Author: Graham Foster

Energy companies are urging the White House for a more stable approach as they’ve faced a series of tariff threats and fluctuating policies recently. Mike Wirth, the CEO of Chevron, expressed this concern during CERAWeek, a significant annual gathering for the oil industry, held in Houston. He emphasized that swinging between extreme policies isn’t beneficial and called for “consistent and durable policy.” Chevron has been significantly impacted by the shifting policies of the current administration. For instance, President Trump recently announced plans to revoke a license that has allowed Chevron to export oil from Venezuela since 2022. Wirth mentioned that…

Hello and welcome back to our Energy Source newsletter, coming to you from New York! Today, all eyes are on Washington as former President Donald Trump’s nominees for key energy roles face their confirmation hearings in the US Senate. Notably, Lee Zeldin, a former congressman from New York, is in line to lead the Environmental Protection Agency, while North Dakota Governor Doug Burgum is nominated to head the Department of the Interior. In yesterday’s session, Senate Democrats pressed Chris Wright, nominated as the Secretary of Energy, about climate change. Wright acknowledged that climate change is linked to the burning of…

US investment firm Apollo is poised to acquire OEG Energy Group, a UK-based energy services company, at a valuation exceeding $1 billion. This move comes as investors anticipate a growing need for electricity driven by data centers and artificial intelligence (AI). Apollo will take a majority stake in OEG, which specializes in providing services to the offshore oil, gas, and wind industries. Current stakeholder Oaktree Capital Management will keep a minority share in the business, according to sources close to the deal. Founded in 1973 and headquartered in Aberdeen, OEG has expanded its reach through several acquisitions and now employs…

BYD, the Chinese electric vehicle company supported by Warren Buffett, is making waves in the global auto market once again. Recently, the company’s founder, Wang Chuanfu, introduced a new charging system designed to enhance the driving range of BYD’s electric vehicles significantly. This system, known as the Super e-Platform, allows BYD’s batteries to gain approximately 470 kilometers of range within just five minutes of charging. This advance positions BYD as a leader in the push to create faster-charging technology for electric vehicles, comparable to the quick refueling of traditional petrol or diesel cars. This follows an earlier announcement about the…

In a notable recovery from the initial declines seen during the COVID-19 pandemic, utility companies are reported to have invested an impressive $8.8 billion in energy efficiency initiatives in 2023. This information comes from a recent study released by the American Council for an Energy-Efficient Economy (ACEEE). ACEEE highlights that energy efficiency stands out as the most cost-effective energy source, contributing to increased grid reliability and resilience. After a slowdown in investments from 2020 to 2022, 2023 marks a significant uptick in spending in this sector. The breakdown of the investment reveals that $6.9 billion was allocated to electric efficiency,…

On Monday, Hitachi Energy revealed a major $250 million investment aimed at boosting the production of essential components for electrical transformers. This expansion will significantly enhance output at their transformer facilities located in Virginia, Missouri, and Mississippi. Notably, over 40% of this investment is set to be allocated to operations in the U.S. The plan involves hiring more than 100 new employees in the country to develop domestic manufacturing capabilities, thereby strengthening the local supply chain. In addition to the U.S., Hitachi Energy’s investment will also target production enhancements in Europe, India, and China. This funding builds on a previously…

Britain’s top energy lobbying group, Energy UK, has criticized the energy regulator, Ofgem, for its “unreasonable and unprofessional” practices. This complaint comes at a critical time for the energy sector, as tensions between regulators and companies rise. The group’s letter expresses concern over Ofgem’s communication style, particularly highlighting instances where staff were contacted late on Fridays. Dhara Vyas, the chief executive of Energy UK, indicated that suppliers are increasingly troubled by Ofgem’s methods, which are viewed as stifling innovation and presenting an intimidating atmosphere for employees. Particularly concerning were claims that the regulator enforces unrealistic deadlines and sends formal correspondence…

In the latest developments from the energy sector, investor attention is fixated on BP as it faces pressure from Elliott Management, a well-known activist hedge fund. This scrutiny comes shortly after BP announced a significant drop in its profits, prompting discussions about potential changes in the company’s leadership and operations. Murray Auchincloss, BP’s CEO, has acknowledged the need for a “fundamental reset,” signaling a willingness to explore major changes within the company. David Cumming, who leads UK equities at Newton Investment Management, noted that “radical options will now be on the table” for BP. Elliott Management is recognized for its…

Dive Brief: The U.S. Department of Energy has recently authorized an extension for exporting liquefied natural gas (LNG) for the Golden Pass LNG project. This project is a joint effort between QatarEnergy and ExxonMobil and is currently being built in Sabine Pass, Texas. This marks the third LNG authorization granted by the DOE since President Trump took office, as the Biden administration had previously paused export approvals. President Trump aims for the U.S. to achieve “energy dominance,” and increasing fossil fuel exports is part of his strategy. However, consumer and environmental advocates warn that unlimited gas exports could raise domestic…

Opec+ has announced a plan to increase oil production beginning in April, a decision that caught many by surprise and led to a drop in crude oil prices. Previously, Saudi Arabia and seven other members of the Opec+ group had postponed plans to end long-standing cuts to oil output. Many traders anticipated yet another delay, but on Monday, Opec+ revealed its decision to gradually add 2.2 million barrels per day back to production over the next 18 months. Following this announcement, Brent crude oil prices fell by 1% on Tuesday, hitting a five-month low of $70.60 a barrel. This decline…