#oil

Any old timers know why EM is so reluctant to be a player in deepwater GOM?

Previously I did 1 year coop at imperial oil in 2023-2024. Now as many people have resigned. They are offering me a position in Edmonton.

Any views? Honestly what their future plans will they layoff again in 1-3 years?

Honest views required

Apache has been approached by several large public and a Malaysian NOC with the intent to sell or farm down Apache interest in Block 58. Given Apache is varied by TFE until first oil will TFE have first right of refusal?

https://www.trefis.com/stock/xom/articles/603827/exxon-saves-billions-but-margins-still-cut-in-half/2026-06-22

https://www.bloomberg.com/news/articles/2026-06-26/exxon-s-top-us-gas-trader-to-join-expand-as-exits-hit-oil-giant?accessToken=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJzb3VyY2UiOiJTdWJzY3JpYmVyR2lmdGVkQXJ0aWNsZSIsImlhdCI6MTc4MjUwMDAxOSwiZXhwIjoxNzgzMTA0ODE5LCJhcnRpY2xlSWQiOiJUR1M3M01LSkg2VjQwMCIsImJjb25uZWN0SWQiOiI2MjMxN0M4NTg0RDE0OEZFODM2NEE2M0Q5QkFBMTU3OCJ9._OCGug4MNVOXOBtcdW62UbrdaZ78aG1wIZnGnoDa6gw&leadSource=uverify%20wall

There are a lot of murmurs at the C suite about direction of oil & gas and specifically Oxy’s place in that space. Its evident that the Anadarko purchase poorly positioned OXY as a specialist player (Top onshore, EOR and ME partner of choice) and significant energies, focus, and capital deployed to run and maintain the GoA offshore assets. Predicting that once oil stabilizes at $60 ish a barrel some company altering transformations are about to take place…

The global economy now uses roughly half as much energy per dollar of output as it did in 1980, helping cushion oil shocks.

Read more in F&D magazine.

https://www.imf.org/.../2026/06/picture-this-shock-absorbers

Oil prices have risen sharply with the latest war in the Middle East, reviving memories of the 1970s. The effective closure of the Strait of Hormuz, a route for about a quarter of seaborne oil trade, represents a major global supply shock. The damage will depend largely on how long the disruption lasts. Oil markets were well supplied heading into the disruption, strategic stock releases added barrels, and buoyant financial markets helped limit broader tightening in financial conditions.

Beyond these immediate buffers, two structural factors have also cushioned the blow. First, the world economy is far more energy efficient than it was 50 years ago. Each dollar of output now requires roughly half as much energy as it did in 1980.

Second, the energy system is more diversified. Oil’s share of the mix has fallen from about half in 1973 to less than a third today. Oil remains the world’s leading fuel, but it no longer dominates.

Even so, these cushions do not protect countries from pain evenly. Ultimately, the severity of the shock at the country level depends on two things: how much oil an economy imports and how much policy space its government has to respond. More than 80 percent of countries are net oil importers, and the most vulnerable entered this episode with limited room in public budgets to shield households and businesses. That is why the same global shock can become a much harsher national one where import dependence is high and policy space is thin.

3 weeks ago they warned of $140+ oil. Now we sit at $70.

Many people outside the oil industry believe oil prices will decline rapidly once the Strait reopens and remain low in the coming years. However, the CEO of global oil giant Shell (NYSE:SHEL) has a different view. He expects oil prices to continue rising long after the war ends.

Ideas? What happens to Shell’s 8 year reserve life?

Apaches how’s the vibe now? You had 100 days to feel empowered and successful…now the man behind the curtain needs to drop trousers (oil price) so the midterms don’t destabilize the wizard of Oz.

What’s break even now? Can Apache continue nickel and dimming its vendors?

I know there should be no surprise with the price of oil dropping, but Shell stock is tanking. I thought the company would have been doing better after all of the massive layoffs, divestments and stock buy backs. Have they gone too far?

WTI at 80

It’s looking competitive for Woodside as its assets are perfectly aligned with Shell

Megs ears are ringing right now. BP shares a lot in common with Woodside. Much more than XOM does. But, it would be viewed as a conflict of interest. But, Meg at BP this went away.

How many more oil companies will be left after this consolidation phase?

They do not have to give a 45 day notice to smaller buildings unless they have more than
100 employees. Apparently the goal is most of the 27 closings will happen by the end of Q2. But since that announcement gas prices have gone thru the roof along will engine oil prices/shortages. Would not be surprised if the number goes up past 27.

It’s now evident that the XOM’s Permian factory has reached an inflection point and starting to experience technical and operational challenges. Please share your experiences and potential outcomes.

Will XOM make another purchase? Who and when? Certainly missed the last opportunity and now candidate companies are overvalued by +66%.

How long will XOM maintain a +22 rig line? It’s cheaper to buy production then it is to develop your own acreage.

Here's the link to a very detailed article from the UK Daily Mail regarding the current state of affairs:-

www.dailymail.com/news/article-15878351/amp/GUY-ADAMS-BP-death-British-oil-giant-war-fossil-fuels.html

Today marks day one for me posting a critical issue / incident about bp.

DWH: Andy inglis required an announcement on a large oil discovery to continue the success story of bps deep exploration in GoA. As he often did he made a couple of calls ahead of the quarterly results to get that well done and announce success, result DWH

Looking like the sacred cow Guyana is starting to Plateau hard.

904,000bopd in May. Still impressive and above design capacity production but, some challenges are imminent.

Lisa will shortly be sub 100,000 bopd and expecting average Aug production to be south of 866,000 bopd.
At this point forecasting a -200 bopd drop every single day…
This will raise alarms in the God Pod where additional water injection will be coupled to the system. The 4 FPSOs reached Peak in May…now it’s a daily drop until the next FPSO added.

BP has finally realized that the UK North Sea sector is unsustainable and needs to divested and/or decommissioned. UK taxation authorities have made investment and upkeep untenable with a 78% tax rate. The asset condition are atrocious and will negatively impact BP permit to operate.
BP needs to to leave the UK while its easy.

Apache is producing more oil with the least amount of people in its history. What’s next for Apache? Any more consolidation or reverse mergers? BTW Repsol bailed from its reverse merger but it could have capitalized a 15 dollar a share profit and also had 4 Billion in Abandonment liability

Congrats on the Exxon farmin. Offsets APC Guyana acreage that has been in force majeure for years . Also remember it had a high gas risk associated with it.

Now that the shale plays are end of life (cheap easy oil), COP will have to look elsewhere for the next value play. Where? Venezuelea, Alaska(NPR), Nuclear?, Solar? Where?

Survivors, how many of you are interviewing and applying somewhere else to take advantage of the higher commodity price. My guess is 50% or more of the company is at this point.

A lot of other companies are hiring and I don’t believe the “transformation is complete” narrative.

Any thoughts on this from the audience?

I keep waiting for the other economic shoe to drop...

Important points in summary. Link to full article at end.
"Strategic petroleum reserves have been released, commercial inventories have been drawn down."
In plain terms, the world has been living off its emergency stockpiles." "And even after the Strait reopens, he cautioned against expecting an immediate return to normal.
Ships need to be repositioned, and a backlog of cargoes needs to be worked through the system.
Transit times add days or weeks to the time before the product actually reaches consumers.
'We're thinking there's going to be a 1- to 2-month time lag between the Strait opening up and the market seeing normal flow,' Woods said."
** "Beyond that, governments and buyers that have drawn down reserves will need to restock."

https://sg.finance.yahoo.com/news/exxon-ceo-delivers-blunt-message-171700095.html?guccounter=1&guce_referrer=YW5kcm9pZC1hcHA6Ly9jb20uZ29vZ2xlLmFuZHJvaWQuZ29vZ2xlcXVpY2tzZWFyY2hib3gv&guce_referrer_sig=AQAAAJW9Mbl8zOro2hAcbaqvhG_qkfO-dIcOcukIRrgwuT2n_RZNCb9aoEzLm0WATYTmh9YdbRFySH7bCriqyBkUdXU02e6M73w0FZNocWTtupHG6wP_AMzfOuROG7LYRnloKBGsMNhzXepJg2mJWNdcAR0yr21csNMyv6k_yeiB6hq_

If you're getting transferred, laid off or have proof other people are, please reach out:
rachel.nostrant@houstonchronicle.com

I'm the oil and gas reporter, trying to keep an eye on how many people might be affected.

That Oxy stock was on the way up. Down 6% in early morning trading..$55... If the stock drops back into the $40's again, you are waist deep in alligators. Aunt Vickie isn't here to look after you.

Oh dear, the curse of The Economist's oil cover:

"... Why oil prices are not yet high enough..."

You know what that means, don't you? They have been wrong every.single.time.

So, now we can assume that is certain that the prices will go down.

https://www.economist.com/leaders/2026/04/30/oil-markets-are-still-in-la-la-land

This is random but a good read for new folks, not the best forum for this post but since we do not have an alternative one here it goes, hope it helps someone. Folks that have been around the block a while should skip this thread:
https://www.construction-physics.com/p/how-an-oil-refinery-works

Just wondering when will Apache shutdown their North Sea assets and what is the projected cost to decommission? Will they pull a Field Wood style bankruptcy to offload the North Sea assets back to BP?

Oil major will cut investment over next five years from $30bn to $20bn

Maxine Kelly and Martha Muir in London

PublishedDec 9 2025

UpdatedDec 9 2025, 13:21

Please use the sharing tools found via the share button at the top or side of articles. Copying articles to share with others is a breach of FT.com T&Cs and Copyright Policy. Email licensing@ft.com to buy additional rights. Subscribers may share up to 10 or 20 articles per month using the gift article service. More information can be found at https://help.ft.com/faq/gifting-and-sharing-an-article/what-is-a-gift-article/.
https://www.ft.com/content/dc0f4207-7eb3-482d-8f28-e2b15ed07e9f?syn-25a6b1a6=1

ExxonMobil said it would slash planned spending on low-carbon projects by a third, as oil majors pare back clean energy initiatives and pivot back to fossil fuels.

The Texas-based company, the largest US oil producer, also said in a strategic update on Tuesday that it planned to lift earnings and cash flow by $5bn by 2030, with no increases in capital spending.

Exxon said spending on low-carbon initiatives would be cut to $20bn over the next five years, down from about $30bn previously. The company also recently paused plans for a $7bn hydrogen plant in Baytown, Texas, citing low customer demand.

Some of the world’s biggest oil and gas companies are pulling back from low-carbon projects and returning their focus to fossil fuels, amid expectations that oil demand will remain more resilient and that the green transition will take longer than anticipated.

President Donald Trump has made the promise of abundant, cheap oil and gas a key pillar of his second term and pledged to “export American energy all over the world”.

UK oil major BP in February reversed its push into clean energy to refocus on fossil fuels, with chief executive Murray Auchincloss saying the company went “too far, too fast”. It also shelved plans for its hydrogen and carbon capture scheme in north-east England.

Shell also scrapped a 2021 commitment to let oil output fall by 1 per cent to 2 per cent a year until 2030 and wrote down the value of its $1bn wind business. However, other companies such as TotalEnergies have continued to invest in their renewables arms.

The interior department will on Wednesday hold a lease sale for 80mn acres in the US Gulf, as mandated by Trump’s signature tax and spending bill, which analysts at TD Cowen expect to attract interest from Shell, BP and Chevron.

Exxon has four upcoming sites in Guyana due to start production by 2030, as well as final investment decisions on natural gas projects in Papua New Guinea and Mozambique.

Exxon’s chief executive Darren Woods told the Financial Times last month that assumptions the company made when setting its previous goals for spending on low-carbon projects had not been met, blaming disappointing customer demand and government policies.

Exxon on Tuesday said it expected $25bn in earnings growth and $35bn in cash flow growth by 2030 compared with 2024 on the same constant-price and margin basis, a $5bn improvement on its previous plan.

This reflected the company’s “stronger contributions from advantaged assets, a more profitable business mix and lower operating costs”, Exxon said.

The company also announced its chief financial officer, Kathy Mikells, will retire from February 2026 and be replaced by Neil Hansen, Exxon’s president of global business solutions.

https://www.ft.com/content/dc0f4207-7eb3-482d-8f28-e2b15ed07e9f?syn-25a6b1a6=1

The IEA has advised workers to work from home due to the oil shortages that have started and will soon be getting worse. Will Elevance Health’s CEO acknowledge this new reality by removing the silly in-office requirements?

https://www.theguardian.com/business/2026/mar/20/oil-price-energy-watchdog-iea-emergency-measures-work-from-home-slow-down-on-the-road

Exxon Scientists Had Doubts About Algae Biofuels. The Oil Giant Touted Them Anyway.
Some of the company’s scientists didn’t agree with the way the project was presented to investors.

https://www.wsj.com/business/energy-oil/exxon-algae-biofuels-83c6b302

ProFrac Services, LLC is laying off 157 workers at its Vernal, Utah oil field. The company disclosed this mass layoff in a WARN notice on March 27. The layoffs are scheduled to start May 26, citing a significant downturn. ProFrac also noted a loss of business revenue and internal reorganization. The company told employees they could apply for other jobs and some positions might be retained.

Vernal, Utah

https://www.sltrib.com/news/2026/04/18/vernal-oilfield-plans-lay-off-more/

What triggers and when will Shell nominate a new CEO?

An oil industry CEO is typically fired when they fail to balance the "iron triangle" of shareholder returns, operational discipline, and strategic pivots.

Common Triggers for Dismissal:

Capital Indiscipline: Overspending on new drilling or expensive mergers that don't immediately boost the share price.

Activist Pressure: Investment groups (like Elliott Management) demanding a return to "traditional" business models and simpler corporate structures.

Safety or Environmental Scandals: Major leaks or safety failures that result in crippling fines and "brand-ki-ling" headlines.

Operational Stagnation: Falling behind competitors in integrating new technologies.

Exxon pulls offer to sell two initial Golden Pass LNG cargoes - Reuters

Exxon Mobil (XOM) has withdrawn an offer to sell two initial cargoes of liquefied natural gas from its Golden Pass export plant in Texas that has been in the process of starting up operations, Reuters reported Thursday.

Today Trump acknowledged fuel costs would not decrease until November, if even then.

Halliburton has recently been cutting staff again. Sources indicate these reductions are due to increasing costs and lower crude oil prices. Some workforce reductions occurred over the past several weeks. Three business divisions reportedly lost between 20% and 40% of their employees. Halliburton did not respond or comment on these claims.

https://www.southwestledger.news/news/halliburton-cutting-its-workforce-again

Chevron is laying off 111 workers in North Dakota. These cuts follow Chevron's acquisition of Hess Corp. The layoffs affect 63 employees in Minot and 48 in Tioga. Chevron completed its merger with Hess on July 18. The company cited efficiency and lower oil prices as factors.

Minot, North Dakota; Tioga, North Dakota

https://www.journalnd.com/articles/journal-news/hess-new-owner-cutting-48-jobs-in-tioga-63-in-minot/

U.S. Iran War -

• Israel struck earlier today.

  This is after the "Ceasefire".

• The U.S. Iran War is (far from over due to the ongoing hostilities between Israel-Iran).

  At 1:00pm CST (today), Iranian drones struck the Saudi Arabian East-West pipeline.

• Reported by oilprice, this (was) the (7-million barrel a day go around) for the Hormuz Strait (which is now essentially closed).

U.S. Economy - LEI - Leading Economic Index (Chart).

Oil Prices are (not) coming down, anytime soon; and it will weigh on the U.S. economy; and consumer spending (70.0% of GDP).