One day until Friday. There’s a lot happening in the oil and gas industry from yesterday and today. You know how I know? Because I’ve been scouring the news headlines, that’s why.
Which company is cutting their oil and gas reserves? Will there be a talent squeeze in the industry? And finally who’s the latest company set to increase their capital expenditures?
Read on to find out.
ExxonMobil Revises Oil and Gas Reserves By 3.3 Billion Barrels Of Oil
ExxonMobil just took a hit. Since oil and gas prices were so low in 2016, the company said some of its assets no longer qualified as proved reserves.
This isn’t the first time that number has fallen, at the end of 2015 they cut their reserves by 4 billion barrels. In their 10-K annual report, they said the cut is “not expected to affect the operation of the underlying projects or to alter the company’s outlook for future production volumes.”
Financial Times reports that ExxonMobil expects the number to rise again should oil prices come back around.
Trellis Energy Believes A Talent Squeeze Will Occur In Oil and Gas Industry
Rigzone reports that Trellis Energy, a San Francisco-based company predicts a retirement boom will intensify a skills gap in the industry.
“I think the industry is paying attention somewhat, but is it paying the amount of attention the issue deserves? Probably not,” CEO of Trellis Energy, Rakesh Agrawal said.
Rakesh believes this new environment favors the bigger players in energy.
“There are some industry players who are able to pay more for talent. They have investors and future visions laid out,” he said. “They’re executing on that vision and willing to pay more, willing to poach [workers] and willing to put more on the table.”
While the bigger players will have the bankroll to support such poaching, Rakesh says that the smaller operators won’t be able to follow them down that rabbit hole.
They will have to fight for their talent – compared to the companies who do have the checkbooks and are willing to write the check,” he said.
Apache Says It Will Spend 63.2 Percent More This Year
The Apache Corp plans to spend 63.2 percent more in 2017 than it did in 2016, which is no surprise given the positive outlook many have for the industry.
Reuters reports that Apache will spend two-thirds of its budget in the Permian Basin, and that $500 million will go to developing the Alpine High field.
Apache revealed a few months ago that they had more than 300,000 acres in the Alpine High region, located in Reeves County, Texas
A recent surge in the American oil and gas industry has led many to increase capital expenditures, and Apache Corp is the latest to follow suit.
Alright folks, that’s another Morning Surge in the books. Make sure to come in tomorrow at the same time to get the next bit of news–after you fill up on The Nightly Surge of course. My friend Doug Krintzman has you taken care of this evening, and with that, I’m out.