Page 8 - GLNG Week 22

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In related news, Libre Abordo, the obscure $30 per barrel in recent days, but this level is not
Mexican company that has been executing an high enough for many US producers. In one of
oil-for-water agreement with Venezuela, has the latest illustrations of the industry’s struggles,
declared bankruptcy. Venezuelan President Occidental Petroleum announced on May 29
Nicolas Maduro has blamed the US sanctions that it was cutting its dividend by 91%. This takes
on his country for Libre Abordo’s woes. the company’s dividend to $0.01 per share – the
lowest level since at least the 1970s.
If you’d like to read more about the key events shaping Occidental is struggling more than many
the Latin American oil and gas sector then please click thanks to the debt it took on last year to
here for NewsBase’s LatAmOil Monitor. acquire Anadarko Petroleum in what proved
to be an ill-timed bet on shale and rising oil
Middle Eastern moves prices.
All eyes are focused on OPEC’s next move but It is not just smaller companies that con-
Iran has found a way to tweak the US’ nose. tinue to struggle, though; super-major Chev-
This week’s scheduled meeting of OPEC+ ron announced on May 27 that it would cut
to consider an extension of the oil production its global workforce of around 45,000 by up
cuts agreed for May and June will be closely to 15%. No further details of the lay-offs have
watched by the industry. The past two months been provided as yet.
have seen unprecedented volatility and, leading Rival ExxonMobil said it had no plans to
up to this week, oil prices have fluctuated wildly; cut staff, but would nonetheless reduce its
it is reasonably clear that much hangs on OPEC’s operating expenses by 15%. Super-major
meeting. The two super-majors held their annual
Turkey’s moves in various areas of the Med- meetings last week, and shareholders of both Chevron
iterranean have a familiar ring and the latest is rejected resolutions calling for the compa-
its plan to launch oil exploration in East Med nies to set targets for greenhouse gas (GHG) announced on
under a pact with Libyan government. This emissions reductions, among other meas-
could be considered both a daring and provoc- ures. While ExxonMobil and Chevron have May 27 that it
ative initiative and it is likely that much more generally been more resistant to such meas- would cut its
will be heard on this and other moves in the ures than their European counterparts, this
coming months. leads to questions over how the oil market global workforce
There is mixed news from the Emirates: downturn could affect the pace of the energy
ADNOC was obliged to cut July crude nomi- transition. by up to 15%.
nations to meet the requirements of the OPEC+ Despite the broader slowdown in North
pact but there are signs of progress on bids for America’s oil and gas industry, a new explora-
ADNOC’s gas pipelines. tion prospect that could be targeted in future
Even more mixed news comes from Iraq: Pet- years has been identified.
rofac has secured a further six-month contract Applied Petroleum Technology (APT) said
extension with BOC for its long-standing Iraq it had conducted a detailed evaluation of the
Crude Oil Export Expansion Project but more Southern Grand Banks petroleum system
to the point, Iraq’s oil rig count has tumbled by offshore Eastern Canada for multiple clients.
almost two-thirds this year. Iraq has struggled It reported that it had identified previously
more than most to meet its reduced quota. Its unrecognised Lower Jurassic source rocks
new prime minister has a very hard hand to play and a genetically related set of oil shows.
now and looking ahead. However, the findings come at a time when
oil companies are unlikely to be rushing to
If you’d like to read more about the key events shaping explore the waters off Canada – or indeed other
the Middle East’s oil and gas sector then please click offshore areas. If more exploration ultimately
here for NewsBase’s MEOG Monitor. takes place, it will be some time from now.

Cutting back, but looking to the future in If you’d like to read more about the key events shaping
North America the North American oil and gas sector then please click
WTI prices have remained relatively stable above here for NewsBase’s NorthAmOil Monitor.™

P8 www. NEWSBASE .com Week 22 05•June•2020