Monthly Archives: November 2009

Ed Crooks

Peter Voser, the CEO of Shell, is reported in today’s FT as suggesting he had brought the company’s debts under control, with some help from the bounce-back in the oil price, and that if oil remained at $80 Shell would not need to add to its borrowings next year.

He was talking at a lunch for a handful of reporters in London, at which the conversation ranged over most aspects of Shell, the company he took over in July. (He was previously chief financial officer.)

Here are some of the other key points from what he said:

Ed Crooks

President Obama has made an unexpected commitment to attend the Copenhagen climate talks in December. Perhaps more significantly, the US has confirmed that it will make an offer of a cut in greenhouse gas emissions: “in the range of” 17 per cent from 2005 levels by 2020.

Taken together, the two announcements increase the chances that the meeting will come up with a meaningful agreement.

James Fontanella-Khan

Shell says $80 oil will halt debt rise
Oil group signalled that the steep rise in its debts is ending (FT)

Sinopec, TPG said to have weighed LyondellBasell bid
Move to challenge Reliance’s $10-12bn offer (Bloomberg)

Carbon will mature as inflation hedge
Green credit will replace oil and gold (Reuters)

Australians strike carbon deal
Hopes of playing a lead role at Copenhagen summit boosted (FT)

Canberra faces legal challenge on carbon scheme
Power groups to act if compensations won’t rise (FT)

Tories admit no new cash for green Isa
The shadow chancellor has not yet committed any new funding (FT)

China farmers face climate woes, says McKinsey (FT)
Tens of millions could face dramatic losses of income

EU competition officials raid CEZ offices
Czech energy utility suspected to have push up electricity prices (FT)

California unveils draft cap-and-trade rules
Effort to use the market to address global warming (Reuters)

Nuclear to add £40 to bills, says EDF
Move to persuade the private sector to build new stations (FT)

Carola Hoyos

Energy Source

That old tune about Kurdistan, the oil province of tomorrow

CEO Interview: Eni’s tale of two (oily) challenges

Elsewhere

Encouraging signs in the oil and gas sector (The Press and Journal)

Fitch lowers Mexico’s credit rating (AP)

Shell in talks to picks up 10 per cent of Essar (Economic Times)

Why refinery shutdowns matter (FT Alphaville)

Iraq-Turkey oil pipeline halts pumping (Reuters)

Ghana already worrying about the end of oil (Ghana Live)

Uganda’s production sharing agreement with Tullow causes local debate (The Independent)

Clemson University gets $100m stimulus money to study wind energy (DealBook)

Carola Hoyos

Several executives and analysts have wondered how Eni would pay for the two deals it recently signed. Shelling out $1.35bn for Heritage’s Ugandan assets is in itself not a huge sum for the Italian energy group, nor is the signing bonus attached to its agreement to develop Zubair, Iraq’s fourth largest oil field. The true costs come later. Together the two ventures could take more than $30bn to develop. With Eni acting as the main partner in both, its own bill will be relatively hefty, especially for a company whose gearing is already above its comfort zone.

Here, in his own words, is how Paolo Scaroni, the company’s chief executives,sees it:

James Fontanella-Khan

E-mail tirade boosts climate sceptics’ cause
Climate change deniers seize chance (FT)

Lex: A vitriolic climate
The debate over climate change is becoming more vitriolic by the week (FT)

Oil majors race to seal deals in Nigeria
Firms want to beat possible law what would raise tax (WSJ)

Lex: Reliance Industries / LyondellBasell
The move makes a lot of sense for the Indian giant (FT)

Heritage Oil backs out of talks with Genel
$6bn merger deal called off (FT)

William MacNamara

Elsewhere:

US will announce plans for emissions reduction target at Copenhagen (Reuters)

Turning human and animal waste into energy in middle England (BBC)

Valero will permanently close Delaware city refinery (Bloomberg)

A C02 recycler enters the test phase – how it would work (Technology Review)

Corporate Britain not taking climate seriously, says report (Reuters)

William MacNamara

Iraqi Kurdistan, a siren song of a place with its 40bn+ barrels of untapped oil, continues to push smart people away even as it pulls them closer. For oil investors there, the tune goes something like, “Forget all the licensing disputes and political mess of today and yesterday … It will be sorted out tomorrow … The market demands it, political necessity demands it … And then there will be 40 billion barrels of oil and everyone will get rich”. This tune is starting to sound pathetic.

Heritage Oil today confirmed it plans to sell its Ugandan oil stakes to Eni for $1.5bn – it was applauded as a smart move for one of the best E&Ps in the business. But Uganda was less a part of the equation than Kurdistan.

James Fontanella-Khan

Reliance to offer about $10bn for Lyondell
Scale of the bid highlights the growing confidence of Indian groups (FT)

Shell in talks to by 10% of Essar Oil
At current market prices, the stake would be worth $364m (Reuters)

Europe looks to lead green revolution
Future of manufacturing to revolve around green products (FT)

Lex: Fight to be eco top dog hots up
General Electric, Siemens and Philips have long been rivals (FT)

China Longyuan said to seek up to $2.3bn in IPO
China’s biggest wind power producer to sell 2.14bn shares (Bloomberg)

Business coalition calls for firm CO2 treaty
No action without a clear regulatory framework (FT)

Heritage to sell Ugandan fields to Eni
Deal worth about $1.3bn (FT)

William MacNamara

On Energy Source:

Rio Tinto and Codelco’s pragmatic cooperation

Elsewhere:

Chinese refiners agree 12 per cent rise in Saudi oil imports, topping 1m barrels per day (Reuters)

Duke’s Jim Rogers slags off coal, reiterates support for nuclear (WSJ)

Entertaining review of the Chevy Volt hybrid (NY Times)

Oil prices fall for a second day (Bloomberg)

Green Londoners can recharge their electric cars at Sainsbury’s (Treehugger)

Scotland turns on wave energy device (BBC)

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