Total Needs to Cover $12 Billion Shortfall due to Crisis, CEO Says
French energy major Total now faces a revenue shortfall of at...
French energy major Total now faces a revenue shortfall of at least $12 billion due to the crash in oil prices, CEO Patrick Pouyanne said May 29, one-third higher than its previous forecast made two months ago.
Total announced a plan in March to find cost savings, saying it said it expected a revenue shortfall of about $9 billion due to the crisis in the oil market. Pouyanne’s comments May 29 indicate it will have to make more far-reaching cost cuts.
Total had expected the oil price to be about $60 per barrel this year, but as the price is now about $30, it will leave the company with a much bigger shortfall, Pouyanne said.
“It is globally at least $12 billion that we believe we must cover through our action plan due to the crisis,” he said during a shareholders’ general assembly meeting.
BP Plc said May 28 it tapped David C. Lawler to serve as the next chief of BP...
BP Plc said May 28 it tapped David C. Lawler to serve as the next chief of BP America Inc., where he is expected to lead the British oil major’s efforts in the U.S. to become net-zero by 2050.
As chairman and president of BP America, Lawler will become BP’s chief representative in the U.S., where the company has a larger economic footprint than anywhere else in the world. BP’s U.S. businesses currently employ around 13,000 people.
Since 2014, Lawler has served as CEO of BPX Energy, the company’s U.S. Lower 48 onshore business. Under Lawler’s leadership, BPX Energy developed oilfield infrastructure to lower operational emissions that eventually eliminated routine flaring in the Permian Basin, according to the company release.
Prior to joining BP in 2014, Lawler served as COO of Oklahoma City-based SandRidge Energy Inc. Before that, he led PostRock Energy Corp., another independent Oklahoma producer, as its CEO and president. He also spent the first part of his career working for major integrated oil and gas companies, including Royal Dutch Shell Plc for 10 years.
Interest in tankers for hauling US crude oil has increased lately, with several companies, including...
Interest in tankers for hauling US crude oil has increased lately, with several companies, including Equinor, BP and Trafigura, making provisional bookings in the past week, according to shipping data. About six vessels are due to be loaded from the US Gulf Coast in June.
“Vessel freight rates have been coming down over the last couple of weeks which is re-igniting interest in export opportunities,” said Andy Lipow, president of consultants Lipow Oil Associates. He said demand in China and India is expected to keep rising as the countries contain the spread of COVID-19.
The Energy Information Agency (EIA) reported a crude oil inventory increase of 7.9 million barrels for the week to May 22. Fuel inventories posted mixed results, with gasoline down and distillate fuels up.
This compares with an inventory draw of 5 million barrels a week earlier and analyst expectations for a draw of 2.5 million barrels.
In contrast, the API reported late Wednesday a large crude oil inventory build, of 8.731 million barrels for the week ending May 22. Analysts were looking for an inventory draw of 2.50 million barrels.
Chevron plans to lay off 10% to 15% of its 45,000-strong global workforce as part of a restructuring plan designed to respond to adverse market conditions and reduced activity levels. Chevron this month said it would reduce planned U.S. shale output by about 125,000 bpd.
ExxonMobilplans no job cuts but will slash 2020 spending by 30%. Both companies have outlined deep cuts in investments in the Permian shale basin, the top U.S. oilfield where growth in recent years made America the world’s top oil producer and a net exporter for the first time in decades.
