Well… (oil pun intended) the first week of “The Nightly” is in the books, and judging by the thousands of text and emails I received wishing me well and showing such amazing support I know you agree. And when I say “thousands”, I mean “not a single one”. But I get it, I have to earn your trust, work for your respect, grind it out until everyone figures it out. Or I could just loosen my straight jacket and get on with it. I feel that’s what The “Master Of The Morning” Thomas Kuegler would advise… and he knows. Be sure to check him out in his “Morning Surge” Monday when you rise to get your week off on the right foot. For now, however… let’s take you to the weekend in style.
Chevron’s First Loss In Decades Signals Hard Time For Giants
Chevron Corp. posted its first annual loss since at least 1980. Shares slumped the most in five months. The company had a $497 million loss last year and failed to replace all of the crude and natural gas it pumped with new reserves. As the first so-called “supermajor” oil company to post year-end numbers, Chevron’s results may be a precursor to bleak news for an industry that’s been having a tough go of it since the crash in 2014.
I feel bad for Chevron. And by “bad” I mean “didn’t think twice about it”. Although out of respect, I may choose to fill up at the Chevron instead of The 76 station I usually go to across the street the next time I’m low on petrol. #TeamPlayer
Chevron announced plans last month to curtail spending on drilling and other projects for a fourth straight year, a big contrast to U.S. shale explorers who are responding to the uptick in crude prices with ambitious expansion plans. While Chevron is cutting its budget for 2017 by 15%, shale drillers Continental Resources Inc. and Diamondback Energy Inc. are lifting spending by 77% and 106%, respectively.
Despite the belt-tightening, Chevron is on pace to spend about $2 billion on shareholder dividends each quarter. That equals out to around $1 million an hour… Okay, maybe I’ll stick with The 76 gas station. $1 million an hour in payouts… good luck in the “tough times”, Chevron, I hope you manage to pull thru.
BHI: US Rig Count Up 17, Surpasses 700 Mark
The US drilling rig count increased by 17 during the week to 712 active units, according to data collected by Baker Hughes Inc. The overall rise continues to show a resurgence in units targeting crude oil, drilling horizontally, and based in the Permian basin.
I guess the system really is rigged! Sorry. That’s a cheap joke, and I’m better than that… or am I?? Have a quick shot of gin, and that one will sit better.
The overall rig count has grown by 308 units since the drilling rebound began after the week ended May 27, when it bottomed out at 404 working rigs. The latest double-digit gain follows last week’s 35-unit jump, the largest since Aug. 12, 2011 (OGJ Online, Jan. 20, 2017).
US exploration and production firms are expected to continue to increase drilling throughout 2017, even outside the white hot Permian. I have to say, I’m a little upset with Rigzone.com, as I thought this story was a match made in heaven for them (Rigs – Rigzone!!?), but as you see, it is not my source for this story. In spite of this devastating news… I will somehow carry on… for you, for them, for America, for decency.
Norway Court To Hear Appeal In $1.8B Gas Transport Tariff Row
A Norwegian court will hear an appeal next week by four firms seeking to overturn a ruling that upheld a government decision to cut offshore gas transportation tariffs. Could there be a more fitting or appropriate way to end the week than with some insight into the Norwegian court systems dealings with the oil biz?? Hey, “The Nightly” is a worldwide operation with extensive global reach. We know what’s happening in Norway before Norway knows what’s happening in Norway.
Norway exports gas from numerous offshore fields via a 5,000-mile gas pipeline network, the largest offshore pipeline system in the world, to Britain and the continental Europe.
The firms in the lawsuit – owned by Allianz, UBS, the Abu Dhabi Investment Authority and the Canada Pension Plan Investment Board – said the slashed tariffs would cost them 1.8 billion in lost earnings by 2028. Maybe Chevron could throw ‘em a few bills in pocket change to right the books? #ChevronMoneyCallBack.
According to the Borgarting Court of Appeals, the appeal hearing is expected to last from Jan. 31 until April 7. So yes, it appears all involved with this case will miss the Super Bowl unless they’re given a break in between the 31st of January and April 7th… but like a Nascar driver on a straight away… Norway doesn’t believe in breaks.
And on that relatively flat note, let’s call it a day… or in this case, a night. Enjoy the weekend, all. We’ll see you back here in a few days. Until then… night night.