Energy

Origin Energy chief executive Grant King has dropped his resistance to a capital raising.

Instos climb on board for Origin offer as analysts slash price targets

Angela Macdonald-Smith 6:25 PM   Institutional investors have been quick to climb on board for Origin Energy's $2.5 billion share offer that is priced at a discount that makes the stock attractive even after analysts slashed price targets.

NSW to lift gas price controls in 2017

NSW could face gas shortages within a few years, warns federal Industry Minister Ian Macfarlane

Angela Macdonald-Smith 3:06 PM   New South Wales has given a conditional commitment to removing controls on retail gas prices from mid-2017.

Oil edges lower after a 'lousy' quarter

US crude output declined 40,000 barrels a day to 9.1 million last week, the least since the week ended November 28, according to EIA data.

Mark Shenk 6:05 AM   Oil slipped, capping the lowest quarterly average price since the start of 2009 as US crude inventories climbed.

APA hits ACCC hurdles in plant takeover plan

The watchdog's worries about the deal throws a major obstacle in the way of APA's ability to freely participate in the auction being run by Lazard for the Iona gas plant.

Angela Macdonald-Smith 10:16 PM   APA Group has hit competition hurdles in its ambitions to buy EnergyAustralia's Iona gas storage plant.

Origin to raise $2.5b new equity, to sell $800m of assets

Origin Energy's capital raising comes after months of speculation that the energy supplier would need new equity to bolster its balance sheet.

Angela Macdonald-Smith   Origin Energy has shed its resistance to raising new equity to ease its way through the oil price slump, halting its shares "in connection with a potential capital raising", which is understood to be a $2.5 billion rights issue.

AGL calls for national plan to cut emissions

Jerry Maycock told shareholders government policies were needed to support the transition away from coal-fired generation.

Angela Macdonald-Smith   AGL Energy said it expected to earn $650 million to $720 million in underlying profit after tax this year, and hinted that a capital return or dividend increase could be on the table if cash and cost-cutting targets are met.

Global

Climate 'huge' financial risk, warns BoE

The majority view among British economists is that even if inflation briefly turns negative this year, entrenched deflation is far less likely than in the euro zone.

Scott Hamilton   Bank of England Governor Mark Carney said UK insurers face potentially "huge" exposure to shifts in climate-change policy.

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Oil higher on bets the oil glut might be shrinking

"The main support for the market comes from expectations that US and Canadian oil production are going to continue to fall for the next six months," Gene McGillian, a senior analyst at Tradition Energy.

Mark Shenk   Oil climbed amid speculation that a government report will show a slowdown in drilling has trimmed US crude output.

AGL, Origin face climate change scrutiny as shareholders target AGMs

AGL's emissions have surged due to its purchase of Macquarie Generation.

Angela Macdonald-Smith   AGL Energy's latest climate change commitments have taken the heat out of a shareholder resolution to be put to the annual general meeting on Wednesday, but the company is under pressure to show how it will live up to its pledges while attention is turning to rival Origin Energy to follow suit.

Jemena confident of competitive NT gas pipeline bid

Jemena is one of four parties short-listed by the NT government to build the North East Gas Interconnector, alongside APA Group, DUET Group and a company backed by China National Petroleum Corporation.

Angela Macdonald-Smith   Gas pipeline owner Jemena is lodging a bid to build a pipeline link between the Northern Territory and Queensland, which managing director Paul Adams has declared should be "very competitive" against three rivals also vying for the contract.

Shell exits Arctic as oil slumps

Monday's decision came after one well drilled by Shell this summer came up mostly dry, and environmental groups declared a major victory.

Clifford Krauss and Stanley Reed   In one sign of the industry wide trend, Royal Dutch Shell has ended its expensive nine-year effort to explore for oil in the Alaskan Arctic.

First Solar powers up after Rio project start-up

US solar power player First Solar is aiming to conclude two more solar power deals with mining ventures in Queensland this year.

Angela Macdonald-Smith   US solar power player First Solar is aiming to conclude two more solar power deals with mining ventures in Queensland this year.

Oil companies feel hit from price downgrades by credit, equity firms

Grimmer oil price prospects increase strain on credit ratings.

Angela Macdonald-Smith   Standard & Poor's latest downgrades to its oil price assumptions have weakened Origin Energy's credit standing, while the impact on pure-play oil and gas producers Woodside Petroleum and Santos remains uncertain.

WA mining focuses on productivity, costs

Rio Tinto and BHP Billiton are relying on automation to further drive down iron ore production costs.

Angela Macdonald-Smith   Anchored in sparkling turquoise waters off BHP Billiton and Rio Tinto's iron ore loading terminals in Western Australia, some 35 vessels wait to take on their cargo.

US oil advances on economic data, supply drop

Oil remains about 25 per cent lower than this year's peak in June.

Mark Shenk   Oil rose in New York, capping a weekly gain as falling US production signals coming relief from the global glut.

Rio confident of staying lowest-cost in iron ore

Rio Tinto reckons it has its competitors beat on iron ore production costs.

Angela Macdonald-Smith   Rio Tinto's iron ore head says a proactive strategy on technology will stand it in good stead to preserve its ranking as the lowest cost producer of iron ore.

Santos GLNG project comes on while prices 'in a dip'

Santos chief executive David Knox faces a tough energy market as the company pumps its first liquefied natural gas from its GLNG project in Gladstone.

Perry Williams   Under-pressure energy producer Santos faces a battle to generate strong profits from its $18.5 billion Gladstone LNG project due to the crash in oil prices.

Senex strikes gas deals with Santos venture

Senex MD Ian Davies has struck a deal with Santos's GLNG venture that will pave the way for a new gas development in Queensland,

Angela Macdonald-Smith   Oil and gas junior Senex Energy has struck a significant gas sales deal with Santos's $US18.5 billion GLNG venture in Queensland.

Oil falls on US petrol stockpile surge

The EIA said gasoline stockpiles rose 1.4 million barrels, compared with the Reuters poll which called for a 819,000-barrel gain.

​Global oil markets tumbled after the bullish impact from lower crude inventories was offset by large gasoline builds.

US corporate giants set renewable energy goal

The state government says recent moves to cut the national renewable energy scheme has prompted it to establish its own target.

JUSTIN GILLIS and NICHOLAS ST. FLEUR   Some of the world's most prominent companies are expected to set a long-term target of powering their operations entirely with renewable energy

Labor's Gray says Shell's $100b BG takeover good for Australia

Shadow resources minister Gary Gray.

Angela Macdonald-Smith   Shadow resources minister Gary Gray says Royal Dutch Shell's proposed $US70 billion takeover bid for BG Group would be 'in Australia's interests'.

Woodside ponders PNG joint venture

Woodside is weighing up its options for PNG due to frustration over the lack of engagement from Oil Search's board.

Perry Williams   Woodside may consider an energy venture with PNG's National Petroleum Company as it explores how to get a foothold after a rejected $11.6 billion bid for Oil Search.

Oil slides as Iran moves closer to reviving exports

Oil producers such as BP and Royal Dutch Shell have expressed interest in developing reserves in Iran, the world's fourth-largest.

Mark Shenk   Crude dropped as Iran made progress on an accord to lift sanctions on its exports, threatening to add to the surplus in global markets.

Santos says strong interest in asset sales shows model is sound

Santos executive James Baulderstone is confident in the strength of the energy producer's assets.

Perry Williams   Santos said the sharp fall in its share price is unjustified arguing strong interest in asset sales has given it confidence the company will recover once oil prices start to lift.

Oil rises on bets lower rig count seen curbing US output

Planned oil investments aren't viable at $US50 a barrel, highlighting the need to cut costs, according to Wood Mackenzie.

Mark Shenk   Oil advanced on signs that producers are investing less in drilling, which could take a bigger bite out of falling US crude production.

Coal sector's recovery won't come quickly

The depressed coal market will take at least another few years to recover, the WCA says.

Amanda Saunders   The depressed coal market will take at least another few years to recover, the WCA says.

Drillers idle rigs for third week amid low oil prices

Rigs targeting oil in the US fell by 8 to 644, Baker Hughes said on its website Friday.

David Wethe   US oil explorers idled rigs for a third straight week amid worries about oversupplies, weakening demand and low crude prices.

Chevron tax filings challenged by US tax authorities

Chevron has been building the massive Gorgon project, Australia's single-biggest resources investment.

Nassim Khadem   Chevron's tax filings are being repeatedly challenged by the United States and other global tax authorities, according to a new union-backed report that calls on world governments to crack down on the energy giant's alleged profit-shifting tactics.

Bets against commodities pay off

"In the long run, there's far more risk to being a leveraged short," said George Zivic, a New York-based portfolio manager at OppenheimerFunds.

Luzi Ann Javier   The biggest collapse in commodity prices in a generation is giving some investors the best returns of any asset class.

OPEC tips oil at $US80 by 2020

The forecast recovery would be slower than several Opec members have said they need.

Grant Smith   The gradual recovery would be slower than several OPEC members have said they need.