Ali Naimi, the oil minister of Saudi Arabia, was in mischievous mood on Monday night, positing an oil price of $70 to $90 for the foreseeable future, and suggesting that oil consumers should be happy with such a settlement – because a price of more than $70 was needed to justify investments in renewable energy.
His remarks, which came in response to questions from the Financial Times at a dinner hosted by the Singapore International Energy Week, did not go down well with all sections of the audience – some were unhappy that the world’s biggest oil producer should suggest they be content with an oil price they felt was unnecessarily high.
Mr Naimi justified his $70 to $90 prediction, which he called a “comfortable zone” that should be welcomed by oil producers and consumers alike, by reference to renewable energy, which he suggested gave oil an “anchor” price. If the oil price were to fall below $70, then renewable energy would not be competitive, he said.
What’s your description of a successful IPO?
Is it one where three quarters of the stock ended up in the hands of retail investors at the bottom end of a lowered price range?
Is it one where the heavily indebted issuer was trying to raise at least €3bn but only got €2.6bn?
According to the lead bookrunner it is:
What’s also slightly presumptuous is that Enel Green Energy has yet to start trading. That happens on Thursday. Only then will it be possible to judge whether the biggest Italian IPO in a decade has been success.
On that front, traders reckon interest in the renewables spaces has been piqued by the flotation so perhaps EGE will go well.
And if we are measuring IPO’s on the Ocado template – ie they got it away – then Enel Green Energy has indeed been a success.
Ocado’s grand ambitions fall back to earth – FT
What will the election of Dilma Rousseff, Lula’s anointed successor, as president of Brazil mean for the country’s energy sector?
The short answer is that she surely owes her electoral victory to a large number of voters wanting things to change as little as possible. Brazilians are quite happy with the way things are going in the country at the moment, and Dilma, as she is known, ran on a continuity platform and is unlikely to make any radical changes in such an important area.
But she is not Lula, and some developments in the sector were already underway. The long answer, then, is that to the extent we are likely to see any changes, it is that the country’s energy sector may become more central to a national political and developmental strategy.