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☆ ExxonMobil and Chevron Report Lower Earnings
▼ + stars: | 2024-04-26 | by ( Stanley Reed | More About Stanley Reed | ) www.nytimes.com time to read: 1 min

ExxonMobil and Chevron, the largest American energy companies, said on Friday that their earnings in the first quarter fell from a year earlier, pulled down by lower refining margins and plunging natural gas prices. But the oil and gas business remains highly profitable for the two giants even at a time of moderate oil prices. ExxonMobil said that earnings were $8.2 billion in the quarter, compared with $11.4 billion in the same period a year earlier. Their earnings were also hurt by falling prices for natural gas, a key fuel that is used in heating and industry. Natural gas prices, which soared after Russia’s invasion of Ukraine in 2022, have fallen sharply as markets adjusted.

Organizations: ExxonMobil, Chevron Locations: Ukraine

☆ Oil Markets Shrug Off Iran’s Attack on Israel
▼ + stars: | 2024-04-15 | by ( Stanley Reed | More About Stanley Reed | ) www.nytimes.com time to read: +1 min

Oil markets shrugged off the growing tensions in the Middle East, after Iran launched a barrage of missiles and drones against Israel over the weekend. On Monday morning, prices for Brent crude oil, the international benchmark, fell by about 1 percent, to $89.49 a barrel. So far, there has been relief that the much-anticipated attack did little damage and had no effect on supplies. Oil prices had already increased substantially in the days before the assault, rising above the symbolic $90 a barrel level last week. Rystad Energy, a consulting firm, calculates that on fundamentals, Brent should be selling for $84 a barrel.

Persons: Goldman Sachs, Brent, ”, Helima Croft Organizations: Brent, Rystad Energy, RBC Capital Markets Locations: Iran, Israel, Persian

☆ Britain’s Largest Steel Mill to Become Greener, at a Cost of Jobs
▼ + stars: | 2024-01-19 | by ( Stanley Reed | More About Stanley Reed | ) www.nytimes.com time to read: +1 min

Although the announcement was not a surprise, unions representing workers at the plant said they were angry that their proposals to save jobs had been rejected. The plant employs around 4,000 people, and it was unclear how many of the job cuts would take place at Port Talbot; Tata employs around 8,000 people in Britain. Electric steel making, which is more common in the United States than in Europe, tends to employ fewer workers. The government says the shift would ensure that steel making continued at the site and would cut Britain’s overall greenhouse gas emissions by 1.5 percent. The unions expressed skepticism that an electric furnace would be capable of producing metal of sufficient quality for some demanding applications, including automobile body panels and food and beverage cans.

Persons: Tata Organizations: Port Talbot, Tata, Tata Steel, steelworkers, Community Locations: Port, Britain, United States, Europe

☆ Shell to Sell Its Onshore Nigeria Oil Business for $1.3 Billion
▼ + stars: | 2024-01-16 | by ( Stanley Reed | More About Stanley Reed | ) www.nytimes.com time to read: 1 min

Shell said Tuesday that it had agreed to sell its onshore oil and gas business in Nigeria to a group dominated by local companies for $1.3 billion. The transaction is an effort by Europe’s largest energy company to reduce its risks in the country that is Africa’s largest oil producer. Nigeria has long been a cornerstone for Shell, but also the source of a damaging legal and environmental legacy. Other partners in the joint venture include Nigeria’s state oil company, which has a 55 percent stake, and France’s TotalEnergies. Shell will continue its offshore energy drilling in Nigeria, as well as its liquefied natural gas operations there.

Persons: Shell, France’s Organizations: Shell Locations: Nigeria, Niger Delta

☆ Oil Producers Fail to Agree on More Production Cuts
▼ + stars: | 2023-11-30 | by ( Stanley Reed | More About Stanley Reed | ) www.nytimes.com time to read: +1 min

The oil producers group known as OPEC Plus met on Thursday and failed to announce new production cuts in the face of sagging prices, but Saudi Arabia later said that it would continue to trim output by one million barrels a day through March, in coordination with some other countries that were not named. Oil traders, who may have expected more substantial cuts, had a chilly response to the news. Futures fell for the day, with Brent crude down 0.4 percent, to $82.80 a barrel, and West Texas Intermediate falling more than 3 percent, to $75.25. News reports of production cuts preceded the meeting. OPEC Plus said that Brazil, an oil giant that until now has not been part of the producers group, was expected to join next year.

Persons: Brent, ”, Richard Bronze, Alexandre Silveira de Oliveira Organizations: West Texas, Plus Locations: Saudi Arabia, Brazil

☆ In a Shaky Oil Market, OPEC Has Bitter Decisions to Make
▼ + stars: | 2023-11-29 | by ( Stanley Reed | More About Stanley Reed | ) www.nytimes.com time to read: +1 min

The agenda — whether to cut production further, and by how much — is likely to be unpalatable for many of the 23 members. It has dropped even as producers in OPEC Plus, a bigger group that includes Russia, have cut production, but the coming months seem unlikely to give oil producers a respite from this squeeze. After three years of pandemic recovery and robust increases in demand for oil, appetite is expected to slow in 2024. Overall economic expansion is expected to be tepid while more efficient energy use and increasing numbers of electric vehicles reduce oil consumption. With production expected to increase outside of OPEC Plus, there will be little need for increased output from the producers group in the early part of 2024 or, perhaps, longer, analysts say.

Organizations: of, Petroleum, Brent, OPEC Locations: United States, Vienna, Ukraine, Russia, China

☆ Nissan Will Build More Electric Cars in England
▼ + stars: | 2023-11-24 | by ( Stanley Reed | More About Stanley Reed | ) www.nytimes.com time to read: 1 min

Nissan said Friday that it would invest an additional 1.1 billion pounds (about $1.4 billion) to make three new electric models at its plant in Sunderland in northeast England. The announcement, which included plans for an additional battery plant, appears to go a long way to ensure that a substantial auto manufacturing industry will continue in Britain in the coming decade or longer. Brexit, which has made trade with the European Union more cumbersome, and the global shift to electric cars had raised fears that the British vehicle manufacturing industry faced an existential crisis. Britain’s output of cars has fallen by around 50 percent over the last six years. “I think it is a very significant investment,” said Peter Wells, an automotive specialist at Cardiff Business School.

Persons: “, ”, Peter Wells Organizations: Nissan, European, Cardiff Business School Locations: Sunderland, England, Britain, European Union

Siemens Energy is a key player in Germany’s energy transition and employs some 26,000 people in the country. The company’s difficulties have served as a warning that financial problems weighing on makers of renewable energy equipment could be growing more severe. Siemens Energy is the parent company of Siemens Gamesa, one of the world’s leading wind turbine makers. What Happens Next: Siemens Energy opens its books. On Wednesday, Siemens Energy will announce its earnings for the fiscal year that ended on Sept. 30.

Persons: Chancellor Olaf Scholz, Siemens Gamesa, Denmark’s Orsted Organizations: Siemens Energy, Germany, Siemens, Air Liquide Locations: Berlin, French, Denmark, Spain, New Jersey, United States, Frankfurt

☆ Why Are Oil Prices Falling While War Rages in the Middle East?
▼ + stars: | 2023-11-09 | by ( Stanley Reed | More About Stanley Reed | ) www.nytimes.com time to read: +5 min

Yet, after a few days of anxiety following the bloody Oct. 7 raids by Hamas militants in Israel, energy markets have been slumping. Mr. Alkadiri said that traders are unlikely to bid up prices unless they see “actual barrels removed” from the market. Saudi Arabia and other producers have been trying to support prices by reducing their oil output. Forecasters are warning that 2024 could be a difficult year in the oil markets. Haves and Have-notsAs the fighting continues, traders have figured out that when it comes to oil there are haves and have-nots in the Middle East.

Persons: Brent, hasn’t, ”, Richard Bronze, Raad Alkadiri, Alkadiri, Helima Croft, Croft, “, Biden, “ It’s Organizations: Eurasia Group, U.S . Energy Information Administration, ”, Group, American, RBC Capital Markets, Central Intelligence Agency Locations: Israel, London, China, Saudi Arabia, United States, East, Gaza, Iraq, Iran, Saudi, Hormuz, Ukraine, ”, Persian

☆ Offshore Wind Firm Cancels N.J. Projects, as Industry’s Prospects Dim
▼ + stars: | 2023-11-01 | by ( Stanley Reed | More About Stanley Reed | ) www.nytimes.com time to read: +1 min

Orsted, the Danish company that is a leading offshore wind farm developer, said on Wednesday that it would write off as much as $5.6 billion as it gives up on plans to build two wind farms off the coast of New Jersey. The charges were further evidence that offshore wind in the United States is going through a major shakeout, crimping Biden administration plans to make the industry a critical component of plans to reduce greenhouse gas emissions. High inflation and soaring interest rates are making planned projects that looked like winners several years ago no longer profitable. “The world has in many ways, from a macroeconomic and industry point of view, turned upside down,” Mads Nipper, Orsted’s chief executive, said on a call with reporters on Wednesday. The two projects, known as Ocean Wind 1 and 2, were destined to provide green energy to New Jersey.

Persons: crimping Biden, ” Mads Nipper, Nipper, Trump Locations: Danish, New Jersey, United States, Europe, Britain

Steel makers in Britain and the European Union also face rising carbon taxes on their emissions, and some plants in Europe seem likely to close or be reduced in size. Dirty as its production may be, steel is important — even strategic. It is essential for producing the wind turbines and electric automobiles needed for the energy transition, and for armaments at a time of rising military spending. Around 340,000 people in Britain and across the European Union have jobs connected to the steel industry. Those factors have prompted governments to agree to provide steel makers with billions to help pay for ways to cut emissions, but tens of billions more will probably be needed over the next three decades.

Persons: ”, Akio Ito, Roland Berger Organizations: Companies, International Energy Agency . Steel, European Union Locations: Europe, Britain

☆ Siemens Energy in Talks With German Government for Financial Help
▼ + stars: | 2023-10-26 | by ( Stanley Reed | More About Stanley Reed | ) www.nytimes.com time to read: 1 min

Siemens Energy, a major European manufacturer of wind farms, power grids and natural gas turbines, said Thursday that it was in talks with the German government about securing financial guarantees to help it continue to build future large projects. The statement said preliminary talks were underway with banks and the government. News that the Munich-based company was seeking help spooked investors, sending its stock price down 35 percent. Siemens Energy’s difficulties could be a warning that financial problems weighing on makers of renewable energy equipment could be growing more severe. These businesses are expected to be integral to helping economies shift to cleaner energy, but many are struggling to grow fast enough.

Organizations: Siemens Energy, Siemens Locations: Munich

☆ Chevron to Acquire Hess for $53 Billion in Latest Major Oil Deal
▼ + stars: | 2023-10-23 | by ( Stanley Reed | More About Stanley Reed | ) www.nytimes.com time to read: +1 min

Chevron, the U.S. energy giant, said Monday that it had agreed to acquire Hess, a medium-sized rival, in an all-stock deal valued at $53 billion. The deal marks a further consolidation of the energy industry, especially in the United States, where smaller companies appear to be taking advantage of relatively high oil prices to join forces with bigger players. The transaction follows Exxon Mobil’s $60 billion purchase of shale driller Pioneer Natural Resources earlier this month, another sign of confidence among large industry players in the future of fossil fuels even as policymakers promote cleaner energy sources. Hess would add about 10 percent to Chevron’s overall oil and gas production of about 3 million barrels a day. Mike Wirth, Chevron’s chairman and chief executive, said in a statement that the deal enhances the company’s operations “by adding world-class assets.”

Persons: Hess, Mike Wirth Organizations: Chevron, Exxon Mobil’s, Resources, Chevron’s Locations: U.S, United States

☆ Iran’s Call for Oil Embargo on Israel Roils Markets
▼ + stars: | 2023-10-18 | by ( Stanley Reed | More About Stanley Reed | ) www.nytimes.com time to read: 1 min

The prospect of an oil embargo arising from the conflict between Israel and militant groups contributed to a sharp but brief jolt in oil prices on Wednesday. Iran’s foreign minister, Hossein Amir-Abdollahian, called for Islamic countries to boycott Israel, including stopping oil shipments, according to Iranian media. He was speaking at a meeting of the Organization of Islamic Cooperation in Jeddah, Saudi Arabia. Although Israel imports nearly all its oil, analysts said that such an embargo would probably have little immediate impact, because the country does not buy oil from major Persian Gulf producers like Saudi Arabia and the United Arab Emirates or Iran. Instead, Kazakhstan, where oil is mostly produced by joint ventures involving Western companies including Chevron and Exxon Mobil, and Azerbaijan are among Israel’s biggest suppliers.

Persons: Hossein Amir Organizations: Israel, of Islamic Cooperation, United Arab, Chevron, Exxon Mobil Locations: Israel, Jeddah, Saudi Arabia, Gulf, United Arab Emirates, Iran, Kazakhstan, Azerbaijan, Nigeria

☆ Britain and Tata Agree to $1.6 Billion Package for Steel Mill
▼ + stars: | 2023-09-15 | by ( Stanley Reed | More About Stanley Reed | ) www.nytimes.com time to read: +1 min

The British government and Tata Steel on Friday announced a 1.25-billion-pound package, or about $1.6 billion, to cut emissions and financial losses at Tata’s steel mill — the country’s largest — at Port Talbot in Wales, potentially putting many of the plant’s 4,000 jobs at risk. The government said the package would help clean up a site that it said was Britain’s largest emitter, reducing the country’s overall carbon emissions by 1.5 percent, and would ultimately preserve thousands of jobs. It will provide £500 million, with Tata contributing £750 million. A union that represents the bulk of steel production workers in Britain said the arrangement risked falling short of the stated goals. While Tata says the plan would “preserve significant employment,” it is not guaranteeing jobs and has been losing money on its British operations for years.

Persons: Kemi Organizations: British, Tata Steel, Tata Locations: Port Talbot, Wales, Kemi Badenoch, Britain

☆ BP’s Chief, Bernard Looney, Resigns Over Relationships
▼ + stars: | 2023-09-12 | by ( Stanley Reed | More About Stanley Reed | ) www.nytimes.com time to read: 1 min

BP, the London-based oil giant, said on Tuesday that its chief executive, Bernard Looney, had resigned after acknowledging that he had not been “fully transparent” in disclosing his past personal relationships with colleagues. In a 2022 investigation, Mr. Looney acknowledged “a small number of historical relationships with colleagues” before becoming chief executive two years earlier, and BP concluded that he had not breached its code of conduct, the company said. But the company said it had recently received information that prompted another investigation, leading to Mr. Looney’s decision to resign. “He did not provide details of all relationships and accepts he was obligated to make more complete disclosure,” BP said. The company said Murray Auchincloss, the chief financial officer, would replace Mr. Looney on an interim basis.

Persons: Bernard Looney, Looney, ”, “, Murray Auchincloss Organizations: BP Locations: London

☆ BMW Says It Will Invest $750 Million to Build Electric Minis in Oxford
▼ + stars: | 2023-09-11 | by ( Stanley Reed | More About Stanley Reed | ) www.nytimes.com time to read: 1 min

BMW said on Monday that it would invest 600 million pounds, or about $750 million, to build electric versions of its popular Mini car models in Britain. The German manufacturer’s move allays fears that the combination of Brexit and the shift to electric cars would pose a dire threat to automobile manufacturing in Britain, but questions over the sector’s long-term future remain. BMW’s announcement is the third major piece of good news for Britain’s beleaguered car industry in recent months. Tata Group, the owner of Jaguar Land Rover, said in July it would spend 4 billion pounds to build a battery plant in western England. And last week, Stellantis, the leading maker of commercial vans in Britain, began producing electric-powered vans at its plant near Liverpool, after a £100 million investment.

Organizations: BMW, Tata Group, Jaguar, Rover Locations: Britain, England, Liverpool

☆ No Bidders in British Offshore Wind Auction
▼ + stars: | 2023-09-08 | by ( Stanley Reed | More About Stanley Reed | ) www.nytimes.com time to read: +3 min

Why It Matters: Wind developers say they are facing steep costs. Hit with rising costs on all aspects of offshore wind farms, from wind turbines to steel and copper, developers are signaling that they need higher revenues to make the projects financially viable. The costs of electric power from offshore wind, which have declined sharply over the last two decades, also seem likely to rise. The British auction did attract bidders for onshore wind and solar schemes. Recently, Orsted, the largest offshore wind developer, announced a potential $2 billion write-down on planned projects in the United States and warned that it could wind up canceling them.

Persons: Deepa Venkateswaran, Bernstein, ”, Venkateswaran, “ Organizations: British, Offshore Locations: Europe, United States, Britain

☆ Saudi Arabia and Russia Extend Oil Production Cuts Through December
▼ + stars: | 2023-09-05 | by ( Stanley Reed | More About Stanley Reed | ) www.nytimes.com time to read: +1 min

Saudi Arabia said on Tuesday that it would extend its cut in oil production cut of one million barrels a day for three months, through for the rest of 2023. The moves helped nudge oil prices, which have been on the rise in recent weeks, upward. Futures for Brent crude, the international benchmark, briefly reached $90 a barrel for the first time since June 2022. Together, the cuts amount to about 1.5 percent of global supplies. The Saudi cuts, first announced early in the summer, are a move to support oil prices, and until now have been extended on a month-to-month basis.

Organizations: Brent, West Texas Locations: Saudi Arabia, Russia, OPEC, U.S, Saudi, United States

☆ Wind Energy Giant Orsted Says Delays in U.S. May Cost $2 Billion
▼ + stars: | 2023-08-30 | by ( Stanley Reed | More About Stanley Reed | ) www.nytimes.com time to read: +1 min

The company said that the projects were being hit by delays and increased costs on suppliers, like wind turbine component manufacturers and the specialized ships needed to install the large machines, whose blades are as long as football fields. “There is a continuously increasing risk in these suppliers’ ability to deliver on their commitments and contracted schedules,” Orsted said in a statement on Tuesday. The company said that the sharp rise in interests rates would increase costs in the United States. Orsted also said that it might not be able to achieve tax credits from the United States as large as it previously anticipated. The impairments amount to about half of the $4 billion that Orsted said it had invested in its offshore portfolio in the United States but are only a fraction of the value of these projects and the company’s overall American plans.

Persons: ” Orsted, Orsted Locations: United States

Vattenfall, a Swedish energy company, has for years been doing preliminary work for what would be one of the world’s largest offshore wind complexes, in the North Sea off eastern England. Last month, Vattenfall said it would halt the first of three phases of the wind farm complex, the Norfolk Offshore Wind Zone, which is projected to provide power for about four million homes in Britain. The estimated price tag for the three phases has risen to 13 billion pounds, or about $16.6 billion, from £10 billion. “With the new market conditions, it simply doesn’t make sense to continue the project,” Helene Bistrom, head of business area wind at Vattenfall, said during a video presentation. The decision led Vattenfall, which is owned by the Swedish government, to write-down more than $500 million.

Persons: Vattenfall, ” Helene Bistrom Locations: Swedish, North, England, Norfolk, Britain, Vattenfall

☆ BP Reports Sharply Lower Earnings as Oil Prices Slide
▼ + stars: | 2023-08-01 | by ( Stanley Reed | More About Stanley Reed | ) www.nytimes.com time to read: +2 min

Behind the NumbersThe sharp drop was largely because of lower prices for the oil and natural gas that the company produces and sells. Energy prices soared last spring after Russia’s invasion of Ukraine, generating huge profits for oil companies. Since then, all major energy companies have been hit by lower prices, but BP’s earnings fell more proportionally than those of other large oil companies like Chevron and Shell. In a reminder of how important dividend payments from large energy companies are to investors, BP said it would increase its distribution by 10 percent, to about 7.3 cents a share, despite the earnings drop. Mr. Looney suggested the price was lower than it might seem because it will be gradually paid over nearly 20 years.

Persons: Bernard Looney, There’s, Mr, Looney, ”, ‘ Organizations: Energy, Chevron, Shell, BP, Oil, Brent Locations: Ukraine, London, Germany, China, United States

☆ British Government Signals Support for Oil and Gas Industry
▼ + stars: | 2023-07-31 | by ( Stanley Reed | More About Stanley Reed | ) www.nytimes.com time to read: +1 min

The British government said Monday that it would issue “hundreds” of new licenses for oil and natural gas exploration in the North Sea, as concerns about energy security and jobs at least momentarily outweigh efforts to address climate change. “It’s vital that we bolster our energy security and capitalize on that independence,” Prime Minister Rishi Sunak said in a statement. At the same time, the government announced that it would support two major plans for capturing carbon dioxide emissions from power plants and factories, and injecting the gas into depleted reservoirs under the North Sea. The announcements were an indication that the fate of the North Sea oil and gas industry is becoming an important battleground for Britain’s next general election, in 2024. The governing Conservative Party appears to have decided that protecting the oil and gas industry could be a vote winner over the opposition Labour Party, which has threatened to halt new drilling permits if it wins next year.

Persons: Rishi Sunak, Britain’s Organizations: ”, Conservative Party, Labour Party Locations: North

☆ Shell Reports Sharply Lower Earnings as Energy Prices Ease
▼ + stars: | 2023-07-27 | by ( Stanley Reed | More About Stanley Reed | ) www.nytimes.com time to read: +3 min

If so, large, petroleum-dominated companies like Shell remain very profitable even in a lower price environment. Shell also announced $3 billion in share buybacks, a slight decrease from $3.6 billion in the previous quarter. Natural gas prices in Europe were 65 percent lower. Last winter, Europe benefited from mild temperatures and reduced demand for energy in China. Shell plans to sell some electric power businesses, including an energy retailer in Britain, and it seems likely that others could go on the block.

Persons: Shell, Wael Sawan, ”, Sawan, Ben van Beurden Organizations: Shell, Energy, Organization of, Petroleum Locations: Ukraine, Russia, Europe, United States, China, Britain

☆ An American Energy Giant Sees Israel as a Springboard to Europe
▼ + stars: | 2023-07-27 | by ( Stanley Reed | More About Stanley Reed | ) www.nytimes.com time to read: +1 min

There are also signs of unease within Israel over moving from one fossil fuel to another. Environmentalists say that the dominance of gas in powering the Israeli economy and the influence of the petroleum industry mean that insufficient resources are going into developing clean energy. “We are hostages in a way,” said Elad Hochman, executive director of Green Course, an advocacy group. As for Chevron, though it does not disclose financial results from its Israeli operations, its executives say it is a profitable business that can be a springboard for expansion. “It is a very nice, attractive position,” Mr. Neff, the Chevron president, said, adding that the company has the opportunity “to grow our business substantially in the next few years.”Gabby Sobelman contributed reporting.

Persons: ”, Yael Cohen Paran, Elad Hochman, ” Mr, Neff, ” Gabby Sobelman Organizations: Green, Chevron Locations: Israel

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