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By Kelly Cryderman
Source: The Globe and Mail
Speaking during a conference call regarding fourth-quarter results on Thursday, chief financial officer Don Marchand said the company cut approximately 10 per cent of its 6,000-person work force – with the percentage jumping to 20 per cent at the senior ranks. He said TransCanada will push to find further efficiencies in 2016.
By Jessica Resnick-Ault And Mike Stone
In December, the large driller said it was looking to raise $2 billion to $3 billion from selling non-core oil assets as well as its 50-percent interest in the Access pipeline in Canada as crude prices CLc1 plumbed new lows. The target value for the divestiture program has remained unchanged even as oil futures have fallen further, the company said Tuesday.
By John Maxfield
Source: My San Antonio
CFO John Shrewsberry said on Tuesday this week that its potential exposure is actually $42 billion. This includes $25 billion worth of unfunded commitments -- that is, lines of credit that Wells Fargo has made available to oil and gas companies but that haven't yet been utilized by the companies.
Source: The Week
In its annual Energy Outlook report, the company presents a "base" case scenario that would mean fossil fuels, including oil, still accounting for 80 per cent of all the world's energy needs by 2035. As demand will have grown substantially, especially in emerging economies, this will require huge new extraction of oil and prices will be much higher than current levels.
Spencer Dale, BP’s chief economist, told The Guardian the oil price would return again - and more than once - to the $100 threshold from which it tumbled in its current protracted slump. International benchmark Brent crude was at close to $30 a barrel this morning after another dip overnight.
By Eugene Bai
Source: Russia Direct
Venezuela, the country that has suffered the most from the drop in oil prices, is trying to drag Russia into its game, the goal of which is to make a deal with OPEC members about cutting oil production. However, thus far, these efforts have been to no avail.
Source: The Globe and Mail
Cenovus Energy Inc., ARC Resources Ltd. and Precision Drilling Ltd. cut or suspended dividends while announcing capital-expenditure budgets that will be even more miserly than last year. Cenovus served notice it will cut more jobs after it reduced its work force by 24 per cent in 2015.
The moves accompanied fourth-quarter results that showed the harsh impact of U.S. benchmark oil prices that averaged just over $42 (U.S.) a barrel in the period, 42 per cent below the year-earlier quarter. Since then, crude has tumbled further and on Thursday it settled at $26.21, its lowest in almost 13 years.
Source: International Business Times
A drop that steep seems less outlandish today than even a few months ago, when many analysts still expected oil to return to $50 a barrel or higher. But fears that the world is oversupplied with crude have only deepened as producers keep pumping more barrels and demand growth slows in key markets like China and Europe.
Crude prices began their descent some 20 months ago after peaking at more than $100 a barrel in June 2014. West Texas Intermediate (WTI), the U.S. benchmark, fell 30 percent in 2015 to $37.04 a barrel. Brent, the global oil-price gauge, dropped 35 percent to $37.28 a barrel. So far this year, neither benchmark has surged above $40 a barrel.
Apache, which operates numerous installations off the coast of Scotland, was handed an improvement notice by the Health and Safety Executive (HSE) following the incident.
The company took reductions across the organization and isn’t disclosing numbers, Mel Duvall, a spokesman, said Tuesday in an e-mail. Calgary-based Husky, which has producing properties in Canada and Asia and refining operations in the U.S., last October said it had eliminated 1,400 positions to contend with the downturn.
“These are difficult decisions and we will continue to take the steps necessary to ensure the company’s resilience through this cycle and beyond,” Duvall said.
"It's a tax for pet projects -- that's about it," said Patrick DeHaan, senior petroleum analyst at GasBuddy.com, a website that helps motorists to find low gas prices in the U.S.
A total 184,000 barrels a day of shale oil output were added to the Energy Information Administration’s estimate for February in its monthly Drilling Productivity Report released Monday. The agency also raised its estimate for natural gas production from the Marcellus region by 4.2 percent.
While American drillers have idled more than two-thirds of their oil and gas rigs since October 2014, production has been resilient thanks to techniques that allow them to pump more from each well, and a much-anticipated decline in stockpiles is yet to be seen. U.S. crude inventories climbed above 500 million barrels to the highest level since 1930 in the week ended Jan. 29, according to EIA data.
"Unfortunately, deaths of two workers in the Abkatun A platform accident are confirmed," the company wrote in a post on its official Twitter account.
Source: Our Windsor
Every desk in the Alberta Works employment centre in Fort McMurray is occupied by noon on a Monday, with several more people waiting on the periphery for a chance to log on to the computers and scan a slim list of job prospects.
Some 400 people walk through its doors every day, including labourers, cleaners, bus drivers and trades people. More recently it also includes engineers and other professionals, says acting director Samra Ilyas.
Source: IBN Live
Of all the decommissioning over the next 25 years, more than half is likely to take place between 2019 and 2026. The estimate, from Douglas-Westwood, takes account of the fall in the price of oil. Crude prices have plunged around 70 per cent over the past 18 months to around USD 35 a barrel.
The estimate said this will result in many oil fields in UK waters, including the North Sea, becoming uneconomic. Another consultancy, Wood Mackenzie, reported on Friday that, at recent prices, one in seven barrels of oil being produced in UK waters is at a cash loss.
Source: Arab News
Between October 2014 and November 2015, the number of people on the payroll of oil and gas extraction firms and support services fell by almost 87,000, according to the US Bureau of Labor Statistics (BLS).
But once data on job losses in December and January becomes available, the total reduction is likely to be around 100,000, or 16 percent of employment at its peak.
According to a White House fact sheet, President Obama’s lame duck federal budget proposal will include a $10 per barrel “fee” on oil. The proceeds, some $40 billion a year, would be directed toward a grand “21st Century Clean Transportation System” that includes shoring up the federal highway fund, building mag-lev trains, charging stations for electric vehicles, self-driving cars and other lower-carbon transportation boondoggles.
Congressional leaders have declared the president’s entire budget dead on arrival. But the plan, revealed on Thursday, nonetheless sent perturbations rippling throughout the oil industry. The so-called “fee,” which is just doublespeak for a tax, would at least be levied equally on both dometic and foreign supplies, so as to “ensure a level playing field,” according to a White House official. In a rational world, the White House would strive to tilt the playing field in favor of American companies. But in this case it’s just a relief that the tax wouldn’t be imposed only on domestic oil.
The results came days after Shell sealed a 47-billion-pound takeover of BG Group Plc, which will increase the company's proven reserves of oil and natural gas by 25 percent. While critics questioned the deal because of the plummeting price of oil, CEO Ben Van Beurden compared it to the bold moves that have defined the industry and promised it would rejuvenate Shell.
The BG deal comes as Shell and other oil companies are slashing jobs and postponing investments to adjust the bottom line to the dramatic circumstances.
Intending to financially support both innovation in clean energy and the Highway Trust Fund while incentivizing a move away from the use of fossil fuels, the White House Thursday announced a proposed $10 per barrel fee to be levied on oil companies.
President Obama’s “21st Century Clean Transportation System” proposal calls for increasing investment in clean transportation infrastructure by 50% while reducing America’s reliance on oil. The White House says the plan will reduce carbon emissions, create jobs and expand transportation opportunities like public transit and passenger rail.
According to the statement announcing the fee, the plan calls for investments in clean transportation infrastructure while also “providing for the long-term solvency of the Highway Trust Fund to ensure we maintain the infrastructure we have.”
Asked last night by Lauren Quest, a sophomore at Oyster River High School, if she would pledge to stop accepting money from the fossil fuel industry, Democratic presidential candidate Hillary Clinton said that she is “going to pledge to stop fossil fuels.” But later that evening Clinton told Ella Cederholm, a first year at the University of New Hampshire, that she would continue to utilize fracking as President.
“Pledging to ‘stop all fossil fuels’ is an empty claim when followed by expressing support for fracking. Clinton is still failing to convince voters that she will act on climate injustices and reform the most dangerous and extreme extraction practices,” said Yong Jung Cho, Campaign Coordinator with 350 Action. “With the New Hampshire primary just days away, Clinton needs to do more than make bold claims that she thinks captures what voters want to hear.”
Until this point in the campaign, Clinton has avoided taking a firm position on fracking. As climate concerns increase, 350 Action volunteers and individuals across the country have been pushing the former Secretary of State to lay out exactly how she plans to keep fossil fuels in the ground. Just last week, in response a question about the ongoing Porter Ranch methane disaster, Clinton told a 350 Action volunteer that “unless spills can be prevented it should not go forward.”
A 70 percent drop in crude prices since mid-2014 has affected not only National Oilwell Varco (NOV) but dozens of others throughout North America's oil patches, prompting tens of thousands of layoffs, eroding profits, depleting state and local tax revenue and, in a handful of cases, causing bankruptcies.
As a manufacturer of rig equipment and a designer of robotics for onshore and offshore oil fields, NOV serves as a barometer of oilfield activity, giving added weight to warnings on Wednesday as it reported a quarterly loss.
"We are not planning for recovery in 2016," NOV CEO Clay Williams told investors on a conference call.