Economics ///

Oxy restores employees’ pay, doubles executive salary cap

Occidental Petroleum Corp. has restored employee pay cuts imposed after oil prices tumbled and doubled the salary cap for executives to $500,000 a year.

Exxon delays flagship upstream projects to protect its balance sheet

As recently as March, the Texas giant had pinned its future to huge capital spending on oil and natural gas at a time when peers were exploring ways to decarbonize. Exxon CEO Darren Woods’ plan was to lean on the company’s impeccable balance sheet to drill for gushers and still cover almost $15 billion in annual dividends.

Oil tests $40 as OPEC’s extra barrels loom on the horizon

The Organization of Petroleum Exporting Countries and its allies will pump about 1.5 million barrels a day more this month than in July as it starts to unwind its historic virus-driven output curbs, with Russia already having lifted its output sightly last month.

With oil's supermajors in distress, can smaller independents step up and lead a recovery?

A disconnect between drilling activity and supermajors' earnings may reveal a shift in industry leadership, as evidence that the oil and gas industry is reaching a bottom emerges.

Offshore driller Noble Corp. files for bankruptcy to handle $3.4 billion in debt

The Chapter 11 filing in Texas envisions eliminating all of the company’s borrowings -- more than $3.4 billion -- by swapping debt for equity, the company said in a statement.

Chevron reports worst quarter in 30 years, warns of continued Covid-19 impacts

Chevron’s adjusted loss in the second quarter was $3 billion, more than twice the average analyst estimate in a Bloomberg survey and the deepest since at least 1989.

Exxon posts deepest-ever loss as Covid-19 destroys global oil demand

Exxon’s woes are emblematic of the broader threats menacing the petroleum industry in what is turning out to be the deepest crisis of its 161-year history. International titans that raked in record-breaking profits during the first decade of the century have now been reduced to widespread job cuts, belt tightening and heavy borrowing to cover dividends and other outlays.

Denbury Resources enters Chapter 11 with new DIP loan

Denbury Resources elected in mid-July to skip paying about $3 million of interest on notes maturing in 2023, triggering a 30-day grace period before it entered a formal default. It listed almost $2.3 billion of borrowings in a recent regulatory filing.

Weak oil futures driving pressure on Saudis to cut prices

A big clue into just how far the global market’s dynamics have shifted will become clear as Middle East producers unveil their September pricing. Traders and refiners in Asia and Europe expect Saudi Arabia to cut its official selling prices for the first time since the OPEC+ alliance agreed to reduce production in April.

Massive service company writedowns may mark downturn’s bottom, says Morgan Stanley

The world’s three biggest oilfield service companies wrote down the value of their assets to the tune of about $45 billion during the past year as customers engaged in severe spending cutbacks, according to Morgan Stanley.

Real-time energy use figures show UK economy recovering from Covid-19 impact

Corporate energy consumption was down 40% at the peak of the Covid-19 crisis but the latest figures (to 21st July) are only 8% below the level they were just prior to lockdown. There has been a sharp rise in the past two weeks as restrictions have relaxed and more people have returned to work.

Oxy considering $4.5 billion sale of African, Middle Eastern assets

Occidental Petroleum is in talks about a potential sale of energy assets in Africa and the Middle East to Indonesia’s state-owned PT Pertamina, people with knowledge of the matter said.

Delaware Basin driller Rosehill Resources declares bankruptcy

Rosehill Resources Inc. filed for bankruptcy protection after a plunge in oil prices forced the Permian shale explorer to seek a restructuring of its debt.

As the oil industry struggles, are national leaders waiting until it's too late to intervene?

In today's podcast, World Oil editors discuss service companies' unbiased market projections running counter to OPEC and IEA's models; Canadian drillers want new tax structures to replicate Norway's success; and a Texas regulator changes his tune on tariffs.

World Oil exclusive: Canada’s Noia reacts to latest statement from federal minister on Newfoundland’s offshore

Kurt Abraham, World Oil

Several times, over a period from mid-April to June 4, Canadian federal officials—principally as voiced by Natural Resources Canada Minister Seamus O’Regan—declared that they recognized that the NL offshore oil and gas industry is important, and that action would happen “soon.”

Schlumberger cutting 21,000 jobs on weak Q2 sales, dismal outlook

The second-quarter rout was so bad for Schlumberger that it’s spending $1 billion on job severance in a move that will shrink staffing to an 11-year low. Various restructuring and impairment charges cost it another $2.7 billion, the company said Friday in a statement.

Equinor tallies Q2 profit on trading gains, tax changes

Equinor ASA reported a surprise profit in the second quarter, helped by trading gains in chaotic markets and a tax change designed to help the Norwegian oil industry through the Covid-19 crisis.

Chevron earns California tax credits using solar power to pump oil

Since April, solar panels have been powering oil pumps at Chevron’s Lost Hills 7,981 barrel-a-day oil field, according to the company. The 29-megawatt site, owned and operated by San Jose-based SunPower Corp., is designed to provide the field with 80% of its electricity, equal to taking more than 4,000 cars off the road.

Funding for shale drillers dries up as lenders leave the sector

Banks lending against the reserves of hundreds of independent U.S. drilling companies has pulled back at an unprecedented rate this year as prices slumped. Meanwhile, many in the industry expect further reductions to credit facilities in the fall, with higher costs and more stringent protections for lenders.

Russia considers oil price hedges modeled on Mexico’s system

Russian President Vladimir Putin ordered his government to consider hedging Russia’s massive oil and gas export revenues to protect the country from drops in prices, Interfax reported Wednesday.