Warren Buffett Sees Natural Gas Sticking Around for a Long Time - Bloomberg:
Warren Buffett’s $9.7 billion bet on natural gas looks even more contrarian today.
As Democrat Joe Biden unveils a staggering $2 trillion clean-energy plan—the most ambitious climate package ever offered by a presumptive presidential nominee—Buffett’s recent deal to buy Dominion Energy Inc.’s natural gas assets is a stark sign he’s expecting that the market’s shift away from fossil fuels won’t happen overnight.
The deal is “a bet that the future doesn’t come as fast as some people think,” said Jim Shanahan, an analyst who covers Buffett’s Berkshire Hathaway Inc. at Edward Jones. “I think they want to be bigger in renewables, but it’s going to take time. In the meantime, they have to be able to provide power generation to their customers.”
On its face, Berkshire’s deal last week to buy gas assets including some 7,700 miles of pipelines seems risky even for a contrarian like Buffett. The energy industry is under increasing pressure from public officials and investors to abandon coal and natural gas. The use of natural gas for power generation, once hailed as a cleaner, cheaper alternative to coal, is now projected to drop to 36% in 2021 from 41% this year. In the last decade, prices for solar and onshore wind power have plummeted 90% and 70% respectively per megawatt-hour, according to BloombergNEF. Renewables now supply 20% of Americans’ power needs, up from 13% five years ago, according to the U.S. Energy Information Administration.
Friday 17 July 2020
Oil prices slip as coronavirus cases surge - Reuters
Oil prices slip as coronavirus cases surge - Reuters
Oil prices edged lower on Friday as concerns about the surge in coronavirus cases sapping fuel demand while major crude-producing nations ready increases in output.
The United States reported at least 75,000 new COVID-19 cases on Thursday, a daily record. Spain and Australia reported their steepest daily jumps in more than two months, while cases continued to soar in India and Brazil.
Fuel demand has broadly recovered from a 30% drop in April after nations worldwide restricted movements and businesses shuttered. Consumption remains below pre-pandemic levels, however, and fuel purchases are falling again as infections rise.
Brent crude futures LCOc1 fell 23 cents a barrel to settle at $43.14 per barrel. U.S. West Texas Intermediate (WTI) crude CLc1 fell 16 cents to $40.59. Both contracts were little changed from a week earlier.
Oil prices edged lower on Friday as concerns about the surge in coronavirus cases sapping fuel demand while major crude-producing nations ready increases in output.
The United States reported at least 75,000 new COVID-19 cases on Thursday, a daily record. Spain and Australia reported their steepest daily jumps in more than two months, while cases continued to soar in India and Brazil.
Fuel demand has broadly recovered from a 30% drop in April after nations worldwide restricted movements and businesses shuttered. Consumption remains below pre-pandemic levels, however, and fuel purchases are falling again as infections rise.
Brent crude futures LCOc1 fell 23 cents a barrel to settle at $43.14 per barrel. U.S. West Texas Intermediate (WTI) crude CLc1 fell 16 cents to $40.59. Both contracts were little changed from a week earlier.
Middle East, Qatar Investment News: Fertilizer Deal With Yara - Bloomberg
Middle East, Qatar Investment News: Fertilizer Deal With Yara - Bloomberg:
Yara International ASA will buy back 5% of its shares, valued at $530 million based on current prices, once it has completed the sale of its stake in Qatar Fertiliser Co., the Norwegian fertilizer maker said.
The purchases are expected to start within two to three weeks, following the completion of its $1 billion transaction with Qatar Petroleum, Yara said in its second-quarter report on Friday. The Oslo-based company had said in March it would consider extraordinary dividends and/or buybacks following the deal.
“Yara’s financial situation is robust, with strong cash flow from operations and declining capital expenditure due to strong capital discipline,” the company said. “The board will consider further cash returns in connection with Q3 and Q4 results, in line with its capital allocation policy.”
Yara will buy 3.2% of its outstanding shares in the market by the end of the first quarter, with the Norwegian government -- which owns 36% of the company -- selling a proportionate stake separately.
Yara International ASA will buy back 5% of its shares, valued at $530 million based on current prices, once it has completed the sale of its stake in Qatar Fertiliser Co., the Norwegian fertilizer maker said.
The purchases are expected to start within two to three weeks, following the completion of its $1 billion transaction with Qatar Petroleum, Yara said in its second-quarter report on Friday. The Oslo-based company had said in March it would consider extraordinary dividends and/or buybacks following the deal.
“Yara’s financial situation is robust, with strong cash flow from operations and declining capital expenditure due to strong capital discipline,” the company said. “The board will consider further cash returns in connection with Q3 and Q4 results, in line with its capital allocation policy.”
Yara will buy 3.2% of its outstanding shares in the market by the end of the first quarter, with the Norwegian government -- which owns 36% of the company -- selling a proportionate stake separately.
Oil prices slip amid uncertainty over fuel demand, easing supply curbs - Reuters
Oil prices slip amid uncertainty over fuel demand, easing supply curbs - Reuters:
Oil prices slipped on Friday amid growing uncertainty about the global recovery in fuel demand as coronavirus cases surged in several countries, while major producers were set to ease output curbs.
Brent crude futures LCOc1 fell 26 cents to $43.11 a barrel by 0822 GMT. U.S. West Texas Intermediate (WTI) crude CLc1 dropped 23 cents to $40.52.
The United States reported at least 75,000 new COVID-19 cases on Thursday, a daily record. Spain and Australia reported their steepest daily jumps in more than two months, while cases continued to soar in India and Brazil.
Surges in coronavirus infections are slowing a recovery in fuel use and raising concern that it could be years before consumption rebounds from the impact of the pandemic.
Oil prices slipped on Friday amid growing uncertainty about the global recovery in fuel demand as coronavirus cases surged in several countries, while major producers were set to ease output curbs.
Brent crude futures LCOc1 fell 26 cents to $43.11 a barrel by 0822 GMT. U.S. West Texas Intermediate (WTI) crude CLc1 dropped 23 cents to $40.52.
The United States reported at least 75,000 new COVID-19 cases on Thursday, a daily record. Spain and Australia reported their steepest daily jumps in more than two months, while cases continued to soar in India and Brazil.
Surges in coronavirus infections are slowing a recovery in fuel use and raising concern that it could be years before consumption rebounds from the impact of the pandemic.
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