Stephen Lacey, Catherine Hamilton, Volvo discussed on The Energy Gang
From stephen lacey. Welcome as crude oil. Prices shoot backup. Oil majors are seeing billions in quarterly profits under pressure from activists investors. And now the courts were they spend it on the energy transition or just more share buybacks and oil rigs plus a new report card. On america's infrastructure is a slight improvement but the grade is still pretty awful and carbon. Offsets are going up in flames literally in culpeper. Virginia is catherine hamilton. How are you gathering. I'm doing great We decided ourselves to go off of oil and we least an electric vehicle out here in rural virginia and the other weekend. We went to visit james. Madison's home of montpellier and we were a little bit nervous because we had to drive a ways in our easy and we pulled up. Eight charging stations four tesla's and four for the other slobs and we fall into the other subcategory. So we're pretty excited. What is being in other schlub means nerve model. Well we actually got the volvo Lease until we can just test it. See what it's like. It's the Xp forty. I think it's called like the little suv and And then in three years when a lot more models already. We can make a more informed decision. We may end up an f. One fifty lightning for all. I know in new york. It is our guest co host. this week ed crooks. He's vice chair of the americas wood. Mackenzie and easy former energy editor at the financial times. You may have heard his voice a number of times on our sister. Podcast the interchange ed. How are you welcome. Hello hi great to be here Yeah like a catherine. I've also just been using plug in car. We've just got back from england. Just back from three expectation their first time in more than eighteen months seeing family and friends. So that's been fantastic to do. We actually rented a plug in hybrid. Skoda where there you go. That's the check Comedy it's the kind of the budget brand of the volkswagen group and that she really liked it. We thought it's fantastic and it clearly. It's a bit of a different experience from a full battery v but we were getting We plug it in overnight and we would get ten or twenty miles of all electric driving out of it which she was really good. So yeah that was. I was impressed by that. Experience would be fascinated here by the over. For a long time england. We used to drive a diesel volvo. Which was a lovely car. We're very fond of it and now thinking again about Having a maybe a an electric volvo in the future so when i hear from you katherine how you get with that and see if you like it. Yeah so far so good. Yeah absolutely. I saw that brent. Crude prices are dropping today. So maybe it was your driving habits with. Ev's hybrids that have caused the decrease in global oil prices. Yeah i. I've been doing my bit for jet alone. Unfortunately well since the start of the pandemic we've heard from ed a number of times who come on to explain the while swings in global oil prices and how it feeds into the pressure. That oil majors are facing. We started this pandemic at negative oil prices because there was no place to store it and today benchmark prices are hovering above seventy dollars and top oil companies reporting billions of dollars in profits as a result. But there's also more scrutiny than ever on how going to spend that money activist. Shareholders are starting to get climate champions on major board seats most notably the push to get climate tech investor and former wind executive and Doe official andy. Cars ner on exxonmobil's board. A dutch court is now forcing shell to reduce emissions from its products by forty five percent after a successful lawsuit from environmental groups and oil execs. Now have their lawyers on speed. Dial and big asset managers like blackrock which lend to many of the world's energy giants are scrutinizing climate plans. So what is all this amount to as oil markets rebound. Ed just set the scene for us compared today's oil market with the one from a year ago over a year ago when the pandemic shut everything down yet it's been absolutely transformed in that Fifty since the worst of the pandemic impact Back in the spring of twenty twenty as oil prices being on a very steady upward trajectory really since october november of last year and Since june of this year they beaten in the kind of seventy dollars range. Sometimes up above seventy five dollars a barrel. Even for benchmark brent crude. But it's really a very comfortable level for the oil industry and as we've seen these very good earnings from oil companies Just a couple of weeks. Second quarter has generally been an excellent quarter in terms of oil company profits. Couple of crucial things are getting on that driving. That firstly cost. There is just the Revival in the world economy the world kind of getting back to normal as evidenced by the fact of people like me getting on vacation Oil demand has been picking up gasoline. Diesel jet fuel and everything about that d'amato's increasing and also we've still got this impact from the opec plus countries from the member. Saudi arabia kuwait the zone And also their allies outside opec countries like russia kazakhstan mexico that have agreed to curb their output so they took a lot of oil of the market last year and they still haven't pulled that back on the market and the result is being actually a fairly tight oil market worldwide. and that's Kept prices up there. Is this concern about whether a concern in the business about with a prices are gonna stay at these kind of levels because people say will be might slow down again. This concern Just recently the policy days about the impact of the delta variant in asia and particularly..