FT News Briefing

Can big oil escape the ‘valley of death’?

Dec 11, 2024

Qatar's wealth fund is eyeing a massive $500 billion investment, focusing on technology and liquefied natural gas. Meanwhile, oil giants like BP and Shell are scaling back their clean energy ambitions to navigate financial pitfalls. The rise of private credit is capturing attention, especially as pension funds weigh its benefits against potential risks. CalPERS is also raising its stake in private credit, sparking debates about the implications for retiree payouts and the need for transparency in this booming financial arena.

10:40

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Quick takeaways

Qatar's $500 billion wealth fund is strategically investing in technology and healthcare, leveraging increased LNG revenues for future growth.

BP and Shell are retracting from renewable energy investments, highlighting challenges in transitioning to greener solutions amid rising costs.

Deep dives

Qatar's Major Investment Plans

Qatar's wealth fund is set to undertake significant international investments, with plans to deploy $500 billion into global markets. The Qatar Investment Authority is capitalizing on increased revenues from liquefied natural gas production, which are expected to double the fund's size. Targeted investments will focus on key sectors such as technology, artificial intelligence, and healthcare, indicating a strategic shift towards future-oriented industries. Previous high-profile investments include acquisitions of the luxury department store Harrods and London's Heathrow Airport, showcasing Qatar's aggressive investment strategy on the world stage.

Intro

4min

Navigating the Valley of Death: Oil Companies and Market Challenges

3min

Rising Tide of Private Credit and Associated Risks

2min

CalPERS Increases Exposure to Private Credit Amid Concerns

2min

Qatar’s sovereign wealth fund prepares for a petrodollar windfall, while oil majors scale back their $18bn power generation push. Israeli Prime Minister Benjamin Netanyahu begins testifying in a corruption trial, and public pension schemes and sovereign wealth funds plan to pour more money into private markets over the coming year.

Mentioned in this podcast:

Qatar’s $500bn wealth fund targets bigger deals as LNG windfall looms

BP and Shell rein in electricity ambitions to escape ‘valley of death’

Benjamin Netanyahu arrives in court to testify in corruption trial

Public pension plans and wealth funds to invest more in private markets

The FT News Briefing is produced by Niamh Rowe, Fiona Symon, Sonja Hutson, Kasia Broussalian and Marc Filippino. Additional help from Breen Turner, Sam Giovinco, Peter Barber, Michael Lello, David da Silva and Gavin Kallmann. Our engineer is Joseph Salcedo. Topher Forhecz is the FT’s executive producer. The FT’s global head of audio is Cheryl Brumley. The show’s theme song is by Metaphor Music.

Read a transcript of this episode on FT.com

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