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Oil servicers sweeten the pill
  + stars: | 2023-06-15 | by ( ) www.reuters.com   time to read: +2 min
NEW YORK, June 15 (Reuters Breakingviews) - The approach of peak oil demand is bad for oil producers, but it’s worse for companies that help dig and service new wells. A $5 billion merger between Patterson-UTI Energy (PTEN.O) and NexTier Oilfield Solutions (NEX.N), two small oil field services firms, offers a way out. Big oil producers are already focusing on returning cash to investors as they face up to the inevitable. The International Energy Agency said on Wednesday that global demand growth is set to nearly halt by 2028, as the use of oil in transport falls from 2026. That trend is one reason Patterson-UTI and NexTier have both delivered negative total shareholder returns since 2018.
Persons: Patterson, Robert Cyran, John Foley, Streisand Neto Organizations: YORK, Reuters, Patterson, UTI Energy, International Energy Agency, Twitter, Thomson Locations: India
An unavoidable tension surrounds this year’s United Nations-sponsored climate talks in November: They will take place in the oil-rich United Arab Emirates, and the most important role at the talks is held by the man who heads the national oil company. The executive, Sultan al-Jaber, and other representatives of the Emirates have argued that they have a “game changing” plan to fight climate change by welcoming oil and gas companies from around the world to participate more fully in the talks. In other words, invite the producers of the fuels that cause the majority of global warming as key players in developing a plan to slow the warming. In an interview, Majid al-Suwaidi, an Emirati diplomat who will also play a major role at the climate talks, known by the acronym COP28, said, “We need to engage the people who have the technical know-how, the skills, the technology — and, by the way, the people who provide jobs — in a conversation about how they transform.”To activists who have attended these conferences for years, that notion sounds far-fetched. “It’s just like how tobacco lobbyists need to be kept out of conversations about cancer prevention,” said Catherine Abreu, who heads Destination Zero, a network of nonprofits working on climate issues.
Persons: Sultan al, Jaber, Majid al, , “ It’s, Catherine Abreu Organizations: United Nations, United, Emirates Locations: United, United Arab Emirates
Why, when we think of climate change, do we think of big oil, not big ag; Exxon and not Tyson? It’s time you met the big ag lobby, one of the most powerful influences on policy in America. But when we started digging into the big ag lobby, we discovered it’s basically — “The most powerful lobby on Capitol Hill. So the big ag lobby has one key aim — block environmental regulation. I absolutely envy how good these lobbyists are at their job.” It’s outrageous what the big ag lobby has gotten away with.
Persons: , Peter Lehner, He’s, I’m, It’s, Tyson, Jennifer Jacquet, She’s, Peter, she’s, , Zippy Duvall, “ —, John Boehner, , You’ve, Waxman, Markey, Obama, American Farm Bureau Federation didn’t, ” —, JBS, don’t, they’re, Chuck Schumer, Cory Booker, I’ve, they’ve Organizations: Agriculture, ExxonMobil, Shell, Exxon, Washington , D.C, American Farm Bureau Federation, Capitol, U.S . Farmers, Tyson, New York Times, Republican, Senate’s Agriculture, pharma Locations: America, United States, Lake Erie, U.S, China, Washington ,, Kyoto, Senate’s
US House Republicans unveil broad package of tax cuts
  + stars: | 2023-06-09 | by ( Richard Cowan | ) www.reuters.com   time to read: +3 min
Three related bills were introduced on Friday with the goal of moving the legislation through the House Ways and Means Committee next week. Democrats already were focusing on whether the tax legislation could add to the ballooning federal debt. Representative Richard Neal, the panel's senior Democrat, said Republicans were "laying the groundwork for even bigger cuts in 2025" when provisions of the 2017 tax law expire. Republicans, who control the House, introduced the proposals days after Biden, a Democrat, signed into law legislation Republicans sought to begin addressing the rapidly-growing debt with about $1.3 trillion in spending cuts. Other provisions include an expansion of tax benefits for small start-up enterprises to "S Corporations," while eliminating some "red tape" that small businesses experience related to contract workers.
Persons: Joe Biden's, Jason Smith, Richard Neal, Neal, Biden, Richard Cowan, Paul Simao, Diane Craft Organizations: U.S . House, Taxation, Big Oil, Republicans, Child Tax, Democratic, Thomson Locations: U.S, American
Podcast: Has Ukraine’s counter offensive begun?
  + stars: | 2023-06-05 | by ( ) www.reuters.com   time to read: 1 min
Russia says it’s thwarted a major Ukrainian attack in the Donetsk region – is this the long-promised counter-offensive? Plus, the ancient statues found after a tipoff from a garbage man, and smiling lessons in Japan after COVID mask-wearing declines. Visit the Thomson Reuters Privacy Statement for information on our privacy and data protection practices. You may also visit megaphone.fm/adchoices to opt-out of targeted advertising. Further ReadingRussia says it thwarted major Ukrainian offensive, killed hundredsJapanese get trained in 'Hollywood' smiles as masks slowly come offVillage garbage man helped unearth ancient bronze statues in TuscanyOur Standards: The Thomson Reuters Trust Principles.
Persons: it’s, COVID Organizations: Apple, Google, Reuters, Thomson, Reading Locations: Russia, Ukrainian, Donetsk, , Saudi Arabia, Japan, Reading Russia, Tuscany
Saudi's energy ministry said the country's output would drop to 9 million barrels per day (bpd) in July from around 10 million bpd in May, the biggest reduction in years. "This is a Saudi lollipop," Saudi Energy Minister Prince Abdulaziz told a news conference. EXTENSION TO END OF 2024OPEC+ has in place cuts of 3.66 million bpd, amounting to 3.6% of global demand, including 2 million bpd agreed last year and voluntary cuts of 1.66 million bpd agreed in April. In addition to extending the existing OPEC+ cuts of 3.66 million bpd, the group also agreed on Sunday to reduce overall production targets from January 2024 by a further 1.4 million bpd versus current targets to a combined of 40.46 million bpd. By contrast, the United Arab Emirates was allowed to raise output targets by around 0.2 million bpd to 3.22 million bpd.
Persons: Prince Abdulaziz, Brent, Amrita Sen, Gary Ross, Giovanni Staunovo, Ahmad Ghaddar, Alex Lawler, Maha El Dahan, Julia Payne, Dmitry Zhdannikov, David Holmes, Barbara Lewis Organizations: Saudi, UAE, Saudi Energy, Organization of, Petroleum, Brent, OPEC, Analysts, Energy, Veteran OPEC, Black Gold, UBS, United Arab, Thomson Locations: Russian, Angolan, VIENNA, Saudi Arabia, OPEC, Saudi, Russia, Ukraine, Nigeria, Angola, United Arab Emirates
Investors shot down proposals urging Exxon and Chevron to set more ambitious climate targets. Climate-minded investors blame Big Oil's soaring profits and Republicans' criticism of ESG. "It's incomprehensible why investors are accepting this when they have more to worry about than the profits of Big Oil. Exxon in December said more than 70% of its capital investments in the coming years would flow to fossil-fuel development. "To be fair, we have seen change at Exxon in the last two years.
Persons: Big, Mark van Baal, Critics, Andrew Logan Organizations: Exxon, Chevron, Service, ExxonMobil, BlackRock, Vanguard, Big, Big Oil Locations: Ukraine
Global tax would spoil investors’ plastic party
  + stars: | 2023-06-01 | by ( Lisa Jucca | ) www.reuters.com   time to read: +4 min
This may change if supporters of taxes and other restrictive measures prevail at ongoing talks for a global treaty to end plastic pollution by 2040. And the world lacks sufficient infrastructure to sort discarded resins: only 9% of global plastic is recycled each year, the Organisation for Economic Co-operation and Development reckons. Some 90% of people support measures to combat plastic pollution, a global Ipsos survey from 2021 shows. Countries including Britain have already started applying levies on virgin plastic packaging. CONTEXT NEWSRepresentatives of 175 countries in March endorsed a landmark resolution to develop international, legally binding rules to end plastic pollution by 2040.
Persons: Inger Andersen, Barr, Aimee Donnellan, Pranav Kiran Organizations: MILAN, Reuters, Big Oil, ExxonMobil, Dow, Indorama Ventures, Saudi Aramco, Minderoo, Organisation for Economic Co, ” United Nations, Reuters Breakingviews, Barclays, Twitter, Thomson Locations: Sinopec, Britain, Paris
In other news:Tech workers are searching for low stress jobs on social media. Tech workers are looking for less stressful jobs. But one Amazon worker said there's "no such thing as [a] high pay low stress job in tech." Love Love Love: Award-winning engagement photos from around the world. Email dsiu@insider.com or tweet @diamondnagasiu) Edited by Alistair Barr (tweet @alistairmbarr) in San Francisco and Hallam Bullock (tweet @hallam_bullock) in London.
In the email, the organizing group encourages employee participation in the walkout by pointing out five areas of concern over Amazon's climate initiatives. Here's what the email says:Emissions that are rising: Amazon's emissions have increased 40%(!!) Partnering with Big Oil: AWS Al and machine learning are being used by Big Oil to greatly accelerate oil and gas discovery and extraction. Amazon launched the Climate Pledge in 2019, committing to reach net-zero carbon emissions by 2040. Partnering with Big Oil: AWS Al and machine learning are being used by Big Oil to greatly accelerate oil and gas discovery and extraction.
The protests come as Shell faces a shareholder vote on a measure to increase its climate ambitions following a year of record profits at the company. Bloomberg | Bloomberg | Getty ImagesLONDON — Shell Chief Executive Wael Sawan and the firm's board of directors on Tuesday were shielded by security staff as climate protesters unsuccessfully tried to storm the stage at the British oil giant's annual shareholders meeting. Follow This, a small Dutch activist investor and campaign group with stakes in several Big Oil companies, tabled a resolution at Shell's shareholders meeting. For the first time, Dutch pension managers MN and PGGM — both Shell shareholders — have endorsed the resolution. The company described Climate Resolution 26 as "unclear, generic and would create confusion as to Board and shareholder accountabilities."
A failure to lift the debt ceiling would trigger a default that would shake financial markets and drive interest rates higher on everything from car payments to credit cards. Any deal to raise the $31.4 trillion debt limit must pass both chambers of Congress before Biden could sign it into law. A plan passed by the House last month would cut a wide swath of government spending by 8% next year. Biden has said he would consider spending cuts alongside tax adjustments but that Republicans' latest offer was "unacceptable." McCarthy told reporters debt ceiling talks have not included discussions about tax cuts passed under former President Donald Trump, a Republican.
HIROSHIMA, Japan, May 21 (Reuters) - U.S. President Joe Biden and House Republican Speaker Kevin McCarthy will meet to discuss the debt ceiling on Monday, after a "productive" phone call as the president headed back to Washington, the two sides said on Sunday. Staff members from both sides will reconvene for talks at 6 p.m. (1800 GMT) on Sunday. A failure to lift the debt ceiling by that date would trigger a default that would cause chaos in financial markets and spike interest rates. SPENDING CUTSMcCarthy said Republicans backed an increase in the defense budget while cutting overall spending, and that debt ceiling talks have not included discussions about tax cuts passed under former President Donald Trump. McCarthy has said he will give House lawmakers 72 hours to review an agreement before bringing it up for a vote.
LONDON, May 18 (Reuters) - Shell (SHEL.L) will likely face one of its most acrimonious annual meetings next week as it struggles to balance investor pressure to capture profits from oil and gas and a vocal minority saying it must move faster to tackle climate change. Big Oil firms posted record profits last year amid soaring energy prices following Russia's invasion of Ukraine. That resolution echoes a ruling by a Dutch court telling Shell to adjust its climate targets, which Shell has appealed. It also said it was pleased that proxy advisers ISS and Glass Lewis had recommended votes against the Follow This resolution. The measures, however, did not prevent climate activist participants from heckling and disrupting proceedings before being escorted out, some carried by security staff.
The ‘Skeletons’ in Big Oil’s Closet
  + stars: | 2023-05-16 | by ( Manuela Andreoni | ) www.nytimes.com   time to read: +1 min
For years after those projections, however, Exxon continued to publicly cast doubt on climate science and cautioned against moving away from burning fossil fuels. Since then, we’ve learned that other companies, including Shell, also knew about the dangers of fossil fuels and climate change. The result has been dozens of lawsuits by organizations and governments accusing Exxon, Shell and other companies of public deception. In 2021, a court found that Shell was liable for causing climate change and ordered the company to cut its emissions. The case used the company’s early knowledge of climate science as one of its central arguments.
We're going to win this fight," Biden said at a flag-bedecked event at Westchester Community College in Valhalla, New York. Republicans are vowing to support raising the debt ceiling only if Biden agrees to retroactive reductions in government spending. Biden wants the debt ceiling lifted without spending cuts attached, but said he wants to negotiate the next budget. White House aides are meeting with congressional leaders' staff in Washington daily before Biden and the leaders meet again on Friday. Democrats view Republican House members who narrowly won election as possibly vulnerable to being pressured into breaking with their party's leadership and voting for a bill to raise the debt ceiling without conditions.
We're going to win this fight," Biden said at a flag-bedecked event at Westchester Community College in Valhalla, New York. Republicans are vowing to support raising the debt ceiling only if Biden agrees to retroactive reductions in government spending. Biden wants the debt ceiling lifted without spending cuts attached, but said he wants to negotiate the next budget. Biden spoke a day after he met with top Republican and Democratic lawmakers for the first time in three months to try to move forward on the debt ceiling and avoid a historic default. Democrats view Republican House members who narrowly won election as possibly vulnerable to being pressured into breaking with their party's leadership and voting for a bill to raise the debt ceiling without conditions.
Wall Street, I'm sorry to say your 2023 bonus is already on some shaky ground. I realize we're not even halfway through the year, but after an awful first quarter, bonuses in plenty of areas of finance are trending in the wrong direction. It's a mixed bag, with some areas trending toward a double-digit percentage increase over 2022, while others are heading the opposite way. If that isn't a certainty, you can bet people, especially those earlier in their career, will look for greener pastures. Six of the largest European and US oil companies have a combined nearly $160 billion in cash and cash equivalents on their balance sheets, The Wall Street Journal reports.
Oil-and-gas companies have built up a mountain of cash with few precedents in recent history. Wall Street has a few ideas on how to spend it—and new drilling isn’t near the top of the list. Many companies are cutting costs and raining cash on stock pickers like Berkshire Hathaway ’s Warren Buffett , who believe the world’s thirst for oil will continue for years, if not decades, to come. The promise of money returned to shareholders helped turn energy shares into some of the few bright spots in a dark moment for markets last year, fueled by commodity prices that skyrocketed after Russia’s invasion of Ukraine.
Goldman Sachs has identified a number of energy stocks to own ahead of an expected turn in the market's sentiment toward the oil and gas sector. Goldman's analysis comes after the energy sector posted stellar gains last year. Goldman expects a 10% increase in revenue from green investments at these companies this year compared to last year. The trend also indicates that a turning point may be approaching where larger energy companies could attract even more investment if they continue transitioning toward greener practices, the analysts added. Oil and gas companies have also been particularly attractive to investors over the past year thanks to their bumper profits.
The British energy giant posted underlying replacement cost profit, used as a proxy for net profit, of $4.96 billion for the first quarter. Analysts had expected BP to report first-quarter profit of $4.3 billion, according to Refinitiv. The group said it completed its previously announced $2.75 billion share buyback on April 28. BP's dividend remained unchanged from the previous quarter at 6.61 cents per ordinary share, following a 10% increase in February. The company reported first-quarter net debt of $21.2 billion, down from $27.5 billion when compared to the same period a year earlier.
BP shares slide as first-quarter profit dips
  + stars: | 2023-05-02 | by ( Hanna Ziady | ) edition.cnn.com   time to read: +2 min
London CNN —Shares of BP fell more than 5% Tuesday after the energy giant said it would return less cash to investors following a drop in first-quarter profit. BP (BP) reported underlying profit of $5 billion for the first three months of the year. BP (BP), Chevron (CVX), ExxonMobil, Shell and TotalEnergies (TOT) handed more than $100 billion to their investors in 2022 via share buybacks and dividend payments. Looking ahead, BP said it expects oil prices to “remain elevated,” following supply cuts by OPEC+ and strengthening demand from China. Gas prices in Europe and Asia would be supported by recovering Chinese demand, restocking of European storage capacity and coal-to-gas switching, it added.
Morning Bid: Amazon cools, Intel warms, Japan hesitates
  + stars: | 2023-04-28 | by ( ) www.reuters.com   time to read: +5 min
[1/2] A smartphone with a displayed Intel logo is placed on a computer motherboard in this illustration taken March 6, 2023. But the dramatic re-acceleration of Big Tech stocks this week - where the NYFANG+TM (.NYFANG) index of the top 10 Big Tech stocks is now up 37% so far this year - is competing with multiple macro narratives that are increasingly hard to read. With the Fed meeting in view, the release of March PCE price inflation data later on Friday tops the diary. Wall St stock futures fell back 0.4% after a wild ride in Amazon.com shares overnight. With much of Europe and Asia closed on Monday for the May Day bank holiday, Asia bourses advanced in Wall St's slipstream but Europe retreated sharply on some jarring corporate updates.
Oil AGMs presage awkward investor decoupling
  + stars: | 2023-04-28 | by ( Yawen Chen | ) www.reuters.com   time to read: +3 min
Chair Helge Lund defended a sudden reversal in February to now cut less oil and gas production by 2030. Big Oil had more than doubled its profits in 2022 as energy prices spiked after Western sanctions on Russian energy. Pension investors like the Universities Superannuation Scheme, for example, are strengthening their climate investment policies and targeting board members to drive change. The traditional oil investor base may soon start to question why companies aren’t doing much more in oil and gas, if that’s what drives profitability and market performance. The oil world’s own awkward decoupling is happening fast.
Oil major Chevron beat market expectations on Friday as profit nudged higher in the first quarter, with earnings from refining compensating for a slide in energy prices and in oil and gas production. Net profit climbed 5% to $6.57 billion or $3.46 per share. That compares with a Wall Street consensus for flat profit at $3.38 per share, according to figures compiled by Zacks Investment Research. The company's standout business was oil refining, where higher margins helped income surge more than five-fold to $1.8 billion. But its oil and gas production division saw its net profit tumble 25% on a big year-over-year decline in prices.
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