How was your President’s Day? Mine was spent watching the entirety of Season 3 of that Netflix show Chef’s Table. It turns out when I’m not writing I aspire to be a chef. Or something.
But since I love writing so much, I’m back for the next Morning Surge.
Doug Krintzman took care of you on our not-so-off-day yesterday, so make sure to hop over there and get the latest before reading this.
Are you back yet? Great, let’s go.
OPEC Cutbacks Affecting Stocks
We’ve been covering OPEC’s production cutbacks pretty closely for the past few weeks. Prices are slowly coming back around, but it’s also having an effect on commercial oil stocks.
“It was evident in the last quarter of 2016 that total OECD commercial oil stocks were falling, and it is expected that we will see a further drop during 2017,” OPEC Secretary General Mohammad Barkindo said.
“We will continue to focus on the level of inventory drawdown to bring the level closer to the five-year industry average.”
Reuters reports that recent production data shows conformity from all participating OPEC nations and that oil prices are back up to $57 a barrel.
Wood Group Cut Its Workforce By 36 Percent The Last 2 Years
John Wood Group PLC has been cutting its workforce over the last two years. In fact, on Tuesday they revealed they had already cut 36 percent of it.
“Following a sustainable overhead cost reduction of $148 million in 2015, we reduced overhead costs by a further $96 million in 2016,” Robin Watson, Wood Group Chief Executive, said.
Despite the most recent positive trends in the oil industry, Watson believes that 2017 will be another tough year. Rigzone reports that In 2016, Wood Group’s revenue was down 15.7 percent to $4.9 billion.
“2016 represented a second successive fall in global exploration and production customer spending, which was down over 20 percent following a similar reduction in 2015,” Ian Marchant, Wood Group Chair, said.
While Wood Group is still cautious in its near-term outlook, they’re still positive in the long term category.
Norway All-In On Arctic Oil
While OPEC cuts production with limited gains in oil prices to show for it, Norway is deciding to jump hurdles and double-down on drilling in the arctic.
Just this month Lundin announced they struck a deposit with 35 to 100 million barrels of oil. Statoil is about to launch a drilling campaign in the Korpfjell field, which is said to hold up to 10 billion barrels of oil.
Oil Price reports the Barents Sea is a major focus of attention since it’s estimated to contain half of Norway’s oil reserves.
That’s it for me. Another Tuesday in the books. Just in time for my coffee. Don’t forget to tune in for Doug Krintzman’s Nightly Surge tonight around 6 p.m. Have a great Tuesday everyone!