Energy & Utilities

Not everyone gloomy about QBE

22 May 2012 | Sarah Thompson and Anthony Macdonald

QBE is hit by falling government bond yields as it recovers from last year’s natural disasters. Still, one research house upgraded the insurer ‘outperform’.

Brent steady ahead of EU summit, Iran talks

22 May 2012 |

Brent crude held steady near $US109 on Tuesday, awaiting the results of two meetings to tackle Europe's debt crisis and Iran's nuclear programme, which could determine the future of global oil demand and supply.

Crude edges up, stays above $US92; Iran talks eyed

22 May 2012 |

US crude inched up on Tuesday, extending gains from the previous session when prices snapped out of a six-day losing streak on hopes Beijing would take action to stimulate growth.

Xstrata mulls geothermal for Argentina

22 May 2012 | Angela Macdonald-Smith

Xstrata’s copper division has signed a tentative agreement to buy about 50 megawatts of geothermal power from an Earth Heat Resources venture in Argentina.

DUET reaffirms increasing dividends

22 May 2012 | Angela Macdonald-Smith

DUET Group has reaffirmed its outlook for continuing increases in dividends over the next three years, underpinned by growth from its businesses: United Energy, Dampier-Bunbury gas pipeline and Multinet.

US nuclear regulatory chairman hands in resignation

22 May 2012 |

Gregory Jaczko, chairman of the US Nuclear Regulatory Commission, said on Monday that he would resign, following a year of intense criticism over his abrasive management style.

Eaton Corp pays $US11.8bn for Cooper Industries

PRINT: Capital | 22 May 2012

The power management provider Eaton Corporation said it had agreed to acquire Cooper Industries for $US11.8 billion in a deal that would allow the companies to form a global electricity business.

Resources executives to push Perth hotel rates highest

22 May 2012 | Ainslie Chandler

PRINT: 22 May 2012 | PAGE 2 | Resources executives to push Perth lodging rates highest

Buoyed by mid-week demand from resources executives, Perth is expected to become Australia’s most expensive hotel market by the third quarter of 2012.

Upside to dip in oil price

22 May 2012 | Brendon Lau

PRINT: 22 May 2012 | PAGE 5 | Upside to crude dip

The drop in the oil price is a buying opportunity according to experts who are predicting a rebound in the price of crude in the second half of the year.

Company briefs

22 May 2012 |

PRINT: 22 May 2012 | PAGE 3 | co briefs

Customer satisfaction with ANZ Banking Group has fallen after its decision to set interest rates independently of the Reserve Bank of Australia.

Shell eyeing InterOil’s PNG gas woes

22 May 2012 | Sarah Thompson and Anthony Macdonald

PRINT: 22 May 2012 | PAGE 22 | Shell eyes InterOil’s PNG gas woes

Royal Dutch Shell is edging closer to achieving its ambition to capture an advantageous gas reserves position in Papua New Guinea, after the latest twist in InterOil’s planned liquefied natural gas project there.

Hiatus for Jemena as HDUF slows play

22 May 2012 | Sarah Thompson and Anthony Macdonald

PRINT: 22 May 2012 | PAGE 22 | Hiatus for Jemena as HDUF slows play

The radio silence on the outcome of the Lazard-run sales process for the Jemena gas transmission assets has sparked speculation of a lack of buyer interest – at least at the $1.5 billion price tag for the pipelines set by parent SingPower.

Push to benchmark power companies

22 May 2012 | Mark Ludlow

PRINT: 17 May 2012 | PAGE 3 | Push to benchmark power companies

The country’s biggest energy users have accused the Australian Energy Regulator of failing to properly undertake comparisons between public and private network companies to help ease the pressure on rising electricity prices.

Brightening skies for Sunrise gas

21 May 2012 | Angela Macdonald-Smith

PRINT: 22 May 2012 | PAGE 24 | Brightening skies for Sunrise gas

Hopes are rising that Woodside Petroleum is closer to breaking the stalemate over its Sunrise natural gas field in the Timor Sea, even as East Timor’s rhetoric against a floating liquefied natural gas project ramps up ahead of elections in July.

Oil price flat despite G8’s attempts to stir

21 May 2012 |

US crude prices were flat above $US91 per barrel on Monday as concerns about the European economy continued to weigh on prices.

Aurora Oil & Gas (AUT)

21 May 2012 | Brendon Lau

Citigroup has lowered its price target on Aurora Oil & Gas by 2 cents to $3.34 to account for the acquisition of a further stake in Sugarloaf and has reiterated its “sell” recommendation on the stock.

Orica bets $800m on WA ammonium nitrate plant

21 May 2012 | Luke Forrestal

PRINT: 22 May 2012 | PAGE 24 | Orica bets $800m on Pilbara

Orica and its foreign partners are confident that West Australian iron ore miners will continue to expand aggressively, justifying a decision to invest $US800 million in a new ammonium nitrate plant in the Pilbara.

Roc Oil (ROC)

21 May 2012 | Brendon Lau

Goldman Sachs has upgraded Roc Oil to “buy” from “neutral” and lifted its price target to 48¢ from 45¢ as it believes that the investment case for the energy company has improved.

Oil keeps falling, while gold rebounds

21 May 2012 |

Investors have take a shine to precious metals as gold, silver and platinum regained strength on Friday. But oil is sinking to its lowest price in months as markets remain pessimistic.

Missing gas strategy threatens value

21 May 2012 | Craig Arnold

PRINT: 21 May 2012 | PAGE 51 | Missing gas strategy threatens value

NSW Resources and Energy Minister Chris Hartcher is right to examine all the potential solutions to the gas price hike confronting industrial gas users in NSW and elsewhere in Australia (“Santos says no to NSW gas reservation policy”, May 16).

BP may bid on four Bight prospects

21 May 2012 | Perry Williams

PRINT: 21 May 2012 | PAGE 2 | BP may bid on four Bight prospects

Energy giant BP may bid on new exploration areas in the environmentally sensitive great Australian Bight.

Fluor sees long life in LNG

21 May 2012 | Luke Forrestal

PRINT: 21 May 2012 | PAGE 2 | Fluor sees long life in LNG

A fear that the flood of investment in new liquefied natural gas plants in Australia may be slowing to a trickle is not keeping Fluor’s David Phillips up at night.

World briefs

21 May 2012 |

PRINT: 21 May 2012 | PAGE 16 |

Christian groups in the Philippines have called for a ban on Lady Gaga’s Manila concerts, alleging that her song Judas is an offensive mockery of Jesus Christ.

National briefs

21 May 2012 |

PRINT: 21 May 2012 | PAGE 4 | National briefs

The NSW government will scrap future premiers’ life entitlements, including air travel and office staff.

Citizen juries to advise on energy policy

21 May 2012 | Michaela Whitbourn

PRINT: PAGE 4 | Citizen juries to advise on energy

The NSW government will ask randomly-selected groups of voters known as citizens’ juries to advise on its energy policy, as part of a push for a better model of democracy that is backed by former premier Nick Greiner.

Round two buoys BMA

19 May 2012 | Matthew Stevens

PRINT: 19 May 2012 | PAGE 2 | Round two buoys BMA

Stevens | BMA management has reason to be quietly content with the result in its second ballot of the unionised half of its Bowen Basin coal-mining workforce.

Water everywhere but not a drop before time

PRINT: Capital | 18 May 2012

Fifteen senior deal makers gathered in Sydney to initial the final documents on a $2.3 billion deal to privatise the city’s desalination plant. They took care not to be seen – for good reason.

Redbank disputes carbon costs

18 May 2012 | Angela Macdonald-Smith

Redbank Energy, the restructured rump of the old Alinta Energy, has fallen into dispute with NSW power distributor Ausgrid over the pass-through of carbon costs, with the outcome set to have a major impact on the financial viability of its sole power station.

Land of the rising sum

18 May 2012 | Stephen Wyatt

PRINT: 18 May 2012 | PAGE 1 |

There may well be a new pillar of support for Australian resources and the Australian economy – Japan, which is seeing growth at last.

AGL Energy (AGK)

18 May 2012 | Bianca Hartge-Hazelman

Morningstar has maintained its “accumulate” recommendation on AGL Energy ahead of the company’s plans to take full ownership of Loy Yang A brown coal fired power station and mine in Victoria.

SP AusNet (SPN)

18 May 2012 | Bianca Hartge-Hazelman

Morningstar has retained its “hold” investment rating on SP AusNet saying that the company’s 2012 result was overshadowed by its $434 million equity raising.

Paladin’s Malawi mine back on line after strike

18 May 2012 |

PRINT: 18 May 2012 | PAGE 1 | FED:Paladin's Malawi mine back on line

Uranium miner Paladin Energy's mine in Malawi is back at full production following an industrial dispute sparked by demands for a 66 per cent pay rise from local workers.

South Africa ‘confident’ of solution to Iran oil ban

18 May 2012 |

South Africa, which receives a quarter of its crude from Iran, is holding almost daily discussions with the US, EU Union and Iran about reducing its purchases.

US turns up heat in solar dispute with China

18 May 2012 |

The United States hit Chinese solar companies with punitive import tariffs of 30 per cent or more on Thursday, ruling they had dumped cut-price solar panels into the U.S. market.

US crude ends lower a 5th straight day

18 May 2012 |

US crude futures fell for a fifth straight session on Thursday as US economic data and ongoing worries about the euro zone and Greece's political and debt crisis pressured oil prices.

Gillard contrasts Ichthys success with euro crisis

18 May 2012 | Angela Macdonald-Smith

PRINT: 18 May 2012 | PAGE 1 | Ichthys

Prime Minister Julia Gillard has used the official ground-breaking ceremony at Inpex’s $US34 billion Ichthys LNG project in Darwin to reiterate the boost resources are giving to the Australian economy.

Uzbekistan aims to join China gas supply route

18 May 2012 |

Uzbekistan aims to start pumping natural gas to China this year through a pipeline spanning three Central Asia states, gaining access to a supply network key to diversifying supplies from the ex-Soviet region, a senior Uzbek official said on Thursday.

Apple to use only green power for main data centre

18 May 2012 |

PRINT: 18 May 2012 | PAGE 1 | Apple to use only green power for main data centre

Apple plans to power its main data centre entirely with renewable energy by the end of this year, taking steps to address environmental concerns about the rapid expansion of high-consuming computer server farms.

India approves plan for Turkmenistan gas imports

18 May 2012 |

India's cabinet on Thursday allowed state-run gas-firm GAIL (India) to sign a gas purchase agreement with Turkmenistan's national oil firm, for supplies from a planned multinational pipeline, a government statement said.

China not the only game in town: banker

18 May 2012 | Greg Earl

PRINT: 18 May 2012 | PAGE 2 | China not the only game: banker

Australian companies are diversifying their connections across emerging world markets to provide some buffer from any slowdown in China, a leading banker says.

Listings suffer in a capsizing market

18 May 2012 | Tony Featherstone

PRINT: 18 May 2012 | PAGE 3 | Listings suffer in a capsizing market

The latest sharemarket rout is battering the initial public offerings market. More companies have withdrawn their listing applications and some prominent floats have been crunched.

Macquarie in $4bn gas deal

18 May 2012 | Stefan Nicola, Brett Foley

PRINT: 18 May 2012 | PAGE 24 | Macquarie in $4bn gas deal

A group led by Macquarie Group has agreed to pay €3.2 billion ($4.1 billion) to EON for a network of natural gas pipelines in Germany.

Company briefs

18 May 2012 |

PRINT: 18 May 2012 | PAGE 4 | briefs

Australian Infrastructure Fund is selling its 50 per cent stake in the Port of Portland to Palisade Ports for $66.5 million.

Maoris resist Mighty River sale

18 May 2012 | Sarah Thompson and Anthony Macdonald

PRINT: 18 May 2012 | PAGE 18 | Maoris resist Mighty River sale

Mighty River Power’s sale process has hit some resistance. A Maori group from NZ’s central North Island is threatening legal action to stop the selldown, saying it is in breach of a 172-year-old treaty.

Pension funds get nervous about CSG

18 May 2012 | Angela Macdonald-Smith

PRINT: 18 May 2012 | PAGE 1 | Pension funds get nervous about CSG

Concern about growing investment risk in the coal seam gas and shale gas sector has driven some of Australia’s largest pension funds to join shareholder activist Regnan in a global initiative to raise operating standards in the industry.

World briefs

18 May 2012 |

PRINT: 18 May 2012 | PAGE 2 |

Turkey’s military says two of its warplanes chased an Israeli aircraft that allegedly violated the airspace of the breakaway Turkish Cypriot state, where Turkey is exploring for oil and gas.

China’s $US949m subsidy for fuel-saving cars

17 May 2012 |

The central government has allocated $US949 million to subsidise consumer purchases of fuel-saving cars in a bid to cut emissions in the world’s biggest car market.

Leighton reviewing disclosure methods

17 May 2012 |

Leighton Holdings has appointed an external consultant to review its disclosure procedures after breaching laws and being fined $300,000 earlier this year.

Hubei Energy signs $US2.4bn power plant deal

17 May 2012 |

China's Hubei Energy has signed an agreement with the Suizhou county government to build a power plant with total capacity of 4000 megawatts, an investment worth $US2.37 billion.

SP AusNet (SPN)

17 May 2012 | Brendon Lau

Merrill Lynch has increased its price target on SP AusNet to $1.15 from $1.10 a share following the company’s result and equity-raising announcement.

Five million hungry in South Sudan oil row

17 May 2012 |

Almost five million people in South Sudan - more than half of the population - face increasingly severe food shortages after their government ceased oil exports in a row with Sudan.

Obama to seek G8 accord to tap emergency stocks

17 May 2012 |

US President Barack Obama will seek support to tap emergency oil reserves from other Group of Eight leaders at a summit this weekend, Kyodo news agency has reported.

Macquarie-led group to buy Open Grid Europe

17 May 2012 |

E.ON, Germany’s largest utility, said it has sold its Open Grid Europe gas distribution network to a consortium led by Macquarie for $4.1 billion, raising cash to pay down debt and fund expansion.

Company briefs

17 May 2012 |

PRINT: 17 May 2012 | PAGE 28 |

Grocery wholesaler Metcash is entering into joint ventures with independent retailers to protect and expand the market share of hardware chain Mitre 10.

Pipeline Partners sweeten HDUF offer

17 May 2012 | Kevin Chinnery

PRINT: 17 May 2012 | PAGE 2 | Pipeline Partners raises HDUF bid

One bidder had raised its offer for a gas pipeline owner, and another interested party has the cash reserves that it needs to boost its offer as well.

PTTEP may backtrack on project

17 May 2012 | Angela Macdonald-Smith

PRINT: 17 May 2012 | PAGE 1 | PTTEP may backtrack on project

Thailand’s PTTEP may scrap its plan to develop a floating liquefied natural gas project at its Cash and Maple fields in the Timor Sea and seek instead to process the gas through another company’s LNG infrastructure.

Additional Wheatstone stake to be sold

17 May 2012 | Angela Macdonald-Smith

PRINT: 17 May 2012 | PAGE 1 | Wheatstone stake sale

US oil major Chevron is set to sell an additional stake in its $29 billion Wheatstone liquefied natural gas project in Western Australia to a group of Japanese companies, including struggling Tokyo Electric Power Co. (Tepco), strengthening supply security for the energy-strapped nation.

Gas CEOs urge skills growth

17 May 2012 | Perry Williams

PRINT: 17 May 2012 | PAGE 1 | CEOs push for skills growth

Clough chief executive Kevin Gallagher has joined with senior Chevron Australia executive Colin Beckett to warn that Australia risks losing out on the long-term benefits from the unprecedented investment in liquefied natural gas projects unless it does more to develop specialised engineering skills in the workforce.

Reserve gas idea caned

17 May 2012 | Perry Williams

PRINT: 17 May 2012 | PAGE 1 | Reserve gas idea caned 

Opposition resources spokesman Ian Macfarlane has rubbished calls by Dow Chemical chief executive Andrew Liveris for gas to be reserved for local industry, calling instead for specific exploration areas to be put aside for domestic extraction.

Japan confronts a nuclear void

17 May 2012 | Greg Earl

PRINT: 17 May 2012 | PAGE 2 | Japan confronts a nuclear void

A battle over nuclear and renewable energy will determine Japan’s future but has also broader global implications.

Energy head’s policy warning

17 May 2012 | Marcus Priest

PRINT: 17 May 2012 | PAGE 3 | Energy head’s policy warning

The federal government’s key adviser on the national energy market says the renewable energy target and carbon price uncertainty could delay investment in lower-emission generation.

Double act but one message

17 May 2012 | Matthew Stevens

PRINT: 17 May 2012 | PAGE 1 | Double act but one message

The double act played out by BHP’s Jac Nasser and Marius Kloppers warns Australia about its minerals and energy future.

Senex Energy Limited (SXY)

16 May 2012 | Jason Murphy

PRINT: 17 May 2012 | PAGE 37 |

Senex Energy’s share price has eroded rapidly in May after a steady rise from the start of the year.

Video | APPEA - day two

16 May 2012 |

This year’s Australian Petroleum Producers and Exporters Association conference is very gas heavy for good reason, says resources editor Perry Williams.

Factbox | carbon tax compo, state by state

16 May 2012 |

A state-by-state breakdown of the federal government's carbon tax compensation due to begin flowing from Wednesday.

Household carbon tax compo flows

16 May 2012 |

Household compensation to cushion the impact of the carbon price will start flowing to Australian families on Wednesday. An estimated 1.6 million families will have money delivered to their bank accounts.

Contact CFO moves to GM role at Origin

16 May 2012 | Sally Rose

Origin Energy has lured Contact Energy chief financial officer Mark Elliott for the role of general manager, commercial energy markets. He will start on July 2. Contact is looking for his successor.

SP AusNet to raise $434m

16 May 2012 | kevin chinnery

Victorian-based power transmission and distribution company SP AusNet is to raise around $434 million with a non-renounceable entitlement offer of stapled securities.

Making a good fist of it

16 May 2012 |

PRINT: 16 May 2012 | PAGE 60 | Making a good fist of it

The oil and gas industry’s annual love-in continues to titillate attendees in Adelaide, after the opening night get-together set the bar high with a near punch-up between former Eastern Star Gas boss David Casey and Core Energy CEO Paul Taliangis.

World briefs

16 May 2012 |

PRINT: 16 May 2012 | PAGE 3 |

Papua New Guinea’s parliament has been dissolved ahead of the June election, after rescinding an earlier vote to delay the poll by six months.

Battle has a long way to go until resolution

16 May 2012 | Michael Smith

PRINT: 16 May 2012 | PAGE 19 | Battle has a long way to go until resolution

Nothing is simple when it comes to Hastings Diversified Utilities Fund. While the fund has two offers on the table, which has bumped up the share price, both are highly conditional and potentially messy.

Aurora on lookout after $223m raising

16 May 2012 | Sarah Thompson and Anthony Macdonald

PRINT: 16 May 2012 | PAGE 18 | Aurora on lookout after $223m raising

Broker Euroz Securities says Aurora Oil & Gas’s $223 million institutional equity raising has been covered at $3.65 a share.

Beach tips early first shale sales

16 May 2012 | Angela Macdonald-Smith and Perry Williams

APPEA | The Australian Petroleum Production and Exploration Association (APPEA) conference and exhibition continues was at the Adelaide Convention Centre.

IBM helps oil companies manage data gush

16 May 2012 |

PRINT: 16 May 2012 | PAGE 1 | IBM helps oil companies manage gusher of data

IBM has spent the past three years building a team of 5000 consultants, scattered around major oil basins worldwide, to help companies tackle a data explosion.

Government moves to control rising project costs

16 May 2012 | Louise Dodson

PRINT: 16 May 2012 | PAGE 4 | Canberra reviews costs of projects

The government has completed the first part of a study benchmarking project approval times against international competitors in response to concerns by business that rising costs could hamper growth.

Pushing on a string in deflationary spiral

16 May 2012 | Ambrose Evans-Pritchard

PRINT: 16 May 2012 | PAGE 3 | Pushing on a string in deflationary spiral

All key indicators of China’s money supply are flashing warning signs. The broader measures have slumped to stagnation levels not seen since the late 1990s.

Slash red tape or count steep cost

16 May 2012 | The Australian Financial Review

PRINT: 16 May 2012 | PAGE 2 | Slash red tape or count the steep cost

Editorial | The Productivity Commission has reaffirmed the value of a nationwide effort to eliminate regulatory overlap but has made it clear that there needs to be greater effort by governments than we have seen so far.

Global race for farmland begins, $2bn raised

16 May 2012 | Matthew Cranston

PRINT: 16 May 2012 | PAGE 1 | Global race for farmland begins as $2bn raised

A new company, TIAA-CREF Global Agriculture LLC, has completed a raising of $US2 billion to be invested in farmland in the United States, Australia and Brazil.

Foreign investment nears pre-GFC levels

16 May 2012 | Andrea Hayward

PRINT: 16 May 2012 | PAGE 4 | Investment on the rise

Approvals for foreign investment in Australia grew by 27 per cent in the last financial year, to be almost in line with levels before the global financial crisis levels.

Pipeline popularity contest

16 May 2012 | Tony Boyd

PRINT: 16 May 2012 | PAGE 1 | Pipeline popularity contest

Whatever way you look at it, Alan Cameron from Hastings Funds Management is a winner from the proposal by Pipeline Partners Australia.

Central Petroleum set on Cottee

16 May 2012 | Luke Forrestal

PRINT: 16 May 2012 | PAGE 2 | Central set on Cottee

The conflict-plagued board of Central Petroleum has anointed renowned oil and gas dealmaker Richard Cottee as its choice to lead the company.

Companies weigh early shale gas investment rush

16 May 2012 | Perry Williams

PRINT: 16 May 2012 | PAGE 17 | Companies weigh early shale gas investment rush

BHP Billiton, BP, Total and Shell are weighing up early stage investments in Australia’s shale gas sector in a bid to secure acreage before assets become too expensive.

Action under way in the NT

16 May 2012 | Angela Macdonald-Smith

PRINT: 16 May 2012 | PAGE 1 | Action under way in the NT

Santos chief executive David Knox has signalled progress in talks with ConocoPhillips for the development of a fallow gas field off the north coast that could drive a long-awaited expansion of the Darwin liquefied natural gas project.

CEO enjoys his Nexus challenge

16 May 2012 | Angela Macdonald-Smith

PRINT: 16 May 2012 | PAGE 1 | CEO gets to the Crux of the matter

Fresh from the huge task of bringing Woodside Petroleum’s $14.9 billion Pluto liquefied natural gas project into production, Lucio Della Martina has another challenge in front of him: setting Nexus Energy on a new growth path.

Staff shortages hot topic for oil executives

16 May 2012 | Angela Macdonald-Smith

PRINT: 16 May 2012 | PAGE 1 | Staff shortages hot topic for oil executives

Northern Territory Chief Minister Paul Henderson has warned of the risks that rival liquefied natural gas ventures will “cannibalise” each other’s skilled staff, driving up salaries in the already overheated resources sector.

Spark Infrastructure (SKI)

15 May 2012 |

PRINT: 15 May 2012 | PAGE 39 |

If there is a price to be paid for missing out on a trophy asset, Spark Infrastructure isn’t paying it. Shares in the Victorian power distribution business have rallied 5 per cent since news last week that Spark had been an unsuccessful bidder for the Sydney water desalination plant sold by the NSW government for $2.3 billion.

Video | CSG and agriculture

15 May 2012 |

Santos’s Peter Cleary, Origin’s Paul Zealand, the National Farmers Federation’s Duncan Fraser and others discuss the issues around sharing land between farming and energy interests.

O’Farrell urged to be bolder

15 May 2012 | Michaela Whitbourn

PRINT: 16 May 2012 | PAGE 1 | O’Farrell urged to be bolder

Transfield chairman Tony Shepherd has lashed NSW Premier Barry O’Farrell for lacking leadership, calling Mr O’Farrell’s refusal to sell the state’s electricity network a “handbrake on infrastructure”.

Video | APPEA - day one

15 May 2012 |

A major gas project pipeline is in store for Australia, but as resources editor Perry Williams explains, it faces many headwinds on the way.

Bidding war erupts for Hastings fund

15 May 2012 | Kevin Chinnery

PRINT: 16 May 2012 | PAGE 1 | Bidding war erupts for HDF

Updated | A bidding war has broken out over pipeline operator Hastings Diversified Utilities Fund, with the Pipeline Partners Consortium lobbing a $1.25 billion bid to rival APA’s cash and scrip offer.

In for a penny for HDUF

15 May 2012 | Sarah Thompson and Anthony Macdonald

Hastings Diversified Utilities Fund appears enmeshed in the year’s first billion-dollar bidding war, with the pipeline owner receiving a second offer on Tuesday morning.

Oil prices to double by 2022, IMF paper warns

15 May 2012 | Angela Monaghan

Oil prices could double over the next decade with sweeping implications for the global economy, according to a report commissioned by the International Monetary Fund.

Oil, gold, copper fall as worry grips investors

15 May 2012 |

Oil and key metal prices have slumped as the US dollar strengthens against the euro on mounting investor worries over Europe’s debt crisis, traders said.

Concho Resources pays $US1bn for Three Rivers

15 May 2012 |

Concho Resources will buy the Three Rivers Operating Company, which had planned an initial public offering, for $US1 billion from the Carlyle Group and Riverstone.

Karoon tips July for farm-out deal

15 May 2012 | Angela Macdonald-Smith and Perry Williams

APPEA | Tuesday at the Australian Petroleum Production and Exploration Association (APPEA) conference and exhibition at the Adelaide Convention Centre.

Iranian oil tankers lie idle as sanctions hit

15 May 2012 |

Tighter sanctions have paralysed Iran’s tanker fleet, forcing more than half of the country’s vessels to lie idle in the Gulf because there are no buyers for their oil.

APPEA brings back the biff

15 May 2012 |

PRINT: 15 May 2012 | PAGE 56 | APPEA brings back the biff

The oil and gas industry’s biggest knees-up of the year, the Australian Petroleum Production and Exploration Association annual conference, is THE big ticket in Adelaide this week.

Don’t lose your cool over predictions

15 May 2012 | Mark Lawson

PRINT: 15 May 2012 | PAGE 1 | Don’t lose your cool over dire climate predictions

Warnings of western Sydney copping the brunt of hotter summers might seem dire, but on closer inspection the latest report by the Climate Commission says nothing new.

World briefs

15 May 2012 |

PRINT: 15 May 2012 | PAGE 46 |

European industrial production unexpectedly declined in March, as lower output in countries from Spain to France offset gains in Germany.

Fazzino’s shale-and-hearty call

15 May 2012 | Robert Guy

PRINT: 15 May 2012 | PAGE 4 | Fazzino’s shale-and-hearty call

Guy | He may be an old school petrol-head but that’s not going to stop James Fazzino from embracing the new energy future.

BHP insists there’s gold in US shale

15 May 2012 | Angela Macdonald-Smith

PRINT: 15 May 2012 | PAGE 1 | BHP insists there’s gold in US shale

BHP Billiton’s petroleum chief executive, Michael Yeager, has conceded that a write-down of the mining giant’s $US26.9 billion of shale gas assets in the United States is possible given the slump in US gas prices. But he has insisted the business will create “huge wealth” in the longer term.

Companies set up plan for disaster

15 May 2012 | Angela Macdonald Smith

PRINT: 15 May 2012 | PAGE 3 | Companies set up plan for disaster

Twelve oil and gas companies in Australia have banded together in a $25 million initiative for a local emergence spill response system in a bid to counteract the loss of public confidence in the sector that risks threatening the industry’s expansion.

Saudis fear worst of Europe’s woes to come

15 May 2012 | Perry Williams

PRINT: 15 May 2012 | PAGE 3 | Saudis fear worst of Europe’s woes yet to come

The world’s largest oil producer, Saudi Arabia, has raised concerns the continuing European debt crisis will curb global demand for petroleum as it looks to dampen crude prices below $100 a barrel in the short-term.

Pluto drifts away from Woodside orbit

15 May 2012 | Angela Macdonald-Smith

PRINT: 15 May 2012 | PAGE 3 | Pluto drifts away from Woodside orbit

Woodside CEO Peter Coleman says the expansion of the $14.9 billion Pluto LNG project is as far away as ever owing to mediocre test results and third-party difficulties.

Ferguson better get it while it’s hot

15 May 2012 | Perry Williams

PRINT: 15 May 2012 | PAGE 4 | We’d better get it while it’s hot

Williams | Australia looks set to dramatically transform its LNG industry but it would be wise not to count its chickens before they’re hatched.

Costs threat to $200bn gas future

15 May 2012 | Perry Williams

PRINT: 15 May 2012 | PAGE 1 | Costs threat to $200bn gas future

Oil executives have warned a $200 billion-plus pipeline of liquefied natural gas projects may never be built due to cost and capacity constraints, threatening Australia’s ambition to leapfrog Qatar as the world’s largest LNG producer.

Brent nears $US111 on euro zone worries

14 May 2012 |

Brent crude slipped towards $US111 on Monday, continuing to drop for a third straight session, after talks to form a new government in Greece failed.

Website ranks cheapest petrol towns

14 May 2012 |

A new online petrol ranking system is making it easier for long-distance drivers to find the cheapest town to fill up.

Australia says shale could double its gas resources

14 May 2012 |

Australia, the world's fourth-largest exporter of liquefied natural gas, could have enough shale gas resources to double its gas resource base and expand its growing export industry.

Federal government opens up petroleum acreages

14 May 2012 |

The federal government has opened up 27 new offshore petroleum acreages across nine basins in Commonwealth waters off five states, according to Resources Minister Martin Ferguson.

New board member appointed at BHP

14 May 2012 |

BHP Billiton has appointed the former head of global chemicals and energy company, Sasol, to its board, announcing that Pat Davies will be an independent non-executive director at BHP from June 1.

Clouds on horizon for LNG development

14 May 2012 | Angela Macdonald-Smith and Perry Williams

APPEA live | The Australian Petroleum Production and Exploration Association (APPEA) conference and exhibition at the Adelaide Convention Centre will be where “the world meets Australian oil and gas”.

Give us stability, government urged

14 May 2012 | Perry Williams

PRINT: 14 May 2012 | PAGE 2 | Give us stability, government urged

The future of $330 billion of oil and gas investment this decade could be put in danger by an unstable fiscal and regulatory environment, Australia’s peak energy body warned on Sunday.

Worley looks to LNG logistics opportunity

14 May 2012 | Jenny Wiggins

PRINT: 14 May 2012 | PAGE 2 | Worley looks to LNG logistics

The veteran head of Australia’s biggest engineering firm claims the country is already pricing itself out of design and other work on big resource projects such as liquefied natural gas.

Generator sale next on NSW agenda

14 May 2012 | Sarah Thompson and Anthony Macdonald

PRINT: 14 May 2012 | PAGE 18 | Generators next on NSW agenda

Morgan Stanley has won bragging rights for the first asset sale to come from a NSW Liberal government that has made no secret of its privatisation agenda. The other banks are wasting no time getting their ducks in a row.

ACCC decision in NSW bodes well for Loy Yang deal

14 May 2012 | Sarah Thompson and Anthony Macdonald

PRINT: 14 May 2012 | PAGE 18 | ACCC decision in NSW bodes well for Loy Yang deal

The competition regulator will deliver its verdict on Thursday, May 24, on AGL Energy’s buyout of its partners in Great Energy Alliance Corp, which owns Victoria’s Loy Yang A power station.

Total tips a glowing future for Australian energy

14 May 2012 | Angela Macdonald-Smith

PRINT: 14 May 2012 | PAGE 1 | Total tips glowing future for Australian energy

The head of the world’s fifth-largest oil company, Total chief Christophe de Margerie, wants to turn Australia into a global energy hub on a par with the Middle East, Canada and Russia.

Indonesia risks inward, backward turn

14 May 2012 | Peter Drysdale

PRINT: 14 May 2012 | PAGE 16 | Indonesia risks inward, backward turn

Indonesia will be the 10th-largest economy by the end of the decade, Nouriel Roubini reckons, and could be the sixth-largest economy by 2030, but this is unlikely to be realised unless there is an enabling environment.

World briefs

14 May 2012 |

PRINT: 14 May 2012 | PAGE 16 |

Republican White House challenger Mitt Romney, wooing social conservatives, has adamantly rejected same-sex marriage and trumpeted his belief in Christian values and the family.

It’s not all roses on the gas front

14 May 2012 | Perry Williams

PRINT: 14 May 2012 | PAGE 2 | It’s not all roses on the gas front

Williams | As the doors swing open in Adelaide to the Appea conference, there’s a growing feeling that we may have seen the peak of the cycle.

BHP to talk up US shale gas prospects

14 May 2012 | Angela Macdonald-Smith

PRINT: 14 May 2012 | PAGE 3 | BHP to talk up US shale gas prospects

BHP Billiton’s Mike Yeager will emphasise the explorer’s capacity to cope with slumping US gas prices amid speculation it faces a write-down in full-year accounts.

Chevron upbeat about Asian LNG take-up

14 May 2012 | Angela Macdonald-Smith

PRINT: 14 May 2012 | PAGE 3 | Chevron upbeat about Asian take-up

Chevron has brushed aside concerns about competition from North America in liquefied natural gas supply, speaking bullishly of the prospects for expansion at its Wheatstone project.

Hurdles prompt call for caution

14 May 2012 | Angela Macdonald-Smith

PRINT: 14 May 2012 | PAGE 3 | Hurdles prompt call for caution

Australia’s shale gas industry has some major obstacles to overcome and investors need to be realistic about its prospects, a Perth-based expert in unconventional gas has warned.

Origin forecasts red tape reduction

14 May 2012 | Perry Williams

PRINT: 14 May 2012 | PAGE 1 | Origin forecasts red tape reduction

Origin Energy has shrugged off the impact of rival liquefied natural gas projects from North America and predicted Australia’s regulatory regime may be eased as it develops its $US20 billion Australia Pacific LNG facility.

Small-scale energy scheme to stay, says Combet

14 May 2012 | Claire Stewart

PRINT: 14 May 2012 | PAGE 3 | Small-scale plan stays:

The federal government has rejected talk that it plans to discontinue the small-scale renewable energy scheme, which subsidises household installation of solar panels, a year earlier than planned.

TRUenergy troubled by complaint

14 May 2012 | Angela Macdonald-Smith

PRINT: 14 May 2012 | PAGE 1 | TRUenergy troubled by complaint

TRUenergy, which is gearing up for a potential $3 billion-plus initial public offering, has sought to strike out some complaints made by a former executive who has launched legal action over her dismissal.

Gas row set to test leadership

14 May 2012 | Dan Hall

PRINT: 14 May 2012 | PAGE 1 | Gas row set to test leadership

Queensland’s $70 billion coal seam gas industry is set to test the state’s newly elected Liberal National Party as opponents to the sector prepare to wage the next stage of a public campaign against the industry.

Political will vital to cutting green tape

14 May 2012 | Louise Dodson

PRINT: 14 May 2012 | PAGE 1 | Political will vital to cutting green tape

A focus by business on the costs of “green tape” will build momentum for slashing regulation, but political will is needed to make real progress.

Santos focus shifting to WA and NT

14 May 2012 | Perry Williams

PRINT: 14 May 2012 | PAGE 12 | Santos shifting LNG focus to NT and WA

The Adelaide-based energy company’s epicentres for LNG will change in the latter half of this decade.

Australia set to lead in the global golden age of gas

14 May 2012 | Martin Ferguson

PRINT: 14 May 2012 | PAGE 1 | Australia set to lead in the global golden age of gas

Last year the International Energy Agency released its annual World Energy Outlook as well as a publication called Golden Age of Gas.

Pricey LNG projects put divesting on the agenda

14 May 2012 | Craig Rogers

PRINT: 14 May 2012 | PAGE 1 | Pricey LNG projects put divesting on agenda

Liquefied natural gas projects are extraordinarily expensive. Chevron’s Gorgon and Wheatstone projects require a capital outlay of $US72 billion.

Gas mind shift runs through Sabine Pass

14 May 2012 | Nikos Tsafos

PRINT: 14 May 2012 | PAGE 1 | Natural gas mind-shift runs through Sabine Pass

When Cheniere announced its plans to reconfigure its Sabine Pass import terminal into an export facility, the gas world greeted the news with scepticism and cynicism. The US would never allow exports, said many companies; the economics are too risky, said others.

Small town, big change, huge benefits

14 May 2012 | Natalie Gerritsen

PRINT: 14 May 2012 | PAGE 1 | Small town, big change,

The location for Chevron’s $29 billion Wheatstone liquefied natural gas project is not just a greenfields site, it is also a greenfields town.

Canaries unwell in US coalmines

14 May 2012 | Jamie Freed

PRINT: 14 May 2012 | PAGE 1 | Canaries unwell in US coalmines

Cheap shale gas combined with stricter regulations on emissions has led to a preference for electricity from natural gas over coal.

Message to Canberra: avoid uncertainty

14 May 2012 | David Knox

PRINT: 14 May 2012 | PAGE 11 | Message to Canberra: uncertainty impedes LNG investment growth

Australia’s oil and gas industry is playing a critical role in the country’s move toward a cleaner energy future and a new era of economic prosperity, Santos chief David Knox tells the APPEA conference.

For floating LNG projects, small is the next big thing

14 May 2012 | Angela Macdonald-Smith

PRINT: 14 May 2012 | PAGE 1 | Small is next big thing for FLNG

Developers hope to add flexibility and cut costs by reducing the scale of projects.

‘Silent Saudi’s words ring out

14 May 2012 | Perry WIlliams

PRINT: 14 May 2012 | PAGE 1 | ‘Silent Saudi’s words ring out to markets

Ali Al-Naimi, dubbed the central banker of oil, is steadfast in touting the strength of the kingdom’s reserves.

NSW will pay a high price for stalling on gas

14 May 2012 | Graeme Bethune

PRINT: 14 May 2012 | PAGE 12 | NSW will pay a high price for stalling on gas

The less gas NSW is able to produce itself, the more it is likely to have to rely on a single and increasingly expensive interstate supply source.

Apache warns of terrorism

14 May 2012 | Geoff Winestock

PRINT: 14 May 2012 | PAGE 1 | Apache warns of terrorism

Oil and gas company Apache is appealing to a WA court to prevent the release of documents which it says could help an attack by “trans-national terrorists”.

LNG operators really feeling the pressure

14 May 2012 | Perry Williams

PRINT: 15 May 2012 | PAGE 1 | LNG operators really feeling the pressure

When BG Group revealed a $US5 billion blowout at its Queensland liquefied natural gas project in early May to $US20.4 billion, Australia’s growing reputation as a high-cost headquarters for building new gas supplies appeared to be sealed.

Chevron wins new Wheatstone LNG customer

13 May 2012 | Angela Macdonald-Smith

Chevron has signed up another Japanese customer for its $29 billion Wheatstone liquefied natural gas project in Western Australia, bringing its sales commitments to more than 80 per cent of its available gas.

Qatar to buy major stake in Royal Dutch Shell

12 May 2012 |

Gas-rich Qatar is ploughing more of its commodity wealth back into the sector with the purchase of a major stake in Royal Dutch Shell, while also reportedly eyeing a chunk of Italian oil major ENI.

Business briefs

12 May 2012 |

PRINT: 12 May 2012 | PAGE 2 |

A joint venture between the Singapore Exchange and Chi-X Global will shut its doors because of poor trading volumes.

Kloppers to focus on shareholder returns

12 May 2012 | Tony Boyd

PRINT: 12 May 2012 | PAGE 1 | Kloppers’ conservative agenda

BHP Billiton boss Marius Kloppers has declared the resources giant will champion a “conservative” approach to capital management and investment opportunities.

Resources hubris put on hold

12 May 2012 | Tony Boyd

PRINT: 12 May 2012 | PAGE 1 | Resources hubris put on hold

Senior executives at mining giant BHP Billiton were shaken out of their complacency about the resources super cycle in November last year when all projects were put under review.

Downside of gas surprises BHP

12 May 2012 | Matthew Stevens

PRINT: 14 May 2012 | PAGE 1 | Downside of shale gas surprises BHP

Stevens | Stepped-up production has hit the price of shale gas, which may push BHP into embarrassing write-downs.

Peak hour traffic stalls Perth Airport

12 May 2012 | Julie-anne Sprague

PRINT: 12 May 2012 | PAGE 4 | Peak hour traffic stalls Perth Airport

The number of people flying through Perth Airport has surged 41.6 per cent a year over the past five years, to 11.5 million last financial year.

National Briefs

12 May 2012 |

PRINT: 12 May 2012 | PAGE 4 |

The NSW government will “vigorously defend” a High Court challenge to its public service wages policy.

APA offers to sell key Hastings asset

11 May 2012 | Angela Macdonald-Smith

PRINT: 11 May 2012 | PAGE 2 | APA ups takeover ante

APA Group is proposing to sell one of Hastings Diversified Utilities Fund’s key assets in an effort to win approval from the competition regulator for its planned $840 million tie-up with the fund.

Shell tanks as refining losses hit home

11 May 2012 | Angela Macdonald-Smith

PRINT: 11 May 2012 | PAGE 1 |

Royal Dutch Shell has confirmed the woeful state of Australia’s refining sector, reporting a $495.2 million net full-year loss from its downstream business after writing down its Geelong refinery by $638 million.