Latest news with #oilindustry
Bloomberg
13 hours ago
- Business
- Bloomberg
Chevron Cut 575 Positions as $53 Billion Hess Takeover Closed
Chevron Corp. cut 575 jobs in the Houston area on the same day it completed the $53 billion takeover of Hess Corp. The reductions were handed down on July 18 and take effect Sept. 26, according to a filing with the Texas Workforce Commission on Wednesday. Chevron formally closed on its acquisition of Houston-based Hess at the end of last week.
CTV News
2 days ago
- Business
- CTV News
Alberta landowner files conflict-of-interest complaint against Danielle Smith appointee
An Alberta landowner dealing with an orphan gas well on his property wants an investigation into an oil industry insider and advisor to Premier Danielle Smith. David Yager led the creation of a controversial strategy that would shift the burdens of oil and gas well clean up from industry to the public, while also working as an industry consultant. Yager is a long-time oil and gas industry insider who has worked as an executive for a handful of oilfield companies, including Tesco Corporation, which he founded. Yager's business website offers consulting services for the oil and gas service industry. At the same time, he is sitting on the board of the Alberta Energy Regulator and acting as a 'special advisor' to Premier Danielle Smith. The complaint, filed to the Ethics Commissioner by Ecojustice on July 22, alleges Yager's role in the creation of the controversial Mature Asset Strategy violated the Conflict of Interest Act. 'He can't have all those roles at the same time,' Susanne Calabrese, staff lawyer at Ecojustice, said in a phone interview with Canada's National Observer. 'In our opinion, it's impossible to represent the interests of a part of the government, an independent regulator, private companies and then the public, all at the same time.' Reached by phone, Yager declined to comment on the complaint. Canada's National Observer received an unattributed, emailed statement from the Office of the Minister of Energy and Minerals defending Yager's appointment. 'Mr. Yager has been contracted to work with the Government of Alberta based on the unique skills and experience he brings from a long career in the oil and gas sector, as well as the valuable perspective he brings to significant issues relating to the energy sector,' the statement read. It referenced his over 50 years of experience in upstream oil and gas and time as founder, executive officer and director of three publicly traded oilfield service companies 'specializing in wellbore construction, completion, remediation, abandonment, production optimization, regulatory compliance and the physical protection of workers, assets and the community.' The statement did not directly address the complaint, which at the time of correspondence had not yet been filed to the Ethics Commissioner. Ecojustice said the complaint is expected to be filed on Tuesday. 'We didn't know if it's leaking' Dwight Popowich has been fighting for nearly eight years to clean up an inactive, orphaned gas well on his property, about a quarter mile from his house. A few months ago he managed to get the well designated as an orphan well through the industry-funded Orphan Well Association, which is supposed to trigger a clean up process, but was told it will be 10 to 12 years before it is reclaimed. He filed the complaint almost four months after the strategy to deal with aging oil and gas infrastructure was released and widely criticized by landowner associations, environmental groups and the Rural Municipalities of Alberta. 'How is this protecting my rights? It's like my rights are totally ignored as a landowner, as a taxpayer,' he told Canada's National Observer in a phone interview. 'When you sit on the Alberta Energy Regulator board you're supposed to be independent from government. Well, how is he independent from government and he's a special advisor to the premier at the same time?' Popowich said. Popowich said the well has thrown a wrench in his plans to sell the property because no one wants to buy a liability. And if the gas well on his property is leaking he would never be the wiser because it would be colourless and odorless and require someone with special equipment to detect. 'These are industrial sites. They have dangerous vapors coming off of them. Some of them are explosive, some of them are poisonous, some of them are both,' Popowich said. 'We didn't know if it's leaking, if it's safe.' Billions in liabilities Alberta is littered with defunct oil and gas wells. The Mature Asset Strategy estimated there are 274,215 well sites that have not been reclaimed. Of those, about 101,000 are classified as 'marginal,' meaning they currently produce very little oil or gas and are on the way out. Some are 'abandoned' and sealed off with concrete, while others are left unplugged and called 'orphaned' wells because no company is legally responsible for cleaning them up. Though estimates vary, the cost to deal with all these wells is astronomical. The Alberta Energy Regulator has clean-up billed at about $36 billion while a 2023 research paper from the School of Public Policy estimates current liabilities are at least $60 billion. To deal with the problem, Alberta commissioned the creation of the Mature Asset Strategy, led by Yager, which was developed through months of closed-door discussions with oil and gas companies and other stakeholders. Of the 98 participants consulted on the strategy, at least 50 participants were from the oil and gas industry, with another 10 participants referred to as technical and engineering. No participants from environmental groups or landowner or citizen groups are listed. Three were listed as Indigenous 'Ministries/Organizations/Representatives.' The Rural Municipalities of Alberta, which participated in the process, criticized the report as focusing too much on recommendations that benefit industry, with little regard for impacts on municipalities, landowners, the environment and the broader public interest. The recommendations are vague but there is a common 'narrative of lessening environmental standards,' Calabrese said. For example, one of the recommendations in the strategy suggested existing defunct oil and gas well sites could be outfitted with solar panels instead of undergoing full reclamation, saying this arrangement would deliver 'both environmental and economic benefits.' 'When we look at the whole process, we realize that the whole thing probably had a predetermined outcome before it was even started,' Popowich said. 'A flawed process, potentially tainted by conflicts of interest, leads to a flawed product,' Calabrese said. 'We're really concerned that the public did not get what they paid for with a Mature Asset Strategy because of all these conflicts of interest, and that's why we want the ethics commissioner to look into this matter.' 'This is their circus; this is their monkeys' All of this runs counter to the polluter pays principle, which states companies should bear the cost of cleaning up their messes, not taxpayers, Popowich said. Oil and gas companies are notorious for not paying taxes to municipalities and this is another key issue critics say was not adequately addressed in the strategy. Landowners like Popowich are supposed to be paid a land lease by the company operating on their land, but if a company goes bankrupt the payments stop and landowners have to apply to the government to receive the money. The result? Alberta taxpayers pay millions of dollars in these failed land lease payments, Calabrese said. 'This was created by the industry. This is their circus; this is their monkeys. We should have nothing to do with this,' Popowich said. Yager was hired to do this work, and previous work, through a series of four sole source contracts with the government of Alberta and the complaint asks the ethics commissioner to investigate this for possible violations of Alberta's procurement and sole course contract policy. Yager's website says he encouraged Smith to run for leadership of the Wildrose Party in 2009 and boasts he was the top fundraiser for her leadership bid that year. 'It's very interesting that after she was sworn into office only a few months later he's then had four back-to-back sole source contracts awarded,' Calabrese said. Yager's first contract in 2023 was $60,000 for 'Advisory Council on Alberta's Energy Future'; the report was never made public. Later that year he was awarded a $70,000 contract to complete a review of the AER. In 2024, he received $136,000 for 'Professional Services' and this year saw him awarded $156,000 for 'Advisory Services' thought to be related to the Mature Asset Strategy, according to the Ecojustice complaint. If the ethics commissioner decides to investigate Popowich's complaint it will eventually submit a report with its findings to the Speaker of the Legislative Assembly with recommendations on what should happen next, Calabrese explained. By Natasha Bulowski, Local Journalism Initiative Reporter, Canada's National Observer
Free Malaysia Today
2 days ago
- Business
- Free Malaysia Today
Embracing change: Petronas steps boldly into the future
PETRONAS has risen to new challenges such as environmental concerns and price fluctuations caused by armed conflicts on both the local and global fronts. (Reuters pic) PETALING JAYA : On June 5, 2025, national oil corporation Petroliam Nasional Bhd (Petronas) announced that it would focus on a company-wide transformation effort aimed at adapting to difficult market conditions. The move is part of the company's strategic shift towards what it calls 'Petronas 2.0', which will involve changes in structure, organisation, and work processes to pave the way for greater agility and success, empowering the company to thrive in an ever-evolving landscape. On the same day, the Brent crude opened at US$64.91 per barrel before reaching an intra-day high of US$65.86. Less than two years ago, in September 2023, the commodity was averaging US$93.72 per barrel. But that was not solely the reason for Petronas' decision to downsize — or 'rightsize' as it is referred to now. To understand why Petronas and other O&G players around the world are reviewing or restructuring their operations, FMT takes a look at the many new challenges that the industry has come to face. Global challenge Apart from Petronas, other oil companies such as Chevron and Shell are also reducing their respective workforce as part of a restructuring exercise. Early this year, Chevron announced a 20% cut in its workforce, a move that will see 9,000 employees leave the company by the end of 2026. Bloomberg reported that the job cuts were 'intended to streamline operations, reduce costs by US$2 billion to US$3 billion by 2026, and to improve efficiency'. Just a few months earlier, Shell announced that it would embark on a similar track that will see its workforce shrink 20% and cut costs also by US$2 billion to US$3 billion come end of 2025. The pain points The restructuring exercise, which includes job cuts, is unavoidable given the market volatility, coupled with environmental concerns, regulatory hurdles, and technological progress. Geopolitical events, including armed conflicts in the Middle East and Ukraine, have caused havoc in demand and supply, creating uncertainties and leading to a drop in prices. For instance, the Iran-Israel conflict has resulted in sharp swings in oil prices, with the Brent crude hitting a five-month high of US$81.40 a barrel after the US bombed nuclear sites in Iran, before dropping back to US$69 on news of a ceasefire. Margins have also begun to thin, not just as a result of falling prices but other factors as well. In mature fields, the sought-after product is often trapped in more complex geological formations, making extraction more complex and, therefore, costly. The cost of extracting a barrel of oil from older fields can be as high as US$50, making it unsustainable to keep these fields in production as market price comes down. Higher operating costs in mature fields are not the only reason that margins are thinning. Petronas is also heavily involved in deepwater projects. It already has fields in areas such as Gumusut-Kakap, Malikai, and Kikeh off the Sabah coast, and is developing new ones in Limbayong and the Kelidang Cluster, also off Sabah. Elsewhere, the national oil corporation has also expanded its involvement in deepwater projects in Suriname. Deepwater projects typically involve extraction from depths of 4,000 feet (1,219m) to 7,000 feet (2,134m) below sea level. The challenging conditions in deep and ultra-deep waters require specialised technology and infrastructure, pushing production costs higher. Petronas' active involvement in sour gas projects, particularly off the coast of Sarawak, presents another challenge. The high level of contaminants such as hydrogen sulfide and carbon dioxide makes it highly costly to process the gas. All these factors lead to higher operational costs, making it essential for the oil corporation to cut back in other areas to stay in business. The environmental factor The rising concern for Mother Nature is perhaps the biggest challenge for O&G companies. Oil, once the fuel that fired economic growth, is now regarded as the cause of all the ills of the environment. The cause of air and water pollution as well as deforestation that leads to global warming are attributable to the widespread use of fossil fuels. Oil producers around the world are being forced to make the transition to clean energy to meet more stringent green regulations. In Malaysia, Petronas is duty-bound to help the country migrate to clean energy under the National Energy Transition Roadmap (NETR). The NETR entails reducing the country's carbon footprint to take the economy on a more sustainable path. This involves investing billions of ringgit in renewables to secure the country's future energy needs. The need to reinvent It is time to stop looking at the O&G sector in general and Petronas in particular through rose-tinted glasses. Many oil companies, such as ExxonMobil, Shell, Chevron and TotalEnergies have all reported decline in profits since 2022. Petronas is no exception. Its profit has been on a steady decline, from RM101.6 billion in 2022 to RM80.7 billion in 2023 and then to RM55.1 billion in 2024. CEO Tengku Muhammad Taufik Tengku Aziz envisions a new path going forward and, among others, work processes will change. 'We will be more technologically driven, leveraging artificial intelligence (AI) and the digital ecosystem to unlock value and raise productivity,' he said. He pointed out that digital transformation could help businesses uncover new opportunities for value creation and productivity gains, while streamlining operations and reducing inefficiencies. 'AI-driven analytics enable data-driven decision-making, better risk management, and enhanced the ability to predict and respond to market shifts,' Tengku Muhammad Taufik said. 'This enables the organisation to remain agile, competitive, and well-positioned for the challenges of the evolving energy landscape,' he added. The rightsizing exercise will improve operational resilience and agility, where the workforce matches the company's strategic needs. Turning leaner and more cost-efficient will ensure that Petronas continues to pay dividends to the government to help Malaysia narrow its budget deficit and reduce reliance on broad-based subsidiaries. By trimming the non-essential roles, Petronas can also reinvest resources in sectors that are poised for growth, such as liquefied natural gas (LNG), downstream value chains including petrochemicals and lubricants, and low-carbon solutions like blue ammonia and carbon capture and storage (CCS). Looking ahead In the final analysis, the rightsizing exercise is unavoidable. In an environment of narrowing profit margins and a fast-shifting global energy market, strengthening the national oil company will bring long-term benefits for Malaysians. It must be pointed out that Petronas's financial position remains solid. Nonetheless, the rational thing to do is to act now, while the company is still profitable, rather than wait until painful steps such as pay cuts and retrenchment have to be taken. In addition, the company needs to streamline processes and reduce the number of layers to make it more agile. Rightsizing is the right thing to do.
Bloomberg
3 days ago
- Politics
- Bloomberg
Putin Orders FSB to Vet Ships Entering Russia Ports After Blasts
President Vladimir Putin has tightened rules for ships entering Russian sea ports from abroad, giving the nation's main security service a bigger role following a series of mysterious blasts on oil tankers. Starting July 21, the entry of vessels coming from foreign sea terminals is only possible with permission from a port captain, as agreed upon with the Federal Security Service, or FSB, according to a presidential decree published on Monday. The document was signed in accordance with Russia's martial-law regulation.
Yahoo
3 days ago
- Business
- Yahoo
BP appoints former CRH boss Albert Manifold as new chairman
BP has named the former boss of building materials firm CRH as its incoming chairman, replacing Helge Lund after a difficult past few years in the role. Albert Manifold, who was chief executive of CRH for 10 years until last December, will join the oil giant as chairman-elect on September 1 before taking over as chairman on October 1. Mr Lund had announced plans in April to step down 'in due course', but the group said it would probably take until 2026 to find his successor. Shares in BP lifted 1% in early morning trading. Aviva chief executive Dame Amanda Blanc, BP's senior independent director who led the hunt for Mr Lund's successor, said Mr Manifold was 'the ideal candidate to oversee BP's next chapter'. She said: 'Albert has a relentless focus on performance which is well suited to BP's needs now and into the future. 'He transformed and refocused CRH into a global leader.' CRH, which has its headquarters in Ireland, switched its stock market listing from London to New York in 2023 and has since seen its share price rocket by 74%. Speculation has swirled over whether BP will move its London listing to Wall Street after activist investor Elliott Management built up a stake in the group. But BP chief executive Murray Auchincloss has previously dismissed the rumours, saying in April the group had no plans to change its listing. Mr Lund has been chairman since 2019, but he has presided over a more challenging past few years for the firm. He oversaw the hiring of former chief executive Bernard Looney, who quit in September 2023 after failing to disclose his past relationships with company colleagues. Mr Lund also played a key part in overseeing the group setting its net zero agenda, but the firm has since rowed back on the shift towards green energy. BP bowed to pressure from shareholders by vowing to accelerate investment in oil and gas while slashing renewable spending by nearly three-quarters. In a major rebuttal for a FTSE 100 company, Mr Lund received a near 25% vote against his re-election at the firm's annual general meeting in April. Ahead of the AGM, a group of 48 institutional investors had criticised the board for not offering a direct vote on the oil major's revised strategy, while environmental groups fiercely criticised the climate row-back. The vote was largely seen as a protest, as Mr Lund had already announced his departure at the time of the AGM.
