REFILE-ConocoPhillips plans layoffs as part of broad restructuring
ConocoPhillips plans to reduce staff. The company announced this on Tuesday. This is part of a broader effort to control costs and streamline operations following its $23 billion purchase of Marathon Oil. Job cuts are a sign of the pain that the oil and gas sector is experiencing as it faces higher costs and lower revenue due to prices hovering around $63 per barrel. Many companies claim they can't drill profitably at oil prices below $65 per barrel. Chevron, SLB and other oil giants announced their own layoffs in the first half of this year.
The wind generation is increasing, lowering spot prices
The European immediate power prices dropped on Tuesday, primarily due to the bearish impact of forecasts that German wind power production would more than triple in the next day. By 0745 GMT, the German baseload electricity for Wednesday had fallen by 13.7% to 89.5 euros (97.93 dollars) per megawatt-hour (MWH). The same French contract, which closed at 68 Euros, was not traded in the range of 38-43 euro bid-ask. LSEG data indicated that German wind generation is expected to increase by 3.0 GW to 5.2 GW on Wednesday. The French nuclear production capacity increased by one percentage point, to 72%.
Palm extends its losses as soyoil and crude oil prices fall
Malaysian palm futures dropped to a 10-week-low on Monday. Pressured by lower soyoil prices and crude oil, fears of a trade war arose from China's retaliatory duties on U.S. products. The benchmark contract for palm oil delivery in June on Bursa Derivatives exchange fell 146 ringgit or 3.37% to close at $4,182 Ringgit ($934.32) per metric ton. Earlier in the session, the contract reached a low of 4163 ringgit. This was its lowest level since 24 January. The contract has fallen 6.84% in three sessions. Anilkumar bagani, head of commodity research at Mumbai-based Sunvin Group…
Thyssenkrupp Steel unit to terminate supply contract with HKM - union
The IG Metall union, which represents the largest German steelmaker T hyssenkrupp Steel Europe, announced on Thursday that it intends to end a contract of supply with HKM. This has fueled uncertainty about the future of this joint venture. HKM, a joint venture of TKSE, Salzgitter, and Vallourec that is a 50-30-20, faces closure following a recent failure to find a buyer. This would be a huge blow for the approximately 3,000 employees. The union stated in a document seen by that TKSE supervisory board would meet on Friday. HKM workers will also protest at TKSE headquarters the same day.
Palm oil climbs as Chicago soyoil and crude oil prices firm up
The market for Malaysian palm oils futures rose on Wednesday, marking the fourth session in a row. This was due to gains in Chicago soyoil prices and energy. The benchmark contract for palm oil delivery in June on the Bursa Derivatives exchange gained 99 ringgit or 2.24% to 4,518 Ringgit ($1,015.05) per metric ton. Anilkumar bagani, head of commodity research at Mumbai-based Sunvin Group, said that the price of crude palm oil was higher following the Malaysian holidays, due to a rally on Chicago soyoil and energy prices. Bagani stated that U.S. soybean oil prices increased after news of oil and biofuels groups meeting with the U.S.
Palm oil rises as Chicago soyoil and crude oil prices strengthen
Malaysian palm futures were up for the fourth consecutive session on Wednesday, supported by gains in Chicago soyoil as well as energy. At midday, the benchmark palm oil contract on Bursa Derivatives Exchange for June delivery gained 119 Ringgit or 2.69% to 4,538 Ringgit ($1,020.46) per metric ton. Anilkumar bagani, head of commodity research at Mumbai-based Sunvin Group, said that the price of crude palm oil was higher following the Malaysian holidays, due to a rally on Chicago soyoil and energy prices. Bagani stated that U.S. soybean oil prices increased after news of oil and biofuels groups meeting with the U.S.
Finland's final active coal-fired heat and power plant closes
The last coal-fired heat and power plant in Finland will be permanently shut down on Tuesday. This will allow the Helsinki energy group Helen, which is based in Helsinki, to reduce its emissions, and end rising energy prices for its customers. The capacity of Finland to produce renewable energy and heat, including wind and solar power, has grown rapidly over the last few years. This has led to a dramatic decline in coal use after the previous government passed a coal ban law in 2019. Helen CEO Olli Sikka said: "Ofcourse, we can't say that no coal will ever be burned again in Finland, as there are many crisis solutions.
EnQuest pays its first dividend after a swing to an annual profit
EnQuest, a North Sea oil producer, declared its first ever final dividend of 15 million dollars on Thursday. The higher oil prices helped to boost the company's annual profit after tax. The shares of the London listed energy group rose by 3.4% at 13.8 pence as of 0830 GMT after it announced that it would pay its first dividend of 0.616 penny per share in June. It reported a profit after tax of $93.8 millions for 2024. This follows a loss of $30.8 million the year before. EnQuest has declined to provide an update about the discussions ahead of EnQuest's deadline to submit an offer on April 4.
German energy transition could cost 300 billion euros less with greater efficiency, according to a study
According to a report released by the Boston Consulting Group on Thursday, Germany could save over 300 billion euros (326.49 billion dollars) by 2035 if it implements the energy transition in a more efficient manner. Germany will spend hundreds of millions of euros in the next few years to transition towards cleaner energy sources, with a goal of being carbon neutral by 2045. Berlin is also under pressure from the industry to reduce energy costs that are stubbornly high. The BDI report calculated the savings based upon current plans.
Trump hosts top US oil executives as trade wars threaten
Donald Trump, the U.S. president, will be hosting top oil executives in the White House this Wednesday to discuss plans for boosting domestic energy production amid falling crude prices and trade wars. This will be Trump's first meeting with oil and gas executives since he returned to the White House in January for his second term. According to a source familiar with planning the event, it will include members of American Petroleum Institute (API)'s executive committee. According to public bios, ExxonMobil's CEO Darren Woods is on the executive committee of the trade group…
Polish Minister sees the energy price cap expiring this year
According to Polish Climate Minister Paulina Hnnig-Kloska, the government should be able to lift the cap on energy prices in the final quarter of this year due the falling wholesale prices. Since 2022, Poland has capped power bills to protect vulnerable consumers from the rising costs of energy. It also pays compensation to utilities to offset these costs. The cap has been extended multiple times and is now in place until September. Poland's central banks has repeatedly stated that energy prices are a risk to policy, and that lifting the cap on price could lead to an increase in inflation.
RWE and TotalEnergies sign long-term agreement for green hydrogen supply
RWE, Germany's largest utility, announced on Wednesday that it had agreed to supply French oil giant TotalEnergies, with approximately 30,000 tonnes green hydrogen per year, starting in 2030. This is one of the biggest deals ever made by this sector. RWE stated that the agreement would last until 2044. It also said it was the largest amount of carbon neutral hydrogen ever purchased from a German facility. RWE will supply TotalEnergies Leuna refinery in eastern Germany via its 300 megawatt electrolysis plant located in Lingen, west of Berlin, that is expected to begin operation in 2027. No financial terms have been disclosed.
Aramco CEO: More likely Elvis will speak than energy transition plans to succeed
Saudi Aramco's CEO said Monday that policymakers and energy executives should rethink their energy transition plans. They must stop investing in elements of the energy transition which have failed and instead rethink the entire energy transition. The remarks from the head the world's biggest oil company comes as the administration under President Donald Trump pushes for maximum oil and gas production. This is a dramatic U turn in U.S. Energy Policy after former President Joe Biden passed legislation to accelerate the shift away from fossil fuels.
UK replaces windfall oil tax with consultation on clean energy future
Britain announced that it will end the windfall taxes on North Sea oil producers by 2030, and replace them with a new mechanism for responding to price increases. It is pushing ahead with its plan to turn the North Sea into an energy hub. On Wednesday, the government held two consultations. One was on how to transform the North Sea into a clean-energy area, while another focused on how taxes would be applied when energy prices were high. This will give producers more certainty about future tax rates. Oil and gas producers claim that the windfall tax, which was introduced three years ago, when prices were surging, has wiped out profits.
Romanian government extends the energy price cap
Marcel Ciolacu, Romania's Prime Minister, announced on Thursday that the coalition government would extend the price cap for electricity to households and businesses up until June, and for gas, for one year. This is in order to protect consumers from recent increases in energy prices. Since November 2021, Romania caps gas and electricity bills for households, small business, hospitals, schools, and public institutions at certain monthly consumption levels, and compensates suppliers for any difference. The scheme was modified several times, and it was set to expire by the end of march.
EU energy plan could save 45 billion Euros on fossil fuel import bill
According to an analysis by the EU executive, plans due to be released on Wednesday by the European Commission could save 45 billion euros (47.3 billion dollars) from the EU's import bill for fossil fuels this year. The Commission will propose a number of measures that aim to help European industries who are struggling to cope with a weak demand, low-cost imports and energy costs higher than in the U.S. or China. The draft EU energy measures that was previously reported on included proposals for speeding up permits for renewable projects…
German business leaders react to the election results
The conservative CDU/CSU group won the most votes at Sunday's election. They could form a coalition with the Social Democrats, easing market concerns that Europe's largest economy would be run by a three-way alliance. "We do not need to discuss the issues anymore, they are already well-known. We need action now." We must act now because the rest of world isn't waiting. And the pressure on Germany to be competitive is immense. "Germany needs to quickly regain its competiveness." Energy policy is crucial. It is essential to expand gas-fired plants…
German business leaders react to the election results
The conservative CDU/CSU group won the most votes at Sunday's election. They could form a coalition with the Social Democrats, easing market concerns that Europe's largest economy would be run by a three-way alliance. "Germany needs to quickly regain its competiveness." Energy policy is crucial. It is essential to expand gas-fired plants, strengthen wind energy and modernize electricity grids, as well as ensure a reliable supply of raw materials. "Germany needs a government who is willing and able to act quickly. Our country faces enormous challenges: our economy needs to be given a new start through fundamental reforms.
Cornwall Insight: Britain to see a 5% increase in energy prices by April
Analysts at Cornwall Insight predicted that Britain's energy price cap would rise by almost 5% this April. Cold weather and low levels of gas storage in Europe are keeping wholesale prices high. This would be the third consecutive quarter of increases, and would be a major blow to the government, who has set a goal of reducing energy costs. Craig Lowrey is a principal consultant with Cornwall Insight. He said that the market was more volatile than in recent memory, and households were bearing the brunt due to cold weather, low gas storage, and other factors. Ed Miliband, Britain's energy minister, wrote a letter on Tuesday to the regulator Ofgem.
Woodside, Santos face earnings dip; growth projects in focus
Investors are seeking greater clarity regarding dividend payouts due to the lingering risks associated with key growth projects. John Lockton is the head of Sandstone Insights' investment strategy. He believes that lower energy prices will be the primary cause for a decline in annual profits. Visible Alpha's consensus estimates predict that Woodside will report a underlying net loss of $2.96billion for fiscal 2024. This is down from $3.32billion last year. Woodside's line-item projection, released on Monday by the company…
