|Day's range||4.4700 - 4.4700|
Electric vehicles have charged up investments around the world, but Australia is revelling in a slew of deals involving old-school petrol stations, with a bidding battle developing for one of its top fuel retailers, Caltex Australia. A shake-up in the structure of the fuel industry over the past decade, sparked by refinery closures and oil major retreats, has produced deals worth $33 billion including offers for Caltex, according to Refinitiv data. "Australia is a high-quality 'short'," said a banker involved in the tussle for Caltex, using the industry term for a market short on fuel and referring to Australia's stable demand.
EOG Resources (EOG) has 10,500 net undrilled premium drilling locations in crude oil plays with resource potential of 10.2 billion barrel of oil equivalent.
AÑELO, Argentina, Feb 19 (Reuters) - Just weeks into his young administration, Argentina's new president convened a meeting with executives from Chevron Corp, Royal Dutch Shell PLC and other oil companies in a bid to smooth things over with an industry which he had slammed as a candidate months before. In a fence-mending session Jan. 16, Fernandez apologized to energy executives for the mixed signals, according to an industry source with direct knowledge of the meeting.
(Bloomberg) -- The U.S. sanctioned a unit of Russia’s largest oil producer, Rosneft PJSC, for maintaining ties with Venezuela’s Nicolas Maduro and state-run oil company PDVSA.The Treasury Department’s Office of Foreign Assets Control is acting against Rosneft Trading SA, the company’s Swiss-incorporated brokerage firm, as well as its Chairman Didier Casimiro. The U.S. restrictions come with a three-month wind-down period that expires May 20.The move represents the latest escalation in the Trump administration’s campaign to oust Maduro and rally international support behind Venezuelan opposition leader Juan Guaido. For the oil market, it means disruption and increased legal costs for companies, though the wind-down period gives operators time to adjust to the new regime.Oil futures erased a decline, with Brent crude settling 8 cents higher at $57.75 a barrel, after falling as much as $1.37. The ruble and Russian bonds fell. Rosneft share tumbled in Moscow, closing 2.7% lower.The Russian government said the sanctions won’t affect its international relations with Venezuela or any other country. Rosneft said the sanctions are illegal, that its operations in Venezuela are commercial, not political, and that other international companies, including American ones, operate there.“By operating in Venezuela, Rosneft is not violating any international or national law,” the company said, adding the U.S. government presented no proof of illegality. The operations are part of contracts signed before the introduction of sanctions and “are aimed at returning previously made investments and the implementation of long-term commercial interests,” it said.Rosneft is handling over half the oil coming from Venezuela and helping the country evade sanctions, according to U.S. officials who briefed reporters on condition of anonymity. Rosneft recently facilitated a shipment of 2 million barrels of Venezuelan oil to West Africa, one of the officials said.Rosneft has been evading sanctions by using ship-to-ship transfers to obtain Venezuelan oil, a U.S. official said. In other cases, they’ve changed names on ships to avoid detection, or lied about the source of the oil.The sanctions affect assets in the U.S. But those engaging in transactions with Rosneft Trading and Casimiro worldwide run the risk of being sanctioned, an official said.The restrictions are more narrowly targeted than Washington’s 2018 sanctions against metals group United Co. Rusal, which threw global aluminum markets into turmoil. Tuesday’s sanctions don’t prohibit deals with Rosneft Trading’s parent company or its other units, the Treasury said in a Q&A. That assurance, together with the three-month wind-down period, should limit the disruption to the flow of oil from Russia.Existing U.S. sanctions already prohibit providing financing to Rosneft for longer than 60 days, meaning that traders have for several years been wary of striking longer-term deals with the Russian company.President Donald Trump personally signed off on the sanctions and Secretary of State Michael Pompeo discussed the matter on Saturday with Russian Foreign Minister Sergei Lavrov, an official said.In the wake of U.S. sanctions on Venezuela, Russia has become the second-largest source of American oil imports. The nation’s crude and oil product exports to the U.S. climbed to 20.9 million barrels last October, the highest since November 2011, according to U.S. government data.Rosneft is currently subject to some U.S. market-sector sanctions, although those measures aren’t as far-reaching as the sanctions against businesses associated with the Maduro regime and don’t prevent Rosneft from entering into transactions for Venezuelan oil.Rosneft LoansRosneft has been Venezuela’s main shipper of crude, which goes predominantly to refineries in India and China. The Moscow-based company, controlled by Russian President Vladimir Putin’s government, has loaned $6.5 billion to Petroleos de Venezuela SA, the Latin American country’s state-owned oil company, in exchange for crude.Venezuelan oil sales fell to a 34-year-low in 2019 after sanctions cut off trade with the U.S., until then the country’s biggest customer.Notably, the U.S. Treasury Department has exempted Chevron Corp., allowing the company to conduct business with PDVSA. Chevron has ramped up output at a key Venezuelan oil project to levels not seen in almost a year. Its current waiver from sanctions expires in April.Rosneft Trading has been involved in a variety of international relationships for the Russian producer. It’s been the counterparty for an oil-supply deal with the semi-autonomous Kurdistan region, a liquefied natural gas contract with Egypt and gasoline shipments to Asia, according to the company’s website.The impact on Rosneft’s core business of selling Russian oil on the global market is unclear. Recent company documents offering crude and refined oil products for sale don’t mention the Switzerland-based trading arm. However, Rosneft Trading SA was the counterparty for a contract to supply crude to Germany through the Druzhba pipeline from 2017 to 2018, according to a company disclosure.(Adds comment from Rosneft in fifth and sixth paragraphs)\--With assistance from Saleha Mohsin, Sayer Devlin, Dina Khrennikova, Olga Tanas, Jack Wittels and Jake Rudnitsky.To contact the reporters on this story: Ben Bartenstein in New York at firstname.lastname@example.org;Jack Farchy in London at email@example.com;Josh Wingrove in Washington at firstname.lastname@example.orgTo contact the editors responsible for this story: Simon Casey at email@example.com, Carlos Caminada, Steven FrankFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
U.S. gasoline prices on Tuesday continued a week-long climb as unplanned weekend refinery outages compounded earlier shutdowns at major U.S. Gulf Coast and East Coast plants, gasoline traders said. The average retail price for a gallon of unleaded gasoline was $2.45, up from $2.33 a year ago, according to petroleum analytics firm Gas Buddy. Prices have been falling this year as inventories rose and crude oil prices slumped.
Antero Resources' (AR) fourth-quarter results are supported by lower operating expenses, partially offset by decline in realized commodity prices and natural gas equivalent production.
The divergent graph of oil and natural gas prices noticed in the fourth quarter makes it difficult for analysts to conclusively predict a direction for the period's earnings.
The Zacks Analyst Blog Highlights: ExxonMobil, ConocoPhillips, Valero Energy, Marathon Petroleum and Chevron
Zacks.com featured highlights include: KB Home, Rush Enterprises, Chevron, Ruth's Hospitality and Lowe's
(Bloomberg) -- Kuwait and Saudi Arabia will resume oil production from their shared fields this month, more than five years after a dispute halted supply.The Khafji field in the so-called neutral zone will start output by the end of February, while operations will resume at Wafra from Sunday with exports likely flowing within three months, said Hashem Hashem, chief executive officer of Kuwait Petroleum Corp. The restart comes at a critical time as the projects will bring additional production capacity to an oil market that’s already dealing with excess supply as the deadly coronavirus hits demand.The onshore Wafra and offshore Khafji are also important because U.S. sanctions on Iran and Venezuela have tightened the supply of heavy, high-sulfur crude, precisely the kind of oil that the fields produce. U.S. diplomats had been pressing both sides to reach an agreement. But Saudi Arabia and Kuwait, both important OPEC members, have said they are unlikely to add significant amounts of crude within the duration of the group’s current deal to curb output, which runs until the end of March.The neutral zone’s oil fields can pump about 500,000 barrels a day -- more than the production of each of the three smallest members of the Organization of Petroleum Exporting Countries last month. The two fields could reach their full capacity by the end of this year, Hashem said.Saudi Arabia and Kuwait reached an agreement in December to resume output in the barren strip of desert straddling their nations -- a relic of the time when European powers drew implausible ruler-straight borders across the Middle East.Khafji was shut down in 2014 after a spat between the countries. The disagreement escalated over to the Wafra field, when Saudi Arabia extended the project’s original 60-year concession, giving a unit of California-based Chevron Corp. rights there until 2039. Kuwait was unhappy over the announcement and claims Riyadh never consulted it about the extension.Chevron, through its subsidiary Saudi Arabian Chevron Inc., “has now embarked on a series of pre-startup activity, which includes efforts to ensure its workforce is ready to safely restart operations and then production,” Sally Jones, a company spokeswoman, said in a statement Thursday in response to the resumption of the Wafra field.The neutral zone, spanning more than 5,700 square kilometers (2,200 square miles), was created by a 1922 treaty between Kuwait and the fledgling Kingdom of Saudi Arabia. In the 1970s, the two Gulf Arab monarchies agreed to divide the area and incorporate each half into their respective territory while still sharing and jointly managing the zone’s petroleum wealth.\--With assistance from Matthew Martin and Bruce Stanley.To contact the reporter on this story: Fiona MacDonald in Kuwait at firstname.lastname@example.orgTo contact the editors responsible for this story: Nayla Razzouk at email@example.com, Rakteem Katakey, Amanda JordanFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
A Nigerian oil reform two decades in the making is urgently needed to get money into its energy sector, industry executives say, as tax increases and regulatory uncertainty scupper investments. Africa's largest oil exporting nation has not carried out a full revamp of the law underpinning its oil and gas sector since the 1960s. Government officials say a sweeping overhaul is imminent and will be presented to the National Assembly next week, which for industry leaders is not a moment too soon.
Alongside environmental efforts, BP remains focused on increasing sustainable free cash flow and boosting shareholder returns in the long run.
Interest expense has a direct bearing on the profitability of a company and its creditworthiness depends on how effectively it meets interest obligations.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Centrica Plc became the first energy company to book a major writedown on production assets in Europe as the global natural gas glut slashed valuations on both sides of the Atlantic.The U.K.’s biggest energy supplier to homes followed oil majors from Royal Dutch Shell Plc to Chevron Corp. in feeling the pain from a worldwide slump in the heating and power-plant fuel that’s sent prices to their lowest level in a decade in Europe.Centrica booked a net exceptional charge before tax of 1.1 billion pounds ($1.4 billion) for a lower value of its exploration and production arm, as well as a stake in U.K. nuclear plants. The writedown also includes restructuring costs of 356 million pounds.While gas is preferred to coal as a power generation fuel because it is much cleaner to burn, there are no signs of the glut coming to an end anytime soon. Nations from the U.S. to Australia are exporting record amounts of the commodity at the same time as the coronavirus is curbing demand in China, sending prices down further.“The gas market is very oversupplied right now because of associated gas from shale oil in the U.S. and lower levels of demand in Asia and to trump it all the coronavirus,” Centrica Chief Executive Officer Iain Conn said on a call with reporters on Thursday.The gas slump adds to the company’s woes after millions of customers have left in the past few years and lawmakers clamped down on prices utilities can charge their customers.As Conn, a veteran oil man, is leaving his role as CEO later this year, Centrica is selling its North Sea oil and gas company Spirit Energy Ltd. It has also put up for sale its 20% stake in Electricite de France SA’s U.K. nuclear plants. Both disposals “face headwinds and uncertainty,” according to Berenberg Bank.While the company plans to sell Spirit by the end of this year and is expecting offers by the end of March, it probably won’t be able to dispose of the nuclear stake by then, Conn said on the call.Conn added he was expecting the market to be surprised by the “blunt view” of gas prices the company was presenting and highlighted the irony that Centrica is attempting to sell these businesses now. He said he expected analyst to revise down their own commodity price curves too.Centrica is expecting gas prices to stay “weak” for the rest of this year, Conn said, which will lead to flat earnings at best. While the slump has clearly hit the value of its upstream assets, lower gas prices are positive for the energy supply business because it can buy fuel in the wholesale market at a cheaper rate. After the planned asset sales, the company will be more predictable, Conn said.Shares plunged as much as 18%, the most since July, after full-year earnings missed estimates. The company also cited the negative impact of the U.K. energy retail price cap at the same time as the departure of homes continued, although at a slowing rate.Read more here on what the analysts are saying about CentricaAcross the Atlantic, Chevron posted its steepest loss in a decade on Jan. 31 after billions of dollars in writedowns on the value of its North American gas fields. On Wednesday, Antero Resources Corp. wrote off more than half a billion dollars from its balance sheet as plunging prices for natural gas erode the value of its assets and investments.While Shell in 2019 enjoyed one of its strongest years trading gas ever, its fourth-quarter results included a charge of $1.9 billion, primarily on the lower value of its U.S. unconventional gas assets and a drilling rig joint venture.(Updates with chart on customer losses after 10th paragraph.)To contact the reporters on this story: Lars Paulsson in London at firstname.lastname@example.org;Rachel Morison in London at email@example.comTo contact the editors responsible for this story: Reed Landberg at firstname.lastname@example.org, Lars PaulssonFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- BP Plc’s pledge to zero out all its carbon emissions by 2050 deepens the divide between major European and American oil producers on climate change, increasing the pressure for Exxon Mobil Corp. and Chevron Corp. to do more.The U.S. supermajors have only committed to reducing greenhouse gases from their own operations, which typically account for just 10% of fossil fuel pollution. BP on Wednesday followed Royal Dutch Shell Plc and Equinor ASA in pledging to offset emissions from the fuels they sell to customers, representing about 90% of the total.“If we do see capital flowing into BP, that may force the U.S. majors to rethink the speed at which they move on carbon reduction targets,” said Noah Barrett, a Denver-based energy analyst at Janus Henderson, which manages $356 billion. Still, he doesn’t see “Chevron or Exxon adopting a BP-like strategy in the near future” as they “have historically been less aggressive in their shift away from traditional oil and gas.”Concerns about global warming are increasingly reshaping investment policies, with BlackRock Inc. and State Street Corp. becoming the latest high-profile investors to demand companies improve environmental, social and governance metrics, or ESG.Exxon and Chevron, the West’s number one and three oil producers, say it’s not up to them to offset emissions from cars, factories and other polluters known in the industry as Scope 3. For Exxon, such emissions are the “result of choices consumers make.” Chevron says “well-designed policies and carbon pricing mechanisms” are needed.But BP’s announcement “could be a real tipping point where the norm becomes taking responsibility” for customer emissions, said Kathy Mulvey, a campaign director at the Union of Concerned Scientists. “For a company to continue to stick their heads in the sand and refuse to take responsibility for those harmful impacts is not a sustainable business model.”Exxon and Chevron do agree with the goals of the Paris Agreement, support a carbon tax and are committed to cleaning up emissions from their vast network of wells, refineries and pipelines. They joined the Oil and Gas Climate Initiative later than their European rivals but are still fully paid up members. They even lobbied against U.S President Donald Trump’s plan to roll back Obama-era emission standards.The fundamental difference with European peers, however, is that neither is reducing commitment to their oil and gas business by chasing the crowd into lower-margin renewables such as wind and solar.When asked about potentially following Shell into the power sector, Chevron CEO Mike Wirth was clear in an interview with Bloomberg News last year.“We don’t see distinctive differentiating capabilities that would say, ‘wow we can do this better,’” he said. “And it’s inherently lower return than the other things we could invest money in.”Chevron is investing in early-stage technologies that could help aid carbon capture and energy storage, but that’s a small fraction of its budget. The company helps customers clean up their energy usage by supplying gas for power generation that’s cleaner than coal, developing biofuels and adding renewable energy sources like wind and geothermal, it said in a statement.Exxon CEO Darren Woods says the real answer to climate change will come through technologies that haven’t yet been invented. The company said in a statement it has invested more than $10 billion over the past 20 years in researching and developing low emissions technologies.The oil giant is working on proprietary technologies that would reduce emissions in areas like aviation, heavy duty vehicles and industrial processes. “We can bring more value in the space where we don’t know what the solution is but we need one,” Woods said in an April interview. Exxon has pedigree in this field. It invented the lithium-ion battery in the 1970s.This approach will likely come under attack at this year’s round of shareholder meetings in May. Both companies are being asked by Dutch activist investor group Follow This to align their strategies with the Paris Agreement. Exxon is asking the Securities and Exchange Commission to exclude that proposal from a shareholder vote, arguing it “seeks to micromanage” the company.To contact the reporter on this story: Kevin Crowley in Houston at email@example.comTo contact the editors responsible for this story: Simon Casey at firstname.lastname@example.org, Carlos Caminada, Dan ReichlFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Activist investor Carl Icahn is calling on the leadership of Occidental Petroleum Corp. to reveal whether they were approached by any potential buyers prior to agreeing to acquire Anadarko Petroleum Corp. for $37 billion.The billionaire, who owns 3% of Occidental, said in a letter to the company’s shareholders Wednesday that Chief Executive Officer Vicki Hollub and Chairman Eugene Batchelder were trying to preserve their own jobs ahead of the interests of investors.“Why did they decide to embark on this ill-advised bet that has already destroyed over $30 billion in stockholder value; and if oil continues its decline, we believe will jeopardize the dividend, leaving stockholders to suffer even more?” Icahn wrote in the letter, a copy of which was seen by Bloomberg News.A representative for Occidental wasn’t immediately available for comment.Occidental’s shares, which have fallen 35% in the past year, rose 3.2% to $42.49 in New York Wednesday, giving the company a market value of $38 billion.Icahn nominated a slate of directors in November to replace the entire Occidental board ahead of its annual general meeting, which hasn’t been scheduled yet. Last year’s shareholder meeting was held in early May.The billionaire investor has been a vocal critic of Occidental’s takeover of Anadarko. He has taken aim at the fact the deal wasn’t taken to a shareholder vote and has been critical of Hollub’s decision to use $10 billion of funding from Warren Buffett for the transaction. He has said in the past he believed Buffett “took her to the cleaners” by accepting the financing for the deal.Icahn said in Wednesday’s letter that he believes the Anadarko deal was a “defensive maneuver” that allowed Occidental to be the acquirer rather than be acquired itself. He argues that Hollub and Batchelder chose to structure the deal in a way that avoided a shareholder vote, in part, because they feared the vote would fail. He also said it allowed them to avoid disclosing in regulatory filings whether it had been approached by a potential acquirer.He said the company should have walked away if they feared they wouldn’t win a shareholder vote. Rival bidder Chevron Corp.did just that, he said.“Chevron, unlike OXY, exercised restraint and refused to engage in a bidding war when the price for Anadarko became untethered,“ he said, referring to Occidental’s stock symbol.Icahn has been seeking records through the courts about the company’s interactions in the lead-up to the Anadarko deal.“If we are right, which we believe we are, these actions are unconscionable under any measure,” he said. “If, on the other hand, we are wrong, then we call upon Hollub and Batchelder to publicly and clearly state whether or not OXY was approached as a possible acquisition target? It’s a very simple question -- one that management should address on the February earnings call.”Shares in Occidental climbed Tuesday after the company said production exceeded estimates despite lower capital spending, a key rationale for the Anadarko deal. Occidental is scheduled to announce its full fourth-quarter results on Feb. 27.“You don’t have to be Sherlock Holmes to realize that these actions point to the fact that Hollub and Batchelder are hiding something important, such as the possibility of an acquirer,” Icahn said. “If ever there was a time for a CEO and Board to be held accountable, it is now.”(Updates with closing share price in fifth paragraph. Anadarko’s name was corrected in an earlier version of this story.)To contact the reporter on this story: Scott Deveau in New York at email@example.comTo contact the editors responsible for this story: Liana Baker at firstname.lastname@example.org, Fion LiFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.