Harald Berlinicke, CFA 🍵’s Post

European energy giants are considering listing their stock in the US. It’s further evidence of US leadership across the energy landscape. The immediate story is that TotalEnergies and Shell are considering listing their stocks in New York, as a way to close the valuation gaps they’re seeing relative to ExxonMobil and Chevron. Why does your place of listing matter? Because it changes who has access to your stock. Listing in the US gives you more access to US investors, a community that is less hostile than its European counterpart to all things hydrocarbons. It makes access to US equity and credit markets even easier than it already is for these giants. There’s also a PR angle. There’s a lot of pressure in Europe for the broader corporate and financial ecosystem to turn away from hydrocarbon-focused businesses. While similar pressures exist in the US, they’re weaker, less concentrated, and create fewer headaches for executives. As a management team, the less time you spend fighting PR battles, the more time you have for navigating historically turbulent energy waters. But beyond the implications for the companies involved, this kind of move says a lot about the strength of US leadership in energy broadly. No one knows the path of this energy transition. How long will it take for hydrocarbon demand to peak? Which technologies are going to rise up, across which timeframes, to support the pivot of our global energy apparatus? We’re still at a stage where the world is placing a huge number of bets, from renewables, to energy storage, to nuclear, to biofuels, to carbon capture, and on and on. The US offers unique support – from federal incentives to explore and deploy new energy technologies, to the world’s largest and most liquid capital markets, to talent and investor bases that are willing to explore all energy terrains. The fact that energy companies with market caps north of $100 billion are entertaining moving their listing to the US is a sign of how increasingly important these advantages are. #energy #oilandgas #renewableenergy #ksg

Equinor, Shell, and BP have been identified as the largest corporate investors in new fossil fuel development in developed markets, as global oil and gas exploration surged to pre-Covid levels, research finds. This comes as a strong majority of Shell shareholders have backed the firms plan, not to cut back on oil production within this decade International Institute for Sustainable Development Rystad Energy Follow This | Shareholders change the world https://lnkd.in/erwQ-cgS

💡 INSIGHT: The latest quarterly results from the supermajors reveal a measured oil and gas growth and investment strategies amid the evolving energy landscape. Total oil and gas production from Chevron, ConocoPhillips, ExxonMobil, BP, Shell and TotalEnergies remained largely unchanged in 2023, as reported by Evaluate Energy data. What will 2024 bring? 👉 Read about the supermajors' growth and investment strategies here: https://lnkd.in/gzBhpWpN 📊 Deepen your analysis of corporate ESG and carbon reduction activities here: https://lnkd.in/dAr7tvp #oilandgas #energy #naturalgas #data Chevron Shell Mark Young #esg #LNG #technology ExxonMobil

💡 INSIGHT: The latest quarterly results from the supermajors reveal a measured oil and gas growth and investment strategies amid the evolving energy landscape. Total oil and gas production from Chevron, ConocoPhillips, ExxonMobil, BP, Shell and TotalEnergies remained largely unchanged in 2023, as reported by Evaluate Energy data. What will 2024 bring? 👉 Read about the supermajors' growth and investment strategies here: https://lnkd.in/gzBhpWpN 📊 Deepen your analysis of corporate ESG and carbon reduction activities here: https://lnkd.in/dAr7tvp #oilandgas #energy #naturalgas #data Chevron Shell Mark Young #esg #LNG #technology ExxonMobil

Why BP’s Elimination Of 2030 Oil Reduction Target Is No Real Surprise British #oil giant bp advanced efforts to adjust its business plans to make itself more competitive with peer companies Monday, announcing it will abandon a goal of reducing its equity oil production by 2030. Originally set in 2020 at a 40% reduction by former CEO Bernard Looney, current BP management led by CEO Murray Auchincloss had reduced the goal in January to a 25% target. Reuters quotes a company spokesperson as saying the company’s long-term goal of reaching #netzero carbon emissions by 2050 remains unchanged despite the elimination of this near-term target. "As Murray said at the start of year... the direction is the same – but we are going to deliver as a simpler, more focused, and higher value company," the spokesperson said. The elimination of the targeted production cuts follows a series of moves invoked by #Auchincloss throughout 2024 designed to dedicate a larger percentage of the company’s capital allocation on its core oil and gas business ventures. In July, Auchincloss imposed a hiring freeze and pause in new investments in the company’s #windenergy business unit, reversing Looney’s strategy of aggressively investing in both onshore and offshore wind projects as a key part of the plan to replace lost revenues from cuts in oil production and to meet the company’s net zero goals. Most recently, Auchincloss followed that step with an even more aggressive move in September, announcing plans to completely divest BP’s suite of US onshore wind projects, a total of 10 operations BP currently owns through its subsidiary BP Wind Energy North America Inc. At the same time, Auchincloss detailed plans to acquire full ownership of Lightsource bp, a solar-focused joint venture in which it owns 50%. The plan there would be add some wind development to the Lightsource BP portfolio. In making these and other moves designed to make itself more competitive through a refocus on its core oil and gas business, BP aligns itself with similar strategic moves made over the last two years by US majors ExxonMobil and Chevron, as well as fellow British major Shell. It all follows a move to prioritize energy security over #ESG goals, a general industry theme that emerged early in 2023. You can read the rest at the link below. Enjoy! https://lnkd.in/eW-jy9e4

BP has appointed Murray Auchincloss as its new CEO, a move that follows the company's tradition of selecting an insider for the job. However, BP has been lagging behind its competitor Shell, and the company's rapid transition to green energy has been questioned. Despite the challenges, Auchincloss has emphasized the importance of focusing on delivery, safety, efficiency, discipline, and returns while continuing BP's green energy efforts. BP's shares have dipped by 1% over the last six months, compared to a 5% and 16% jump for European supermajor rivals Shell and TotalEnergies. While many believe a business-as-usual approach may not fix it, Auchincloss's strategy of balancing green energy with traditional oil and gas operations could be a game-changer. As the industry continues to evolve, companies like Chevron and ExxonMobil are betting heavily on oil and gas with their recent acquisitions. However, there is a push for the oil and gas industry to change to deal with climate change because of the extreme weather patterns, forest fires and droughts. With this US and Canada are on the brink of implementing CCUS to reduce emissions, creating a multi-billion dollar industry with pipelines and hubs being built. At the same time, oil and gas companies face the implementation of new legislation that may disrupt their strategic plans. Despite predictions of slower growth in US oil production by 2024 and OPEC+ continuing to cut output, the EIA does not expect an increase in oil prices. Part of this lack of demand for oil is due to the economic slowdown as countries struggle with high interest rates and inflation. Many are expecting the Federal Reserve to drop interest rates to create a soft landing, especially in an election year where the current President has lost popularity over the handling of the economy. Some feel it might be done if a recession hits in the coming year causing the unemployment rate to rise to 4.6% due to a drop in the nation’s real gross domestic product. Join the conversation on #bp #oilandgas #energytransition #climatechange #CCUS #greenenergy #sustainability #OPEC.

“Pursuing the energy transition is critical, but we need to reframe the conversation from how we manage risk to how we create value.” Joanne Salih outlines three ways that the oil and gas industry can bolster the commercial case for the energy transition. 1. Refining investment focus and proving value: “What we do is just as important as what we don’t do.”  2. Make targets a reality and ensure capital is available to deploy: “... Understand the value and not just the risk created from optionality of integrated portfolios”  3. Support from the financial services industry and regulators: “Not all those pursuing the transition have the size and balance sheet that can support unleveraged capital deployment.”  You can watch her video and the full Oliver Wyman Takes On series at the link. #energytransition #renewableenergy #oilandgas 

Reports: Oil and gas majors continue to slow energy transition and undermine Paris Agreement None of the world’s largest listed oil and gas companies are planning to decrease fossil fuel production and diversify their portfolios in a manner aligned with climate science and international emissions goals, a new analysis has found. Conducted by Carbon Tracker, the analysis assessed 25 of the world’s largest listed oil and gas majors to ascertain whether their recent project sanctions and future strategic plans are aligned with the energy transition needed to limit global heating in line with the international Paris Agreement on climate. Analysts looked at current and future investment options, future production plans, emissions targets and recently-approved projects to give businesses an overall alignment grade. None of the firms are aligned with the Paris Agreement’s goals in any of these respects. However, the businesses that are the furthest away from alignment are ConocoPhillips, Pioneer, Saudi Aramco, Petrobras and ExxonMobil. edie

𝗖𝗮𝗻 𝗘𝘅𝘅𝗼𝗻𝗠𝗼𝗯𝗶𝗹 𝗺𝗮𝗸𝗲 𝗮𝘁𝘁𝗿𝗮𝗰𝘁𝗶𝘃𝗲 𝗿𝗲𝘁𝘂𝗿𝗻𝘀 𝗳𝗿𝗼𝗺 𝗶𝘁𝘀 𝗨𝗦 𝗖𝗖𝗨𝗦 𝗽𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼? With strong support from 45Q incentives and scale-leading opportunities, the US is arguably the world's most advantaged CCUS market. ExxonMobil has established a clear lead in the US CCUS market, and the capacity dwarfs all other competitors. The capacity of its pipeline of US capture, transport and storage projects is well over twice as high as the remaining Majors combined.  With WoodMac's new modelling capability in Lens Carbon, they are now able to analyse the impact on the company’s portfolio, value and returns and provide a unique analysis of ExxonMobil’s opportunity set. https://lnkd.in/gptjn-VS #oilgas #oilandgas #technology #markets #energy #business #future #ceo Insightful and incisive article by Tom Ellacott et. al. at WoodMac.

In other news... This week’s #energy landscape is shifting fast, with surprising profit signals, and innovative strides in renewable energy. Catch up on all the essential updates: #OilAndGas:  - #Petrobras Slashes 2025 Capital Expenditures. Brazil’s Petrobras plans to cut its 2025 #investment target from $21billion to $17billion, despite the Gov pushing for more spending - Norwegian Courts Back Oil Projects. The court ruled in favour of Norway Gov on 3 major oil projects #Yggdrasil, #Tyrving, and #Breidablikk allowing #Equinor and #AkerBP to continue their development plans - #ConocoPhillips Clears Path to Recover #Venezuela Debt. With a US Gov license in hand, ConocoPhillips is set to recover $10billion from Venezuela, seeking compensation via #PDVSA’s global assets - #Malaysia Pushes Ahead in #SouthChinaSea. Defying recent criticism from China, #Petronas will continue exploring South China Sea for resources #Chemicals: - Oil Majors Brace for Weaker Q3 Profits. #BP and #Shell are signalling profit drops, with BP expecting a $500million hit in #refiningmargins and Shell reporting a 30% decline in margins compared to Q2 - #Phillips66 Completes Retail Exit in Europe. Phillips 66 finalised the sale of its 49% stake in a #Swiss retail joint venture for $1.24billion, as part of its ongoing portfolio reshaping. #FuelRetail #NaturalResources: - #KoreaZinc Faces Power Struggle. A succession battle heats up at the world’s largest #zinc smelter, with #MBKPartners buying a 5.34% stake and eyeing a potential takeover - #China Accelerates Coal-to-Liquids. #CHNEnergy has kicked off a $24billion #coaltoliquid project in #Xinjiang, aiming to increase its production capacity to 12.2 MT per year by 2027 #EnergyTransition: - #ExxonMobil Expands #CCS Projects. ExxonMobil acquired 271,000 acres in #Texas state waters for #offshore #CO2Capture, furthering its investment in carbon management solutions - #India Plans $109Billion in #Grid Investments. India’s #NationalElectricityPlan outlines ambitious infrastructure projects to support 500GW and 600GW of #renewable capacity by 2030 and 2032 - China Breaks #Wind Power Records. Chinese manufacturer #DongfangElectric unveiled a 26MW wind turbine, far surpassing the previous record-holding 18MW turbine, setting a new global benchmark - China’s #EV Sales Hit Record High. With 1.29million units sold last month, China’s new energy vehicle market is up 42% yoy, reflecting the growing success of Beijing’s stimulus programs - #TEPCO Eyes #Hydrogen with #Geothermal. #Japan’s TEPCO is partnering with #Indonesia’s #Pertamina to produce hydrogen via geothermal power, targeting a launch as early as 2027 to meet rising demand for low-#emission energy Any "#OtherNews" you'd like to share? Stay informed. If you like this content, please Like it👍, repost it ♻️, Comment, and follow Mohammad N. H. Gilani, PhD for more similar posts #EnergyNews #ResourceMarket #GreenEnergy #ClimateAction #economicinsights #globaltrends #EnergyUpdates