Ten years ago, China’s energy consumption was just half that of the U.S. But a lot can change in a decade, and a financial crisis can shift the global balance of energy needs.
Last week, the International Energy Agency reported that China has surpassed the U.S. as the world’s largest energy consumer. But that’s no surprise. According to the report, China’s energy consumption has doubled since 2000. And last year, China consumed 2.25 billion tons of oil equivalent…4% more than the U.S. And Saudi Arabia (the world’s largest oil exporter) now exports more oil to China than to the U.S., according to The Wall Street Journal.
It’s something of an afterthought today, but Uranium was a really trendy investment a couple of years ago as crude oil was getting up near $140/barrel.
That was the summer of 2007, and right around then Mike and I were visiting a very large, very successful, very famous New York-based hedge fund that will remain nameless. Trust me, though. You’ve heard of these guys.
By David Sterman
If the BP (BP) saga is a tale of three acts, Act One will soon be complete. The company’s leaking well is almost capped, new management is in place and a plan is emerging that will help cover recent costs and make sure the balance sheet doesn’t collapse.
Q2 2010 Earnings Call
July 27, 2010 11:00 am ET
Q2 2010 Earnings Call
July 27, 2010 11:30 am ET
Q2 2010 Earnings Call
July 27, 2010 11:00 am ET
Subsea 7 Inc. (SBEAF)
Q2 2010 Earnings Call Transcript
There was no shortage of news from BP on Tuesday:
- The oil major reported its first quarterly loss–$17.15 billion–in eighteen years, and will sell about $30 billion in assets.
- The company also announced that CEO Tony Hayward will step down on Oct. 1 to work at TNK-BP–BP’s joint venture in Russia.
- Bob Dudley, an American BP executive, will succeed Hayward as the new Chief Executive
The more eyebrow-raising news; however, is that BP plans to claim almost $10 billion in U.S. tax credit as a direct result of the Gulf oil spill. Here is how the tax code and math work.
BP (NYSE: BP) lost about $5.41 per diluted ADS in 2010’s second quarter, which ended 30 June. This figure compares to the profit attributable to BP’s shareholders of $1.39 in the second quarter of 2009.
BP’s new head, Robert Dudley, has not gotten off to an auspicious beginning. In fact, he begins his initiative with two large financial blunders, a term we do not take lightly.
The announcement of a possible dividend re-instatement, coincident with a disclosure of up to $30 billion in asset sales, hardly makes economic sense. BP announced the asset sales would bring production down approximately 8%. Why they believed investors would welcome a partial liquidation with part of the proceeds used to pay a dividend makes me wonder who was advising them. BP has, for years, paid a large dividend while buying back large quantities of its stock. It hasn’t worked. Why they felt the need to announce a possible dividend resumption, which could only lead to disappointment if the event does not take place, is odd, especially given its timing.