Tuesday, April 20, 2021

Chevron News

Chevron Shareholders to Vote on Climate Change Proposals, Emissions Targets

Chevron Logo - Credit: Игорь Головнёв/AdobeStock

Chevron Corp shareholders will vote on proposals aiming to require the No. 2 U.S.

Chevron, Microsoft, Schlumberger to Build Carbon Capture Plant in California

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Chevron Corp is partnering with Microsoft Corp, oilfield services firm Schlumberger and privately held Clean Energy Systems to build a carbon capture plant in California, as the U.S. oil major expands investments in renewable technology.Fossil fuel companies have faced increased pressure in recent years to reduce emissions, spend more on low-carbon energy and disclose the impact their production has on climate change.Chevron said on Thursday the plant, located in the city of Mendota…

Saudi Aramco, Chevron Chiefs See Global Oil Demand Recovery

(Photo: Saudi Aramco)

Global oil demand is recovering and could return to around pre-pandemic levels next year, the chief executive of Saudi Aramco told an oil and gas conference on Tuesday.Global demand for oil is likely to recover from the second half of the year and could reach 99 million barrels per day (bpd) in 2022, Amin Nasser said at IHS Markit's online CERAWeek conference.Diesel demand has recovered globally due to door-to-door deliveries, though jet fuel lags as people avoid long flights, said Chevron CEO Michael Wirth, who spoke on a panel with Nasser.Oil demand improving in China, India and East Asia, with v

VLSFO Plus Older Engines Can Presents New Maintenance Challenges

Piston with scuffing and deposits. Photo courstesy Chevron

As shipowners mull the pros and cons associated with new fuels to meet tightening emissions rules, Chevron Marine is finding that some ship owners that switched older engines to  very low-sulfur fuel oil (VLSFO) are reporting build-up of red deposits on piston crowns and top edges, sometimes combined with red iron burrs in scavenge ports. The deposits are associated with abnormal liner wear since the fuel switch, particularly on older two-stroke marine engines.“While newer ships do not have a problem using these fuels, engines already closer to an overhaul did struggle sometimes.

Video: The Floating Production Market Faces Headwinds, But Opportunities Exist

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There are around 200 offshore oil and gas projects currently being planned for development using a floating production system, however, at around $2B apiece – some up to $5B – final investment decisions will depend on the market situation and the outlook for oil and gas doesn’t seem too bright. Still, around 60 units are expected to be ordered by 2025, per World Energy Reports.In an interview for Offshore Engineer TV on the outlook for floating production systems, Jim McCaul, head of International Maritime Associates and World Energy Reports…

Coronavirus, Consolidation Taking Toll On Energy Jobs

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Oil and gas companies worldwide are taking an axe to their employment rolls, shedding workers to survive what is expected to be a prolonged stretch of weak demand.Exxon Mobil Corp said it will cut its workforce by 15%, or about 14,000 people, along with oil majors Chevron Corp and Royal Dutch Shell Plc.All told, more than 400,000 oil and gas sector jobs have been cut this year, according to Rystad Energy, with about half of those in the United States, where several big exploration…

Chevron Posts Q3 Profit

Michael K. Wirth, Chevron’s chairman of the board and chief executive officer. Photo courtesy Chevron Corporation

Chevron on Friday reported an adjusted third-quarter profit as oil prices recovered from spring lows and spending cuts benefited operating results.Chevron and its peers have slashed spending budgets this year on plummeting demand and crude oil prices that remain about 40% below where they began the year. Royal Dutch Shell Plc and BP Plc also posted higher-than-expected quarterly results after deep expense cuts this year.The second-largest U.S. oil producer reported earnings of $201 million, or 11 cents per share, excluding one-time items.

Exxon to Cut 14,000 Jobs as Pandemic Hits Oil Demand

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ExxonMobil Corp said on Thursday it could cut its global workforce by about 15%, including deep white-collar staff reductions in the United States, as the COVID-19 pandemic batters energy demand and prices.Exxon and other oil producers have been slashing costs due to a collapse in oil demand and ill-timed bets on new projects. The top U.S. oil company earlier outlined more than $10 billion in budget cuts this year."The impact of COVID-19 on the demand for ExxonMobil's products has increased the urgency of the ongoing efficiency work…

Offshore Oil Wells, Ports Shut as Hurricane Sally Advances on U.S. Gulf

Hurricane Sally (Photo: NOAA)

Energy companies, ports and refiners raced on Monday to shut down as Hurricane Sally grew stronger while lumbering toward the central U.S. Gulf Coast, the second significant hurricane to shutter oil and gas activity over the last month.The hurricane is disrupting oil imports and exports as the nation's sole offshore terminal, the Louisiana Offshore Oil Port (LOOP), stopped loading tanker ships on Sunday, while the port of New Orleans closed on Monday.The U.S. government said 21%, or nearly 396…

Robotics: Autobots Transform in the Offshore Energy Sector

BladeBUG is a blade walking inspection robot, focusing on leading edge erosion inspection. Images from ORE Catapult.

Robots and robotics have slowly been entering our lives, in various shapes and forms (and fictional characters), from self-driving household vacuum cleaners to highly automated manufacturing systems. Now they’re heading for the offshore world – in just as many shapes and forms.There could be a lot to gain from robotics, but platforms and offshore wind turbine structures are also very challenging places to put them on. For oil and gas, key drivers are around safety and cost . For the offshore wind sector…

ConocoPhillips to Reverse Most Output Cuts by End of Q3

(File photo: ConocoPhillips)

ConocoPhillips said on Thursday it expects production curtailments in the current quarter to be roughly half as much as last quarter and will restore most of its output by the end of September, after the oil and gas producer slashed about a third of its output in April as oil prices plunged 41%.The company restored part of its curtailed volumes earlier in June, as crude prices recovered some of the historic losses they took when lockdowns imposed to curb the spread of the coronavirus sapped fuel demand.ConocoPhillips' total production…

Chevron Diversity Ratio to Improve as Layoffs Progress

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Oil major Chevron Corp expects to reduce the dominance of white males in company management during cost-cutting this year, upping the share of senior level jobs held by women and ethnic minorities to 44% from 38% last year, the company said in a statement.Like most of its peers in an industry struggling with the collapse of oil prices this year, Chevron is cutting spending, consolidating business units, and has asked some managers to reapply for their jobs.Figures from the end of last year show that less than a quarter of Chevron's U.S.

Chevron CEO Sees Continued 'Choppy Economic and Price Activity'

Mike Wirth (Photo: Chevron)

The chief executive of U.S. oil giant Chevron Corp on Monday said the uncertainty of the COVID-19 pandemic has it planning for "choppy" oil prices and economic activity globally.Chevron said on Monday it would buy oil and gas producer Noble Energy Inc for about $5 billion in stock, the first big energy deal since the coronavirus crisis started."The crystal ball is cloudy right now," Mike Wirth said in an interview. "There’s so much uncertainty on the trajectory of the pandemic, the…

Indonesia's Pertamina Expects up to 180,000 bpd from Rokan Block when It Takes Over from Chevron

Rotan block - Credit: Chevron

Indonesian state oil company PT Pertamina expects to produce 170,000-180,000 barrels per day (bpd) at the Rokan block when it takes over in August next year, the chief executive of Pertamina Hulu Energi, Budiman Parhusip, said on Wednesday.The government decided in 2018 that the operation of Rokan, Indonesia's second-biggest crude oil producing block, would be transferred to Pertamina when Chevron Pacific Indonesia's contract expires in August 2021.Pertamina previously estimated that the block's output would drop to 140…

U.S. Oil Firms Hit Brakes on Return-to-work as Virus Cases Soar

Downtown Houston buildings - Credit:  Casey E Martin

U.S. energy companies slammed the brakes on returning staff to their Houston offices as COVID-19 cases soared and top hospitals warned they could soon run out of beds for the most severely ill patients.A record number of new illnesses in Texas this week spurred local officials to impose restrictions as new cases topped 5,000 on two days in a row. Intensive care unit (ICU) beds were 97% full at Houston's Texas Medical Center, which said it may soon move to surge ICU capacity assignments…

Kazakhstan: No Shutdown Planned for COVID-19-hit Tengiz Field

Image by AXTEM-AdobeStock

Kazakhstan has no plans to shut down oil production at its biggest oilfield, Tengiz, despite the novel coronavirus outbreak among its workers, the Central Asian nation's energy minister said on Wednesday.Kazakhstan's chief sanitary doctor said last week the field's operator, Chevron-led Tengizchevroil, might have to suspend operations if a plan to curb the spread of the virus at the site fails.But Energy Minister Nurlan Nogayev told a briefing there was no immediate risk of such measures being taken."The matter of shutting down the field is not being considered…

Qatar Petroleum to Cut Spending by 30%

Qatar Petroleum CEO Saad al-Kaabi - (File photo: Qatar Petroleum)

Qatar Petroleum will slash its spending by around 30% this year in the face of the sharp drop in oil and gas prices due to the coronavirus epidemic, its Chief Executive said on Thursday.Speaking during a webcast organized by the U.S-Qatar Business Council, Saad al-Kaabi however said that plans to sharply expand Qatar Petroleum's liquefied natural gas (LNG) capacity by the middle of the decade remain on track."We are going through budget revisions... In June we will be somewhere in the range of 30% reduction in expenditure…

Petrobras Sees No Need to Cut Oil Production

(Photo: Petrobras)

Brazil's state-run Petrobras sees no need for cuts in oil production, executives say, as the market for its crude remains robust in China, while domestic demand for fuel picks up amid social distancing fatigue in Latin America's largest economy.On a Friday earnings call with analysts, executives credited the company's strong relationship with independent refineries in China's Shandong Province, known as "teapots,"' for allowing Petrobras to export a record amount of crude in recent months, even as some economies are effectively shut.

Chevron Cuts Spending, Says Asset Sales Lift Profits

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Chevron Corp on Friday slashed its capital spending plans by another $2 billion as the coronavirus pandemic guts demand for oil and gas, while delivering a year-over-year 38% increase in profits.Global fuel demand has crashed by a third while many people shelter at home for an indefinite period. Major oil companies have largely reported losses as an oil glut and a shortage of storage space sends prices to historic lows.Earnings at Chevron beat Wall Street expectations and were $3.6 billion in the first quarter…

Exxon Posts First Loss in 30 Years on $3 Bln Writedown, Oil Plunge

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Exxon Mobil Corp on Friday posted its first quarterly loss in three decades on plunging oil demand and collapsing prices, reporting a $610 million quarterly deficit after a nearly $3 billion inventory writedown.Global fuel demand has tumbled by a third on coronavirus-related lockdowns and business shutdowns. Oil giants largely have reported losses on weaker margins and writedowns from an oil glut that has sent prices to historic lows.All of Exxon's businesses posted lower year-over…