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Vitol to spend half of its capex on low-carbon, renewables -CEO
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LONDON (Reuters) – The world’s top independent energy trader Vitol will invest around half of its $2 billion capital expenditure on low-carbon and renewables, its CEO Russel Hardy said on Tuesday.
LONDON (Reuters) – The world’s top independent energy trader Vitol will invest around half of its $2 billion capital expenditure on low-carbon and renewables, its CEO Russel Hardy said on Tuesday.
“We’ve got a fair amount of capex going into the renewables and power business. Half of the company’s capex, which is $2 bln so about $1 bln, is going into renewable business,” Hardy told the Energy Intelligence Forum.
Hardy said he expects benchmark Brent crude oil prices to remain in the range of $80 to $90 a barrel over the next 12 months as volatility in the market remains high and demand continues to grow, particularly from China.
Brent traded at around $90 a barrel on Tuesday. [O/R]
The two other speakers on the panel – the CEO of trading house Gunvor, Torbjörn Törnqvist, and the head of oil trading at Trafigura, Ben Luckock – missed the event after climate protestors blocked the entrance to the conference.
(Reporting by Ron Bousso and Shadia Nasralla, Editing by Louise Heavens)
Capital expenditure refers to funds used by a company to acquire, upgrade, and maintain physical assets such as property, buildings, or equipment. It is often used for long-term investments.
Renewable energy is energy generated from natural resources that are replenished over time, such as solar, wind, and hydroelectric power. It is considered more sustainable than fossil fuels.
Brent crude oil is a major trading classification of crude oil originating from the North Sea. It serves as a global benchmark for oil prices and is used to price two-thirds of the world's crude oil.
Low-carbon investment refers to financial investments in projects or technologies that produce minimal greenhouse gas emissions. This includes renewable energy sources and energy-efficient technologies.
Market volatility refers to the rate at which the price of securities increases or decreases for a given set of returns. High volatility indicates a higher risk, while low volatility suggests a more stable market.
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