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Author Topic: Fossil Fuel Profits Getting Eaten Alive by Renewable Energy!  (Read 8032 times)

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AGelbert

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National Oilwell Varco braces for mass layoffs
Nicolas Torres April 7, 2016

National Oilwell Varco said on Wednesday that it expects to undertake a round of mass layoffs as low oil prices continue to hamper demand for services.

A spokesperson for the company’s Norwegian unit told the Wall Street Journal that the firm has started negotiations with employees and will likely have details about the size of the cuts in a few weeks.

Quote
“We are signaling mass layoffs,”
the spokesperson said.

Details about the operations and locations that would be affected by the cuts have not been disclosed yet.
Slowing upstream activity in the North Sea prompted the company to lay off about 1,800 employees and about 600 contractors over the last year, the Wall Street Journal said.

NOV chief Clay Williams said during the company’s fourth quarter conference call that NOV’s global workforce, including contract labor, declined 21 percent in 2015.

“Restructuring will continue through the first half of 2016 and perhaps longer in view of the challenging market,” Williams said.

The Houston-based company has also closed 75 facilities since the middle of 2014.

Williams added that NOV is not planning for a recovery in 2016.”


The company reported a fourth quarter net income of $85 million, or $0.23 per fully-diluted share, excluding other items, down from $0.61 per fully diluted share in the third quarter of 2015 on a comparable basis.

Fourth quarter 2015 revenues fell 52 percent year-over-year to $2.7 billion on an operating profit of $141 million, or 5.2 percent of sales.

Full year 2015 revenues were $14.76 billion on a net loss of $769 million, or $1.99 per fully diluted share.

http://petroglobalnews.com/2016/04/national-oilwell-varco-braces-mass-layoffs/


Agelbert NOTE: Just between you and me and the fence post, when revenues fall 52 % in ONE YEAR (one quarter, my ASS!), a loss for a 14.76 billion revenue (remember that represents 52% LESS revenue!) is going to be a tad more than $769 million. I suspect the accurate figure is at least $2 billion. Just look at Chevron and otehr big oil pig losses to see why this $769 million "net loss" is happy talk accounting.


What they are DOING is called LYING through their accounting teeth to prevent more red ink on the stock value while they plan to shaft their workforce, true to the Predators 'R' US, empathy deficit disordered modus operandi of ALL Fossil Fuel Corporation Management PIGS.   


Rob not the poor, because he is poor: neither oppress the afflicted in the gate:
For the Lord will plead their cause, and spoil the soul of those that spoiled them. Pr. 22:22-23

AGelbert

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Agelbert NOTE: Well, what do ya know?  ;) The DOJ, put to sleep since the Reagan 'look the other way while the seven sisters become Big Oil again' seems to have woken up after 40 years or so. THAT IS, if this is not a dog and pony show to pretend the DOJ is not bought and paid for by Big Oil. We shall keep you posted.  ;D


Breaking: DOJ files suit to block Halliburton, Baker Hughes merger

Nicolas Torres April 6, 2016


The U.S. Department of Justice filed a civil antitrust lawsuit on Tuesday to block the proposed $35 billion merger between Halliburton and Baker Hughes.

The DOJ said in a statement that the proposed transaction would eliminate “important head-to-head competition in markets for 23 products or services” used for onshore and offshore oil exploration and production in the United States.

The suit was filed in the U.S. District Court for the District of Delaware, where both companies are incorporated, and asks the court to issue a full-stop injunction.

Halliburton and Baker Hughes said Wednesday that they    “intend to vigorously contest the U.S. Department of Justice’s effort” to block the merger.   


“The companies believe that the DOJ has reached the wrong conclusion in its assessment of the transaction and that its action is counterproductive, especially in the context of the challenges the U.S. and global energy industry are currently experiencing,” the companies said in a joint statement.   

The DOJ said in its complaint that Halliburton’s proposed divestitures would not include full business units and would “be limited to certain assets, with the merged firm holding onto important facilities, employees, contracts, intellectual property, and research and development resources that would put the buyer of those assets at a competitive disadvantage.”

The DOJ also alleged that the proposed divestitures would mostly allow Halliburton to retain “the more valuable assets from either company while selling less significant assets to a third party.”

The complaint further alleges that the divestitures would “not replicate the substantial competition between the two rivals that exists today.”

During a press call, Assistant Attorney General Bill Baer said both companies earn over 90 percent of their revenues in areas where they are in direct competition with each other.

“In many of these markets, the merger would leave the industry with just two dominant suppliers – a virtual duopoly,  :evil4: :evil4:” Baer said.

Baer said that the lawsuit “should surprise no one, least of all these two companies.” 

“Halliburton  has been claiming publicly from day one that it can fix any and all competition concerns, here in the United States, in Europe and around the world….the more we looked, the more we became convinced that this deal is unfixable,” Baer said.

Image courtesy of the U.S. Department of Justice

Halliburton defended its proposed divestment package and said both companies “strongly believe that the proposed divestiture package, which was significantly enhanced, is more than sufficient to address the DOJ’s specific competitive concerns.”

Halliburton and Baker Hughes previously agreed to extend the time period to obtain regulatory approvals for the deal to no later than April 30, 2016, as permitted under the merger agreement.

If the judicial review extends beyond April 30, 2016, the companies may continue to seek relevant regulatory approvals or either of the parties may terminate the merger agreement.
Quote

“Halliburton and Baker Hughes look forward to a full, impartial judicial review of the pending transaction, including the sufficiency of the proposed divestitures,” the companies said.


http://petroglobalnews.com/2016/04/breaking-doj-files-suit-block-halliburton-baker-hughes-merger/
Rob not the poor, because he is poor: neither oppress the afflicted in the gate:
For the Lord will plead their cause, and spoil the soul of those that spoiled them. Pr. 22:22-23

AGelbert

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No end in sight for energy pain at Wells Fargo, Bank of America  ;D
By Sruthi Shankar and Richa Naidu

SNIPPET:

Troubles in the U.S. oil industry amplified profit pressures on Wells Fargo & Co (WFC.N) and Bank of America Corp (BAC.N) on Thursday as rising bad loans added to a tough climate for trading bonds and currencies, along with persistently low interest rates.

Wells Fargo and Bank of America, two of the biggest lenders to the U.S. oil and gas sector, each set aside hundreds of millions of dollars in additional provisions to cover souring loans to energy companies.

While the price of oil has risen off decade-lows hit in January, it is still trading around $40 a barrel, well below the $100 plus levels seen in 2014 and spelling trouble for many exploration and production firms.

Energy XXI Ltd (EXXI.O) filed for bankruptcy protection on Thursday, joining dozens of other energy companies that have done the same in recent months.

Many more are expected to follow.  

"Our oil and gas portfolio will continue to be impacted by the volatility and stress in the industry and it will take time to move through this part of the cycle," said Wells Fargo Chief Financial Officer John Shrewsberry.

JP Morgan Chase & Co (JPM.N) said on Wednesday it could boost its provisions to cover soured energy loans by another $500 million this year, on top of the $529 million taken in the first quarter.

http://www.marketbeat.com/stories.aspx?story=http%3a%2f%2ffeeds.reuters.com%2f%7er%2freuters%2fbusinessNews%2f%7e3%2fg_MtaiLiLHk%2fus-bankofamerica-results-idUSKCN0XB15B
Rob not the poor, because he is poor: neither oppress the afflicted in the gate:
For the Lord will plead their cause, and spoil the soul of those that spoiled them. Pr. 22:22-23

AGelbert

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Fitch did WHAT!!?   

Low oil prices prompt Fitch to downgrade Saudi Arabia credit rating  ;D

Nicolas Torres April 14, 2016

Fitch Ratings downgraded Saudi Arabia’s credit rating on Monday as the agency expects oil prices to stay well below the $50 per barrel mark over the next two years.

In a note, Fitch Ratings said it has downgraded Saudi Arabia’s long-term foreign and local currency Issuer Default Ratings (IDRs) to AA- from AA.
The agency’s outlook on the country’s long-term IDRs remains negative.

Saudi Arabia’s Country Ceiling was affirmed at AA+ and its short-term foreign-currency IDR was affirmed at F1+.

Fitch said the downgrade is partially tied to its downward revision of oil price assumptions for 2016 and 2017, a move that has “major negative implications for Saudi Arabia’s fiscal and external balances.”

Fitch is currently assuming an average Brent crude oil price of $35 per barrel in 2016 and $45 per barrel in 2017.

A widening central government deficit was also cited as a reason behind the downgrade.

The agency said that Saudi Arabia’s central government deficit widened to 14.8 percent of GDP in 2015, up substantially from a deficit level of 2.3 percent in 2014.

Fitch expects the country’s deficit-to-GDP ratio to “narrow only marginally” in 2016 and narrow “more substantially” in 2017 when oil prices are expected to post a moderate recovery.

Real GDP growth is expected to slow from 3.4 percent in 2015 to 1.5 percent in 2016 and 1.7 percent in 2017.

The kingdom’s non-oil GDP is expected to be negatively impacted by fiscal consolidation measures and “weaker confidence.”

Fitch said it considers geopolitical risks in Saudi Arabia to be “high” relative to other AA-rated peers.

“Tensions have risen between Saudi Arabia and its long-standing regional rival Iran, and are expected to persist, although a direct confrontation is highly unlikely,” Fitch said.

Structural indicators also appear to be “generally weaker than peers,” as GDP per capita and World Bank governance indicators remain “well below” peer medians.
Fitch’s outlook for Saudi Arabia’s remains negative and the agency said it “does not currently anticipate developments with a material likelihood of leading to an upgrade. ”

All 13 members of OPEC along with representatives from Russia, Oman and Bahrain will meet in Doha on Sunday to discuss a potential output freeze.

A representative from Mexico will also attend but will only observe the meeting.

Iran is expected to attend the meeting but has repeatedly said it will not support any production freezes or cuts.

http://petroglobalnews.com/2016/04/low-oil-prices-prompt-fitch-downgrade-saudi-arabia-credit-rating/

Rob not the poor, because he is poor: neither oppress the afflicted in the gate:
For the Lord will plead their cause, and spoil the soul of those that spoiled them. Pr. 22:22-23

AGelbert

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Dallas Fed: Over 20,000 oil and gas jobs lost in Q1
Nicolas Torres April 13, 2016

Tens of thousands of energy jobs were lost in the first quarter of the year, according to a new report from the Dallas Federal Reserve.

The report, published on Friday, found that oil and gas companies shed more than 20,000 jobs nationwide during the first quarter of 2016 as companies cut spends and reduced activity levels.

“Given current oil and gas prices, it is likely that many companies will continue to face difficulties in the quarter to come and beyond,” the report said.

Head of the International Energy Agency’s Oil Industry & Markets Division Neil Atkinson said this week that global capital expenditure dropped by 24 percent in 2015 and is expected to drop another 17 percent this year, marking the first back-to-back annual declines since 1986.

Those capital expenditure cuts have dragged the U.S. rig count down to 443 rigs as of April 8, the lowest level on record since Baker Hughes began tracking data in 1949.

Concerns about global economic growth and Chinese stock market volatility sent oil prices diving 25 percent in early January, according to the Dallas Fed.

While prices have recovered since the beginning of the year, Brent crude prices have yet to surge past the $45 per barrel mark.

The International Energy Agency said in its most recent monthly oil report that global oil supplies eased by 180,000 barrels per day in February to 96.5 million barrels per day on lower OPEC and non-OPEC output.

However, February production levels still stood at about 1.8 million bpd above year ago levels after a slight drop in non-OPEC production was “more than offset” by larger OPEC volumes.

Natural gas prices have also hovered near multi-decade lows as unseasonably warm weather reduced demand during the winter.

Natural gas spot prices averaged about $2 during the first quarter, one of the lowest prices seen since the 1970s after adjusting for inflation, the Dallas Fed said.

OPEC members as well as representatives from Russia, Oman and Bahrain will meet in Doha on Sunday to discuss a potential production freeze plan.

A representative from Mexico will also attend but only to observe the meeting.

However, Iranian officials have insisted their country will not participate in a production freeze agreement, a potential sticking-point with other major OPEC producers including Saudi Arabia.

“Whether an agreement is reached or not, it remains unclear if the freeze would change the supply outlook for 2016 without Iran’s participation. The other countries are unlikely to significantly boost supply in 2016 and, in several cases, appear to be currently producing at very high levels,” the Dallas Fed said.

Iranian production posted the largest gain of any OPEC country in March after growing by 110,000 bpd month-over-month to 3.23 million bpd as the country looks to regain market share now that Western sanctions have been lifted.

Overall, OPEC production rose to 32.38 million bpd last month after adding 40,000 bpd as production growth in Iran, Iraq and Angola offset dips in the United Arab Emirates, Libya, Nigeria and Venezuela.

http://petroglobalnews.com/2016/04/dallas-fed-20000-oil-gas-jobs-lost-q1/


Rob not the poor, because he is poor: neither oppress the afflicted in the gate:
For the Lord will plead their cause, and spoil the soul of those that spoiled them. Pr. 22:22-23

AGelbert

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World Largest Wealth Fund Drops 52 Companies Linked to Coal     

Climate Nexus | April 15, 2016 8:52 am 

Norway’s sovereign wealth fund sold shares worth $2.3 billion in 52 coal-dependent companies, the country’s central bank announced Thursday.


Greenpeace estimates that this was the single biggest divestment from coal yet and media called the move “a sign of the growing influence investors wield in the fight against climate change.”

The fund, worth $836 billion and currently the largest in the world, pledged in June to divest from companies that make 30 percent or more of their revenue from coal. This is the first of multiple divestment actions that the government has planned for this year.

For a deeper dive: Reuters, Bloomberg, Financial Times, AFP

For more climate change and clean energy news, you can follow Climate Nexus on Twitter and Facebook, and sign up for daily Hot News.

http://ecowatch.com/2016/04/15/wealth-fund-drops-coal/
Rob not the poor, because he is poor: neither oppress the afflicted in the gate:
For the Lord will plead their cause, and spoil the soul of those that spoiled them. Pr. 22:22-23

AGelbert

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40 Students Arrested Demanding Their Schools Divest From Fossil Fuels

350.org | April 16, 2016 9:25 am

As students across the country engage in nonviolent direct action calling on their administrators to divest from fossil fuels, calling out conflicts of interest embedded within their decision makers over the last two weeks.

Kicking off the month of action last Wednesday, students at Swarthmore College with Swarthmore Mountain Justice took action outside their board member’s off-campus office, calling out the personal financial ties that she and other board members have in the fossil fuel industry.

Students with Divest UMass at the University of Massachusetts-Amherst are in their sixth day of a sit-in that has already resulted in the arrests of 34 students and garnered endorsements from Sen. Benjamin Downing, legislators Sen. Jamie Eldridge and Rep. Marjorie Decker, numerous academic departments and faculty members and presidential candidate Jill Stein.

“Four years after first launching our campaign, over 100 UMass students, faculty, alumni and community members are sitting in to call on our university to divest from all fossil fuels,” Mica Reel, a student at the University of Massachusetts-Amherst, said.

Following the announcement that Chairman Woolridge and President Meehan would publicly endorse the students’ demands, the campaign announced that it would continue taking action until administrators took action in the form of a proposal moving forward divestment.

More than 500 students, faculty, alumni and community members having participated in their action over the past several days.

Exactly one year to the day that four students were arrested in protesting for fossil fuel divestment, the University of Mary Washington committed to divesting 98 percent of its endowment from the top 200 fossil fuel companies, making it the first public university in the South to divest.

After five years of public pressure to divest their $25.6 billion endowment from fossil fuels, Yale University became the first Ivy League to move towards divestment, taking initial steps of divesting $10 million from coal and tar sands.    ;D

Just one year ago, Yale administrators’ refusal to consider divestment culminated in the arrest of 19 students.

“It’s important to recognize this as a victory, and it is important that we keep fighting for what we believe in and don’t rest until we start to see concrete change at Yale,” Arabelle Schoenberg of Fossil Free Yale said. “We are going to keep fighting until we divest the rest. Universities and people in power are starting to hear us, they’re starting to see us, they’re starting to listen.”

Exactly one year since students participated in Harvard Heat Week, a week-long sit-in outside Massachusetts Hall, four students with Divest Harvard at Harvard University were arrested for sitting in at the Federal Reserve Bank building, home to the offices of the Harvard Management Company.

“A number of schools have already divested from fossil fuels. Meanwhile, Harvard hasn’t divested at all   ,” Jonathan Hiles, a student at Harvard University, said.


“Instead it’s making a large investment to support struggling fossil fuel companies    and get them back to business as usual disrupting the climate  . Harvard Management Company  is contributing to the climate crisis even as it threatens to submerge parts of Boston within our lifetimes.”

On Thursday, in the wake of arrests at UMass and Harvard and a victory on divestment at Yale, students launched a sit-in at Columbia University outside of the office of the president of the university, calling on President Bollinger to meet with them immediately and issue a statement in support of divestment.
This wave of on-campus escalation will continue over the next month with actions at Bowdoin College, the University of Montana and more.  

In just three weeks, the global fossil fuel resistance movement will participate in Break Free, an unprecedented global mobilization to demonstrate the global resolve to transition off fossil fuels and build the new kind of economy that we know is possible—one centered on a just transition to 100 percent renewable energy now. 
http://ecowatch.com/2016/04/16/students-arrested-divest-fossil-fuels/

Rob not the poor, because he is poor: neither oppress the afflicted in the gate:
For the Lord will plead their cause, and spoil the soul of those that spoiled them. Pr. 22:22-23

AGelbert

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OPEC trims 2016 global demand forecast  ;D

Staff Writers April 15, 2016

Just days before OPEC members will meet to discuss a production freeze the group has trimmed its 2016 global demand forecast.

In OPEC’s latest monthly oil market report, global oil demand is now expected to grow by 1.54 million barrels per day, down by about 50,000 bpd    from the group’s previous forecast.

The downward revision is tied to “slower economic momentum in Latin America.”   

Total global oil consumption is expected to hit 94.18 million bpd in 2016.

World oil demand grew by an estimated 1.54 million bpd in 2015, with total oil consumption reaching an average 92.98 million bpd, the report said.

The group’s non-OPEC supply growth estimate for 2015 has been revised up to 1.46 million bpd to an average 57.13 million bpd.

Non-OPEC oil supplies are expected to contract “slightly more” in 2016 than previously forecast, with output slated to decline by 730,000 bpd to an average of 56.39 million bpd.

OPEC natural gas liquids production is expected to grow by 170,000 bpd in 2016, up from 150,000 bpd in 2015.

Demand for OPEC crude in 2015 was estimated at 29.7 million bpd, unchanged from the previous month and 100,000 bpd than the previous year.

In 2016, demand for OPEC crude is projected to stand at 31.5 million bpd, broadly unchanged from the group’s previous report and 1.8 million bpd higher than 2015.

The value of the OPEC reference basket was up more than 20 percent in March and was hovering near $40 per barrel at the end of the month, the report said.

“Although fundamentally nothing has changed much , as oversupply persists, positive market sentiments continue to arise from the output freeze plan being considered by major crude exporters,” the report said.


OPEC members along with representatives from Russia, Oman and Bahrain will meet in Doha on Sunday to discuss a potential production freeze plan.     

A representative from Mexico will also attend but only to observe the meeting.

http://petroglobalnews.com/2016/04/opec-trims-2016-global-demand-forecast/

Agelbert NOTE: SEE BELOW the REAL outlook for OPEC (and all other fossil fueler) profit over planet hopes...
Rob not the poor, because he is poor: neither oppress the afflicted in the gate:
For the Lord will plead their cause, and spoil the soul of those that spoiled them. Pr. 22:22-23

AGelbert

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Global oil glut causing huge supertanker traffic jams  ;D

Staff Writers April 18, 2016

The global oil supply glut has already dragged prices to multi-year lows and is now causing huge traffic jams at some of the world’s largest ports.

According to Reuters, a sharp increase in the number of oil supertankers moving crude to the Middle East and Asia is creating huge traffic jams at major ports costing about $6.25 million per day.

The congestion has also caused delays as long as one month, throwing off delivery schedules and eating into profits.

Head of research at shipbroker Banchero Costa Ralph Leszczynski told Reuters the tanker traffic jams are being driven by “a perfect storm of red-hot demand from new entrant refineries in China and port infrastructure in the Middle East and Latin America that is unable to cope.”
Quote

The queued supertankers are holding an estimated 200 million barrels of crude worth about $7.5 billion at current prices, Reuters said.

If the ships waiting to offload their cargoes were lined up end-to-end the line would stretch out over 20 nautical miles, Reuters added.

According to the U.S. Energy Information Administration, OECD commercial crude oil and other liquid fuels inventories totaled 3.05 billion barrels at the end of 2015, equivalent to roughly 66 days of consumption.

OECD inventories are forecast to rise to 3.22 billion barrels at the end of 2016 and are expected to hit 3.25 billion barrels at the end of 2017.

Crude prices have fallen by about 6 percent since the middle of the week as investors wait to see if a production freeze deal materializes at an OPEC meeting to be held this weekend in Doha. *


Surging Iranian production helped push total OPEC production to over 32 million barrels per day in March.

Iran has been reluctant to endorse a production freeze deal as it looks to regain market share now that Western sanctions have been lifted.

“Neither Iran nor Iraq has made firm commitments to the Doha talks on April 17, but their collective stance could be a decisive element regarding any agreement over a production freeze,” Platts senior editor Eklavya Gupte said earlier this week.
U.S. crude production dipped by 90,000 bpd month-over-month to an average of 9 million bpd in March, according to the EIA.

A production decline in the Lower 48 is expected to push U.S. production down to an average 8.6 million bpd in 2016 and 8.0 million bpd in 2017, a drop of about 100,000 bpd from the EIA’s February forecast.

http://petroglobalnews.com/2016/04/global-oil-glut-causing-huge-supertanker-traffic-jams/

* Agelbert NOTE: No agreement was reached. Iran gave them the finger. I'm sure Iraq is NOT in any mood to lower production either. This is good.

WHY? Because there is NO MONEY  to buy governments, order new rigs, run the current ones and explore for more fossil fuels.  ;D

In the 1980's the low process spurred more sales.    But NOW the Renewable Energy revolution PLUS the rapid climate change effects is spurring people to SHUN fossil fuels, even at bargain basement prices.


Rob not the poor, because he is poor: neither oppress the afflicted in the gate:
For the Lord will plead their cause, and spoil the soul of those that spoiled them. Pr. 22:22-23

AGelbert

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A view of a Keppel Corporation shipyard.

Keppel Profit Drops as Oil Slump Delays Offshore Projects  ;D

April 18, 2016 by Bloomberg
 
REUTERS/Edgar Su By Kyunghee Park

(Bloomberg) — Keppel Corp., the world’s largest builder of oil rigs, reported a 41 percent decline in first-quarter profit as weak oil prices led to delivery delays of offshore projects.

Net income dropped to S$211 million ($156 million) from S$360 million a year earlier, Keppel said in a statement Monday. Sales slumped 38 percent to S$1.7 billion from S$2.8 billion. The higher contribution from its property business at 47% helped to partially offset lower profits from offshore and marine sectors, the company said in the statement.

Oil companies and rig operators face rising debt and spending cuts, and have abandoned orders or asked shipyards to delay deliveries of offshore drilling rigs and production facilities.

That’s caused shipyards to post losses or smaller profits after writing off costs from projects under construction, and demand has fallen with crude prices still less than half of what they were three years ago.

“The sustained low oil price environment continues to take a toll on the global oil and gas industry, which is in the midst of one of the most severe downturns in recent years,” Chief Executive Officer Loh Chin Hua said in the statement.

Keppel fell 2 percent to close at S$6 Monday before the earnings announcement. The stock has fallen 7.8 percent this year.

Brazil Challenge

Keppel and its smaller rival Sembcorp Marine Ltd. also face risks from Brazil, where debt-ridden Sete Brasil Participacoes SA accounts for a combined $10.5 billion in orders for semi-submersibles and drill ships at the two companies. Sete Brasil fell into financial distress after it was unable to secure long-term financing and its only client state-run oil producer Petroleo Brasileiro SA, or Petrobras, faced allegations of kickbacks

Keppel wrote off S$230 million in the fourth quarter over delinquent projects.

Brazil, which has traditionally been one of the company’s key markets, “continues to be mired in economic and political challenges,” Loh said.

Keppel stopped construction work for Sete Brasil and won’t resume until payment commences, Loh said.

Oil prices have plunged more than 60 percent over the past two years amid a supply glut and slower growth in China. Brent crude fell 4.2 percent to $41.29 a barrel as of 4 p.m. in Singapore Monday. Members of the Organization of Petroleum Exporting Countries and other producers ended talks over the weekend without any agreement to limit output.

More than $400 billion of proposed energy projects have been delayed since mid-2014      
and pushed into 2017 and beyond as oil prices dropped, according to consulting firm Wood Mackenzie Ltd.

© 2016 Bloomberg L.P
https://gcaptain.com/keppel-profit-drops-as-oil-slump-delays-offshore-projects/
Rob not the poor, because he is poor: neither oppress the afflicted in the gate:
For the Lord will plead their cause, and spoil the soul of those that spoiled them. Pr. 22:22-23

AGelbert

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Oil prices plunge after Kuwait ends oil worker strike  ;D

Nicolas Torres April 20, 2016

Crude prices fell more than 2 percent overnight as the end of three-day long oil worker strike in Kuwait promises to ramp up global output.

According to the Kuwait News Agency (KUNA), the workers ended their strike on Tuesday and will return to work on Wednesday morning.

The workers had been protesting planned cuts to wages and benefits.

The strike cut Kuwait’s oil production by more than half earlier this week, helping offset investor pessimism after an OPEC production freeze failed to materialize.

OPEC members along with representatives from Russia failed to agree  on a production freeze deal after meeting in Doha last weekend.

Saudi Arabia, OPEC’s largest producer, said it would not agree to a freeze unless Iran also signed on to an agreement.

Iran has repeatedly said it will not participate in a production freeze as the country looks to regain market share now that Western sanctions have been lifted.

OPEC production continues to hover above the 30 million barrel per day mark, hitting 32.3 million bpd in March on surging Iranian output, according to Platts.

OPEC trimmed its 2016 global oil demand forecast by 50,000 bpd to 1.54 million bpd on expected weakness in Latin America.

Brent crude prices fell from $44.03 per barrel at the closing bell on Tuesday to a low $42.90 per barrel early Wednesday before climbing past the $43 per barrel mark before the opening bell.

Crude inventories posted a larger than expected increase of 3.1 million bpd last week
and stood at 539.5 million barrels, according to data from the American Petroleum Institute seen by Retuers.

http://petroglobalnews.com/2016/04/oil-prices-plunge-after-kuwait-ends-oil-worker-strike/

Renewable energy=                                 =Fossil Fuelers
Rob not the poor, because he is poor: neither oppress the afflicted in the gate:
For the Lord will plead their cause, and spoil the soul of those that spoiled them. Pr. 22:22-23

AGelbert

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Supreme Court rules against state power plant subsidies

Greg Nash
By Timothy Cama - 04/19/16 11:52 AM EDT

The Supreme Court on Tuesday ruled that Maryland overstepped its authority when it implemented a program to subsidize construction of natural-gas-fired power plants.

The court unanimously ruled that by requiring companies building such subsidized plants to set rates for certain electricity sales, Maryland improperly interfered in markets that are the sole responsibility of the Federal Energy Regulatory Commission (FERC).

“We agree with the Fourth Circuit’s judgment that Maryland’s program sets an interstate wholesale rate, contravening the FPA’s division of authority between state and federal regulators,” Justice Ruth Bader Ginsburg wrote for the court.
Quote

“By adjusting an interstate wholesale rate, Maryland’s program invades FERC’s regulatory turf.”

The ruling could put a similar program at risk in New Jersey  ;D. New Jersey’s program was also overturned by the lower courts, but Ginsburg sought to specify that the Tuesday ruling is only for Maryland.

“Nothing in this opinion should be read to foreclose Maryland and other states from encouraging production of new or clean generation through measures untethered to a generator’s wholesale market participation,” she wrote.

It’s the second win this year for FERC defending the jurisdiction of its authority. In January, the Supreme Court upheld a regulation regarding programs that reduce electricity demand during certain times.

The Natural Resources Defense Council (NRDC), which closely watched the case because it wants states to be able to shape their electricity mixes, said the narrow ruling is good.

“The Supreme Court’s decision is good news for clean energy      because it rejected Maryland’s program on extremely narrow grounds,” Allison Clements, director of NRDC’s Sustainable FERC Project, said in a statement. “The decision leaves states free to encourage clean energy through a wide variety of means, including by requiring long-term power purchase agreements.”

http://thehill.com/policy/energy-environment/276816-supreme-court-rules-against-state-power-plant-subsidies
Rob not the poor, because he is poor: neither oppress the afflicted in the gate:
For the Lord will plead their cause, and spoil the soul of those that spoiled them. Pr. 22:22-23

AGelbert

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Dutch court strikes down $50 billion Yukos award

Nicolas Torres April 20, 2016

A Dutch court ruled Tuesday that Russia’s government does not have to pay $50 billion in compensation to the shareholders of the now-defunct oil firm Yukos. 

According to BBC, the Hague District Court ruled on Tuesday that the Hague’s Permanent Court of Arbitration (PCA) had no jurisdiction when it awarded the compensation in 2014.

The Hague District Court said Russia has not ratified the treaty that the PCA used to inform its decision.

A Kremlin spokesperson told the BBC that the Russian government was pleased with the outcome.  ;D

“The Russian Federation from the very beginning of this case insisted that the decision of the tribunal didn’t take into consideration the most important aspects of international law,” the spokesperson said.

Director of GML Tim Osborne told the BBC that Yukos shareholders will appeal the decision.  ::)

GML represents some of Yukos’ largest shareholders.

The PCA based its compensation award on the value of the company in 2003, the same year that the Russian government began taking steps to seize control of the company.

Yukos declared bankruptcy in 2006, about three years after CEO Mikhail Khodorkovsky and his business partner Platon Lebedev were arrested on charges of tax fraud and tax evasion.

Although Russian officials have maintained the charges were purely a tax matter many observers believe the move was politically motivated.

Khodorkovsky served ten years in prison before receiving a pardon from Russian president Vladimir Putin 2013.

Khodorkovsky currently resides in Switzerland.

http://petroglobalnews.com/2016/04/dutch-court-strikes-down-50-billion-yukos-award/
Rob not the poor, because he is poor: neither oppress the afflicted in the gate:
For the Lord will plead their cause, and spoil the soul of those that spoiled them. Pr. 22:22-23

AGelbert

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Sete Brasil  heads for bankruptcy

Staff Writers April 21, 2016

Sete Brasil shareholders voted on Wednesday to allow the firm to seek bankruptcy protection.

Petrobras told Reuters that Sete Brasil shareholders voted to allow a bankruptcy protection filing after the rig firm failed to secure a long-term contract with Petrobras.

Sete Brasil is a state-owned rig firm established in December 2010 to provide vessels to Petrobras.

A source familiar with the matter told Reuters that partners who hold more than 90 percent of Sete Brasil approved the plan.

Sete Brasil told Bloomberg that shareholders had approved the plan but did not disclose further details.
Industry estimates seen by Reuters show that the bankruptcy could trigger $11.3 billion in losses and could jeopardize as many as 800,000 local shipbuilding jobs.

If Sete Brasil decides to move forward with an in-court reorganization Petrobras could be forced to compensate the rig firm’s shareholders, creditors and suppliers for its refusal to sign the long-term contract, Reuters said.

Singapore-based Keppel Corporation said in January that it has halted construction work on six new rigs for Sete Brasil after the rig firm failed to pay Keppel for over a year.

Sete Brasil has also been dragged into the ongoing Petrobras corruption scandal.

Former Petrobras director Pedro Barusco alleged in a Brazilian court last June that several shipbuilding companies paid brides to win contracts with Sete Brasil.

http://petroglobalnews.com/2016/04/sete-brasil-seeking-creditor-protection/

Agelbert NOTE: Back in 1975, I was taking a Business Administration course on Marketing through FAACOP (FAAA college program). The issue on a certain day was a formal request that U.S. GAAP (generally Accepted Accounting Procedures) be modified in order to allow U.S. corporations doing business in South America to deduct bribery business expenses.

A certain U.S. corporation claimed that bribery costs were business as usual in South America and one could not market a product successfully there unless one incurred in "business as usual" bribery. IOW, the claim was that they could not compete unless they bribed officials.

I found this amusing considering the long standing U.S. business kickback 'tradition'.  :evil4: But I did agree that South Americans certainly did demand under the table 'consulting fees' as a matter of 'respect'.  ;)  ;D 

Many people do not understand that the entire Latin bribery 'habit' was born of onerous Spanish Empire government over taxation of income for businesses and individuals in Latin America for the last 500 years or so. People affected by this abuse just found a way to 'balance the books', so to speak.

Of course this got way out of control in the 20th century, never mind the 21st century 'creative' accounting free-for-all (crooks).

But, be that as it may, said U.S. corporation lost the fight to amend GAAP. Appearance of GAAP integrity were preserved.  ;)

You KNOW corprorations continued to do what they did in other ways. So, in a sense, the U.S. followed the time 'honored' South American tradition of gaming the tax returns and balance sheets just enough to not look TOO profitable, but also get people (who could read between the balance sheet lines) to buy the stock.

It's sort of a contest of liars.    Wall street is no different from South America in this regard.

Sete Brasil is no exception. The issue is NOT bribery here, regardless of how it is presented to try to scapegoat some bribed officials. The issue is that they are not profitable at current crude oil prices. When externalized pollution costs are figured in, they were NEVER profitable, PERIOD.


Rob not the poor, because he is poor: neither oppress the afflicted in the gate:
For the Lord will plead their cause, and spoil the soul of those that spoiled them. Pr. 22:22-23

AGelbert

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Schlumberger slashes 2,000 more jobs

Nicolas Torres  April 22, 2016

Schlumberger said Thursday that it cut another 2,000 jobs in the first quarter as pretax operating income dipped 55 percent year-over-year.

The Houston-based company earned $901 million in pretax operating income in the first quarter, down 55 percent from the year ago quarter, on revenues of $6.52 billion.

A company spokesperson told Bloomberg that Schlumberger cut another 2,000 jobs in the first quarter, dropping the company’s headcount down to 93,000 as of the end of the quarter.

Schlumberger has reduced its headcount by more than 25 percent, or about 36,000 positions, since oil prices began to fall in the summer of 2014, Bloomberg said.

Schlumberger’s net income, excluding charges and credits, dove 63 percent-year-over year to $501 million while diluted earnings per share fell to $0.40 from $1.06 in the first quarter of 2015.

North American pretax operating income fell to a loss of $10 million as revenues declined 55 percent year-over-year to $1.46 billion.

International pretax operating income dropped 36 percent year-over-year to $1.062 billion on $4.97 billion in revenue, a 28 percent decline from the year ago quarter.

“During the first quarter of 2016, the decline in global activity and the rate of activity disruption reached unprecedented levels as the industry displayed clear signs of operating in a full-scale cash crisis….This environment is expected to continue deteriorating over the coming quarter given the magnitude and erratic nature of the disruptions in activity,” Schlumberger CEO Paal Kibsgaard said.

Kibsgaard added that recent spending surveys for 2016 now indicate “sharper declines than previously forecasted,” with global spending reductions approaching 25 percent in 2016.

Schlumberger’s Reservoir Characterization Group revenue declined 20 percent sequentially $1.7 billion, primarily due to seasonal winter slowdowns and project cancellations that impacted Wireline activities.

The group’s pretax operating income fell 51 percent year-over-year to $331 million.

The company’s Drilling Group saw pretax operating income decline 52 percent from the year ago quarter to $371 million on revenues of $2.49 billion.

Production Group pretax operating income dropped 62 percent year-over-year $208 million as revenue fell to $2.3 billion, down 74 percent year-over-year.

During the quarter, Schlumberger repurchased 7.1 million shares of its common stock at an average price of $67.34 per share for a total purchase price of $475 million.

http://petroglobalnews.com/2016/04/schlumberger-slashes-2000-more-jobs/

Agelbert NOTE: Please be cognizant of the FACT that, had these corporate crooks NOT gotten into the stock repurchase head fake game to DELIBERATELY make the company valuation look healthy, when the truth is they are drowning in a torrent of red ink, the present "value" of the stock would be a lot less. IOW, they are NOT worth what they are selling for.


Rob not the poor, because he is poor: neither oppress the afflicted in the gate:
For the Lord will plead their cause, and spoil the soul of those that spoiled them. Pr. 22:22-23

 

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