Brent crude jumped $20 to $139.13 at start of trading on Monday, with analysts predicting further increases
Oil prices have soared more than 10% and are closing in on their all-time high levels after the risk of a US and European ban on Russian crude threatened a stagflationary shock for world markets.
The global benchmark of Brent crude hit US$139.13 a barrel at the start of trading on Monday, a leap of more than $20 on Friday’s close of $118.03.
Continue reading...The coordinated decision, only the fourth in the International Energy Agency’s history, comes as Russia continues Kyiv siege
The United States and 30 countries have agreed to release 60m barrels of oil from their strategic reserves to stabilise global energy markets, the US Department of Energy said on Tuesday, as oil prices surged to a seven-year high.
The move, ahead of Joe Biden’s State of the Union address to Congress, failed to calm fears about supply disruption from the Ukraine crisis and sanctions against Russia. US stock markets fell sharply even after the news.
Continue reading...Decisive move to end tie-up with Russian state gas firm follows BP pledge to sell its 20% Rosneft stake
Shell is to exit its joint ventures with Russian state energy firm Gazprom, a day after BP said it would offload its 20% stake in Kremlin-owned oil firm Rosneft, as British businesses scrambled to distance themselves from Vladimir Putin.
The oil company said it would “exit its joint ventures with Gazprom and related entities”, which are worth about $3bn.
Continue reading...European stock markets tumble as crisis fuels near-40% rise in gas price and pushes oil to $105 per barrel
Global markets were thrown into turmoil on Thursday as the arrival of war on European soil sent prices of commodities such as oil, gas and wheat surging, while stock market plunged.
The ramifications of a potentially prolonged conflict involving Europe’s primary supplier of gas sent a chill through markets, affecting prices across a phalanx of asset classes and investments.
Continue reading...Crown Prince Mohammed bin Salman said move was part of efforts to recalibrate the oil-led economy
Saudi Arabia has transferred shares worth $80bn to its sovereign wealth fund as the oil-rich nation hopes to rival Norway and Singapore’s state-managed funds and invest in green projects.
Crown Prince Mohammed bin Salman, Saudi Arabia’s de facto ruler, said 4% of shares in Saudi Aramco, the world’s biggest oil exporter, would be transferred to the kingdom’s sovereign wealth fund as part of efforts to recalibrate the oil-dominated economy.
Continue reading...After years of conflict between the DR Congo’s ineffective army, rebel forces and local militias, can Uganda’s entry into the war bring peace?
For the past three months, Ugandan forces have been bombarding Islamist rebels in its border region with the Democratic Republic of the Congo. The offensive, in the Rwenzori mountain range that straddles both countries, has forced many Congolese to leave their homes and move to the cities for shelter.
Sarah Kasanga* is one. The Allied Democratic Force (ADF) militia stormed Kalingathe, her village north of Beni, in December 2019. People were made to lie on the floor while rebels searched homes for food, pots, money or clothes.
DRC soldiers overlook Virunga national park at a military base on the outskirts of Beni
Continue reading...A beach in eastern Thailand has been declared a disaster area as oil leaking from an underwater pipeline in the Gulf of Thailand continues to wash ashore and blacken the sand.
The leak, from a pipeline owned by Star Petroleum Refining, started late on Tuesday and was brought under control a day later after spilling an estimated 50,000 litres (11,000 gallons) of oil into the ocean about 12 miles (20km) from the country’s industrialised eastern seaboard
Continue reading...Peru has demanded compensation from the Spanish oil firm Repsol after freak waves caused by a volcanic eruption near Tonga caused a disastrous oil spill. The spill happened in an area rich in marine life such as seabirds, sea lions and otters. Locals have only rudimentary equipment to try to clear the oil.
Peru’s prime minister, Mirtha Vásquez, has claimed the Pampilla refinery, run by Repsol, apparently did not have a contingency plan for an oil spill
Continue reading...Virgin and Amazon bosses do well in our awards for business brass neck, but there are also nods to big oil, big money – and a powerful whiff of Musk
Every Christmas, Observer Business Agenda casts its eye over the year that was, seeking to spotlight the business luminaries whose deeds might otherwise have gone unrecognised. At first glance 2021 looked awfully similar to 2020 – a pandemic, various lockdowns and a new wave of infections to round it all off – but it soon became clear that there were still candidates worthy of special recognition.
Continue reading...Oilwells set alight by Iraqi forces in 1991 were put out within months, but insidious pollution still mars the desert
For 10 months in Kuwait, everything was upside down. Daytime was full of darkness from the thick smoke, and nights were bright from the distant glow of burning oilwells.
When Iraq’s leader, Saddam Hussein, ordered the occupation of Kuwait in August 1990 in an attempt to gain control of the lucrative oil supply of the Middle East and pay off a huge debt accrued from Kuwait, he was fairly quickly forced into retreat by a US coalition which began an intensive bombing campaign.
Continue reading...Firm says project off Shetland cannot proceed on originally planned timescale and it will assess next steps
Work on the Cambo oilfield off Shetland is being paused, its developers have said, plunging the future of oil exploration in the area into doubt.
Shell, which had been planning to develop the field with the private equity-backed fossil fuel explorer Siccar Point Energy, pulled out of the project last week after fierce opposition to it from environmental activists.
Continue reading...Exclusive: Consortium of energy firms and universities says underground storage of hydrogen can also be investigated
Exhausted oil and gas wells would be turned into the UK’s first deep test sites for burying carbon dioxide next year, under plans from a consortium of universities and energy companies.
There are hundreds of active onshore oil and gas wells in the UK. But as they come to the end of their lives, some need to be redeployed for trials of pumping CO2 underground and monitoring it to ensure it does not escape, the group says. The test wells could also be used to assess how hydrogen can be stored underground.
Continue reading...Exxon, Chevron, Shell and BP among group of 24 who resisted calls to increase production but doled out shareholder dividends
The largest oil and gas companies made a combined $174bn in profits in the first nine months of the year as gasoline prices climbed in the US, according to a new report.
The bumper profit totals, provided exclusively to the Guardian, show that in the third quarter of 2021 alone, 24 top oil and gas companies made more than $74bn in net income. From January to September, the net income of the group, which includes Exxon, Chevron, Shell and BP, was $174bn.
Continue reading...Judgment rules company can blast sound waves in search for oil along South Africa’s eastern coastline
Royal Dutch Shell will move ahead with seismic tests to explore for oil in vital whale breeding grounds along South Africa’s eastern coastline after a court dismissed an 11th-hour legal challenge by environmental groups.
The judgment, by a South African high court, allows Shell to begin firing within days extremely loud sound waves through the relatively untouched marine environment of the Wild Coast, which is home to whales, dolphins and seals.
Continue reading...It is known as the resource curse: assets that should bring wealth and stability but instead lead to corruption and poverty. And for Nigeria, oil is the culprit
In Nigeria, oil has been more of a curse than a blessing. Weak institutions of state and poor governance in managing the vast revenues have led the country to fail to realise its full potential in a textbook example of what academics know as the “resource curse”.
First coined by Prof Richard Auty in 1994, the term refers to the inability of nations to use their windfall wealth to improve their population’s lot and bolster their economies. The rich natural resources bring corruption and poverty to a nation, rather than positive economic development and, counterintuitively, these countries end up with lower growth and development than those without natural resources.
Continue reading...Promised an income, those affected by $20bn oil project are losing their land and resources instead
A bumpy, mud-spattered road leads deep into Kakumiro district in western Uganda, where the longest heated oil pipeline in the world will pass through its homes, farms and wetlands.
The villagers in the Kijungu settlements welcomed the project when the route was announced in 2017, hoping that the government and companies involved would buy their land and change their lives for good. Their optimism has since given way to frustration.
Continue reading...If an ageing pipeline under the Great Lakes spills, it would be devastating. But Canada is trying to block Michigan from shutting it down
Canada would be apoplectic if the US government marched into a Canadian court and argued that the province of Ontario has zero authority over an American company operating an aging, corroded pipeline under Canada’s pristine Georgian Bay. Yet this is the exact approach Canada is taking in US courts by arguing that the state of Michigan has zero authority to order the shutdown of an aging and dangerous pipeline operated by a Canadian company under the Straits of Mackinac – where any spill would have catastrophic ramifications for the Great Lakes.
Canada’s strained position is premised on ignoring the plain text of the 1977 US Canada Pipeline Treaty: “Pipeline[s] shall be subject to regulations by the appropriate governmental authorities … with respect to such matters as the following: (a) pipeline safety … ; (b) environmental protection.”
Lana Pollack was appointed by President Obama to chair the US Section of the International Joint Commission. The IJC was established by the Boundary Waters Treaty of 1909 to assist the US and Canadian governments in managing and protecting waters shared by the two countries. The views expressed are Pollack’s, not those of the IJC
Continue reading...Can the Middle East wean itself off oil? Plus: the return of Abba
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Few regions on Earth are more central to hopes of reining in global temperature increases than the Middle East. Financed by the west’s insatiable demand for fossil fuels, cities filled with air-conditioned skyscrapers and shopping malls have risen from the desert, and it’s not surprising that Gulf monarchies made rich and powerful by oil have paid little heed to thoughts of an economic transition to renewables, even though the region is warming at twice the rate of the rest of the world. But, asks our diplomatic editor Patrick Wintour, could the long-term view be about to change?
The Cop26 climate conference got under way in Glasgow this week, amid a flurry of announcements and expectation. Follow the Guardian’s extensive coverage here.
Continue reading...Firms defend paying no corporation tax after government handed out billions to energy giants
Shell and BP, which together produce more than 1.7bn tonnes of greenhouse gases a year, have not paid any corporation tax on oil and gas production in the North Sea for the last three years, company filings reveal.
The oil giants, which have an annual global footprint of greenhouse gases more than five times bigger than Britain’s, are benefiting from billions of pounds of tax breaks and reliefs for oil and gas production.
Continue reading...With the region warming twice as fast as the rest of the world but oil spoils keeping regimes in power, leaders are in a bind
Northern Oman has just been battered by Cyclone Shaheen, the first tropical cyclone to make it that far west into the Gulf. Around Basra in southern Iraq this summer, pressure on the grid owing to 50C heat led to constant blackouts, with residents driving around in their cars to stay cool.
Kuwait broke the record for the hottest day ever in 2016 at 53.6, and its 10-day rolling average this summer was equally sweltering. Flash floods occurred in Jeddah, and more recently Mecca, while across Saudi Arabia average temperatures have increased by 2%, and the maximum temperatures by 2.5%, all just since the 1980s. In Qatar, the country with the highest per capita carbon emissions in the world and the biggest producer of liquid gas, the outdoors is already being air conditioned.
Continue reading...