PJM wants a delay in the auction of capacity after an environmentalist's complaint
PJM Interconnection will delay its next annual auction of capacity by six months, while the largest U.S. Grid Operator addresses a complaint made by environmental groups. The biggest U.S. Grid Operator said this in a letter sent on Thursday. PJM’s latest auction, which resulted to payments to power plants within its system that were 833% more than the previous years, raised concerns about a spike in power bills. The Sierra Club, Earthjustice, and other environmental groups filed a complaint with the Federal Energy Regulatory Commission last month, alleging that PJM increased capacity prices in part by excluding certain power stations without justification.
Natgas producer BKV is valued at $1.56 billion in its NYSE debut
BKV shares rose by 3.1% on their New York Stock Exchange debut on Thursday. This gives the U.S. Natural Gas Producer a market cap of $1.56 Billion. Companies looking to list shares have a new window of opportunity as the long-awaited rate-cutting cycle of the U.S. Federal Reserve begins. Several companies are also speeding up their plans in order to avoid the uncertainty that will result from the November presidential elections. BKV shares opened at $18.55 on their debut, as opposed to the $18 price for the initial public offer. The company raised $270m by selling 15 million of its shares at $18 per share, which is below the range it originally advertised between $19 and $21.
Money losing natgas producer BKV revives US IPO
BKV Corp, a natural gas producer in the red, said it plans to raise $315 million via an initial public offer of shares. This comes nearly two years after BKV first filed to sell its shares publicly. BKV said it will offer between $19 to $21 per share. The company aims to achieve a valuation up to $1.77bn in its IPO. Companies waiting to list shares have a new window of opportunity due to the recent increase in natural gas prices in the United States from their more than 30-year low inflation adjusted. This company was one of the U.S. producers who were hard hit by low natural gas prices during the past two years.
EOG will increase activity in the Utica shale in Ohio, says company
Jeff Leitzell, chief operating officer of Houston-based EOG Resources, told the Barclays CEO Energy-Power Conference attendees in New York that the company expects to increase operations in the Utica Shale play in Ohio. Leitzell stated that EOG Resources had doubled its Utica activity year-on-year. The company now operates on 445,000 acres at an average cost of $600 per acre. Leitzell stated that "The Utica has a chance to be a fundamental play." If we have the success we expect, we will invest more money in Utica. EOG also develops its Dorado natural-gas play in the Eagle Ford, in southeast Texas.
Sources say that Sinochem, a Chinese company, plans to withdraw from its US shale joint venture with Exxon.
Sinochem, a Chinese state-backed oil company, plans to sell its 40% stake, worth upwards of $ 2 billion, in a U.S. joint venture with Exxon Mobil, according to people familiar with the situation. Sources claim that Sinochem hired Barclays investment bankers to help it with the sale of its Wolfcamp joint-venture stake. Source: Exxon has the first right of refusal to sell the joint venture, which is majority owned and operated by the company. Sources cautioned, however, that the sale discussions are still in their early stages and a deal is not guaranteed with Exxon, or any other interested parties. This could include rival Asian oil companies.
US utilities to benefit from data center demand in the second half
After striking several supply agreements during the second quarter of 2018, U.S. Electric utilities were bullish about the demand for data centers that are driving the artificial intelligence boom. This reinforced market expectations regarding sales growth throughout the year. Several top utilities, such as American Electric Power, NextEra Energy and others, have signed contracts during the recent quarter, while other companies have expressed interest in technology. Timothy Winter, Gabelli Funds portfolio manager said: "We began to see some clarity regarding data center opportunities.
London's FTSE 100 continues to recover on the back of financials and corporate earnings
London stock markets rose broadly for the second consecutive session on Wednesday. Gains in financial stocks, and positive corporate earnings helped the indexes recover most of their losses earlier this week. The blue-chip FTSE 100 ended the day 1.8% higher, its highest showing in over four months. Meanwhile, the mid-cap FTSE 250 closed 1% up. Gains were made as the global appetite for risk improved following the Bank of Japan's unexpected reluctance to raise rates. This led to a steep fall in the Japanese yen, which caused the market turmoil on Monday. HSBC Bank, Lloyds Banking Group and Barclays are amongst the biggest contributors to the FTSE 100.
Brent Shoots Past $80 a Barrel
Oil markets climbed for a sixth day on Tuesday, boosted by a tighter supply and firm demand outlook, but power shortages in China which hit factory output tempered the rally.Brent crude futures gained 67 cents, or 0.8%, to $80.20 a barrel at 1016 GMT, after reaching their highest level since October 2018 at $80.75. Brent gained 1.8% on Monday.U.S. West Texas Intermediate (WTI) crude futures rose 79 cents, or 1%, to $76.24 a barrel, after hitting a session high of $76.67, its highest since early July. It jumped 2% the previous day.Hurricanes Ida and Nicholas, which swept through the U.S.
Baker Hughes Plots Low Carbon Future
Baker Hughes is pivoting to customers preparing for the transition to a low-carbon future, bolstering its footprint beyond oil and gas oilfield services, its chief executive said on Tuesday.The company will continue to downsize its oilfield services and equipment portfolio, CEO Lorenzo Simonelli said at the Barclays CEO Energy-Power conference, putting more emphasis on the energy transition and technology needed for renewables. It has already been shedding some oilfield assets, such as its rod lift and specialty polymers businesses.The strategic shift comes as more customers commit to lower carbon operations…
Oil Industry Veterans to Launch Hydrogen Investment Fund
Two energy industry veterans plan to launch an investment fund focused on hydrogen this year as more and more governments include the niche fuel in their global warming battle plans.Hydrogen has long-been touted as a potential clean fuel as it only emits water vapour but it has failed to gain traction, mainly because of historically high production, transportation and storage costs.But with the European Union for one now looking to promote so-called green hydrogen to help reach net zero emissions, the sector is expected to attract hundreds of billions of dollars in investment in the coming decades.The new fund…
Oil Extends Slump as Prospect of Second Viral Wave in U.S. Ends Rally
Oil prices fell on Friday, extending heavy overnight losses as a surge in U.S. coronavirus cases this week raised the prospect of a second wave of the COVID-19 outbreak hitting demand in the world's biggest consumer of crude and fuel.West Texas Intermediate was down 65 cents, or nearly 2%, at $35.69 a barrel by 0358 GMT, after slumping more than 8% on Thursday. Brent crude was down 58 cents, or 1.5%, at $37.97 a barrel, having dropped nearly 8% the previous session.A rally that raised oil off April lows has come to a shuddering halt this week as the market faced the reality that the coronavirus pandemic may be far from over…
Work from Home: Energy Traders Swap Shouts for Babies, Barking Dogs
SINGAPORE, March 24 -- From banks of screens and giant phones in the office, energy traders worldwide are adapting to a laptop in the bedroom -- and it's going surprisingly well.Working from home has become the new norm in the oil trading hubs of Singapore, London and New York as governments encourage physical distancing to curb the spread of coronavirus.While some energy companies have long had facilities in place to allow off-site access to trading platforms and other technology, others are rapidly installing key equipment and communication systems for the bulk of their trading teams."Working from home…
Oil Market Shrugs Off Libya Crisis
Oil prices fell more than 1% on Tuesday on expectations that a well-supplied market would be able to absorb disruptions that have cut Libya's crude production to a trickle.Brent crude was down 97 cents at $64.23 a barrel by 1258 GMT, having risen to its highest in more than a week on Monday. U.S. West Texas Intermediate crude was down 75 cents at $57.79."Market participants appear to fret less about supply disruptions in the Middle East, or at least the risk of disruptions, thanks to the impressive growth we have seen in U.S. output over recent years…
New Offshore Wind Launch Academy in UK
Offshore Renewable Energy (ORE) Catapult, the UK's flagship technology innovation and research center for offshore wind, wave and tidal energy, has launched a new industry-backed national technology accelerator program.The program is designed to support innovative SMEs to commercialize new technologies that will enhance the UK’s offshore wind supply chain, enabling greater UK content, whilst supporting cost reduction.The Launch Academy initiative will focus on near-to-market solutions and is supported by eight industrial and business support specialists including Red Rock Power…
BP Names Bernard Looney as Next CEO
Bernard Looney, who will replace Bob Dudley as chief executive of BP when he retires next year, faces the tricky task of navigating the energy major through a rising tide of environmentalism and the move to a low-carbon economy.BP on Friday appointed Looney, head of upstream, to succeed Dudley, who led the oil and gas company back to growth from near collapse in 2010.As CEO, Looney will be charged with continuing to adapt BP to the transition to lower-carbon energy as pressure from investors grows to meet targets under the 2015 Paris Climate Agreement.Looney…
Schlumberger CEO Outlines Digital Strategy
Schlumberger NV's newly-appointed Chief Executive Officer Olivier Le Peuch on Wednesday outlined his vision for the world's largest oilfield services company, vowing to exit unprofitable businesses, restructure some units and focus on returns.In his first public remarks since taking office in July, the 32-year company veteran also warned the company would record a sizeable, non-cash charge to write down assets in the current quarter. He did not specify the size of the writedown.Le Peuch, who replaced former CEO Paal Kibsgaard nearly two months ago…
GA LNG Terminal Evacuated Ahead of Dorian
Kinder Morgan Inc has halted the startup process of its liquefaction facility at Elba Island near Savannah, Georgia, following mandatory evacuation orders as Hurricane Dorian approached, Chief Executive Officer Steven Kean said on Wednesday.The Houston pipeline operator began construction on the $2 billion facility in late 2016, underpinned by a 20-year contract with Royal Dutch Shell Plc for exports of U.S. liquefied natural gas (LNG).The company will resume startup operations at the LNG plant when workers can safely return to the island, Kean told investors at a Barclays energy conference in New York."We're making very good progress on Elba…
Exxon, Chevron See Consolidation in Top U.S. Shale Field
The two largest U.S. oil and gas companies on Tuesday left the door open for more acquisitions in the country's top shale field.Exxon Mobil Corp expects to see industry consolidation to happen "over some period of time," in the Permian Basin in west Texas and New Mexico, Chief Executive Darren Woods told investors at a Barclays energy conference in New York.If Exxon sees an opportunity it has the balance sheet to "be in a position to transact on that," Woods said, but he added that "time's on our side."Chevron Corp also will take an "opportunistic" approach in the basin…
Tullow's Kenya, Uganda Projects Timelines Slip
Britain's Tullow Oil has delayed the final investment decision (FID) for its Kenya project to 2020 and has not yet sealed a tax deal in Uganda that is needed for the progress of its plans there with Total , it said on Wednesday.The company had aimed to give the final go-ahead by the end of 2019 for its onshore Kenyan oilfields, which are expected to produce up to 100,000 barrels per day.The Kenya delay was due to authorities asking for additional community consultations which Tullow expects to be submitted in the second half of the year - later than anticipated…
Oil Prices Jump 2% After Tanker Attacks
Oil prices settled 2.2% higher on Thursday after attacks on two oil tankers in the Gulf of Oman stoked concerns of reduced crude trade flows through one of the world's key shipping routes.The attacks near Iran and the Strait of Hormuz reignited worries about an impact to flows from the Middle East if insurance companies begin to reduce coverage for voyages through the region and additional shipping companies suspend new bookings, analysts said.Such a disruption "could further exacerbate the supply problem," said Andy Lipow, an analyst at Lipow Oil Associates in Houston.Oil tanker owners DHT Holdings and Heidmar suspended new bookings to the Mid-East Gulf…
