2012 To play on the world stage, Brazil’s oil champion must branch out. That may be why it seems reluctant to sell Gulf of Mexico assets. Yet the company also needs cash for a domestic agenda that includes a $237 bln capex plan. With Brasilia’s meddling, Petrobras can’t have it all.
Freeport’s $20 bln splurge lives down to tradition 5 Dec 2012 The miner’s complex plans to buy oil explorers Plains and McMoRan swiftly erased $5 bln of value. Freeport Chairman Jim Bob Moffett also runs and partly owns McMoRan, which gets a rich 74 pct premium. The strategic and governance bravado affirm the industry’s Wild West culture.
Conoco’s $5 bln Kazakh sale is the easy part 26 Nov 2012 The U.S. oil giant’s investors should be happy to see the costly Asian project go. The cash also will help fund lavish capex plans and the generous dividend. But Conoco’s real chore is to prove it can boost sluggish output while retreating from promising, if risky, regions.
Obituary: Ewing was archetype of Reagan-era excess 26 Nov 2012 No American executive better embodied the anti-regulatory fervor and cutthroat ambitions of the 1980s than the former Ewing Oil chief. After an assassination attempt and two dark decades following the Texas oil bust his legacy was revived by, and lives on in, today’s shale boom.
Worry over state-owned acquirers may be overdone 23 Nov 2012 Canada’s prime minister, mulling CNOOC’s bid for Nexen, is skeptical of firms controlled by foreign governments. The fear is their motives are more than commercial. But evidence from nearly 200 deals suggests that if state buyers have a hidden agenda, they aren’t paying for it.
Chesapeake mini-me CEO’s days should be numbered 16 Nov 2012 SandRidge’s top shareholders make a solid case to oust boss Tom Ward, a co-founder of wobbly energy peer Chesapeake. Unless stopped, Ward plans to sell the firm’s best oil assets. And his outrageous pay - $25 mln, or half 2011 earnings - shows directors have neglected investors.
BP’s Macondo deal comes with criminal hangover 15 Nov 2012 A sigh of relief is in order at the embattled UK oil major. It settled with Uncle Sam for $4.5 bln - less than feared. But it’s not over. BP’s admission of criminal guilt in the 2010 Gulf spill could be used in a high-stakes civil trial. No wonder investors aren’t cheering.
China has easier path than buying West’s resources 15 Nov 2012 Companies from the PRC and elsewhere have met political flak trying to acquire U.S. and Canadian energy firms that hold oil and gas rights. A smarter strategy could be to snag know-how needed to unlock reserves at home. Oil services experts like $7 bln Weatherford fit the bill.
UK gas price probe another jolt to cosy markets 13 Nov 2012 Allegations that traders rigged UK wholesale gas prices, if true, would be another blow to the public’s faith in market indicators. Libor was bad enough. Anger at rising heating bills makes a gas scandal more politically explosive, even if the financial stakes look smaller.
U.S. energy autonomy leaves climate threat intact 12 Nov 2012 Booming output from gas and oil-rich shale should see the United States become energy-independent by 2035, according to the IEA. The geopolitical implications are huge. But despite gas’s cleaner, reassuring profile, the window for fighting destructive climate change is narrowing.
Chesapeake isn’t changing its spots fast enough 2 Nov 2012 A tougher board is supposed to be keeping spendthrift CEO Aubrey McClendon in check. Yet in the third quarter, capex fell only slightly as drilling costs rose, and Chesapeake added debt despite asset sales. Progress reducing reliance on gas isn’t enough to restore credibility.
Shell shares are justifiably expensive 1 Nov 2012 Despite some hiccups in the latest quarter, there was nothing in the Anglo-Dutch oil giant’s results to weaken its investment story. Shell has no shortage of opportunities to invest, a jump in cashflow lies ahead. The shares are pricier - but safer - than rival BP’s.
Exxon diversification masks ailing production 1 Nov 2012 A doubling of refining earnings helped the U.S. energy giant to a $9.6 bln Q3 profit - and a smaller decline from 2011 than pure explorers like Conoco. Exxon’s portfolio can be justified if different units smooth earnings. But in this case it’s hiding a losing bet on U.S. gas.