Fourth oil production vessel to leave Guyana in Q1 of 2025
The CEO of U.S. oil producer Hess John Hess stated on Wednesday that Guyana's fourth floating production, storage and offloading facility (FPSO) is expected to depart the South American nation in the first quarter of next year. Yellowtail, the fourth project of the firm that is responsible for the oil and gas production throughout South America, will add an additional 250,000 barrels a day (bpd). Hess said at the Wolfe Research Oil and Gas Conference that Yellowtail is "the exciting thing for 2025". He said that the FPSO for Yellowtail should be sailing to Guyana by the first quarter of the year, with startup later in the same year.
Hess CEO will consider appealing FTC board seat ban in the future
Hess' CEO said on Wednesday that he will consider appealing to the Federal Trade Commission the ban on his taking a Chevron Board seat once the Trump Administration takes office. As part of an agreement that allowed for the acquisition, the FTC banned John Hess's appointment to Chevron’s board. Exxon Mobil, CNOOC and Hess's joint venture partners Exxon Mobil have challenged the contract arbitration ruling that halted the $53 billion acquisition. The FTC cited his communications with the oil producers' group OPEC to reduce oil production as the reason for its ban.
Exxon consortium in Guyana produces 500 million barrels of crude oil
ExxonMobil, the oil giant, announced on Wednesday that it has produced 500 million barrels from Guyana’s offshore Stabroek Block since commencing production in 2019. Exxon, Hess, and CNOOC Ltd. are part of the Exxon-led group that is responsible for production in this South American country. Once six offshore projects have been approved, they aim to increase production to over 1.3 million barrels per day by 2027. Exxon stated that the first three wells - Liza Phase 2, Liza Phase 1 and Payara -- pump an average of 650,000 barrels a day. Stabroek is the main point of contention for Chevron in its $53 billion deal to buy Hess. Exxon, CNOOC and others are contesting the deal.
Occidental Petroleum exceeds profit expectations for the third quarter on higher production
Occidental Petroleum, a U.S. oil-and-gas firm, beat Wall Street expectations for the third quarter profit on Tuesday. However, overall earnings dropped 14% due to losses on asset sales and a decline in chemical results. The third quarter results of oil companies were lower than the previous year due to lower prices for oil and gas. Occidental's quarter profit includes one-time losses on asset sales, and gains from share sales and derivatives. Occidental reported that its operating profit for pumping oil and natural gas dropped 25% to $1.2 Billion due to losses on asset sales. It suffered a loss of $572 million on the sale. It took a $572 million loss on the sales.
US energy deals fall to $12 billion in Q3 after a year-long frenzy
Enverus, a leading analytics firm, said that U.S. oil deals slowed dramatically in the last quarter as a result of fewer firms being offered and a consolidation wave lasting ten months. Andrew Dittmar, principal analyst at Enverus Intelligence research, reported that the quarter ending Sept. 30 saw the lowest number of deals in six quarters. After 2023, when $192 billion was spent on deals in West Texas and New Mexico's Permian Basin, the biggest shale formation in the U.S. He added that these mega deals are causing acquirers to review their portfolios in order to eliminate unwanted assets.
Occidental Petroleum reports lower oil and gas prices in Q3
Occidental Petroleum, a U.S.-based oil producer, announced on Wednesday that its oil and natural gas production prices were lower in the third quarter compared with the previous period. The company reported that the realized prices or the prices it received for its production during the third quarter were about 6% lower in total for its oil output, and 26% lower in its U.S. Natural Gas output. Concerns about the growth of global oil demand led to a decline in oil prices during the quarter July-September. U.S. Natural Gas prices fell to multi-year lows. Prices in the Waha Hub were also at their lowest levels. In 2024, the number of negative turns will reach a new record.
Suriname oil and gas project worth $10 billion to be approved by TotalEnergies and APA
TotalEnergies, a French company, and APA Corp, based in the United States, announced on Tuesday a positive decision to invest in Block 58 of Suriname, the most promising offshore oil and gas project. This is expected launch Suriname’s first offshore production. The small South American nation wants to follow the example of its neighboring Guyana. In 2019, a consortium led Exxon Mobil began developing over 11 billion barrels worth of recoverable gas and oil resources, making the country a major producer. Total said that the decision to invest $10 billion in the project will be taken in the fourth quarter. The goal is to start production in the first half 2028.
Elliott group seeks to buy Citgo Petroleum from Exxon director
Gregory Goff, Exxon Mobil's board director, recently joined a newly-formed company backed by Elliott Investment Management that is seeking to take control of Venezuelan oil refiner Citgo Petroleum. Citgo and Exxon compete in the motor-fuels and lubricants business. Exxon, the third largest U.S. refiner of oil by capacity, and Citgo are the seventh largest. Goff, a former Exxon executive who joined the company in 2021, as part of an oppositional board of directors, has been named CEO of Amber Energy. This Elliott affiliate was announced as the winning bidder at a U.S. Court auction for shares of Citgo parent PDV Holding.
Elliott group seeks to buy Citgo Petroleum from Exxon director
Gregory Goff, Exxon Mobil's board director, recently joined a newly-formed company backed by Elliott Investment Management that is seeking to take control of Venezuelan oil refiner Citgo Petroleum. Citgo and Exxon compete in the motor-fuels and lubricants business. Exxon, the third largest U.S. refiner of oil by capacity, and Citgo are the seventh largest. Goff, who was part of the dissident board of directors that joined Exxon 2021, was identified on Friday as CEO of Amber Energy. This Elliott affiliate had been selected as the winning bidder at a U.S. Court auction of Citgo parent PDV Holding shares. Exxon did not immediately comment on Goff’s status within the company.
Sources say that the FTC is set to approve chevron’s purchase of Hess for $53 billion, according to sources.
Two people with knowledge of the matter say that the U.S. Federal Trade Commission will likely approve the purchase by U.S. oil company Chevron of Hess this week. Exxon Mobil is the last hurdle to clear. The merger proposal was announced in October last year. Two months later, the FTC sent Chevron a second request for information. Chevron's shares have fallen 1% in value this year due to uncertainty over the closing of the deal, compared with a 6.5% rise in energy share fund XLE. Exxon, CNOOC Ltd., Hess’s partners in the joint venture in Guyana, have challenged the deal, claiming the right of first refusal on any sale of Hess’s Guyana assets.
Min says that seismic work will begin on gas fields shared between Trinidad and Venezuela.
Stuart Young, Trinidad and Tobago's energy minister, said on Facebook on Friday that seismic work is expected to begin in the next few days at the offshore gas fields shared between Venezuela and Trinidad and Tobago. Venezuela issued a license in July allowing for the development of the Cocuina Field, its side of reservoir. In early 2014, the U.S. also approved this project. It will be developed by Britain’s BP and Trinidad’s National Gas Company. Cocuina and Manakin, whose Venezuelan part belongs to the Plataforma Deltana offshore gas project, which is currently idle, have 1 trillion cubic feet in proven reserves of gas.
Will Buffett's put' on oil company Occidental stop the share price drop?
Shares of U.S. oil company Occidental Petroleum dropped to $56.17 Tuesday. This is below the level which has triggered Berkshire Hathaway, owned by billionaire Warren Buffett. Wall Street analysts referred to past multimillion-share purchase as "the Berkshire Put" because they were timed so precisely with drops below $60. But Occidental's shares have traded below this price for the entire month. This is the longest period of time since a swoon that began in January and ended when Berkshire bought 4.3 million stocks in early February. Analysts said that the lack of purchases could be due to Omaha, Nebraska investor's choice not to increase his stake by nearly 30%.
Exxon Secures Lead in top US Oilfield with $60B Buy of Shale Rival Pioneer
Exxon Mobil agreed to buy U.S. rival Pioneer Natural Resources in an all-stock deal valued at $59.5 billion that would make it the biggest producer in the largest U.S. oilfield and secure a decade of low-cost production.The deal, valued at $253 a share, combines the largest U.S. oil company with one of the most successful names to emerge from the shale revolution that turned the U.S. into the world's largest oil producer in little more than a decade.Exxon Chief Executive Darren Woods said in a media briefing the combination provides a big opportunity for synergies between the companies."We basically closed this deal fairly quickly…
US Energy Firm Payouts to Oil Investors Top Exploration Spending for First Time
Top U.S. energy companies last year paid out more of their earnings to shareholders than they invested in new oil and gas fields for the first time, according to a report released on Tuesday.The outlook for stronger energy prices has not changed the focus on investor returns from the U.S. industry, according to the report's authors, Ernst & Young LLP. U.S. energy companies have been focused on regaining favor with investors after years of overspending on production growth hurt returns and put them in the doghouse.The returns focus has lifted the energy sector to about 4.5% of the S&P 500's market valuation…
Biden to Target Drilling, Fossil Fuel Subsidies in New Climate Orders
President Joe Biden was set on Wednesday to sign executive actions to combat climate change, including pausing new oil and gas leases on federal land and cutting fossil fuel subsidies as he pursues green policies in stark contrast to those of his predecessor Donald Trump.The orders map out the direction for the Democratic president's climate change and environmental agenda and mark a reversal from Trump, a Republican businessman-turned-politician who sought to maximize U.S. oil, gas and coal output by removing regulations and easing environmental reviews.Biden's focus on climate change has cheered international partners and environmental advocates…
When Oil Became Waste
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 the United States with so much oil there was nowhere to put it.While the unusual circumstance of negative oil prices may not be repeated…
U.S. Oil Firms Hit Brakes on Return-to-work as Virus Cases Soar
U.S. energy companies slammed the brakes on returning staff to their Houston offices as COVID-19 cases soared and top hospitals warned they could soon run out of beds for the most severely ill patients.A record number of new illnesses in Texas this week spurred local officials to impose restrictions as new cases topped 5,000 on two days in a row. Intensive care unit (ICU) beds were 97% full at Houston's Texas Medical Center, which said it may soon move to surge ICU capacity assignments, officials said.Texas Governor Greg Abbott has led a phased reopening of shops, bars and amusement parks from May 1, and businesses have rolled out their own office restarts.
Exxon Posts First Loss in 30 Years on $3 Bln Writedown, Oil Plunge
Exxon Mobil Corp on Friday posted its first quarterly loss in three decades on plunging oil demand and collapsing prices, reporting a $610 million quarterly deficit after a nearly $3 billion inventory writedown.Global fuel demand has tumbled by a third on coronavirus-related lockdowns and business shutdowns. Oil giants largely have reported losses on weaker margins and writedowns from an oil glut that has sent prices to historic lows.All of Exxon's businesses posted lower year-over-year profits or wider losses on declining prices and margins.Despite a deep spending cut and its first quarterly loss since 1988…
Offshore Oil Wells, Ports Shut as Hurricane Sally Advances on U.S. Gulf
Energy companies, ports and refiners raced on Monday to shut down as Hurricane Sally grew stronger while lumbering toward the central U.S. Gulf Coast, the second significant hurricane to shutter oil and gas activity over the last month.The hurricane is disrupting oil imports and exports as the nation's sole offshore terminal, the Louisiana Offshore Oil Port (LOOP), stopped loading tanker ships on Sunday, while the port of New Orleans closed on Monday.The U.S. government said 21%, or nearly 396,000 barrels per day (bpd), of offshore crude oil production and 25%…
Investors on Board as U.S. Oil Majors Dismiss Wind and Solar Projects
Top U.S. oil firms are doubling down on drilling, deepening a divide with European rivals on the outlook for renewables, and winning support from big investors who do not expect the stateside companies to invest in wind and solar. Among a dozen U.S. fund managers contacted by Reuters from companies overseeing about $7 trillion in assets, most said they prefer oil firms to generate returns from businesses they know best and give shareholders cash to make their own renewable bets. With oil and gas prices jumping this year, the U.S. oil majors mostly have delivered higher returns and achieved better earnings multiples and dividend yields than rivals…
