oil gas – Atlanti Gaz http://atlantigaz.com/ Sat, 19 Mar 2022 17:16:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://atlantigaz.com/wp-content/uploads/2021/04/cropped-icon-1-32x32.png oil gas – Atlanti Gaz http://atlantigaz.com/ 32 32 Oil prices are rising⁠ and pipeline stock dividends are rising. Here’s how to play it. https://atlantigaz.com/oil-prices-are-rising%e2%81%a0-and-pipeline-stock-dividends-are-rising-heres-how-to-play-it/ Sat, 19 Mar 2022 17:16:00 +0000 https://atlantigaz.com/oil-prices-are-rising%e2%81%a0-and-pipeline-stock-dividends-are-rising-heres-how-to-play-it/ Sanctions on Russia are shaking up global energy markets, pushing crude oil above $100 a barrel and pushing U.S. gasoline prices to an average of $4.30 a gallon, up almost 50% last year.

He also made the energy sector a superstar this year. Of the 11 sectors of


S&P500,
energy stood out, outpacing the rest of the market with a 32% gain, versus a 7% decline in the S&P 500.

Energy infrastructure stocks, including pipeline, transmission, storage and logistics companies, returned an average of 16.6%, according to the Alerian Midstream Energy Index. It may not look great compared to the energy sector in general.

But infrastructure companies aren’t as volatile or highly correlated to crude oil prices as exploration and production, or E&P, companies. Infrastructure companies also tend to pay higher dividends, with an average yield of 5.6% compared to 4.3% for the S&P 500 energy sector.

Additionally, the midstream sector has been through a tough time and now appears to be in better financial shape, with many companies reducing debt, focusing on free cash flow and rebasing their dividends, following payout cuts in 2021 amid energy slowdown.

“Geopolitical developments this year have reinforced our positive outlook for the sector,” Mizuho analyst Gabriel Moreen said in an interview. “Commodity markets have tightened, cash flow improvement has been faster than expected and management teams are making the right strategic capital decisions, with distribution increases, share buybacks and deleveraging.”

High crude oil prices and dwindling supplies from Russia could also be an incentive to increase domestic production, benefiting pipelines, storage, logistics and other “midstream” segments.

“Significantly rising oil prices and the potential need to replace Russian barrels … could give U.S. producers license to expand more significantly,” said Stacey Morris, director of research at Alerian, in a recent comment. .

While large-cap E&P companies have signaled they won’t increase production sharply, independent producers and small drillers are expected to step in, boosting domestic production in the medium term.

The CEO of


Pioneer of natural resources

(ticker: PXD), a leading domestic shale driller, recently said the company could boost growth beyond its long-term target of 5%, if global prices remain high. U.S. shale production could reach 10% annualized growth over the next three years, he added, assuming drillers can find crews and equipment that are now in short supply.

“From a business perspective, we’re not going to change our long-term 5% growth,” Pioneer CEO Scott Sheffield told S&P in early March. “But if there is a coordinated effort, we will definitely participate in it.”

Dividend increases also appear to be back. Companies that have recently increased their payouts include


Energy transfer

(HEY),


Intermediate EnLink

(ENLC), and


Rattler in the middle of the current

(RTLR), notes Morris.


Targa Resources

(TRGP) also increased its payout, she notes.

One of Moreen’s top picks is Targa, a natural gas-focused company. Exports of natural gas liquids, or NGLs, are set to increase as Europe tries to wean itself off Russian supplies, he notes.

“Targa has one of the best free cash flow and balance sheet profiles in the industry and one of the best exposures to the Permian Basin in West Texas, where there is good visibility on production growth. “, did he declare. Moreen raised his target price on the stock to $85 and raised it to a buy quote on Friday.

Targa only earns 2.1%, but its payout ratio is low, indicating room for dividend growth. The shares closed at $69.26 on Friday and have gained 32.6% on the year.

Two other midstream companies that Moreen likes are


Kinder Morgan

(KMI) and


williams

(WMB). Both should benefit from demand for US NGL exports to Europe as Russian supplies dry up, he says. Kinder yields 6.2% while Williams yields 5.4%.

Among Master Limited Partnerships, or MLPs,


Intermediate DCP

(DCP) operates a diverse combination of pipeline, storage, transportation, logistics and “gathering” services for domestic oil and gas production. Its stock has lagged this year, gaining 14%, but it trades at 8.4 times estimated 2023 earnings, making it one of the cheapest MLPs. It pays 5%.

Two other broadly diversified MLPs to consider are


Energy transfer

and


Enterprise Product Partners

(EPD), both producing about 7%.

MLPs are flow-through entities that can pose tax complications. They issue complex K-1 partnership tax forms. Holding an MLP in a retirement account like an IRA can trigger “unrelated business taxable income,” or UBTI, which is taxable on distributions over $1,000 per year.

Exchange-traded funds may be an easier way to enter the sector. the


Algerian MLP ETFs

(AMLP) is the largest fund in the industry, with $6.1 billion in assets and an annualized return of 8%, based on recent distributions. Others to consider include ETN ETRACS Alerian Midstream Energy Index (AMNA) and Global X MLP & Energy Infrastructure ETF (MLPX).

Write to Daren Fonda at daren.fonda@barrons.com

]]>
Saudi Arabia’s human rights record could be neglected over need for cheap oil, groups say https://atlantigaz.com/saudi-arabias-human-rights-record-could-be-neglected-over-need-for-cheap-oil-groups-say/ Tue, 15 Mar 2022 22:33:18 +0000 https://atlantigaz.com/saudi-arabias-human-rights-record-could-be-neglected-over-need-for-cheap-oil-groups-say/

LONDON – Saudi Arabia’s mass execution of 81 people in one day, condemned by activist groups as a “massacre”, has sparked fresh fears that the kingdom’s human rights record is on the mend again. ignored in the context of the global energy crisis.

The Saudi Interior Ministry said the men were convicted of a wide range of crimes, from murder to membership in foreign terrorist organizations.

“Criminal groups have strayed from the path of truth, replaced it with desires and followed in Satan’s footsteps,” the Interior Ministry said. said in a press release. “This country…is sure to deter anyone who threatens its safety and that of its citizens and residents.

Amnesty International has led calls for Saudi Arabia to abolish the death penalty following the mass execution, with some of the men executed for allegedly taking part in anti-government protests.

“This string of executions is all the more chilling in light of Saudi Arabia‘s deeply flawed justice system, which hands down death sentences after grossly and grossly unfair trials, including basing verdicts on coerced ‘confessions’. under torture or other ill-treatment,” Lynn Maalouf, Amnesty International’s deputy regional director for the Middle East and North Africa, said in a statement. declaration Tuesday.

Saturday’s executions brought the number of executions in the country to 92 this year, according to Amnesty International. The mass execution alone exceeded the total number of 67 executions that would have taken place in 2021, according to the Office of the United Nations High Commissioner for Human Rights.

The legal charity Reprieve said all those executed “were tried, convicted, sentenced and executed in the greatest secrecy”.

“Of the dozen or so cases we know of, at least a quarter were tortured to make false confessions to terrorism offenses after participating in pro-democracy protests,” Maya Foa, director of Reprieve, told ABC News. .

The Saudi Foreign Ministry did not immediately respond to ABC News’ request for comment.

Just days after the mass execution, which drew international condemnation, British Prime Minister Boris Johnson is visiting Saudi Arabia amid concerns over global energy supplies following the Russian invasion of Ukraine. Johnson will meet with leaders of the United Arab Emirates before traveling to Riyadh, the Saudi capital, on Wednesday.

“The UK is building an international coalition to deal with the new reality we face,” the prime minister said ahead of the visit. “The world must wean itself off Russian hydrocarbons and starve Putin’s addiction to oil and gas. Saudi Arabia and the United Arab Emirates are key international partners in this effort. We will work with them to ensure regional security, support the humanitarian relief effort and stabilize global energy markets over the longer term.

Asked about the executions ahead of Johnson’s trip on Tuesday, a Downing Street spokesperson told ABC News: “The UK strongly opposes the death penalty in all circumstances and in all countries as a matter of principle. The government will raise this issue with the Saudi authorities. »

Reprieve, however, warned that Russia’s invasion of Ukraine could cause world leaders to turn a blind eye to Saudi Arabia’s latest human rights abuses in a bid to secure lower prices. fuel.

“Mohammed Bin Salman is betting the West will look the other way because he’d rather fund his blood-soaked oil state than Putin’s war machine,” Foa of Reprieve said.

Michelle Bachelet of the United Nations High Commissioner for Human Rights noted investigations into the execution “indicate that some of those executed were sentenced to death after trials that failed to respect fair trial and due process guarantees, and for crimes that did not did not seem to meet the threshold of the most serious crimes, as required by international law”.

She expressed concern that Saudi Arabia’s “extremely broad definition of terrorism, including non-violent acts” leads to “criminalization of people exercising their rights to freedom of expression and peaceful assembly”. .

The 2018 murder of Washington Post journalist Jamal Khashoggi at the Saudi Arabian embassy in Istanbul, as well as the ongoing humanitarian crisis in Yemen, exacerbated by the kingdom’s war with Iran-backed Houthi rebels, have sparked renewed calls from human rights groups to reconsider the situation. The West’s historic alliance with Saudi Arabia.

“We must not show our disgust for Vladimir Putin’s atrocities by rewarding those of Mohammed Bin Salman,” Foa said. “Finding a deal with Saudi Arabia now, despite this mass execution, would virtually guarantee that more people whose only crime was to challenge the status quo will be executed.”

]]>
‘It’s a fossil fuel war’: Ukraine’s top climate scientist speaks out https://atlantigaz.com/its-a-fossil-fuel-war-ukraines-top-climate-scientist-speaks-out/ Tue, 15 Mar 2022 10:18:54 +0000 https://atlantigaz.com/its-a-fossil-fuel-war-ukraines-top-climate-scientist-speaks-out/

This story was originally published by the Guardian and is reproduced here as part of the Climate office collaboration.

For Svitlana Krakovska, Ukraine’s top climate scientist, it was the week when eight years of work culminated in a landmark UN report exposing the devastation the climate crisis is causing around the world.

But then the bombs started falling on kyiv. Krakovska, head of a delegation of 11 Ukrainian scientists, struggled to help finalize the sweeping Intergovernmental Panel on Climate Change, or IPCC, report ahead of its release on February 28, even as the Russian forces were launching their invasion. “I told my colleagues that as long as we have the internet and there are no bombs above our heads, we will continue,” she said.

But his team, scattered across the country, began to break away – one had to rush to an air-raid shelter in Kharkiv, others decided to flee completely, Internet connections went down, a friend close to a delegate was killed in the fighting. International colleagues had to express their sympathy and continue the report.

Krakovska’s four children took shelter with her in their kyiv home when a missile struck a nearby building, emitting a deafening roar. A fire from a separate strike sent up a plume of smoke that blotted the sky. “This blitzkrieg by [Vladimir] Putin is amazing, this is terrorism against the Ukrainian people,” she said.

The invasion and the IPCC report crystallized for Krakovska the human, economic and geopolitical catastrophe of fossil fuels. About half of the world’s population is now extremely vulnerable to disasters resulting from the burning of fossil fuels, according to the IPCC report, while Russia’s military might is underpinned by wealth from the country’s vast oil and gas reserves. country.

“I started thinking about the parallels between climate change and this war and it’s clear that the roots of both of these threats to humanity lie in fossil fuels,” Krakovska said.

“The burning of oil, gas and coal is causing warming and impacts that we have to adapt to. And Russia is selling these resources and using the money to buy weapons. Other countries are dependent on these fossil fuels, they don’t get rid of it. It’s a fossil fuel war. It’s clear that we can’t continue to live like this, it will destroy our civilization.

The IPCC report, described by António Guterres, the UN Secretary General, as an “atlas of human suffering and a damning condemnation of failed climate leadership”, is the most comprehensive catalog to date of the consequences of global warming. Extreme heat and the spread of disease are killing people around the world, an estimated 12 million people are displaced each year by floods and droughts, and the viability of food-producing land is declining.

But it was the conflict in Ukraine that prompted Western governments to hastily attempt to shed a dependence on Russian oil and gas. The EU, which gets around 40% of its gas supply from Russia, is working on a plan to rapidly expand renewables, boost energy efficiency measures and build liquefied natural gas terminals to receive gas. gas from other countries.

Joe Biden, meanwhile, bowed to pressure from US lawmakers to ban imports of Russian oil. The ban, the US president said last week, will deal a “powerful blow to Putin’s war machine.” We will not participate in the financing of Putin’s war. Biden said the United States would work with Europe on a long-term plan to phase out Russian oil and gas.

The halt to imports was called for in an emotional appeal to members of Congress by Volodymyr Zelenskiy, Ukraine’s president, and is backed by a bipartisan majority of lawmakers. “It’s fundamentally insane of us to continue buying stuff and giving money to Putin so we can use it against the Ukrainian people,” said Joe Manchin, the Democratic senator.

Others see the ban as a moment to break away from fossil fuels for good. “This moment is a clarion call for the urgent need to transition to clean home energy so that we are never complicit in a fossil fuel-fueled conflict ever again,” said Ed Markey, a progressive Democratic senator who was one of the drivers of the Green New Deal program. .

But in a stark display of how fossil fuels remain deeply entrenched in decision-making, the Biden administration clumsily tried to tout its efforts to tackle the climate crisis. while boasting that the United States is now drilling more oil than even under Donald Trump to show that it is aware of public anxiety over rising gas prices, an eternal political headache for presidents.

“We have no strategic interest in reducing the global energy supply,” said Jen Psaki, White House press secretary. “It would increase prices at the pump for the American people, worldwide, because it would reduce the available supply.”

While the United States takes a relatively small amount of oil from Russia — only about 3% of all oil imports — experts say it’s telling that an administration that voices the need to cut fossil fuels has struggled to cut itself off from its dependence on oil and gas.

“It’s a gross oversimplification to call this a fossil fuel war, it’s a little too flippant,” said Jonathan Elkind, an energy policy expert at Columbia University and a former energy adviser to the administration. of Barack Obama. “But it is an undeniable reality that Russia derives a significant portion of its revenue from oil and gas and that the American gasoline habit contributes to global demand for 100 million barrels of oil every day.

“Do we want to find ourselves in 10 years where we have bent the curve of oil consumption and emissions towards decarbonization, or do we want to sit there and think ‘where has the last 10 years gone?’ If the United States is not part of the solution, we will jeopardize our influence on the world stage and the fate of everyone here and around the world.

As Europe belatedly tries to wean itself off Russian gas, efforts to phase out fossil fuels in the United States have failed. Biden’s legislative plan to dramatically increase renewable energy is moribund in Congress, thanks in large part to Manchin, while the conservative-leaning Supreme Court mulls whether to weaken the administration’s ability to regulate power plants coal-fired electrics.

The invasion of Ukraine also sparked pressure from the US oil and gas industry and its allies in Congress to relax regulations to allow more domestic drilling. Manchin, chairman of the Senate Energy Committee, said delaying new gas pipelines while “Putin is actively and effectively using energy as an economic and political weapon against our allies is simply unacceptable.” Even Elon Musk, founder of electric vehicle company Telsa, said that “we need to increase oil and gas production immediately. Extraordinary times call for extraordinary measures.

The White House has pointed out that the industry is already sitting on a large number of unused drilling leases – a total of 9,000 unused permits covering 26 million acres of US public land – while environmentalists say the crisis puts in highlights the dangers of being at the mercy of a volatile world oil price, now near an all-time high, rather than turning to solar, wind and other clean energy sources.

“The fossil fuel industry’s so-called solution to this crisis is nothing more than a recipe for enabling fossil fuel fascists like Vladimir Putin for years to come,” said Jamal Raad, executive director of Evergreen Action. “As long as our economy depends on fossil fuels, we will be at the mercy of petro-dictators who wield their influence on global energy prices like a weapon.

“Clean energy made in the United States is affordable, reliable and free from the volatility of oil and gas markets. The best way to weaken Putin’s grip on the global energy market is to get America out of fossil fuels.

In Kyiv, Krakovska said she would stay in her hometown as the Russian military advanced, after declining offers of relocation to foreign research institutes. “I know that’s what Putin wants, that we run away from Ukraine so they can have our beautiful country,” she said.

“I told scientists from other countries that I would collaborate with them, but from an independent and free Ukraine. I couldn’t be anywhere else knowing kyiv was in the hands of these barbarians.


]]>
Saudi Arabia. Boris Johnson’s visit for oil talks – as kingdom announces execution of 81 | world news https://atlantigaz.com/saudi-arabia-boris-johnsons-visit-for-oil-talks-as-kingdom-announces-execution-of-81-world-news/ Sat, 12 Mar 2022 17:24:42 +0000 https://atlantigaz.com/saudi-arabia-boris-johnsons-visit-for-oil-talks-as-kingdom-announces-execution-of-81-world-news/

Boris Johnson is set to travel to Saudi Arabia next week for oil talks as he tries to extricate the UK from dependence on energy supplies from Russia.

Although Downing Street insists the trip is not finalized or confirmed, the Prime Minister faces calls from Tory MPs to intervene to urge the Saudis to release more oil.

The potential trip emerged as fuel prices at the pump hit record highs, topping £1.60 a liter for petrol and £1.70 for diesel, according to the latest figures from the RAC.

Putin ‘not ready to end war’ after talks with France and Germany – latest updates

Please use Chrome browser for more accessible video player


0:41

Chemical weapons ‘straight out of Russia’s playbook’

Government insiders say the Prime Minister has better ties to Saudi Crown Prince Mohammad bin Salman than any other G7 leader and the couple have exchanged WhatsApp messages.

In contrast, it was reported that the prince refused to respond to a call from President Biden, who denounced Saudi Arabia as a “pariah” on the murder of journalist Jamal Khashoggi in 2018.

Mr Johnson’s potential trip comes as Saudi Arabia announced it had executed 81 men, including seven Yemenis and one Syrian, for terrorism and other offenses including ‘deviant beliefs’ in the largest execution of mass for decades.

The Saudi Interior Ministry said: “These individuals, 81 in number, have been convicted of various crimes, including the murder of innocent men, women and children.

“The crimes committed by these individuals also include pledging allegiance to foreign terrorist organizations, such as the Islamic State, al-Qaeda and the Houthis.”

The last time the kingdom carried out an execution on such a scale was in 1980, when 63 people were killed in a day, a year after militants seized the Grand Mosque in Mecca, according to media reports. officials.

Boris Johnson previously met Saudi King Salman in Riyadh, Saudi Arabia
Picture:
Mr Johnson previously met Saudi King Salman in Riyadh

Regarding the prime minister’s plans to travel to Saudi Arabia for a meeting with the prince, The Times reported: “The trip has not been finalized, but seems increasingly likely.”

A Number 10 spokesperson told Sky News: ‘Nothing is planned at this time. We will update in the usual way if anything is confirmed.

In his interview with Beth Rigby on Sky News On Thursday, Mr Johnson said: “What we are going to do is look at our energy supply…to move away from reliance on Russian oil and gas.

“We will now take the dramatic steps we need to take to have an independent energy supply, so that we are no longer able to be blackmailed by Putin.”

Claiming that Mr Johnson is well placed to persuade the Saudis to pump more oil, government insiders point to his praise for the prince’s reform agenda when he was foreign secretary.

And controversially, unlike the US, the UK has continued to sell weapons to Saudi Arabia, defying critics who have protested the use of arms in the war on Yemen.

Russian President Vladimir Putin attends a meeting with government officials via video link in Moscow, Russia March 10, 2022. Sputnik/Mikhail Klimentyev/Pic: Kremlin via REUTERS
Picture:
President Putin has the ability to ‘blackmail’ the UK on oil, Mr Johnson says

The prime minister’s allies also point out that in a high-profile coup he persuaded the Saudis to commit to net zero by 2060 ahead of the COP26 summit in Glasgow last year.

Mr Johnson was due to visit Saudi Arabia twice in recent years, most recently last month on a trip that was postponed due to the Ukraine crisis. A phone call took place instead.

And senior Tory MPs believe that after the Saudis’ phone call to President Biden, Mr Johnson could broker an oil deal that could be crucial to easing the energy crisis.

Former cabinet minister Steve Baker, a leading figure in the Tories’ Net Zero Scrutiny Group, told The Daily Telegraph this week: “Boris has come into his own during this crisis.

“Now would be the time for him to help deliver more oil and gas from Saudi Arabia so that we can stop Putin’s war machine sooner.”

Former Middle East minister Andrew Murrison said: “The UK has always had a positive and constructive relationship with Saudi Arabia based on dialogue. I’m sure that will help in the current context.” .

]]>
Bond investors left in the dark after some Russian borrowers repaid https://atlantigaz.com/bond-investors-left-in-the-dark-after-some-russian-borrowers-repaid/ Fri, 11 Mar 2022 13:13:28 +0000 https://atlantigaz.com/bond-investors-left-in-the-dark-after-some-russian-borrowers-repaid/

Investors have been waiting for a wave of Russian companies to default on their debts since the West froze Moscow from the global financial system in retaliation for the war in Ukraine. So Gazprom’s decision to repay a $1.3 billion bond in full on Monday caught bondholders off guard.

This month, President Vladimir Putin called those countries that impose economic sanctions “unfriendly” and said Russian companies might pay investors back in rubles rather than foreign currency — in fact, a default at all. except the name. And yet, fund managers in Europe and the United States got their dollars back from Gazprom two days later. Oil company Rosneft followed suit with a $2 billion refund on Thursday.

But not all Russian borrowers repay. Investors said they had yet to receive a coupon payment on a Russian Railways euro-denominated bond due to arrive on Thursday, Bloomberg reported.

The result is confusion among foreign investors, who hold $21 billion of Russian corporate debt in foreign currencies.

“Gazprom and Rosneft have shown investors that the situation can be very uncertain until the last minute,” said Sergey Dergachev, head of emerging market corporate debt at Union Investment. “Whether companies will continue to pay will depend on the future course of sanctions against Russia.”

Russian companies have $98 billion in foreign currency bonds outstanding, according to JPMorgan, up from a high of $169 billion in 2013, the year before Moscow annexed Crimea. Nearly half of that $98 billion must be repaid over the next three years, including $17 billion due in 2022 alone.

The Russian corporate bond market is highly concentrated, with the largest oil and gas companies such as Rosneft, Transneft and Gazprom accounting for around half of the total. Among the largest holders of Gazprom’s foreign currency bonds are Pimco, Carmignac Gestion and Vanguard, according to Bloomberg data.

This week’s repayments demonstrate that companies with a significant presence outside of Russia and significant dollar revenues are able and willing to use their foreign currency to repay bondholders.

“It seems some Russian companies are trying to keep things as normal and creditor friendly as possible, maybe there’s a gentleman’s agreement [to continue paying]said Charles-Henry Monchau, chief investment officer at Syz Bank, who added that Gazprom and Rosneft were unlikely to have acted without Putin’s consent.

But investors do not assume a general willingness on the part of Russian companies to continue to service their debts abroad, especially since the government – which faces an interest payment on its debt in dollars next week – expected to be largely lacking in the coming weeks.

“As we see the possibility of continued debt servicing from funds already offshore, it will become increasingly difficult for debtors to continue to access hard currency and pay,” Citi analysts said. in a note to customers. “If the sovereign defaults, it may be politically impossible for companies to [pay].”

Investors also fear that payments from Gazprom and Rosneft will already be underway before Putin publishes his ruble repayment plan this weekend – and therefore does not set a precedent for future takeovers.

“It’s possible the executive order came later and they just chose not to cancel the payment instructions,” said Kaan Nazli, portfolio manager at Neuberger Berman.

Upcoming tests of Russian companies’ willingness to pay come with upcoming repayments, including a $483 million bond from gold mining group Polyus – one of 26 natural resource companies to have had its credit rating downgraded by Fitch in recent weeks – March 28 as well as $625 million from Russian Railways and $156 million from oil conglomerate Borets International.

Investors will likely remain in the dark until the last moment, creating an uncomfortable situation for bondholders – and a potential opening for opportunistic buyers. Funds that sold the Gazprom bond at prices as low as 50 cents on the dollar last week lost, while those lucky enough to strike a bargain doubled their money within days.

However, such a strategy remains risky. It’s “highly likely” that many Russian companies will default on debt at some point this year, said Liam Peach, emerging markets economist at Capital Economics. “Russian companies should, in principle, benefit enormously from exorbitant commodity prices,” Peach said. “But the earnings of export-oriented companies are likely to be affected by sanctions, restrictions on international trade and ‘self-sanctions’ by foreign companies.”

Many investors are choosing to sit idly by, reluctant to trade in a market where the spread between offers to buy and sell bonds has exploded.

“It’s almost impossible to get a full picture of what’s going on,” Dergachev said. “So we’re not adding positions, but we’re not selling.”

FT Asset Management newsletter

Our weekly story inside about the movers and shakers behind a multi-trillion dollar industry. register here

]]> Staples: Alberta offers a way out of North America’s chaotic energy policy https://atlantigaz.com/staples-alberta-offers-a-way-out-of-north-americas-chaotic-energy-policy/ Wed, 09 Mar 2022 10:05:35 +0000 https://atlantigaz.com/staples-alberta-offers-a-way-out-of-north-americas-chaotic-energy-policy/

Energy security is the most burning domestic issue in the United States right now. Biden and his Democrats are reportedly considering importing more oil from dictatorships like Venezuela, Saudi Arabia and Iran.

Content of the article

Two things can be true at the same time. First, as long as Joe Biden and Justin Trudeau remain in power, energy policy in North America will be chaotic. Too much emphasis will be placed on unreliable wind and solar power generation and far too many billions will be spent importing oil from violent and unstable dictatorships.

Advertisement 2

Content of the article

Second, now is the best time in decades for Alberta to make the case that our nearly inexhaustible oil reserves are the smartest and surest path to near-term energy security in North America (with power plants next-generation nuclear weapons manufactured in Canada and the United States as a long-term response to global warming concerns).

Alberta Premier Jason Kenney made his best selling pitch for Alberta oil on Tuesday at Houston’s huge CERAWeek conference on global energy, but the big news was that Biden has announced the ban by the United States on importing oil and gas from Russia.

Energy security is the most burning domestic issue in the United States right now. Biden and his Democrats are would have consider importing more oil from dictatorships like Venezuela, Saudi Arabia and Iran. Their longer term focus is solar, wind and nuclear power. The Republicans are even more pro-nuclear, but the beating heart of their energy security strategy is more domestic production and importing Alberta oil through the Keystone pipeline, a project abandoned by Barack Obama and Biden.

Advertisement 3

Content of the article

Former Republican Vice President Mike Pence just spent $10 million on an ad campaign to beat Democrats in tight districts in the upcoming fall election, with Biden rejecting the Keystone Pipeline on main post“Before Russian bombs fell on Ukraine, before hundreds of innocent Ukrainians lost their lives, a horrible decision had already been made. Joe Biden gave in to radical environmentalists and shut down the US Keystone Pipeline and dramatically increased America’s dependence on Russian oil, endangering America’s security and helping Russia finance the invasion.

A supply depot serving the Keystone XL <a class=crude oil pipeline is inactive in Oyen, Alberta.” class=”embedded-image__image lazyload” src=”https://smartcdn.gprod.postmedia.digital/edmontonjournal/wp-content/uploads/2021/03/keystone0317.jpg?quality=90&strip=all&w=288″ srcset=”https://smartcdn.gprod.postmedia.digital/edmontonjournal/wp-content/uploads/2021/03/keystone0317.jpg?quality=90&strip=all&w=288, https://smartcdn.gprod.postmedia.digital/edmontonjournal/wp-content/uploads/2021/03/keystone0317.jpg?quality=90&strip=all&w=576 2x” height=”750″ loading=”lazy” width=”1000″/>
A supply depot serving the Keystone XL crude oil pipeline is inactive in Oyen, Alberta. Photo by Reuters/Todd Korol

Former Trump Secretary of State Mike Pompeo weighed in on a related issue: “Biden bans buying oil from one evil autocrat, to buy it from two others. It should immediately reverse its ban on new oil and gas leases and restart the Keystone XL pipeline.

Advertisement 4

Content of the article

In his own speech, Biden never mentioned Keystone, denied that his administration’s policies had anything to do with high gas prices and pushed for an acceleration of clean energy projects.

The Trudeau Liberals sing from a similar hymnbook, minus the preference for nuclear power, with Environment and Climate Change Minister Steven Guilbeault, a longtime anti-nuclear activist, now lobbying for rapid deployment of an expensive and unreliable mix of solar and wind power, while denying that Canada can do anything to replace Russian power in Europe.

“Let’s be reasonable, we can’t help Europe with oil”, Guilbeault said in an interview with Bloomberg News. “Our export capacity is pretty much maxed out. We’re building a pipeline. It’s just going in the wrong direction and the idea that we could somehow start building a bunch of new infrastructure in Canada and that it would magically happen – whether for gas or for oil – is not very serious.

Advertisement 5

Content of the article

Guilbeault is right about that, but largely because his own government has made it nearly impossible for private companies to go ahead with oil and gas projects and pipelines.

In Houston, Kenney vs Guilbeault, noting that governments can “de-risk” the Keystone XL project moving forward, something TC Energy understandably refuses to consider at this time given Biden is in power.

But Kenney made a solid offer to keep other Americans pushing for Keystone. If Biden has his way on imports, it will mean more funding for Saudi aggression in Yemen, for Iran’s Revolutionary Guards and for the continued oppression of the Venezuelan people, Kenney said. “None of that does – it’s time to get real about global energy, and that’s why I truly believe Alberta and Canada are the answer.”

Advertising 6

Content of the article

Kenney highlighted Alberta’s record on environmental protection and its investments in clean hydrogen. “Do we want to continue to have a liberal democracy with bold ambitions on environmental performance to be effectively landlocked, while ceding a growing share of global energy markets to some of the world’s most unstable regimes? The Ukrainian people are paying the price right now. »

Even though Alberta has been ignored in the past, I suspect Kenney’s arguments will resonate in the United States. sweep away leaders who do not support domestic oil and gas, reject nuclear power and put us all at risk.

dstaples@postmedia.com

twitter.com/davidstaplesyeg

Advertisement 1

comments

Postmedia is committed to maintaining a lively yet civil discussion forum and encourages all readers to share their views on our articles. Comments can take up to an hour to be moderated before appearing on the site. We ask that you keep your comments relevant and respectful. We have enabled email notifications. You will now receive an email if you receive a reply to your comment, if there is an update to a comment thread you follow, or if a user follows you comments. Visit our Community Rules for more information and details on how to adjust your E-mail settings.

]]>
China plans ‘THREE new gas pipelines with Russia’ as EU, UK and US ban all energy supplies | Science | News https://atlantigaz.com/china-plans-three-new-gas-pipelines-with-russia-as-eu-uk-and-us-ban-all-energy-supplies-science-news/ Tue, 08 Mar 2022 17:43:00 +0000 https://atlantigaz.com/china-plans-three-new-gas-pipelines-with-russia-as-eu-uk-and-us-ban-all-energy-supplies-science-news/

Russian President Vladimir Putin and his Chinese counterpart Xi Jinping are looking to increase their gas trade exponentially with the development of three gas pipelines that will connect Russia to China. It comes as the rest of the world sever all ties with Russia after its President Vladimir Putin ordered his troops to invade Ukraine. Earlier today, the UK, EU and US united to disconnect all Russian oil and gas in a big show of force against Putin.

Speaking to the Business, Energy and Industrial Strategy Committee, Mike Bradshaw, Professor of Global Energy at the University of Warwick, said: “I would just like to point out that Russia and China have a gas pipeline – The Power of Siberia gas pipeline.

“In fact, at the beginning of February, when Putin was in Beijing for the Olympics, they signed an agreement on another pipeline from the Sakhalin Islands.

“They are now in talks for a third pipeline, the so-called Power of Siberia 2.”

These new gas deals will provide a lifeline for Putin, who is facing an economic crisis after Western powers sanctioned large parts of Russia’s economy, including targeting banks.

On Tuesday, the European Commission released plans to cut the bloc’s dependence on Russian oil and gas by two-thirds this year as Russian troops invade Ukraine.

The EU, which depends heavily on Moscow for its energy needs, has promised to end its dependence on Russian fuel “well before 2030”.

However, Mr Bradshaw noted that an increased flow of gas to Russia could have its benefits for the rest of the world.

Referring to Russia’s shift in focus towards China, he said: “So there’s this pivot, but ironically it’s not bad news if it means more pipeline going to China.

READ MORE: EU ‘funds Russian military’ and further sanctions energy profits

“This transition will give the market, businesses and supply chains more time than necessary to replace Russian imports – which account for 8% of UK demand.”

During a speech at the White House, Mr Biden said: “We ban all Russian gas, oil and energy imports.

“Russian oil will no longer be accepted in US ports. We will not participate in the financing of Putin’s war.

]]>
ESG and Article 8 funds face questions over Gazprom holdings https://atlantigaz.com/esg-and-article-8-funds-face-questions-over-gazprom-holdings/ Wed, 02 Mar 2022 10:30:20 +0000 https://atlantigaz.com/esg-and-article-8-funds-face-questions-over-gazprom-holdings/

State-owned companies were often a thorn in the side of long-lasting investors, but Russia’s invasion of Ukraine is drawing attention to names like Gazprom.

The company is both a champion of the Russian state and a dominant force in the European energy market.

However, measures taken by Western countries, such as the blocking of Swift transactions in some banks, the fall of the ruble and negative public sentiment have all hit the stock hard.

Whereas Gazprom was not an easy sell for ESG portfolios before. Fossil fuels, such as gas and oil, are not always excluded from sustainable funds, as managers recognize a role for both sectors in the energy transition story, leading to debates over the inclusion of gas in the EU green taxonomy.

Like many of its peers in the sector, Gazprom has had to respond to investor concerns over its handling of climate targets and now it is likely to face even greater scrutiny on the ESG front, given its links with the Russian government.

Citywire Selector looked at the list of funds holding Gazprom shares, focusing on those whose names relate to sustainability, ESG or SRI. Of 201 names, five met the criteria.

However, when questioned, two of the asset managers said they had never owned Gazprom.

Citywire Selector could not establish whether this was an error by Morningstar or minimal exposures through other instruments held in the funds registered as holdings. We have therefore excluded these names from the table below.

Allianz Global Investors said it no longer holds the stock, but did not say when the divestment took place and on what grounds.

Robeco said it would not comment on individual holdings, while Neuberger Berman did not respond to requests for comment.

Questioning Article 8

Another challenge investors face is how to navigate sustainable regulations, especially since they often seem to add to the confusion rather than clearly point to sustainable activities.

Whether a fund falls under either Article 8 – meaning it promotes environmental and social characteristics – or Article 9, which covers strategies with a sustainable investment objective, should not be taken for granted.

Among the top 100 funds with the most exposure to Gazprom, the next six were listed as Article 8 strategies on Morningstar, which means they ranked as promoting environmental and social characteristics under the lender’s SFDR rules. EU.

None of the funds above have ESG, sustainable or green in their name, which tells its own story of how regulatory frameworks don’t always clarify sustainability.

It is important to note that these funds operate within the established framework, as the Article 8 categorization does not preclude a strategy from investing in oil or gas companies.

*The East Capital Russia and Eastern Europe funds have suspended their listings, as has the Amundi Fds Russian Equity fund.

Manager’s point of view

In response to Citywire Selector question, Karine Hirn, director of sustainability at East Capital, said the team was currently assessing the situation to see whether to divest from Gazprom.

“State ownership is a big challenge for us because we condemn the Russian act of war against Ukraine and we fully support Ukraine and its independence,” she said.

Commenting on Gazprom’s place in the company’s funds, Hirn said that the company was one of the biggest emitters of CO2 in the world and that the asset manager had had a very close dialogue with the company, pushing it to improve climate governance and significantly reduce greenhouse gas emissions.

“We are co-responsible for the Climate Action 100+ engagement on Gazprom, and for us it is clear that we can add value through our experience of engaging with Russian companies in a structured and effective way.”

Hirn said before 2019 there was very little climate action and external reporting at Gazprom, and East Capital has stepped up its engagement on methane emissions in particular.

“He embarked on a very thorough scenario analysis exercise, created a board-level sustainability committee and now has emission reduction targets for all segments of the business, which implies an emissions reduction of 26 MT CO2e by 2031,” said Hirn.

Renat Nadyukov, portfolio manager of the NN(L) Emerging Europe Equity fund, said he would not comment on specific stocks, but outlined the company’s approach to fossil fuels.

“Alongside some strict restrictions on involvement in oil sands and thermal coal mining, we also have a dedicated engagement approach to oil and gas companies, electric utilities and have a voting policy. proactive on climate-related topics on the agenda at general meetings.

“We both engage on our own and are active in collaborative engagements with others,” he said in an emailed statement.

“Generally in this particular fund, we have a preference for natural gas producers over mineral oil producers and we manage an even larger allocation to pure renewable energy producers and distributors over fossil fuel companies. “

Nadyukov declined to say whether the invasion of Ukraine would lead the fund to sell.

“We cannot comment on specific holdings and cannot speculate on potential real-time or future changes we will make to our portfolios,” he said.

Even though Gazprom shows signs of improvement on environmental targets, its ties to the Russian state will continue to be challenged the longer the invasion of Ukraine continues.

If world leaders struggle to bring Putin to the negotiating table, leaders will struggle to justify owning state-owned companies on the basis of commitment

Fund managers will need to scrutinize the public companies they hold. And nowhere else should they be more vigilant than in the ESG space.

]]>
The Russian gas company Gazprom is at the center of the conflict in Ukraine https://atlantigaz.com/the-russian-gas-company-gazprom-is-at-the-center-of-the-conflict-in-ukraine/ Fri, 25 Feb 2022 08:48:14 +0000 https://atlantigaz.com/the-russian-gas-company-gazprom-is-at-the-center-of-the-conflict-in-ukraine/

As Russia invades Ukraine, the whole world watches with limited support offered to Ukraine and its people at this difficult time. The main leverage factor for Russia in its attempts to go against NATO and the EU is the hegemony it holds in oil and gas supply, especially among the EU majors like Germany, Italy, France and Poland.

GAZPROM FACTOR

A company called Gazprom is the proud face of Russia when it comes to gas production. It is the largest gas producer in the world and a public group headquartered at the Lakhta center in Saint Petersburg, Russia.

In 2019, with sales of over US$120 billion, Gazprom was the world’s largest listed natural gas company and Russia’s largest company by revenue. In the 2020 Forbes Global 2000, Gazprom was ranked the 32nd largest state-owned company in the world.

VLADIMIR PUTIN’S INTERESTS

In the current context, Gazprom is the leader when it comes to supporting and promoting Putin’s interests in the EU and elsewhere.

Gazprom plays a vital role in defending actions against Russia’s unforgivable offensives. You could even say that Russia planned its invasion of Ukraine meticulously, with the help of Gazprom.

In the months leading up to the current Ukrainian invasion, Gazprom decided to limit its supplies to EU countries, leading to soaring oil and gas prices resulting in record profits.

Now, with crude oil and gas prices at a 7-year high, that certainly puts Russia in a very comfortable position, both militarily and financially, to continue its excesses inside Ukraine and be less bothered by external pressures or threats of sanctions.

EU WANTS TO HIT RUSSIA BY HITTING GAZPROM

Two days before the Russian invasion, in an attempt to put pressure on Russia, Germany decided to suspend the certification of the Nord Stream 2 (ns2) gas pipeline belonging to Gazprom. Nord Stream is an offshore gas pipeline system in Europe, passing under the Baltic Sea from Russia to Germany.

The Nord Stream 2 is a new gas export pipeline linking Russia to Europe across the Baltic Sea. The decision to build Nord Steam 2 was based on the successful experience in building and operating the Nord Stream gas pipeline.

NORTH FLOW 2

The new pipeline, similar to the one in service, will establish a direct link between Gazprom and European consumers. It will also ensure a highly reliable supply of Russian gas to Europe. This is particularly important now that Europe is experiencing a decline in domestic gas production and an increase in demand for imported gas.

While sources in Germany say the suspension of Nord Stream 2 approval had more to do with legal reasons surrounding the project, it hasn’t changed Russia’s position since it decided to invade. Ukraine.

The key question is whether EU countries have the power within themselves to impose sanctions on Gazprom that will directly affect Russia’s fortunes or whether countries will continue to depend on Gazprom for their energy needs.

GAZPROM POWER

It is important to note that outside the EU countries, the next big consumer of Gazprom is China. Will the EU start investing in terminals outside of Russia or will it start importing from elsewhere to counter the power of Gazprom?

This is indeed what the director general of the Ukrainian national gas company, Yuriy Vitrenko, suggested in his interview with POLITICO. “It is high time the EU stopped dithering from a long-overdue legal confrontation with Moscow’s gas export monopoly and diverted its energy investments away from Russia.”

A statistic to note is that in 2010 EU gas imports from Russia were only 26%. It is now close to 43%. Europe’s dependence on Russian gas is increasing year by year. Mr Vitrenko is calling for Gazprom to be penalized for antitrust abuses over its illegal and anti-competitive activities to help raise gas prices in the market.

The European Commission probed the same thing, without any real action on the ground.

GAZPROM’S GLOBAL AND REGIONAL IMAGE TAKES A HIT

While discussions of Gazprom’s antitrust issues and support for the Russian establishment weren’t enough in diplomatic circles, Gazprom’s global image also took a hit thanks to the removal of its logo from football shirts. of German Bundesliga 2 club team FC Schalke 04. .

The team was a successful part of the German top division until recently, having also featured in the UEFA Champions League in the 2018-19 season before being relegated to the second tier of the football league in Germany. Gazprom has sponsored the team since 2007.

“Following recent developments, FC Schalke 04 has decided to remove the logo of main sponsor GAZPROM from the club’s shirts,” the club said.

Gazprom is also sponsoring the UEFA Champions League event as part of eight global sponsors. The company also currently holds sponsorship rights for the men’s Euro 2024 competition, as well as the 2023 UEFA Nations League Final.

UEFA have issued a statement condemning Russia’s actions in the invasion of Ukraine and will meet to discuss Ukraine and the venue for the 2022 Champions League final, which was due to take place. May 28 in Saint Petersburg, Russia.

(The author is an Open-Source Intelligence analyst based in Singapore)

READ ALSO | Russia invades Ukraine: the challenge before India

]]>
Germany approves $14.7 billion package amid rising energy costs; hydrogen will become a market of 1 billion dollars per year: NRG counts https://atlantigaz.com/germany-approves-14-7-billion-package-amid-rising-energy-costs-hydrogen-will-become-a-market-of-1-billion-dollars-per-year-nrg-counts/ Thu, 24 Feb 2022 08:43:36 +0000 https://atlantigaz.com/germany-approves-14-7-billion-package-amid-rising-energy-costs-hydrogen-will-become-a-market-of-1-billion-dollars-per-year-nrg-counts/

Green energy is the future, but demand for oil and gas is here to stay: Zamil Group CEO

Oil-real estate investment firm Zamil Group plans to enter the renewable energy market, company CEO Adib Al Zamil said.

“Investing in new sectors is what kept us going as a group. We keep searching, we keep searching,” Zamil told Arab News in an interview.

Leading family business spans a diverse portfolio of owned, joint venture and publicly traded businesses, spanning building materials, manufacturing, offshore, petrochemicals, trading and services, and real estate and investments.

The group, founded in 1920, recorded a net profit after zakat and tax of SR 13.1 million ($3.5 million) for the first nine months of 2021, compared to a net loss after zakat and tax of 125, SR 6 million the previous year. period, according to the company’s financial statements.

However, Zamil said the prospect of investing in green energy does not mean he will abandon investments in oil and related services.

“The drilling we do supports the oil. We were confident that the oil and gas will be there for another few decades,” he added.

Last June, the group acquired one of Egypt’s largest oil and gas producers, ADES, for an undisclosed sum, which Zamil said was a milestone for his business.

“We think it’s very important. I think its importance comes not only from its financial impact, which we think is quite viable, but also from the value it will bring to the Kingdom,” he added.

“The importance of having a complete ecosystem for oil and gas is essential for the Kingdom.”

Zamil also dismissed the idea that major economies’ transition to greener forms of energy will affect the company’s investments in oil.

“The so-called energy transition that everyone is talking about cannot happen without the continuity of the supply of oil and gas in an orderly fashion.”

“I’m not saying nobody really cares; no, who cares. We are doing everything we can to neutralize our carbon emissions,” he said, adding that the fact that there is a need for oil and gas should not be overlooked, and “we need to produce energy for the world continuously”.

“Replacements are not available at the moment. It’s very nice to talk about the future, but today we have one life to live and we need gas and oil.

The CEO added that fluctuations in oil prices would not influence the group’s engagement in the sector.

“We are looking at the long term; we are not short-term players. Oil is a commodity. There are ups and downs, and that’s normal. But when we invest, we invest because we think it’s an industry we want to be in for the long haul,” Zamil stressed.

The CEO revealed that despite holding stakes in listed companies, his group had no plans to go public.

“Zamil Group is a 100% private, family-owned company. Our subsidiaries are listed, but as a group we have no intention of doing so,” he added.

Zamil pointed out that the Saudi economy held up well during the height of the Covid-19 health crisis.

“I think we did a lot better than the others. We lived with that; we have seen the difficulties. But we managed to overcome most, if not all of them,” he said, adding that global trade had not escaped the effect of the pandemic.

“There is a global influence, including logistics, freight, etc. The export and import of goods have been impacted. But when it comes to the local economy, I think that’s behind us,” Zamil added.

The head of the high-profile investment group also likes the look of some of the digital economy startups popping up in Saudi Arabia.

“It seems like everyone is talking about computing and computing-based technologies these days. And I really think that’s where the world will go,” Zamil said.

“Young men and women in this country are very tuned into this industry. They understand it; they like it. I think it could be a fantastic area. Anything related to it, whether it’s artificial intelligence or other applications, it’s just a fantastic field to work in,” he concluded.

]]>