"We now have a powerful track record of safe and reliable performance, efficient execution and capital discipline. And we’re doing this while growing the business – bringing more high-quality projects online, expanding marketing in the Downstream and doing transformative deals such as BHP. Our strategy is clearly working and will serve the company and our shareholders well through the energy transition."
Transocean Ltd. has issued a quarterly Fleet Status Report that provides the current status of, and contract information for, the company’s fleet of offshore drilling rigs.
Global Oil Markets
In the past year, there were many observations that the offshore rig market had “turned the corner”, and while Westwood highlighted a few areas of improvement, they were mostly isolated, and Westwood simply did not share that opinion. However, now that 2018 is over, it is time to look at where the market stands heading into the new year.
In the first few weeks of 2019 there have been four high impact discoveries of conventional oil and gas, finding 25% of the high impact volume discovered globally in the whole of 2018.
OPEC have moved to take supply out of the market by announcing a 1.2 mmbbl/d production cut from October 2018 reference levels, but the key question at the start of 2019 is – have they done enough?
Chevron Corporation (NYSE: CVX) has reported earnings of $3.7 billion($1.95 per share – diluted) for fourth quarter 2018, compared with $3.1 billion ($1.64 per share – diluted) in the fourth quarter of 2017, which included $2.02 billion in tax benefits related to U.S. tax reform. Included in the current quarter was an asset write-off totaling $270 million. Foreign currency effects increased earnings in the 2018 fourth quarter by $268 million.
International investment firm, The Guidry Group, announced on January 24, 2019, that Libya’s government authorities in the East and West have come together and formally agreed to jointly support what will become one of North Africa’s most highly-automated and largest deep-sea ports near the city of Susah in Libya.
Chevron Corporation has published an update to its March 2018 report describing the company’s approach to managing climate change risks and its resilience under a low carbon scenario. The update supplements Climate Change Resilience: A Framework for Decision Making with new information on the company’s governance framework and climate change related actions and investments.
The Glengorm gas condensate discovery announced last week could be the biggest in the UKCS since 2008. It will reignite interest in the high temperature, high pressure plays in the North Sea and heralds a mini renaissance in UK exploration.
On January 31, 2019, Exxon Mobil Corporation said, it will streamline its upstream organization and centralize project delivery across the company to support previously announced plans to double operating cash flow and earnings by 2025.
Leading offshore owners, part of the previously booming market in the North Sea, are falling victim to overzealous valuations of the past. Due to the current offshore market conditions, where asset values have suffered as in no other previous downturn, vessel financiers are knocking at the doors of owners due to concerns about the prospects of recouping money lent to finance now inactive offshore fleets.
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