Latest news with #energycompanies
LBCI
26 minutes ago
- Business
- LBCI
From isolation to investment: Syria's comeback highlights Lebanon's stalled crisis
Report by Joe Farchakh, English adaptation by Yasmine Jaroudi As U.S. sanctions on Syria are lifted, the war-torn country is witnessing a wave of Arab and international investment, including a $7 billion agreement signed with a consortium of leading energy companies. The rapid influx of capital is viewed as a significant endorsement of Syria's newly formed government and its efforts to re-enter the regional economic landscape after more than a decade of isolation. According to LBCI sources, the pace of development projects in Syria is driven by multiple factors. Among them is President Ahmed al-Sharaa's determination, since taking office, to act swiftly to gain both domestic and international trust and to assert his legitimacy as the country's leader despite early skepticism. Government ministers are also reportedly competing internally to launch successful initiatives, while the state has adopted a thoroughly liberal economic policy aimed at reducing the public sector's dominance and encouraging both Syrian and foreign private investment. This surge in foreign investment in Syria comes in stark contrast to Lebanon, which continues to suffer from a lack of investor confidence. Is Lebanon's problem purely political, or does it stem from the absence of a coherent national economic strategy? The current situation draws comparisons to 1992 when the late Prime Minister Rafic Hariri took office during a similarly dire economic period. Back then, Lebanon was dealing with a deep recession, high inflation, soaring unemployment, and a collapsing currency—conditions that echo today's crisis. Hariri responded with a clear vision for economic recovery, launching the ambitious "HORIZON 2000" reconstruction plan. His initiative focused on revitalizing Beirut as the heart of the country, rebuilding its downtown district, and rehabilitating essential infrastructure, including the Beirut port and international airport. The renewed trust in Lebanon that followed helped Hariri attract significant investment from Lebanese, Arab, and international sources in tourism, real estate, finance, and industry. Beirut reemerged as a hub for global conferences and business forums, drawing investors and political leaders alike. Throughout his tenure, Hariri maintained and strengthened Lebanon's Arab and international ties, leveraging those relationships to rebuild the nation's economy. Today, as Lebanon faces one of its worst crises, can the country find its way back by reviving the Hariri model of leadership and economic diplomacy?
CBC
4 days ago
- Business
- CBC
Group trying to get energy companies to pay more to clean up orphaned wells
A group of landowners is part of a coalition taking on the Alberta Energy Regulator. They've filed a challenge attempting to get the AER to charge energy companies a larger upfront levy to pay for the cleanup of orphaned wells.
Arabian Business
4 days ago
- Business
- Arabian Business
Abdul Latif Jameel Co
The site will be located in Essex, and will have a total power of 99 megawatts
Yahoo
5 days ago
- Business
- Yahoo
The Permian Is Not Done Yet
Back in 2017, oil production in the Permian stood at 2.2 million barrels daily. Today, the Permian is producing over 6 million barrels daily, accounting for nearly half of the U.S. total. Predictions of a looming peak have lately multiplied, but according to Wood Mackenzie, the Permian is not done yet—not if prices improve. To be sure, the boom days seem to be over. Production growth in the most prolific shale play in the United States has been slowing already as production costs climb higher while oil prices slide lower. Most forecasts for the region agree that growth in production is about to slow down further, and Wood Mac is no exception. The consultancy expects output there to add 200,000 barrels daily this year, for a total of 6.6 million barrels daily. Going forward, growth is about to continue slowing, the analysts predicted, until production peaks at 7.7 million barrels daily in 2035. Yet, while many assume that a peak is inevitably followed by a decline, this will not be the case in the Permian. Output of crude oil in the play will plateau at 7.7 million bpd, and this will more than offset production declines in other producing regions in the country—meaning oil demand will be healthy enough to support such a with big footprints in the Permian, therefore, can enjoy said footprint even with slower growth. Yet companies tend to seek new growth opportunities all the time to sustain their business, and the prospect of peak growth in the Permian is a real one. The gas-to-oil ratio of output there has been on the rise, as has the water-to-oil ratio in the play. Both trends suggest that some formations in the basin are reaching geological constraints, and more drilling isn't necessarily proportionate to the oil volumes produced. Indeed, Big Oil executives have predicted that peak oil supply will arrive in the U.S. before 2035. This does not, of course, mean they are right and Wood Mac analysts are wrong. It simply means that nothing is certain until it happens. And it seems that the slowdown in the Permian is already happening. It also seems that the challenges are multiplying: the latest is concern that toxic wastewater in underground reservoirs could leak and that it could affect seismic activity in the area. In response to these risks, the Railroad Commission of Texas has started imposing restrictions on the amount of wastewater disposed of underground until pressure levels subside. This will naturally affect drilling, contributing to the overall production growth slowdown. This raises the question of what's next for the big operators in the top shale play in North America. As Wood Mac's analysts point out in their report, 'The prospect of substantial production growth and low-cost barrels has been a magnet for the US industry for more than a decade. Organic investment complemented by M&A and consolidation have made the Permian a huge store of future value.' Indeed, the consultancy estimates that 18 companies in the Permian have combined holdings worth over half a trillion dollars in net present value. Of these 18, a handful are the really big players, including Exxon, Chevron, Occidental Petroleum, Diamondback Energy, and EOG. As the biggest players in the Permian, these are the companies most exposed to the ups that the future has in store for the Permian—but not the downs. Per Wood Mac, 'The 'haves' continue to drive down costs and improve performance trends through scale, repetition and value chain integration.' The smaller players, or the 'have-nots', as Wood Mac calls them, are not doing so well. In fact, many are already having trouble with well performance and rising production prices. The consultancy's observations confirm what has already emerged as a clear trend in the Permian: consolidation is shrinking the number of industry players active in the area and now natural processes such as well depletion will reinforce the shrinking. In other words, production in the Permian will be under the control of a lot fewer companies in the future than now. That handful will probably be the ones bringing the Permian's total output to its predicted peak of 7.7 million barrels daily—before they start diversifying away from it. Diversification is the path that Wood Mac—as well as most other forecasters—see for the energy industry going forward. As it becomes indisputably clear that oil demand is not going anywhere, those in the business of satisfying that demand are going to find other sources of oil as the current ones get exhausted. For those partial to shale, it's the Vaca Muerta in Argentina or the Montney shale in Canada. For conventional development, options abound, from the Middle East to Africa and new frontier regions. According to Wood Mac, few of these can compare with the Permian in terms of value proposition. According to real life, the world needs oil and will get it from wherever it can—and Big Oil is well aware of this. By Irina Slav for More Top Reads From this article on Sign in to access your portfolio
Daily Mail
24-05-2025
- Business
- Daily Mail
Slash your household bills by investing in the very firms that keep on hiking prices
The cost of living has surged again, driven up by a sharp rise in household bills last month. So called 'Awful April' brought a barrage of bill hikes on everything from energy and water to broadband bills and car tax. Council tax bills increased £109 on average, energy bills by £111, water bills by £123, and £50 was added to the typical annual phone and broadband bill. That drove inflation up to 3.5 per cent, official figures confirmed last week. But for investors willing to do their homework, there is an innovative way to get help with the rising cost of all the essentials. Investing in the companies that are raising your bills could be an effective way to earn an income large enough to cover what they charge you. Dan Coatsworth, from the investment platform AJ Bell, says: 'Most of the companies on the stock market charging us these bills pay generous dividends – you could buy their shares and use the income payments to settle up. In doing so, you are effectively handing them back their own cash.' Of course, it may not make sense to buy shares in companies just because you are their customer. But there can be opportunities among firms that provide these basic household services, such as energy and insurance. Here, experts suggest their top picks in each category – and how much you would need to invest to cover your bills, although of course you could buy less to cover part of them. Energy bills The energy price cap, which dictates the maximum households can be charged for each unit of gas and electricity, increased by 6.4 per cent in April, bringing the typical annual bill to £1,849, although it will fall again by £129 a year in July. Centrica, which owns British Gas, yields 3 per cent, and SSE, which supplies about five million British households, 3.6 per cent. You would need to invest about £50,000 in the latter to generate a large enough dividend to pay your annual energy bill. Charles Luke, manager of the Murray Income investment trust, points to National Grid as one reliable dividend payer in the energy space. 'It is a very solid business and benefits from the fact that we need to invest in our infrastructure as part of the energy transition,' he says. Shares currently yield 4.5 per cent. Mr Coatsworth suggests looking beyond the major providers to Telecom Plus, which owns the Utility Warehouse brand and yields a healthy 4.8 per cent. An investment of about £38,500 would generate enough income to cover the bills. Insurance A typical car insurance policy now costs £589, and for home buildings and contents insurance you can expect to pay £393, according to the Association of British Insurers. That's a combined annual insurance bill of £982 on average. At 2.4 per cent, Direct Line's dividend yield is nothing to write home about. Admiral, which insures about 5.7 million cars in the UK, looks more interesting, with a yield of about 4.4 per cent. Aviva yields a chunky 6.5 per cent. An investment of £9,100 would produce a dividend large enough to cover the average car insurance premium. Meanwhile, a £6,250 investment in Mony Group, which owns the comparison site MoneySuperMarket and yields 6.3 per cent, could generate enough to cover the home insurance. Phone and broadband Mid-contract price hikes meant some customers saw their phone and broadband bills increase by as much as 7.5 per cent in April. Vodafone shares currently yield a hefty 8 per cent, but such a high yield raises questions about sustainability. The yield is a company's dividend expressed as a percentage of its share price, so when the share price falls, the yield rises. This might look attractive but isn't necessarily. Vodafone shares are down 9.6 per cent over the past year, and down 42 per cent over five years. Remember in general that high yields are not the only measure to look out for – you'll need to do your research to make sure you understand the business. A company may look like it's offering a great deal, but have a systemic problem that means future earnings could be lower than expected. Simon Gergel, manager of the Merchants investment trust, says: 'Focusing specifically on yield can be quite dangerous, and some of the highest yielding stocks can be value traps.' One helpful indicator to give you an idea of whether the annual payout could be cut in future is the dividend cover ratio. This indicates how many times over a company can afford to pay its dividend. Anything below one suggests a firm is borrowing to fund its payout, which can be a sign of trouble. Ben Kumar, from the wealth manager 7IM, adds: 'Remember also that dividends are not guaranteed. Companies can, and do, cut them. Shares in the telecoms giant BT yield 5 per cent. An £11,000 investment could bring in enough to cover the typical £550 annual cost of phone and broadband. Water Water bills leapt by 26 per cent in April, bringing the average annual cost to £603. Getting a water meter can help reduce that, particularly if there are fewer people in your property than it has bedrooms. Alternatively, you could make the water providers pay for you. Severn Trent, which serves about 4.6 million UK households, yields an attractive 4.5 per cent. Dan Coatsworth prefers United Utilities, which yields a fraction more at 4.6 per cent. A £13,100 investment could produce enough income to do the job. Mr Kumar says: 'While dividends tend to keep pace with broad inflation over time, that is different to the specific inflation on your bills. 'Overall inflation is 3.5 per cent right now, but water bills just went up 26 per cent – so you might have to invest considerably more in the future to ensure your dividend income keeps pace with increases.' Spread your risk Cherry-picking individual stocks can be risky, so you might feel more comfortable letting a professional do the work. Income funds can provide a reliable dividend while spreading their risk across dozens of different stocks. Murray Income Trust is a so-called Dividend Hero – a fund that has increased its dividend for at least 20 consecutive years. Its top holdings include National Grid, HSBC, and BP, which is good news for those worried about petrol prices. It yields 4.55 per cent. Merchants Trust, which has increased its dividend for 43 consecutive years, yields 5.4 per cent and its top holdings include Lloyds Banking Group and SSE. How it works When you buy shares in a company you get a vote at the firm's annual general meeting and you share in its profits. Your money could grow if the company share price rises – or your investment could fall if the share price goes down. But on top of this when a business is profitable it rewards shareholders with a payout called a dividend. The amount is expressed as a percentage. So if you invest £1,000 in a company and it pays a 5 per cent dividend, you'll get £50. When you get a dividend you can choose either to reinvest it or take the money as cash.
