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Energy
Shell doubles profit but CEO flags billion-barrel gap
Shell has more than doubled its quarterly earnings, posting US$6.9 billion for Q1 2026, as higher realised prices and strong trading results offset a massive working capital outflow. The $11.2 billion working capital drag - tied directly to unprecedented commodity price volatility flowing from the Hormuz crisis - suppressed cash flow from operations to $6.1 billion for the quarter. Upstream adjusted earnings climbed to $2.4 billion on realised liquids prices of $72 per barrel (bbl), up from $59/bbl in Q4 2025, while the chemicals and products division swung sharply higher on improved refining margins and stronger trading performance. Net debt rose to $52.6 billion from $45.7 billion at year-end 2025, with gearing moving to 23% including leases - a function of the working capital build rather than any deterioration in the underlying business. Shell CEO Wael Sawan used the earnings call to deliver one of the most direct assessments of the global crude supply picture yet heard from a major oil producer. "The hard facts are we have dug ourselves a hole of close to a billion barrels of crude shortage at the moment, either because of locked in barrels or unproduced barrels," Shell CEO Wael Sawan told investors. “And of
Energy
Viva Energy targets June refinery restart
Viva Energy said it expects to restart a critical processing unit at its Geelong Refinery in June, following repairs after a fire in April that disrupted fuel production. The company indicated that repairs to the residue catalytic cracking unit (RCCU), a key component in petrol production, are expected to take around six weeks. The fire occurred on 15 April at the refinery, Australia’s largest, at a time when global fuel markets were already under pressure due to disruptions linked to the Iran conflict. In an ASX statement, the company said: "Subject to further inspection, Viva Energy currently anticipates that repairs to impacted units necessary to restart the RCCU will take approximately six weeks, with the RCCU and associated units returning to operation during June. Production is expected to increase to over 90% of capacity following the restart of the RCCU. "As previously advised on 20 April 2026, the Geelong Refinery expects to produce diesel and jet fuel at approximately 80% of capacity and petrol at approximately 60% while the RCCU is offline. The Company continues to have sufficient fuel stocks to cover this reduced production and expects to maintain normal fuel supply to our customers throughout this period."
Energy
BP profits soar as Iran war drives up oil prices
BP’s profits more than doubled last quarter, driven by soaring oil prices amid the Iran war. Underlying replacement cost profit was US$3.20 billion, well above the $1.38 billion it reported one year ago and surpassing LSEG-compiled estimates of $2.63 billion. “This was another quarter of strong operational and financial delivery, and we made further progress towards our 2027 targets,” said CEO Meg O’Neill. “We had high plant reliability, high refining availability and increased production in the Gulf of America and at bpx Energy, our U.S. onshore business – keeping production levels steady despite the ongoing disruption.” Replacement cost profit for its gas and low carbon energy segment was $1.05 billion before interest and tax, down from $1.36 billion one year ago. Oil production and operations profit dropped from $2.79 billion to $1.66 billion. Customers and products profit surged from $103 million to $2.45 billion, which the company credited to strong midstream profits, higher realised refining margins, and “exceptional” oil trading contributions. Net debt grew to $25.31 billion, from the December quarter’s $22.18 billion. BP is seeking to cut its debt to $14-18 billion by the end of 2027. The company “made
Energy
Shell buys ARC in US$16.4bn bet on LNG growth
Shares in Shell (LON: SHEL) fell 1.7% yesterday after the London-listed energy group agreed to acquire Canadian producer ARC Resources (TSX: ARX) in a US$16.4 billion (A$22.8 billion) transaction, marking its largest takeover in nearly a decade and underscoring a renewed push by major oil companies to expand long-term hydrocarbon output. It’s understood that the deal would add around 370,000 barrels of oil equivalent per day to its production base and increase its reserves by roughly 2 billion barrels, strengthening its position in North America’s liquefied natural gas (LNG) supply chain. The acquisition, expected to close subject to regulatory and shareholder approvals, comes as Shell seeks to counter declining output from ageing fields and lift production growth targets for the decade. Shell will pay ARC shareholders C$8.20 in cash and 0.40247 Shell shares per share, implying an equity value of about $13.6 billion, with a further $2.8 billion in assumed debt and leases. The offer represents a premium of around 20% to ARC’s recent average share price - which yesterday surged more than 20% in Toronto trading. The company said the transaction would be funded through a mix of cash and shares and would not alter its pl
Energy
Viva Energy flags output hit after refinery fire
Viva Energy has warned of reduced short-term output at its Geelong refinery following a fire at the facility, sending its shares sharply lower in afternoon trade. The company said on Monday that diesel and jet fuel production would operate at around 80% of capacity, while petrol output is expected to run at approximately 60% in the near term. Shares in the fuel retailer fell 7.1% to their lowest level since 19 March by 1:55pm AEST (3:55 am GMT), after trading resumed following a halt last Thursday. In an ASX announcement, the company said: "Geelong Refinery expects to be producing diesel and jet fuel at approximately 80% of capacity and petrol at approximately 60%. "The Company has sufficient fuel stocks to cover this reduced production and expects to maintain normal fuel supply to our customers following this incident." The disruption follows a fire on 15 April at the Geelong site, the larger of Australia’s two refineries, at a time when the country is facing heightened concerns over fuel security amid global supply disruptions linked to the Iran conflict. Viva Energy said its residue catalytic cracking unit (RCCU) remains offline as operations stabilise, with plans to restart the unit in the coming weeks. On

Energy
Offshore wind axed as US backs oil expansion
The United States government will pay nearly US$1 billion to TotalEnergies to abandon planned offshore wind projects and redirect investment into oil and gas, in a move that signals a significant shift in federal energy policy under the Trump administration. The agreement, announced at the CERAWeek conference in Houston, will see the Department of the Interior reimburse TotalEnergies around $928 million for leases purchased in 2022 for wind development off New York and North Carolina. In exchange, the company has committed to invest an equivalent amount into fossil fuel projects, including liquefied natural gas infrastructure and upstream oil and gas production. The deal underscores a broader policy pivot away from offshore wind and towards domestic fossil fuel expansion. It also introduces a new mechanism for curbing renewable development: Compensating developers to exit projects before construction begins. According to a U.S. Department of the Interior statement, TotalEnergies has agreed not to pursue any new offshore wind projects in the country. The leases in the New York Bight and Carolina Long Bay areas - acquired for a combined $928 million - will be terminated once the company reallocates the funds into a
Energy
Iran war 'catastrophic' for oil markets: Aramco CEO
The Iran war could have “catastrophic consequences” for global oil markets, Saudi Aramco CEO Amin Nasser has said, after the company’s profits dipped last year amid low oil prices. Iran has largely closed the Strait of Hormuz, where around 20% of global oil flows would usually transit. Saudi Arabia has started cutting its oil output and is working to boost exports through an alternative Red Sea route, Bloomberg reported. “There would be catastrophic consequences for the world’s oil market the longer the disruption goes on, and the more drastic the consequences for the global economy,” said Nasser. “While we have faced disruptions in the past, this one by far is the biggest crisis the region’s oil and gas industry has faced.” “Global spare capacity is mostly concentrated in this region, so it is absolutely critical that shipping resumes in the Strait of Hormuz.” Iranian drones struck Aramco’s Ras Tanura oil refinery last week, causing a fire that temporarily halted its operations. The refinery is Saudi Arabia’s largest, with a capacity of more than 500,000 barrels each day. Brent crude prices spiked to a high of over US$119 per barrel on Monday, but have since declined as U.S. President Donald Trump claimed the war w
Energy
Google to fund 1.9GW to grid for Minnesota data centre
Google is building a data centre in Pine Island, Minnesota. Under a new agreement with Xcel Energy, the company will fund 1,900 megawatts (1.9GW) of new clean energy for the grid - 1.4GW of wind, 200MW of solar, and a 300MW iron-air battery installation from Form Energy rated for up to 100 hours of storage, the largest long-duration battery project by gigawatt-hour capacity announced to date. Google will cover all transmission infrastructure costs, protecting existing Xcel ratepayers from bill increases - a structure it previously used with NV Energy in Nevada via the Clean Transition Tariff. The renewable energy funded under the deal serves the broader grid rather than a ring-fenced corporate supply, and the agreement includes a $50 million contribution to Xcel's Capacity*Connect distributed battery program. Xcel's current carbon-free energy mix sits at 70%. The announcement coincides with some uncomfortable figures from Google's own reporting. The company's 2025 Environmental Report showed Scope 3 emissions - primarily supply chain - rose 22% in 2024, pushing combined emissions up 11% year-on-year to 11.5 million tonnes of CO₂ equivalent. Data centre electricity consumption was up 27% in 2024, driven by AI w
Energy
Buffett company agrees to settle wildfires litigation
Berkshire Hathaway subsidiary PacifiCorp has agreed to pay US$575 million (A$811 million) to settle damage claims brought by the United States Government over wildfires that burned nearly 290,000 acres of federal land. The U.S. Department of Justice said the settlement resolved the claims that PacifiCorp’s electrical lines negligently started all six fires in California and Oregon in 2020 and 2022. It said the money would help repay the United States for the substantial costs of fighting the fires, with the funds to be distributed to the Forest Service and Bureau of Land Management to restore some of the public land that was burned. “This agreement strikes a balance by addressing the government’s significant fire-suppression costs and loss of natural resources without preventing PacifiCorp from offering electricity at fair prices,” Principal Deputy Assistant Attorney General Adam Gustafson of the Department of Justice’s Environment and Natural Resources Division said in a media release. U.S. Attorney Eric Grant of the Eastern District of California said the settlement served the Department’s longstanding policy of holding individuals and corporations responsible for damages caused by wildfires. PacifiCorp denied lia