The Wall Street Journal today presented an interesting framework to think about investing in oil. The article takes a rather conservative perspective and suggests that investors should look at oil not for growth but for dividends. So they consider the super majors a better bet than the independents. While several points in the article are […]
Shell’s growing bet on biofuels
Shell’s $1.6 billion investment http:in Brazil’s Cosan to create a $12 billion joint venture indicates the company’s growing comfort with the economics of biofuels. Of course, sugarcane-based ethanol has always been far more viable economically than the U.S. focus on corn ethanol. Nevertheless, creating a separate JV integrating a variety of biofuels routes with an […]
India’s policy on oil and gas exploration and production
I have just published an op-ed article on India’s oil and gas exploration and production policy. It appeared in Business Line, India’s leading business newspaper. The main argument is: That India does not fit ‘Big Oil’s’ strategy need not be disappointing. As the country’s economy grows, ‘Big Oil’ will have to find new business models […]
ConocoPhillips: An unfair rap?
So ConocoPhillips has not done well on the stock market in recent times. It also did not help when Warren Buffett described his super-investment in the company as a “dumb” mistake. Conventional analysis has held ConocoPhillips’ $35.6-billion acquisition of Burlington Resources responsible for its recent woes. We are not convinced. For example, ExxonMobil’s $41-billion acquisition […]
Us vs. them: Information and climate change
It is unlikely that the debate will ever be settled but this is a cool graphic depicting key issues among the climate change deniers and believers.
Shell may sell its refineries to Essar
Shell is discussing the sale of its three European refineries to Essar, as discussed in a previous post, at $4,000 to $5,000 per barrel of capacity. While valuation will depend on the three refineries’ individual configurations and complexity, the transaction is at a significant discount from the industry’s Golden Age. The three refineries with more […]
Renewables M&A gets down to earth
KPMG has published an interesting survey of mergers and acquisitions in the renewable energy industry. Major conclusions include: Deal volume has, of course, fallen from nearly $26 billion in 2007 to a little over $18 billion in 2008 … … With the billion-dollar transactions of 2008 being replaced by smaller-sized deals in the $300-500 million […]
Gorgon’s new model for liabilities of carbon capture and sequestration
The WSJ has an interesting blog uncovering an under-reported aspect of the $37-billion Gorgon natural gas project in Australia being developed by Chevron, ExxonMobil, and Shell. Under the terms of the agreement, the companies will be responsible for the storage of the carbon-dioxide resulting from the natural-gas project during its operating lifetime and for 15 years […]
Irrational exuberance or legit joy?
The New York Times has published a piece commenting on the flood of recent oil field discoveries, far exceeding the pace in this decade. Much as this is cause for joy, new oil finds are deeper, costlier, and more difficult to process. Finally, we ought to have a few more data points before calling a […]
Will renewable energy benefit from R&D investments?
In a presentation, Rice University’s Baker Institute scholars have looked at patenting activity over the past few decades, government funding in R&D, and potential impacts on renewable energy. Their conclusion is surprising: Lower government funding in renewable energy reflects R&D’s declining productivity (based on patents) rather than lack of support. While more details are necessary […]
