Friday, July 10, 2020

Chevron Corp News

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…

Woodside Watching Supermajors' Woes for Opportunities

Peter Coleman (File photo: Woodside)

Woodside Petroleum is keeping a close eye out for assets that might come up for grabs from the oil supermajors amid the oil market rout, seeing itself in a position to bid, Chief Executive Peter Coleman said on Friday.The head of Australia's top independent gas producer said, however, deals were unlikely until the third or fourth quarter of this year."We are watching closely the super majors," Coleman told reporters on a conference call the day after Woodside's annual meeting.He said Woodside was watching how…

When Oil Became Waste

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A week of turmoil for crude, and more pain to comeThe magnitude of how damaged the energy industry is came into full view on April 20 when the benchmark price of U.S. oil futures, which had never dropped below $10 a barrel in its nearly 40-year history, plunged to a previously unthinkable minus $38 a barrel.In just a few months, the coronavirus pandemic has destroyed so much fuel demand as billions of people curtail travel that it has done what financial crashes, recessions and wars had failed to ever do - leave…

Diamond Offshore Files for Bankruptcy

Diamond Offshore's Ocean Onyx semi-submersible drilling rig. Image by Stephen Walter Sr. / MarineTraffic

Diamond Offshore Drilling Inc filed for bankruptcy protection in Texas on Sunday, after the company recently skipped making an interest payment and said it had retained restructuring advisers.The Houston-based contract drilling company's filing, one of 15 of its group companies seeking protection under Chapter 11, said day rates and demand for its services had "worsened precipitously" this year amid a "price war" between OPEC and Russia and the steep drop in oil demand caused by the coronavirus pandemic.The company has significant operations in the Gulf of Mexico.The filing comes as the five biggest U.S.

OPEC+ Debates Biggest Ever Oil Output Cut as Virus Destroys Demand

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OPEC and allies are working on a deal for an unprecedented production cut equivalent to around 10% of global supply, an OPEC source said after U.S. President Donald Trump called on oil nations to stop the oil rout caused by the coronavirus pandemic. The meeting of OPEC and allies such as Russia has been scheduled for Monday, April 6, Azeri's energy ministry said, but details were still thin on the exact distribution of production cuts. Oil prices have fallen to around $20 per barrel from $65 at the start of the year as more than 3 billion people went into lockdown because of the virus…

U.S. Offshore Oil Lease Sale Weakest Since 2016

Silhouette of an oil platform at sunset in the Gulf of Mexico - Image by Lukasz Z / AdobeStock

A major sale of oil and gas leases in the U.S. Gulf of Mexico on Wednesday generated $93 million in high bids, the lowest total for any U.S. offshore auction since 2016, reflecting caution in the drilling industry amid a steep slide in oil prices.Firing up offshore drilling is a crucial part of U.S. President Donald Trump's "energy dominance" agenda to maximize domestic production of crude oil, natural gas, and coal. But the energy industry is in crisis as the coronavirus outbreak decimates world demand for fuel and crushes prices."While bidding did take a tough hit…

ExxonMobil Calls for Tighter Methane Regulations

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ExxonMobil on Tuesday called for tighter regulation of the greenhouse gas methane and offered up its own in-house rules as a model for companies and lawmakers worldwide.The largest U.S. oil company laid out the guidelines it follows - some of which have been rolled back by the Trump administration - at a time when the industry faces growing pressure from investors to reduce its environmental footprint.The move is a "clear rebuke" of the Trump administration said Ben Ratner, senior director at the Environmental Defense Fund.

US Refiners Grab HSFO on Back of IMO 2020

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U.S. refiners are scooping up cheap high-sulfur fuel oil for processing from Russia and the Baltic states as they take advantage of new shipping rules that have cut demand for the dirtier marine fuel, according to oil traders and shipping data.U.S. refiners Valero Corp, Chevron Corp and Phillips 66 have been buying HSFO, traders said, taking advantage of their complex operations to turn HSFO blended with crude oils into products like diesel, gasoil and gasoline.This month, 2.2 million tonnes of fuel oil, largely from Russia and the Baltic states…

Oxy Slashing Jobs 'Significantly'

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Occidental Petroleum Corp said on Wednesday it would begin dismissing workers in a new cost-cutting move following its $38 billion acquisition of Anadarko Petroleum.The company has already "significantly" cut staff through a voluntary program, spokeswoman Melissa Schoeb said in an email. She did not respond to requests for information about the number of employees to be cut or any potential charge to earnings.The combined company had about 16,000 workers when it merged.Occidental has been selling assets and cutting costs since it outbid Chevron Corp last year for Anadarko, quadrupling its debt to $40 billion.

Chevron Pulls Staff from Northern Iraq

Chevron Corp removed its expatriate staff operating in northern Iraq as a security precaution, a spokeswoman said on Monday, joining other oil companies pulling staff following the U.S. killing of an Iranian general in the country.U.S. officials last week called for American citizens to leave Iraq hours after a drone strike killed Iranian Quds Force leader Qassem Soleimani and Iraqi militia commander Abu Mahdi al-Muhandis.Chevron said a small contingent of expatriate employees and contractors temporarily left its Kurdistan region operations as a precautionary measure. Other U.S.

U.S. Drillers Add Rigs for first Week in Eight

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U.S. energy firms added rigs for the first time in eight weeks even as producers follow through on plans to reduce spending on new drilling.Companies added 4 oil rigs in the week to Dec. 13, bringing the total count to 667, energy services firm Baker Hughes Co said in its closely followed report on Friday.In the same week a year ago, there were 873 active rigs.That keeps the oil rig count on track to fall for the first year since 2016. The decline, however, only totals 218, which is much smaller than 2015's record 963 rig decline…

Chevron: GoM Anchor Project Needs $5.7 bln

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Chevron Corp said on Thursday its Anchor project in the Gulf of Mexico would need an investment of about $5.7 billion.Announcing its final investment decision on the planned facility, the oil major said first oil from the field is expected in 2024.The Anchor field is located about 140 miles off the coast of Louisiana and is in water depths of 5,000 feet.The planned facility has a design capacity of 75,000 barrels of crude oil and 28 million cubic feet of natural gas per day. The total potentially recoverable oil-equivalent resources for Anchor are estimated to exceed 440 million barrels.Chevron…

Chevron Plans Assets Sale

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U.S. oil major Chevron Corp said on Tuesday it is evaluating strategic alternatives, including divestment of gas-related assets in Appalachia shale, Kitimat LNG, and other international projects.Chevron, which set a 2020 spending program of $20 billion, said these actions are estimated to result in non-cash, after tax impairment charges of $10 billion to $11 billion in its fourth quarter, with more than half related to the Appalachia shale.The second-largest U.S. oil company also said it will reduce funding…

Majors Press Mexico to Resume Oil Auctions

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Big oil companies operating in Mexico have launched a drive to convince leftist President Andres Manuel Lopez Obrador to resume auctions of oil and gas contracts he has branded a failure in reviving the industry.Chevron Corp, Exxon Mobil Corp and Royal Dutch Shell Plc, among other firms in Mexico's Association of Hydrocarbon Companies (Amexhi), say they have met output targets and investment pledges worth hundreds of millions of dollars in the initial phases of their contracts."We've been complying (with contractual obligations)…

Oil Companies Swap Stakes in Mexico

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With Mexico's government insisting that energy companies increase oil and gas output before it auctions off more of the country's vast reserves or offers more partnerships with state-run Pemex, firms ranging from foreign majors to local players are scrambling to buy and sell blocks they already own.The negotiations are creating a dynamic secondary market for oil acreage, which could be the only investment opportunity left for firms until leftist President Andres Manuel Lopez Obrador unblocks his predecessor's…

Chevron Profit Falls

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Chevron Corp reported a larger-than-expected 36% drop in third-quarter profit on Friday, hit by lower oil and gas prices despite an overall increase in its output.Results mirrored weaker earnings at BP Plc and Royal Dutch Shell, which indicated they might delay dividend increases or a buyback program due to low prices. Exxon Mobil earlier on Friday reported its profits fell by nearly half from a year ago, citing lower oil and gas prices."Lower crude oil and natural gas prices more than offset" production increases…

Woodside Targets Scarborough FID in Early 2020

(Photo: Woodside)

Woodside Petroleum Ltd has pushed out the final approval date for its mammoth Browse gas project but slightly brought forward plans to sign off on its smaller Scarborough project as it races to fill an anticipated global supply gap.Woodside, Australia's top independent gas producer, said on Thursday it is now targeting a final investment decision on the $20.5 billion Browse project in the first half of 2021 as it continues to wrangle with its partners. It had previously expected approval in late 2020.However…

Shell Consortium, Petronas Win Oil Blocks Off Brazilian Coast

A consortium of Royal Dutch Shell Plc, Chevron Corp and Qatar Petroleum won oil exploration and production rights in the C-M-713 block off the coast of Brazil on Thursday, paying the government a signing bonus of roughly 551 million reais ($133 million).Shortly before, Petronas won a separate offshore block, C-M-661, with a signing bonus of roughly 1.116 billion reais.(Reporting by Gram Slattery, Marta Noguiera and Rodrigo Viga Gaier, editing by Deepa Babington)

Oil Companies Push Carbon-capture Efforts

Since 1996, the Equinor-operated Sleipner field offshore Norway has been used as a carbon capture and storage facility, marking the longest ongoing CO2 storage project in the world. (Photo: Harald Pettersen / Equinor)

A group of 13 major oil companies charted out a plan on Monday to promote investments in carbon capture, use and storage (CCUS), ahead of a gathering in New York.Oil chiefs grappling with growing demand for action to fight climate change have looked to invest in carbon-capture and sequestration techniques that some executives, including Occidental Petroleum Corp CEO Vicki Hollub, say could make drilling carbon neutral.With fossil fuel development growing worldwide, the oil and gas industry faces growing criticism from activists concerned about accelerating climate impacts from melting ice caps to sea-level rise and extreme weather.