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Euphoria For Oil Companies As Earnings Exceed Expectations

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In what is turning out to be a very impressive earnings season, nearly all the oil majors are beating expectations and rewarding shareholders with higher dividends and share buybacks, much to the chagrin of the White House.

Oilprice Alert: This week’s Global Energy Alert makes the case for oil prices heading back above $100, with signs of a bull market building. Meanwhile, a major geopolitical risk is rising in the Middle East. Sign up today, and if you aren’t enjoying it after the first month we’ll give you your money back.

Friday, October 28th, 2022 

Strong corporate earnings have breathed new life into the oil markets, with most oil majors sticking to their set policy of increasing dividends and ramping up share buybacks. This might not sit well with the White House ahead of the midterm elections as the flurry of optimism has supported oil prices well, with ICE Brent within touching distance of the $100 per barrel psychological barrier. The difficulties that sprang up earlier this week – widespread dumping of Chinese assets amidst Xi Jinping’s re-election, the ECB’s sullen interest rate increase, and many others – appear to have been forgotten, for now.

IEA Casts a Long Shadow on Fossil Fuels. In its 2022 edition of the World Energy Outlook, the International Energy Agency (IEA) indicated that global demand for every fossil fuel will peak around 2030, which is especially surprising for natural gas, previously seen as the bridge fuel towards a greener future.

World Bank Projects Energy Price Decline. The World Bank announced it expects global energy prices to drop 11% in 2023 after a massive surge this year, putting Brent prices at $92 per barrel and expecting decreases in both natural gas and coal prices next year amidst weaker growth.

US Rail Strike Odds Increase Again. After the second rail workers’ trade union rejected the national tentative agreement reached in mid-September, the likelihood of seeing a railway strike in the US in December is rising again, potentially putting some 30% of US cargo shipments in jeopardy.

US Diesel Tops the Shortage Agenda. With US distillate inventories at the lowest level for this time of the year since the EIA started collecting weekly data in 1982, at 106 million barrels, diesel prices will have a massive upside in the winter months unless rates of diesel consumption decline.

UN: We Might Not be Able to Halt Global Warming. Ahead of the COP27 next month, the UN said it sees no “credible pathway” to limit the rise in global temperatures to 1.5° C above pre-industrial levels and that with the current course it is set to rise by 2.8° C.

High LNG Prices Bring Dual-Fuel Tankers Back. Confronted with exorbitantly high natural gas prices, with LNG JKM hitting $70/mmBtu this year, shipping companies have substantially increased their interest in dual-fuel tankers that can run on LNG or diesel as a means of hedging their bunkering costs. 

TotalEnergies Doubles Down on Lebanese Offshore. After Russia’s Novatek relinquished its 20% stake in Lebanon’s offshore block 09, French oil major TotalEnergies (NYSE:TTE) has been handed temporary majority control of the project, potentially also farming in Qatar Energy at a later stage.

Germans Don’t Appreciate Chinese Stake in Key Port. The German government allowed China’s state-run shipowner and operator Cosco to buy a 24.9% stake in a Hamburg port terminal, triggering widespread government dissent as the move is seen to strengthen Beijing’s sway over Germany.

US Government Wants to Mine its Own Uranium. With US nuclear firms still depending on Russian and Kazakh uranium, the Biden Administration is building up its own uranium strategy with a view to mining more domestically – the IRA already allocated $700 million for producing high-assay low enriched uranium.

The Guyanese Gift that Keeps on Giving. US oil major ExxonMobil (NYSE:XOM) recorded two further discoveries in Guyana’s Stabroek block with its Sailfin-1 and Yarrow-1 wildcats, which despite both encountering moderate net oil pays (23 m) will be tied to larger projects.

Namibia Considers Joining OPEC. Following news of at least two major discoveries in offshore Namibia, with TotalEnergies’ (NYSE:TTE) Venus and Shell’s (LON:SHEL) Graff both potentially being multi-billion-barrel finds, Namibia could consider joining OPEC in the years to come.

Venezuela Opens the Gate for JV Partners to Leave. Venezuela is allowing partners of its state oil company PDVSA to leave joint ventures if they forgo payment for past debts and unpaid dividends – by now the only majors that remain in the country are Chevron (NYSE:CVX), ENI (BIT:ENI), and Repsol (BME:REP).

President Biden Singles Out Shell. US President Joe Biden singled out UK-based energy major Shell (LON:SHEL) for funneling profits to shareholders instead of lowering gasoline prices, a reaction to the oil firm’s 15% dividend increase and continued share buyback program.

France’s Nuclear Generation Gets Hope for 2023. The government of France will require state-owned utility EDF (EPA:EDF), soon to be fully nationalized, to sell less of its nuclear power at mandated below-market prices (100 TWh instead of this year’s 120 TWh), sparking some hope this might improve the company’s balance sheet.

By Michael Kern for Oilprice.com

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What Difference Will You Make to an Employer?

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Ex-Employer (Job)

It’s common knowledge that companies don’t hire the most qualified candidates. Employers hire the person they believe will deliver the best value in exchange for their payroll cost.

Since most job seekers know the above, I’m surprised that so few mention their Employee Value Proposition (EVP). Most job seekers list their education, skills, and experience without substantiating them and expect employers to determine whether they can benefit their company; hence, most resumes and LinkedIn profiles are just a list of opinions—borderline platitudes—that are meaningless and, therefore, have no value. Job seekers need to better explain, along with providing evidence, how they’ll contribute to an employer’s success.

Employers don’t hire opinions (read: talk is cheap); they hire results.

You’re not offering anything tangible when you claim:

 

  • I’m a great communicator.
  • I’m detail oriented.
  • I’m a team player.

 

Tangible:

 

  • “At Global Dynamics, I held quarterly town hall meetings with my 22 sales reps, highlighting our accomplishments, identifying opportunity areas, and recognizing outstanding performers.”
  • “For eight years, I managed Vandelay Industries IT department, overseeing a staff of 18 and a 12-million-dollar budget while coordinating cross-specialty projects. My strong attention to detail is why I never exceeded budget.”
  • “While working at Cyberdyne Systems, I was part of the customer service team, consisting of nine of us, striving to improve our response time. Through collaboration and sharing of best practices, we reduced our average response time from 48 to 12 business hours, resulting in a 35% improvement in customer feedback ratings.”

 

These examples of tangible answers provide employers with what they most want to hear from candidates but rarely do; what value the candidate will bring to the company. Typically, job seekers present their skills, experience, and unsubstantiated opinions and expect recruiters and employers to figure out their value, which is a lazy practice.

Getting hired isn’t based on “I have an MBA in Marketing and Sales,” “I’ve been a web designer for over 15 years,” “I’m young, beautiful and energetic,” blah, blah, blah. Likewise, being rejected isn’t based on “I’m overqualified,” “I’m too old,” “I don’t have enough education,” blah, blah, blah. Getting hired depends entirely on showing employers that you can add value and substance to their company; that you’ll serve a purpose.

When you articulate a solid value offer, the “blah, blah, blah” doesn’t matter. Job seekers focus too much on the “blah, blah, blah,” and when not hired, they say, “It’s not me, it’s…” The biggest mistake I see job seekers make is focusing on the “blah, blah, blah”—their experience and education—believing this is what interests employers. Hiring managers are more interested in whether you can solve the problems the position exists to solve than in your education and experience.

 

Not impressive: Education

Impressive: A track record of achieving tangible results.

 

You aren’t who you say you are; you are what you do.

 

If you want to be somebody who works hard, you have to actually work hard. If you want to be somebody who goes to the gym, you actually have to go to the gym. If you want to be a good friend, spouse, or colleague, you have to actually be a good friend, spouse, or colleague. Actions build reputations, not words.

The biggest challenge job seekers face today is differentiating themselves. To stand out and be memorable, don’t be like most job seekers, someone who’s all talk and no action. Any recruiter or hiring manager will tell you that the job market is heavily populated with job seekers who talk themselves up, talk a “good game” about everything they can “supposedly” do, drop names, etc., but have nothing to show for it.

More than ever, employers want to hear candidates offer a value proposition summarizing what value they bring. If you’re looking for a low-hanging fruit method to differentiate yourself, do what job seekers hardly ever do and make a hard-to-ignore value proposition.

  1. Increase sales: “Based on my experience managing Regina and Saskatoon for PharmaKorp, I’m confident that I can increase BioGen’s sales by no less than 25% in Winnipeg and the surrounding area by the end of 2025.”
  2. Reduce cost: “During my 12 years as Taco Town’s head of purchasing, I renegotiated contracts with key suppliers, resulting in 15% cost savings, saving the company over $450,000 annually. I know I can do the same for The Pasta House.”
  3. Increase customer satisfaction:“During my time at Globex Corporation, I established a systematic feedback mechanism that enabled customers to share their experiences. This led to targeted improvements, increasing our Net Promoter Score by 15 points. I can increase Dunder Mifflin’s net promoter score.”
  4. Save time: “As Zap Delivery’s dispatcher, I implemented advanced routing software that analyzed traffic patterns, reducing average delivery times by 20%. My implementation of this software at Froggy’s Delivery can reduce your delivery times by at least 20%, if not more.”

 

If you want to achieve job search success as soon as possible, structure your job search with a single thread that’s evident and consistent throughout your résumé, LinkedIn profile, cover letters and especially during interviews; clearly convey what difference you’ll make to the employer.

_____________________________________________________________________

 

Nick Kossovan, a well-seasoned veteran of the corporate landscape, offers “unsweetened” job search advice. You can send Nick your questions to artoffindingwork@gmail.com.

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Netflix’s subscriber growth slows as gains from password-sharing crackdown subside

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Netflix on Thursday reported that its subscriber growth slowed dramatically during the summer, a sign the huge gains from the video-streaming service’s crackdown on freeloading viewers is tapering off.

The 5.1 million subscribers that Netflix added during the July-September period represented a 42% decline from the total gained during the same time last year. Even so, the company’s revenue and profit rose at a faster pace than analysts had projected, according to FactSet Research.

Netflix ended September with 282.7 million worldwide subscribers — far more than any other streaming service.

The Los Gatos, California, company earned $2.36 billion, or $5.40 per share, a 41% increase from the same time last year. Revenue climbed 15% from a year ago to $9.82 billion. Netflix management predicted the company’s revenue will rise at the same 15% year-over-year pace during the October-December period, slightly than better than analysts have been expecting.

The strong financial performance in the past quarter coupled with the upbeat forecast eclipsed any worries about slowing subscriber growth. Netflix’s stock price surged nearly 4% in extended trading after the numbers came out, building upon a more than 40% increase in the company’s shares so far this year.

The past quarter’s subscriber gains were the lowest posted in any three-month period since the beginning of last year. That drop-off indicates Netflix is shifting to a new phase after reaping the benefits from a ban on the once-rampant practice of sharing account passwords that enabled an estimated 100 million people watch its popular service without paying for it.

The crackdown, triggered by a rare loss of subscribers coming out of the pandemic in 2022, helped Netflix add 57 million subscribers from June 2022 through this June — an average of more than 7 million per quarter, while many of its industry rivals have been struggling as households curbed their discretionary spending.

Netflix’s gains also were propelled by a low-priced version of its service that included commercials for the first time in its history. The company still is only getting a small fraction of its revenue from the 2-year-old advertising push, but Netflix is intensifying its focus on that segment of its business to help boost its profits.

In a letter to shareholder, Netflix reiterated previous cautionary notes about its expansion into advertising, though the low-priced option including commercials has become its fastest growing segment.

“We have much more work to do improving our offering for advertisers, which will be a priority over the next few years,” Netflix management wrote in the letter.

As part of its evolution, Netflix has been increasingly supplementing its lineup of scripted TV series and movies with live programming, such as a Labor Day spectacle featuring renowned glutton Joey Chestnut setting a world record for gorging on hot dogs in a showdown with his longtime nemesis Takeru Kobayashi.

Netflix will be trying to attract more viewer during the current quarter with a Nov. 15 fight pitting former heavyweight champion Mike Tyson against Jake Paul, a YouTube sensation turned boxer, and two National Football League games on Christmas Day.

The Canadian Press. All rights reserved.

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All Magic Spells (TM) : Top Converting Magic Spell eCommerce Store

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