Correspondent, Energy and Infrastructure
Braden's Feed
Nov 22, 2011

Jacobs says clients unfazed by Keystone XL delay

By Braden Reddall

(Reuters) – Jacobs Engineering Group Inc, a leading contractor in Canada’s oil sands, sees the Keystone XL delay as a political decision, not technical, and expects the $7 billion pipeline will eventually be approved.

Chief Executive Craig Martin said he believes Jacobs clients in Canada will keep investing despite the setback for their ambitions to send more crude to Texas refineries.

Nov 20, 2011

Analysis: U.S. government a tenuous beachhead for biofuel firms

SAN FRANCISCO (Reuters) – The U.S. military has emerged as a key ally for fledgling producers of non-food-based biofuels, who find themselves threatened by looming budget cuts and growing political hostility to renewable energy funding.

A U.S. Navy plan to cut its fossil fuel use in half by 2020 is only part of the story.

Nov 15, 2011

BP can’t use Transocean insurance for Gulf spill

Nov 15 (Reuters) – A federal judge rejected BP Plc’s bid to use insurance coverage from Transocean Ltd to cover costs stemming from last year’s record oil
spill in the Gulf of Mexico.

Tuesday’s decision by U.S. District Judge Carl Barbier in
New Orleans rejected BP’s bid to win access to $750 million of
insurance coverage under nine policies.

Nov 11, 2011

KBR eyes big LNG projects as military work shrinks

Nov 11 (Reuters) – KBR Inc expects natural gas
projects to drive its backlog significantly higher in the next
three years as the engineering company’s military services work
in Iraq fades away with U.S. troops pulling out.

U.S. military logistics revenue will fall to between $300
million and $500 million next year, or less than a third of the
2011 level, Chief Financial Officer Sue Carter said on Friday.

Nov 3, 2011

Fluor Q3, outlook short of estimates; shares drop

Nov 3 (Reuters) – Fluor Corp , the largest publicly
traded U.S. engineering company, posted third-quarter earnings
short of estimates and gave an outlook for next year below what
analysts expected, sending its shares down 4 percent.

It has been a generally disappointing quarter for U.S.
engineering and construction firms. But Fluor’s backlog of work
did show another quarter of growth, and Chief Executive David
Seaton said he had not seen any real change in clients’
spending plans despite the macroeconomic worries.

Nov 3, 2011

Fleet age a key factor in rising Transocean costs

By Braden Reddall

(Reuters) – The early move by Transocean Ltd (RIG.N: Quote, Profile, Research, Stock Buzz) (RIGN.VX: Quote, Profile, Research, Stock Buzz) into deepwater drilling is now translating into relatively higher costs for the industry leader as its rigs need to meet tougher regulatory standards for equipment.

Ballooning maintenance costs contributed to the sixth straight quarterly disappointment from the offshore drilling contractor, and its shares tumbled nearly 13 percent on Thursday as concerns crept in about its dividend as well.

Nov 2, 2011

Transocean posts loss on rising costs, shares down

Nov 2 (Reuters) – Transocean Ltd , the
largest offshore drilling contractor, reported on Wednesday an
unexpected decline in revenue and a quarterly loss on a surge
in shipyard costs, sending its shares down 6 percent.

Operating and maintenance costs were $1.54 billion in the
quarter, up 3 percent from the previous quarter and 28 percent
from a year before, primarily due to repairs, equipment
certification and shipyard work, the company said.

Nov 1, 2011

Baker Hughes profit misses, margin fear hits stock

Nov 1 (Reuters) – Baker Hughes Inc , the No. 3
oilfield services company, posted a quarterly profit short of
estimates on a sharp reversal of its international margin
growth, sending its stock down 10 percent.

The turnaround in profitability outside North America has
been a much-touted target for the U.S. company, and growing
confidence in its executives’ ability to deliver on it had
attracted many new investors.

Oct 28, 2011

Nabors CEO Isenberg steps down, shares jump 8 pct

SAN FRANCISCO, Oct 28 (Reuters) – Gene Isenberg is stepping
down as chief executive of Nabors Industries Ltd after
a transformative quarter-century at the land-drilling
contractor that earned the 81-year-old a fortune.

The shares of Nabors, now the world’s largest land-rig
company, jumped 8 percent after the announcement on Friday that
Anthony Petrello, president and chief operating officer, would
become CEO with immediate effect. Isenberg will remain as

Oct 28, 2011

Total, Chevron profits lifted by firm oil price

By Braden Reddall

(Reuters) – Chevron Corp and Total posted higher profits on Friday, the latest two major oil companies lifted by pricier oil and rosier refining conditions, even if increasing oil and gas production remains a struggle.

The third-quarter earnings from Total and Chevron capped a week that saw big profit gains at Exxon Mobil Corp, Royal Dutch Shell Plc and BP Plc as benchmark Brent oil prices hover near $110 per barrel, nearly 50 percent higher than the year-earlier quarter.

    • About Braden

      "Spent early career in London covering technology, media and telecoms over five years, after an initial stint in Dublin. Worked as India's chief financial copy editor and deputy bureau chief in Mumbai for 2-1/2 years before moving to San Francisco in 2006, first to edit West Coast stories and then to cover the energy business. A native Californian, Braden received his BA in Economics from the University of Chicago in 1996."
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