Latest news with #oilindustry
Daily Mail
2 days ago
- Business
- Daily Mail
BP's £7.4bn boost for UK: Oil giant pays billions in taxes and supports 60,000 jobs
Oil giant BP contributed £7.4billion to the UK economy and supported nearly 60,000 jobs last year, says a report that comes as it fights for independence. The report from Oxford Economics, to be published later today, reveals that the FTSE 100 firm generated the equivalent of £1 of every £380 of value added to the economy in 2024. That amounted to as much as the entire broadcasting industry, and was not far behind the entire British aircraft manufacturing and entertainment sectors, which generated £10.7billion and £9.3billion respectively, it said. The data, part of an annual report tracking BP's impact on the UK economy, comes at a critical time for the British firm as it finds itself subject to growing speculation that it could be forced into an unwanted merger. It shows BP paid £1.2billion in tax last year and collected another £2.2billion in the form of excise duty, employee income tax and National Insurance and VAT. The £3.4billion total is equivalent to 0.4 per cent of HMRC's tax receipts for 2024. The report comes as a weak share price performance and uncertainty about its leadership have fuelled speculation BP could be targeted by a takeover swoop from one of its rivals. The stock is currently 17.5 per cent lower than it was 12 months ago, despite a recent boost this week caused by a spike in global oil prices. BP is seen as a tempting target for one of the US oil giants such as Chevron, or a British bid from Anglo-Dutch rival Shell. Reports have also emerged that Adnoc, an oil firm backed by the government of the United Arab Emirates, is mulling a swoop on BP's natural gas fields. Adnoc's international unit, XRG, through which it is said to be planning any bid, also counts ex-BP boss Bernard Looney among its board members. Aside from its contribution to the UK's economic output and tax income, BP's report also stressed that it employed 15,675 people in Britain and supported another 59,000 jobs through its supply chain. BP's fight for its independence comes as it seeks a chairman with current incumbent Helge Lund due to step down next year. The hunt for a strong replacement is being led by Amanda Blanc, BP's senior non-executive director, who is also the boss of insurer Aviva.
E&E News
2 days ago
- Business
- E&E News
Louisiana will likely limit eminent domain for CO2 pipelines
Louisiana lawmakers last week approved new limits on carbon capture projects seizing private property, defying the oil sector in a long-simmering fight that has divided Republicans historically aligned with the oil and gas industry. Under S.B. 244 — an omnibus of natural resources policies that Republican Gov. Jeff Landry is expected to sign — builders of pipelines to carry carbon dioxide for storage could use eminent domain powers only if their project is registered as a 'common carrier' serving the public. In most circumstances, the restriction would bar the use of eminent domain for carbon pipelines serving only a single company. The bill would remove language in Louisiana law that recognizes greenhouse gas sequestration as a public benefit, another move aimed at limiting developers' power to build across private lands over owners' objections. Bill supporters say it would leave the question of public benefits to judges presiding over expropriation cases. Advertisement The bill also would make it more difficult to seize land for underground carbon storage. Under current state law, a developer must obtain the rights to lease 75 percent of a storage project's acreage before it can force the use of the rest. The bill would raise the threshold to 85 percent.
Argaam
2 days ago
- Business
- Argaam
US crude stocks fall over 10M barrels, says API
The American Petroleum Institute (API) said in a report that US crude oil inventories declined significantly during the week ended June 13. The US oil stockpiles fell by 10.13 million barrels last week, compared to expectations of a drop of just 600,000 barrels.
CBC
3 days ago
- Business
- CBC
In the face of a trade war, Saskatchewan's helium industry looks to lift off
In a farmer's field near Swift Current, Sask., Clayten Wenass is checking the flow of a helium well. The system of shiny metal pipes runs nearly two kilometres under the Prairie soil and sends the gas to a nearby plant. It's one of many popping up more frequently in a landscape already dotted with oil pumpjacks. "There's still this buzz around helium," said Wenass, who works as a field engineer for Calgary-based North American Helium. "We're just scratching the surface on our exploration and production at this point." The company has invested half a billion dollars into wells and processing plants in Saskatchewan's southwest since 2013. It's the largest firm in an emerging field of about a dozen Canadian helium businesses. The demand for the gas goes well beyond balloons at party stores. It's used in MRI machines at hospitals, the manufacturing of semiconductors and fibreoptic cables, and the aerospace industry. WATCH | Sask. on track to become among top global producers of helium: Sask. on track to become among top global producers of helium 11 hours ago Duration 2:00 At North American Helium's Antelope Lake facility, helium from the wells is piped into a larger processing plant surrounded by fields. It's an intensely loud and largely automated operation, with a system of valves and vessels that removes nitrogen, water and other substances. "At some of our sites, less than one per cent of the gas coming out of the ground is helium," Wenass said, while walking by a maze of pipes and machinery. "There's a lot of learning that's been done and there's a lot of learning to be had yet going forward." The field team runs the operation out of a gas lab and control centre, which allows them to take samples of helium at different stages of the purification process. With the help of a computer, they analyze the molecules inside a test tube within minutes, and quickly respond to any changes in temperature or pressure. In the final step of the purification process, pure helium is piped into special transport trucks to be sent south of the border to Colorado and Oklahoma to be liquified. Canada does not have a facility capable of liquifying helium, forcing producers to rely on the United States. In the face of a trade war, there's now a growing push to decouple the supply chain. Chris Bakker, co-chair of the Helium Developers Association of Canada, said the industry views a Canadian liquifier as a second step. "To justify a helium liquefaction facility here, we feel that we need more exploration to build more reserves," he said. "For the Canadian domestic use in hospitals here, we have to ship it across the border, become liquefied and bring it back to Canada. A Canadian liquefaction plant would eliminate that problem." The industry is calling on the federal government to add helium to its list of 15 critical minerals eligible for a federal exploration tax credit, which could make it easier to attract investment. A Department of Finance official told CBC News it is always examining ways to improve the tax system, but did not say if helium is being considered for inclusion on the list. Since 2006, helium has gone through a series of global shortages, leaving labs and hospitals scrambling to get enough and paying top dollar for it. Phil Korbluth, a helium industry consultant based in Bridgewater, N.J., said supply has been abundant since the end of 2023. "It's a more challenging environment because after a period where margins were expanding, margins are now shrinking," he said. Kornbluth said a single Canadian liquifier would be worth the investment and allow for exporting out of Canadian ports directly to foreign markets – instead of solely across the U.S. border. "I think it sends a signal that Canada is in the helium business for the long haul, that they are more than a feed gas supplier to U.S. sources," he said. Bakker, who is also CEO of Calgary-based Avanti Helium Corp., said that despite the more abundant supply, the Canadian helium industry's competitive advantage could come down to global politics. The largest producers currently include Qatar, Russia, Algeria and the U.S., and Asian buyers have expressed interest in sourcing helium from Canada. "These are nations that look at things in 100-year horizons and they understand the importance of having a safe, secure supply, which Canada can provide."
Yahoo
3 days ago
- Business
- Yahoo
MEG Energy's board urges shareholders to reject Strathcona's $4.42 billion offer
(Reuters) -Canadian oil producer MEG Energy on Monday urged its shareholders to reject a nearly C$6 billion ($4.42 billion) hostile takeover offer from Strathcona Resources, calling the bid inadequate and not in their best interest. The board also launched a strategic review to explore alternatives that could lead to a better offer than MEG's current plan to be a standalone company. In May, the Canadian oil and gas producer Strathcona Resources said it planned to launch a hostile takeover bid for MEG Energy, valuing its rival's shares at C$23.27 per share. MEG's last close was C$25.71. Later, MEG advised its shareholders to not take action on the unsolicited takeover bid. Since 2020, Strathcona, owned by Calgary-based private equity firm Waterous Energy Fund (WEF), has become one of the fastest-growing oil companies in North America through a series of acquisitions. If the takeover were to go through, WEF would own 51% stake in the combined company, making it a vehicle for WEF and its investors to sell their material ownership over time, MEG Energy said. "This selling pressure, or even the perceived risk of such selling pressure, will place immediate and significant downward burden on the share price of the combined company for a prolonged period of time," the company said in a statement. Strathcona Resources did not immediately respond to Reuters request for comment. ($1 = 1.3563 Canadian dollars) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
