On FT Energy Source:
- BP’s unsurprising refining surprise
- Being rich in resources really is a curse
- Renewables race: Winner China!
- Will the US soon be exporting nat gas?
- A long wait for Opec Iraq quotas
- Occidental in a position to buy
- Why the Obama’s energy budget is short-sighted
- Exxon profits and Shell’s Brazilian ethanol plans in Energy headlines
(Further reading will return tomorrow)
As one scours the landscape for potential mergers and acquisitions in the oil and gas patch, Occidental Petroleum might be a good starting point. After a strong 2009, the California-based producer is planning to increase its capital expenditures 19 per cent from the $3.6bn spent in 2009, to about $4.3bn.
Certainly that will not lend itself to any deals of the size ExxonMobil just pulled off. But there are numerous small fields and companies up for sale after a difficult 2009, given low commodity prices and a slowdown in demand amid the economic downturn. And Occidental has a history of picking up these little acquisitions. Read more
Ghana is worried, not to mention Papua New Guinea and most likely, Uganda. Poor countries that have recently found themselves the owners of sizeable fossil fuel reserves all fear the “resource curse”, or “paradox of plenty” – that, like Nigeria, Angola, Congo and many others before them, the oil wealth will somehow translate into corruption, poverty and/or civil oppression instead of higher standards of 1living.
Francesco Caselli and Guy Michaels at VoxEU have attempted to work out whether the resource curse exists, by looking at comparing Brazilian municipalities that have received different levels of oil revenues.
The results were hardly reassuring for citizens of countries with newfound resources wealth. Read more
That, for the record, is what happens when analysts don’t mysteriously “mind-meld” a couple of weeks ahead of your results. Read more