Monday, October 14, 2019

Barclays News

BP Names Bernard Looney as Next CEO

Bernard Looney (Photo; BP)

Bernard Looney, who will replace Bob Dudley as chief executive of BP when he retires next year, faces the tricky task of navigating the energy major through a rising tide of environmentalism and the move to a low-carbon economy.BP on Friday appointed Looney, head of upstream, to succeed Dudley, who led the oil and gas company back to growth from near collapse in 2010.As CEO, Looney will be charged with continuing to adapt BP to the transition to lower-carbon energy as pressure from investors grows to meet targets under the 2015 Paris Climate Agreement.Looney…

Schlumberger CEO Outlines Digital Strategy

Schlumberger CEO Olivier Le Peuch (Photo: Schlumberger)

Schlumberger NV's newly-appointed Chief Executive Officer Olivier Le Peuch on Wednesday outlined his vision for the world's largest oilfield services company, vowing to exit unprofitable businesses, restructure some units and focus on returns.In his first public remarks since taking office in July, the 32-year company veteran also warned the company would record a sizeable, non-cash charge to write down assets in the current quarter. He did not specify the size of the writedown.Le Peuch, who replaced former CEO Paal Kibsgaard nearly two months ago…

GA LNG Terminal Evacuated Ahead of Dorian

Kinder Morgan's Elba Island LNG Export Terminal (CREDIT: Kinder Morgan)

Kinder Morgan Inc has halted the startup process of its liquefaction facility at Elba Island near Savannah, Georgia, following mandatory evacuation orders as Hurricane Dorian approached, Chief Executive Officer Steven Kean said on Wednesday.The Houston pipeline operator began construction on the $2 billion facility in late 2016, underpinned by a 20-year contract with Royal Dutch Shell Plc for exports of U.S. liquefied natural gas (LNG).The company will resume startup operations at the LNG plant when workers can safely return to the island, Kean told investors at a Barclays energy conference in New York."We're making very good progress on Elba…

Exxon, Chevron See Consolidation in Top U.S. Shale Field

The two largest U.S. oil and gas companies on Tuesday left the door open for more acquisitions in the country's top shale field.Exxon Mobil Corp expects to see industry consolidation to happen "over some period of time," in the Permian Basin in west Texas and New Mexico, Chief Executive Darren Woods told investors at a Barclays energy conference in New York.If Exxon sees an opportunity it has the balance sheet to "be in a position to transact on that," Woods said, but he added that "time's on our side."Chevron Corp also will take an "opportunistic" approach in the basin…

Tullow's Kenya, Uganda Projects Timelines Slip

(Photo: Tullow Oil)

Britain's Tullow Oil has delayed the final investment decision (FID) for its Kenya project to 2020 and has not yet sealed a tax deal in Uganda that is needed for the progress of its plans there with Total , it said on Wednesday.The company had aimed to give the final go-ahead by the end of 2019 for its onshore Kenyan oilfields, which are expected to produce up to 100,000 barrels per day.The Kenya delay was due to authorities asking for additional community consultations which Tullow expects to be submitted in the second half of the year - later than anticipated…

Oil Prices Jump 2% After Tanker Attacks

(Photo: Islamic Republic News Agency)

Oil prices settled 2.2% higher on Thursday after attacks on two oil tankers in the Gulf of Oman stoked concerns of reduced crude trade flows through one of the world's key shipping routes.The attacks near Iran and the Strait of Hormuz reignited worries about an impact to flows from the Middle East if insurance companies begin to reduce coverage for voyages through the region and additional shipping companies suspend new bookings, analysts said.Such a disruption "could further exacerbate the supply problem," said Andy Lipow, an analyst at Lipow Oil Associates in Houston.Oil tanker owners DHT Holdings and Heidmar suspended new bookings to the Mid-East Gulf…

Tullow Oil Cuts Output Guidance

(Photo: Tullow Oil)

Tullow Oil downgraded its 2019 output guidance to 90,000-98,000 barrels of oil per day (bpd) due to problems at its Ghana fields and sees final go-aheads for its Uganda in the second half while its Kenya project timeline was "ambitious"."(Ghana) performance was below expectations due to gas compression constraints on Jubilee during February and a delay in completing the Enyenra-10 production well at the TEN field.

Oil Rises on Market Rebalance, Trade Deal Hopes

file CREDIT: AdobeStock / © Redindie

Trump open to extending March 1 deadline for China trade talks.Crude prices rose nearly 2 percent on Wednesday, with Brent hitting its highest this year, on hopes that oil markets will balance later this year, helped by output cuts from top producers as well as U.S. sanctions on OPEC members Iran and Venezuela.Prices were also supported by strong equity markets after signs of progress in trade talks between the United States and China.U.S. President Donald Trump said negotiations with China were going well and suggested he was open to extending the deadline to complete them beyond March 1…

Oil Dips After Record U.S. Shale Forecast

file Image: AdobeStock / © LucaDP

U.S. sanctions on Iran, Venezuela tighten markets, but soaring U.S. shale output offsets some of the disruption.Oil fell on Wednesday after the U.S. government said shale output would rise to a record next month, denting a rally that sent prices to their highest this year.Brent futures eased by 53 cents to trade at $65.92 a barrel by 1312 GMT, still within sight of Monday's high for the year of $66.83. U.S. futures were at $55.77 a barrel, down 31 cents, having touched a 2019 peak of $56.39 earlier."Brent is trading in a narrow corridor at around $66.5 per barrel…

Tullow Oil Returns to Net Profit

(Photo: Tullow Oil)

Africa-focused Tullow Oil reported its first annual net profit in five years on Wednesday and said it would resume dividends with a 4.8 cent per share payout as it sets its sights on East African projects and drilling in Guyana.As flagged in November, Tullow will pay out at least $100 million to shareholders from this year, while aiming to shrink its $3.1 billion debt and increase spending to $570 million.The largest chunk of that money will help increase output in Ghana, which sets Tullow on course to raise output to 102,000 barrels of oil equivalent per day (boed) this year from 90…

Barclays Rejects Arctic Drilling

Image: NERC

U.K.-based international bank Barclays  announced a new energy policy that significantly restricts the bank’s financing for the exploration or extraction of oil and gas in the Arctic.The policy  rules out funding for companies seeking to drill in the Arctic Refuge as well as other climate change threats.According to the British multinational investment bank and financial services company headquartered in London, arctic oil and gas refers to new exploration and extraction of oil and gas in the area within the Arctic Circle which is subject to sea ice…

Oil Slips 2 Percent

© Pavel Ignatov / Adobe Stock

Oil prices dropped about 2 percent on Friday, weighed down by a falling U.S. stock market, while weak economic data from China pointed to lower fuel demand in the world's biggest oil importer.Brent crude futures for February delivery fell $1.16 to $60.29 a barrel, a 1.9 percent loss, by 1:15 p.m. ET (1815 GMT). U.S. West Texas Intermediate (WTI) crude futures fell $1.24 to $51.34 a barrel, a 2.4 percent loss.Global benchmark Brent was set for a weekly loss of about 2.2 percent, while WTI was on track to decline 2.4 percent."The oil complex remains vulnerable to heavy selling into the equities especially when combined with a strengthening in the U.S.

Oil Slips on Falling U.S. Equity Market, Weak China Economic Data

© photollurg / Adobe Stock

Oil prices dropped more than one percent on Friday, weighed down by a falling U.S. stock market, while weak economic data from China pointed to lower fuel demand in the world's biggest oil importer.Brent crude futures fell 75 cents to $60.70 a barrel, a 1.2 percent loss, by 10:53 a.m. EST (1553 GMT). U.S. West Texas Intermediate (WTI) crude futures dropped 93 cents to $51.65 a barrel, a 1.8 percent loss.Global benchmark Brent was set for a weekly loss of about 1.7 percent, while WTI was on track to decline 1.9 percent."The oil complex remains vulnerable to heavy selling into the equities especially when combined with a strengthening in the U.S.

Oil Falls After OPEC Delays Output Decision

© Jeffrey / Adobe Stock

Oil fell in choppy trading on Thursday after OPEC ended a key meeting having made no decision on crude output, as it prepared to debate the matter with other exporters the next day.The Organisation of the Petroleum Exporting Countries (OPEC) met in Vienna to decide its production policy in coordination with non-OPEC producers including Russia, Oman and Kazakhstan.An OPEC delegate said the organisation had agreed a tentative deal to cut oil output but had not yet come up with a final figure.Saudi Energy Minister Khalid al-Falih said earlier that OPEC needed Russia to come on board with any cuts.

Offshore Drillers Eye Recovery by 2020

© namning / Adobe Stock

Battered oil and gas drilling companies are finally seeing piecemeal signs that the prices they charge for offshore rigs are bottoming out with Brent crude selling for more than $80 a barrel and some are forecasting a full turn in the market by 2020.At the depths of a global slide that took oil below $27 a barrel in early 2016, daily rates for leasing the most sophisticated floating drilling rigs had fallen to just $180,000 from $500,000 a day, as producer returns from North Sea, Latin America and Canadian drilling evaporated.Transocean Ltd, a top supplier of drilling vessels…

Conoco Waiting for Venezuela to Pay $2 billion Settlement - CEO

U.S. oil producer ConocoPhillips is still awaiting payment from Venezuela on a $2 billion arbitration settlement reached last month with the country's state-run PDVSA, Chief Executive Ryan Lance said on Wednesday.Conoco last month suspended legal attachments efforts that had cut Venezuela's oil exports from several Caribbean facilities following a deal that allowed the country 90 days to make an initial $500 million payment."I'll count the money when it shows up in the bank," Lance said on Wednesday at a Barclays energy conference in New York…

Gulf Platforms Shut ahead of Hurricane

© Robert Cocquyt / Adobe Stock

U.S. oil prices edged up on Tuesday, rising back past $70 per barrel, after two Gulf of Mexico oil platforms were evacuated in preparation for a hurricane.U.S. West Texas Intermediate (WTI) crude futures were at $70.04 per barrel at 0034 GMT, up 24 cents, or 0.3 percent from their last settlement.Anadarko Petroleum Corp said on Monday it had evacuated and shut production at two oil platforms in the northern Gulf of Mexico ahead of the approach of Gordon, which is expected to come ashore as a hurricane.International Brent crude futures, by contrast…

Oil Prices Jump as Gulf of Mexico Rigs Evacuated

© Mike Mareen / Adobe Stock

Oil prices rose sharply on Tuesday after the evacuation of two Gulf of Mexico oil platforms in preparation for a hurricane.U.S. light crude rose $1.60 a barrel from Friday's close to a peak of $71.40, its highest since mid-July, before easing slightly to around $71.15 by 1140 GMT. U.S. markets were closed on Monday for Labor Day.Benchmark Brent crude, which traded on Monday, was up $1.10 at $79.25 a barrel, having earlier reached a high of $79.72, its strongest since May."The bull party is in full swing this morning as oil prices explode to the upside thanks to a weather-related jolt," said PVM analyst Stephen Brennock."The U.S.

​​​​Chinese Tariffs on LNG, Oil May Threaten US Energy Dominance

© Igor Groshev / Abobe Stock

China's targeting of U.S. liquefied natural gas and crude oil exports opens a new front in the trade war between the two countries, at a time when the White House is trumpeting growing U.S. energy export prowess.China included LNG for the first time in its list of proposed tariffs on Friday, the same day that its biggest U.S. crude oil buyer, Sinopec, suspended U.S. crude oil imports due to the dispute, according to three sources familiar with the situation.On Friday, China announced retaliatory tariffs on $60 billion worth of U.S. goods, and warned of further measures…

Glencore Gets U.S. Subpoena on Compliance with Money-Laundering Laws

File Image (CREDIT: AdobeStock / © Renaschild)

U.S. demands documents on business in Nigeria, DRC, Venezuela; Glencore shares fall as much as 13 percent. U.S. authorities have demanded the U.S. arm of Glencore Plc hand over documents relating to its business in Nigeria, the Democratic Republic of Congo and Venezuela, sending shares in the parent company down more than 10 percent. The Swiss-based commodities trader and miner said its subsidiary had received a U.S. Department of Justice subpoena requesting documents and records on compliance with the Foreign Corrupt Practices Act and U.S. money-laundering statutes.