It’s been roughly a year since GE completed its buyout of Baker Hughes, and this week GE said it plans to divest its 62.5% interest in “an orderly manner over the next two to three years.” GE said it plans to concentrate on its power, aviation and renewable energy business. That has many asking where that leaves Baker Hughes? Analysts with Cowen and Co.’s equity research group wrote in a note “assuming GE’s majority stake is not transferred to a single entity, removal of a controlling shareholder should benefit Baker Hughes’ valuation.”
In Washington, global energy giants, senior U.S. officials, and energy ministers from around the globe gathered this week at the World Gas Conference. U.S. Energy Secretary Rick Perry used his time on the podium to tout innovation and soaring U.S. oil and gas output. Hart Energy Senior Editor Joe Markman was at the conference and reports that Secretary Perry also mentioned a need for an energy approach that encompasses fossil fuels and renewable energy. Meanwhile, Russia’s Energy Minister Alexander Novak said he met with Perry and U.S. Treasury secretary Steve Mnuchin while in Washington to discuss U.S. sanctions on Russia and the Nord Stream 2 gas pipeline to Germany. The U.S. has stated it opposes the pipeline mainly because it might give Russia too much power in the region.
Also, during the conference, Chevron CEO Mike Wirth and Exxon Mobil CEO Darren Woods both expressed concern that trade conflicts could risk relations with some of the oil majors’ largest customers around the world, mainly China and the European Union.
Finally, following last week’s OPEC meetings, Saudi Arabia is reportedly planning to pump up to 11 million barrels of oil per day in July, that’s the highest in its history.
Recommended Reading
Exxon Versus Chevron: The Fight for Hess’ 30% Guyana Interest
2024-03-04 - Chevron's plan to buy Hess Corp. and assume a 30% foothold in Guyana has been complicated by Exxon Mobil and CNOOC's claims that they have the right of first refusal for the interest.
NAPE: Chevron’s Chris Powers Talks Traditional Oil, Gas Role in CCUS
2024-02-12 - Policy, innovation and partnership are among the areas needed to help grow the emerging CCUS sector, a Chevron executive said.
US Raises Crude Production Growth Forecast for 2024
2024-03-12 - U.S. crude oil production will rise by 260,000 bbl/d to 13.19 MMbbl/d this year, the EIA said in its Short-Term Energy Outlook.
Deepwater Roundup 2024: Offshore Australasia, Surrounding Areas
2024-04-09 - Projects in Australia and Asia are progressing in part two of Hart Energy's 2024 Deepwater Roundup. Deepwater projects in Vietnam and Australia look to yield high reserves, while a project offshore Malaysia looks to will be developed by an solar panel powered FPSO.
Iraq to Seek Bids for Oil, Gas Contracts April 27
2024-04-18 - Iraq will auction 30 new oil and gas projects in two licensing rounds distributed across the country.