OPEC extends, Weatherford files, Oxy fights back
OPEC extends cuts on crude oil output
OPEC, Russia and their allies formally agreed July 1 to extend their oil output cuts through March in their latest bid to stabilize energy markets and help prevent a growing glut of global crude oil. The combined 1.2 million barrels a day in production cutbacks was largely expected, but the decision to extend the cuts for nine months instead of just through the end of 2019 showed the concern for weakening oil demand into 2020.
Weatherford files for bankruptcy
The oilfield services company Weatherford International filed for Chapter 11 bankruptcy protection after struggling to assimilate the companies it bought during a quest for growth, taking on too much debt and fighting to recover from falling oil prices in 2014 that hammered the energy industry. Weatherford reported to the bankruptcy court in Houston it had as much as $10 billion in liabilities, including $7.5 billion in unsecured bond debt.
Agencies look into oil platform deaths
Two federal agencies are investigating the deaths of two offshore workers who were killed June 30 during a training exercise gone wrong at Royal Dutch Shell’s Auger platform in the deepwater Gulf of Mexico. Both the U.S. Coast Guard and the Bureau of Safety and Environmental Enforcement, which oversees the offshore drilling industry, said they have launched investigations into the accident. Shell said it would conduct its own internal investigation as well.
Oxy officials warn investors of Icahn
Occidental Petroleum is telling shareholders to reject a new bid by corporate Joe Klamar / AFP / Getty Images activist Carl Icahn to call a special board meeting in an effort to replace nearly half of the Oxy board. In a filing with the U.S. Securities and Exchange Commission, Oxy told its shareholders that Icahn's efforts "are not in the best interests of Occidental or its stockholders.” Icahn, who holds a 5 percent ownership stake in Oxy, is unhappy about the acquisition of Anadarko Petroleum.
TC Energy to sell pipeline assets
TC Energy, formerly TransCanada, said it will sell pipeline assets in the Appalachia region for nearly $1.3 billion to help pay for the oftdelayed and controversial Keystone XL Pipeline and other projects. The Canadian company said it is selling smaller pipeline systems from its $10 billion acquisition in 2016 of Columbia Pipeline Group of Houston. The sale to UGI Corp. primarily includes natural gas pipeline gathering systems in Pennsylvania, West Virginia and Ohio.
Exxon expects Q2 earnings to suffer
ExxonMobil is warning investors its second quarter earnings could take a hit from weaker chemical margins and lower natural gas prices offsetting refining and crude gains, suggesting profits could be flat from last quarter and down from the same time last year. The oil giant estimated its chemical margins could lower its second quarter earnings by $100 million to $300 million from the first quarter.
Climate bills draw bipartisan support
A raft of bipartisan legislation expanding research into clean energy technology is moving through the Senate, as Democrats and Republicans seek to find common ground in addressing climate change. With climate change forecasts growing increasingly dire, many Republicans in Washington are shifting away from their past skepticism and pledging to expand research funding to help cut greenhouse gas emissions.