Page 8 - NorthAmOil 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. (See: Occi-
If you’d like to read more about the key events shaping dental cuts dividend by 91%, page 13)
the Latin American oil and gas sector then please click Occidental is struggling more than many
here for NewsBase’s LatAmOil Monitor. thanks to the debt it took on last year to
acquire Anadarko Petroleum in what proved
Middle Eastern moves to be an ill-timed bet on shale and rising oil
All eyes are focused on OPEC’s next move but prices.
Iran has found a way to tweak the US’ nose. It is not just smaller companies that con-
This week’s scheduled meeting of OPEC+ tinue to struggle, though; super-major Chev-
to consider an extension of the oil production ron announced on May 27 that it would cut
cuts agreed for May and June will be closely its global workforce of around 45,000 by up
watched by the industry. The past two months to 15%. No further details of the lay-offs have
have seen unprecedented volatility and, leading been provided as yet.
up to this week, oil prices have fluctuated wildly; Rival ExxonMobil said it had no plans to Super-major
it is reasonably clear that much hangs on OPEC’s cut staff, but would nonetheless reduce its
meeting. operating expenses by 15%. (See: Chevron to Chevron
Turkey’s moves in various areas of the Medi- cut workforce as ExxonMobil resists layoffs,
terranean have a familiar ring and the latest is its page 14) announced on
plan to launch oil exploration in East Med under The two super-majors held their annual
a pact with Libyan government. This could be meetings last week, and shareholders of both May 27 that it
considered both a daring and provocative initia- rejected resolutions calling for the compa- would cut its
tive and it is likely that much more will be heard nies to set targets for greenhouse gas (GHG)
on this and other moves in the coming months. emissions reductions, among other meas- global workforce
There is mixed news from the Emirates: ures. While ExxonMobil and Chevron have
ADNOC was obliged to cut July crude nomi- generally been more resistant to such meas- by up to 15%.
nations to meet the requirements of the OPEC+ ures than their European counterparts, this
pact but there are signs of progress on bids for leads to questions over how the oil market
ADNOC’s gas pipelines. downturn could affect the pace of the energy
Even more mixed news comes from Iraq: Pet- transition.
rofac has secured a further six-month contract Despite the broader slowdown in North
extension with BOC for its long-standing Iraq America’s oil and gas industry, a new explora-
Crude Oil Export Expansion Project but more tion prospect that could be targeted in future
to the point, Iraq’s oil rig count has tumbled by years has been identified.
almost two-thirds this year. Iraq has struggled Applied Petroleum Technology (APT) said
more than most to meet its reduced quota. Its it had conducted a detailed evaluation of the
new prime minister has a very hard hand to play Southern Grand Banks petroleum system
now and looking ahead. offshore Eastern Canada for multiple clients.
It reported that it had identified previously
If you’d like to read more about the key events shaping unrecognised Lower Jurassic source rocks
the Middle East’s oil and gas sector then please click and a genetically related set of oil shows.
here for NewsBase’s MEOG Monitor. However, the findings come at a time when
oil companies are unlikely to be rushing to
Cutting back, but looking to the future in explore the waters off Canada – or indeed other
North America offshore areas. If more exploration ultimately
WTI prices have remained relatively stable above takes place, it will be some time from now.™

P8 www. NEWSBASE .com Week 22 04•June•2020