Day: June 20, 2022

Are Oilfield Service Companies A Buy?

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oil

Last week, we presented a bear case for the energy sector based on the premise that oil and gas stocks could be in danger of overheating. Energy is the 4th most expensive sector going by Shiller’s P/E, and also looks overvalued compared to gold prices. It’s a sentiment that has also been gaining momentum across Wall Street.  “Energy traders are confident this oil market will remain tight given the short-term supply outlooks from both OPEC+ and the US, but it has been a steady climb higher. Exhaustion could be settling in,” Ed…

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Germany, Austria revert to coal amid gas supply cuts by Russia

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Germany and Austria announced emergency measures on Sunday to ensure their energy needs after a drop in Russian gas supplies, including reverting to coal in what Berlin called a “bitter but indispensable” step. “To reduce gas consumption, less gas must be used to generate electricity. Coal-fired power plants will have to be used more instead,” the German economy ministry said in a statement. The move comes after Moscow turned up the pressure on Western allies by sharply reducing flows of natural gas in its pipelines to western Europe, driving up…

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Qatar Energy partners with Eni for North Field East LNG project

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Qatar Energy signed a partnership deal with Eni on Sunday for the North Field East expansion of the world’s largest liquefied natural gas (LNG) project, having announced a deal with TotalEnergies earlier this month. Qatar Energy CEO Saad al-Kaabi said the joint venture with Eni would own 12.5% of the North Field East expansion. Eni would own 25% of the joint venture, Kaabi told a news conference, giving the Italian producer a 3.12% stake in the expansion. Qatar is partnering with international energy companies in the first and largest phase…

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Power consumers may be in for another shock

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power

There is another electric shock in the offing for the consumers as power firms have sought an increase in tariff by Rs7.96 per unit on account of fuel price adjustment for month of May 2022. The Central Power Purchasing Agency (CPPA) has filed an application on behalf of power companies, pleading the power sector regulator to allow increase in electricity rates due to use of expensive fuel in power generation. The total cost of power generation from various sources stood at Rs13.8969 per unit during the month of May 2022…

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Govt mulls plan to use Thar coal for generation of 3,960 megawatts

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The government has decided to convert 3,960 MW of electricity generated from imported coal onto local coal of Thar to stop consuming the costly foreign exchange reserves for the import of coal, which is no longer available at low prices. The coal price has shot up to $400 per metric ton, a senior official at the Energy Ministry told The News. “The average per-unit cost of coal-based electricity used to be at Rs4-5 per unit, which has swelled to over Rs18 per unit, mainly because of an increase in imported…

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