INVESTORS TO BIG OIL: RESTRAIN YOURSELVES
As big oil firms cautiously ramp up exploration for hydrocarbons after a three-year slump in crude prices, investors are imploring them not to return to their big spending ways, reports The Wall Street Journal.
Companies such as Exxon Mobil Corp, Royal Dutch Shell PLC, Total SA and Chevron Corp – all of which report earnings this week – are under pressure to show that they will avoid the budget-busting projects once common in the industry, writes Sarah Kent.
“There’s no room to take your foot off on capital discipline,” said Jags Walia, senior portfolio manager at Dutch pension fund manager APG Asset Management, whose fund invests in several large oil companies.
U.K. MOVES TO BAN NEW DIESEL AND PETROL CARS BY 2040
The U.K. government is set to propose a ban today on new diesel and petrol cars after 2040, as part of a plan to tackle air pollution and concerns about climate change, reports Eric Sylvers.
The move comes as Europe is moving decisively against the combustion engine.
This month France announced similar plans to phase out diesel and petrol cars in the same time period and Norway’s leading political parties reached an agreement to ban new petrol powered cars by 2025.
The world’s big oil companies have planned for the possible phase out of fossil fuels as the main energy source that powers vehicles, writes Sarah Kent.
According to a report published last year by the consulting firm Wood Mackenzie, electric cars are likely to reduce gasoline demand in the U.S. by 5%—and possibly by as much as 20%—by 2035.
Companies such as Shell are looking at ways to adapt its fuel stations to cater to both electric and gas-fueled vehicles in certain markets.
Oil prices surged to their highest levels since early June as OPEC discussions and signs of slowing U.S. output helped renew faith in the gradual rebalancing of the global oil market.
U.S. crude for September delivery rose by $1.55 to $47.89 a barrel on the New York Mercantile Exchange—its highest settlement since June 6.