Page 19 - AsianOil Week 22

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

Week 22 04•June•2020 www. NEWSBASE .com P19