Month: November 2022

Oil Stocks Are Showing A Peculiar Disconnect From Crude Prices

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Oil stocks have continued to show a peculiar disconnect from the commodity they track, with oil equities staging a powerful rally even as oil prices have fallen sharply since the last OPEC meeting. Over the past two months, the energy sector’s leading benchmark, the Energy Select Sector SPDR Fund (NYSEARCA: XLE), has climbed 34% while average crude spot prices have declined 18%. XLE now boasts a 61.2% return in the year-to-date, the best of any U.S. market sector.  According to Bespoke Investment Group via the Wall Street Journal, the current split marks the first time…

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Green Hydrogen Is Not A Silver Bullet Solution

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Contrary to much decarbonization hype, jumping on the green hydrogen bandwagon is not a silver bullet solution to climate change. In fact, it’s a double-edged sword. A versatile energy carrier, hydrogen is projected to play a major part in decarbonization of global manufacturing and industrial supply chains, but its production, transport, and conversion require major inversions of energy and investment that could slow down the rest of the green energy transition if mismanaged. Hydrogen is touted as a key element in any decarbonization trajectory because unlike solar and wind energy,…

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Gas tariff – the ticking bomb

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From being applauded for taking the “difficult” decisions to taking none at all – life has come full circlet for the government. The inability to rationalize gas prices was (rightly) dubbed as one of the key reasons why the energy sector is in such a mess. The blame was put on the previous government, which failed to act upon the regulator’s approved determinations and kept the consumer end prices unchanged for over two years. All of this was supposed to change after April 2022, as electricity tariffs were significantly revised,…

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Agreements with IPPs: DFIs underscore need for amendments

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feeders

Over half a dozen Development Finance Institutions (DFIs) have sought amendments in pacts with Independent Power Producers (IPPs) to replace USD LIBOR with Secured Overnight Financing Rate (SOFR), to be applicable from June 30, 2023, sources close to Chairman NEPRA told Business Recorder. Development Finance Institutions (DFIs ) comprise of Asian Development Bank (ADB), British International Investment plc (BII), Deutsche Investitions – Und Entwicklungsgesellschaft mbH (DEG), Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (FMO), International Finance Corporation (IFC), and Islamic Development Bank (IsDB). The Export-Import Bank of Korea (KEXIM), and Societe De Promotion…

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Pak team leaves for Moscow today to discuss Russian crude oil import

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 Pakistan’s official delegation will leave for Moscow on Monday (today) on a three-day visit for talks with the Russian authorities to explore possibilities of import of crude oil at a discounted price, mode of payment, and shipment cost, etc. “Both sides would also deliberate on futuristic cooperative areas including two gas pipelines that include the much-touted Pakistan Stream Gas Pipeline (PSGP), to be laid from Karachi to Lahore and a trans-nations gasline from Russia via Kazakhstan to Pakistan,” one of the top officials of the Energy Ministry told The News.…

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