It appears not only Christophe de Margerie of Total believes oil prices will eventually recover: UTS Energy shareholders rejected Total’s deep pockets and diversified portfolio, ending the French company’s attempt at a hostile takeover.
The key question for shareholders was whether Fort Hills, UTS’s Athabasca oil sands play, would be developed. The answer depends in large part on whether future oil prices will be high enough to justify the environmentally messy and expensive venture. Read more
Last year, as the Big Oils were reporting big profits, refiners were struggling with high feedstock prices and dropping demand for their end products at the pump.
How times have changed: oil company profits are down while earnings at Valero, the US’ biggest refiner, have risen sharply. Read more
About two, judging from this NPR guide:
Here is the full text of Al Gore’s statement on the US climate bill, which some in Washington have been portraying as a re-match of the battles of the Clinton administration in the 1990s in which Gore was pitched against Newt Gingrich, then speaker of the House.
Mr Gingrich strongly opposes the climate bill. He has called it “a big energy tax” and said it did not contain policies to to “spur innovation and utilize the creativity of America’s scientists and engineers”. Read more
On Energy Source:
BP profits down, production rises Pre-tax profits fall 62% but at high end of forecasts Read more
Renewable energy companies have been digesting the contents of the UK’s Budget since it was delivered last Wednesday. While many are pleased that there is new funding available for the likes of offshore wind, microgeneration, energy efficiency and new low-carbon businesses, there are some concerns. Read more
Oil inventory data has been one focus of oil price moves recently – along with financial crisis-related demand concerns and the US dollar, among others. According to the latest weekly EIA estimates published on Wednesday, inventories have built for the past seven weeks and last week reached an 18-year high of 370.6m. But American Petroleum Institute estimates, which are published every Tuesday, showed inventories fell by just over 1m barrels.
Until earlier this year, both organisations published their reports on the same day of the week. Today’s Schork Report speculates that the EIA statistics, coming from a government rather than an industry body, are taken more seriously, and some traders are trying to profit from the one day gap between the API and EIA figures. Read more
Falling oil prices have caused BP’s pre-tax first quarter profits to fall by 62 per cent, after adjusting for the effect of changing prices on inventories.
Costs in exploration and production were down 11 per cent, so the company is already driving deflation into its costs as Tony Hayward, chief executive, proclaimed earlier in the year. Read more
Mexico’s state oil company is fine, in case you were wondering (and judging by the oil price, quite a few people are). Pemex is so far not affected by either the earthquake or the swine flu outbreak, company spokesmen have said.
“We haven’t seen any damage yet,” a spokesman told Dow Jones (via Rigzone), adding that the company is still checking for earthquake damage and it is premature to rule out any incidents. The epicentre of the quake, which was 6.0 in magnitude, was in Guerrero, a state that does not produce oil. Read more
- US pledges to make up for lost time in climate-change fight
Meeting with China and India to lay groundwork for UN deal (Reuters)
- Obama lays out $400m programme for cutting-edge energy research
Energy secretary to oversee Advanced Research Projects Agency-Energy (Platts) Read more