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The First Major Oil Supply Disruption Of 2023

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In what is set to be the first major supply disruption of 2023, Russia has announced a 500,000 bpd voluntary production cut due to growing pressure from price caps and embargoes.

 

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Friday, February 10th, 2023

After months of macro-driven price swings, the introduction of the oil products price cap has awakened the spirit of the oil market and brought fundamentals back into the spotlight. Russia’s announcement that it would curb output as a reaction to sanctions is arguably the first major supply disruption of 2023 as protests in Colombia failed to trigger any notable market reaction. Nigerian presidential elections are only three weeks away, so Russia’s production cuts might be the first of many to come.

Russia to Cut Oil Production in March 2023. According to Russia’s deputy prime minister Alexander Novak, Russia will cut oil production by 500,000 b/d in March 2023 as a reaction to the recently introduced product price cap and EU import ban, pledging not to sell its exports to members of the price cap coalition.

Did the US Blow up Nord Stream Pipelines? Veteran investigative journalist Seymour Hersh, the one to break the stories of the My Lai massacre and Abu Ghraib prison abuse, published a report saying the Nord Stream explosions last September were carried out at the direction of US President Biden.

US Treasury Targets Iranian Petrochemicals. The United States slapped another round of sanctions on companies active in the production, sale, and shipment of Iranian petrochemicals, specifically six Iran-based companies and three firms in Malaysia and Singapore, wary that higher crude exports might soon be matched by higher product outflows, too.

Pipeline Stress Main Reason Behind Keystone Oil Spill. Pipeline operator TC Energy (NYSE:TRP) said the Keystone pipeline oil leak in early December was caused by a weld flaw that was exacerbated by bending stress over time, with total remediation costs coming in at $480 million.

Bakken Holds Down US Supply Growth. The EIA cut its 2024 US production forecast to 12.65 million b/d from an earlier projection of 12.8 million b/d, citing the overall maturation of Bakken shale as the main reason, with wells in North Dakota increasingly producing natural gas instead of oil.

China Locks Up Omani LNG. As Chinese state-owned energy companies on spot LNG purchases, trading firm Unipec signed a supply deal with Oman LNG that would see the latter providing the Chinese side with 1 million tons of LNG for four years starting 2025, the first term deal between Oman and China.

Major Utility Firms to Benefit Biden’s IRA Funds. According to Reuters, it will be leading electric utility firms with renewable projects in the pipeline such as Duke Energy (NYSE:DUK) or Dominion (NYSE:D) that will benefit the most from the Biden Administration’s $430 billion IRA tax credits and payments.

Namibia Superfind Too Good Not to Fast-Track. The French energy company TotalEnergies (NYSE:TTE) will be spending half of its 2023 exploration budget on offshore Namibia after the 6-billion-barrel Venus discovery last year, the largest in 2022, propelled the frontier region to global limelight.

Tesla Sets End of Master Plan Trilogy for March 1. Following two previous Master Plan vision statements in 2006 and 2016, the CEO of Tesla (NASDAQ:TSLA) Elon Musk said the third part of the company’s Master Plan for a sustainable energy future for Earth will be held on March 1.

Seepage Woes Hinder Imperial Oil. The Alberta Energy Regulator (AER) in Canada issued an environmental protection order to Imperial Oil (TSE:IMO), giving it a week to fix industrial wastewater seepage from tailing ponds, including dissolved iron and arsenic, at its Kearl oil sands project.

Trafigura to Take $577 Million Loss on Nickel Fraud. The Geneva-based trading powerhouse Trafigura will take a $577 million loss in the first half of 2023 after several nickel cargoes delivered by India’s UD Trading Group didn’t contain nickel at all, despite the two sides interacting since at least 2015.

Germany’s Gas Consumption Drops But not Enough. The German energy regulator BNetzA said the country’s gas consumption remains in the “critical” range for the third consecutive week with temperature-adjusted demand only 12% lower than the 2018-2021 average, whilst Berlin mandates a 20% cut.

India Finds Lithium, In the Wrong Place. As the global hunt for lithium deposits intensifies, the Geological Survey of India announced that it found lithium deposits for the first time in the country, though the 5.9 million tonnes of inferred resources were found in Jammu-Kashmir, a territory disputed by Pakistan.

Coal Prices Crater Despite Australia Rains. Squeezed by lower European and Chinese demand as well as the fire-sale of coal by the beleaguered Adani Group, coal prices have fallen to their lowest in a year with the March ’23 ICE Newcastle contract already trading below $200/mt and Europe’s API 2 benchmark down at $125/mt.

By Michael Kern for Oilprice.com

 

 

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Stop Asking Your Interviewer Cliché Questions

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Most job search advice is cookie-cutter. The advice you’re following is almost certainly the same advice other job seekers follow, making you just another candidate following the same script.

In today’s hyper-competitive job market, standing out is critical, a challenge most job seekers struggle with. Instead of relying on generic questions recommended by self-proclaimed career coaches, which often lead to a forgettable interview, ask unique, thought-provoking questions that’ll spark engaging conversations and leave a lasting impression.

English philosopher Francis Bacon once said, “A prudent question is one half of wisdom.”

The questions you ask convey the following:

  • Your level of interest in the company and the role.
  • Contributing to your employer’s success is essential.
  • You desire a cultural fit.

Here are the top four questions experts recommend candidates ask; hence, they’ve become cliché questions you should avoid asking:

  • “What are the key responsibilities of this position?”

Most likely, the job description answers this question. Therefore, asking this question indicates you didn’t read the job description. If you require clarification, ask, “How many outbound calls will I be required to make daily?” “What will be my monthly revenue target?”

  • “What does a typical day look like?”

Although it’s important to understand day-to-day expectations, this question tends to elicit vague responses and rarely leads to a deeper conversation. Don’t focus on what your day will look like; instead, focus on being clear on the results you need to deliver. Nobody I know has ever been fired for not following a “typical day.” However, I know several people who were fired for failing to meet expectations. Before accepting a job offer, ensure you’re capable of meeting the employer’s expectations.

  • “How would you describe the company culture?”

Asking this question screams, “I read somewhere to ask this question.” There are much better ways to research a company’s culture, such as speaking to current and former employees, reading online reviews and news articles. Furthermore, since your interviewer works for the company, they’re presumably comfortable with the culture. Do you expect your interviewer to give you the brutal truth? “Be careful of Craig; get on his bad side, and he’ll make your life miserable.” “Bob is close to retirement. I give him lots of slack, which the rest of the team needs to pick up.”

Truism: No matter how much due diligence you do, only when you start working for the employer will you experience and, therefore, know their culture firsthand.

  • “What opportunities are there for professional development?”

When asked this question, I immediately think the candidate cares more about gaining than contributing, a showstopper. Managing your career is your responsibility, not your employer’s.

Cliché questions don’t impress hiring managers, nor will they differentiate you from your competition. To transform your interaction with your interviewer from a Q&A session into a dynamic discussion, ask unique, insightful questions.

Here are my four go-to questions—I have many moreto accomplish this:

  • “Describe your management style. How will you manage me?”

This question gives your interviewer the opportunity to talk about themselves, which we all love doing. As well, being in sync with my boss is extremely important to me. The management style of who’ll be my boss is a determining factor in whether or not I’ll accept the job.

  • “What is the one thing I should never do that’ll piss you off and possibly damage our working relationship beyond repair?”

This question also allows me to determine whether I and my to-be boss would be in sync. Sometimes I ask, “What are your pet peeves?”

  • “When I join the team, what would be the most important contribution you’d want to see from me in the first six months?”

Setting myself up for failure is the last thing I want. As I mentioned, focus on the results you need to produce and timelines. How realistic are the expectations? It’s never about the question; it’s about what you want to know. It’s important to know whether you’ll be able to meet or even exceed your new boss’s expectations.

  • “If I wanted to sell you on an idea or suggestion, what do you need to know?”

Years ago, a candidate asked me this question. I was impressed he wasn’t looking just to put in time; he was looking for how he could be a contributing employee. Every time I ask this question, it leads to an in-depth discussion.

Other questions I’ve asked:

 

  • “What keeps you up at night?”
  • “If you were to leave this company, who would follow?”
  • “How do you handle an employee making a mistake?”
  • “If you were to give a Ted Talk, what topic would you talk about?”
  • “What are three highly valued skills at [company] that I should master to advance?”
  • “What are the informal expectations of the role?”
  • “What is one misconception people have about you [or the company]?”

 

Your questions reveal a great deal about your motivations, drive to make a meaningful impact on the business, and a chance to morph the questioning into a conversation. Cliché questions don’t lead to meaningful discussions, whereas unique, thought-provoking questions do and, in turn, make you memorable.

_____________________________________________________________________

 

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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Canadian Natural Resources reports $2.27-billion third-quarter profit

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CALGARY – Canadian Natural Resources Ltd. reported a third-quarter profit of $2.27 billion, down from $2.34 billion in the same quarter last year.

The company says the profit amounted to $1.06 per diluted share for the quarter that ended Sept. 30 compared with $1.06 per diluted share a year earlier.

Product sales totalled $10.40 billion, down from $11.76 billion in the same quarter last year.

Daily production for the quarter averaged 1,363,086 barrels of oil equivalent per day, down from 1,393,614 a year ago.

On an adjusted basis, Canadian Natural says it earned 97 cents per diluted share for the quarter, down from an adjusted profit of $1.30 per diluted share in the same quarter last year.

The average analyst estimate had been for a profit of 90 cents per share, according to LSEG Data & Analytics.

This report by The Canadian Press was first published Oct. 31, 2024.

Companies in this story: (TSX:CNQ)

The Canadian Press. All rights reserved.

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Cenovus Energy reports $820M Q3 profit, down from $1.86B a year ago

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CALGARY – Cenovus Energy Inc. reported its third-quarter profit fell compared with a year as its revenue edged lower.

The company says it earned $820 million or 42 cents per diluted share for the quarter ended Sept. 30, down from $1.86 billion or 97 cents per diluted share a year earlier.

Revenue for the quarter totalled $14.25 billion, down from $14.58 billion in the same quarter last year.

Total upstream production in the quarter amounted to 771,300 barrels of oil equivalent per day, down from 797,000 a year earlier.

Total downstream throughput was 642,900 barrels per day compared with 664,300 in the same quarter last year.

On an adjusted basis, Cenovus says its funds flow amounted to $1.05 per diluted share in its latest quarter, down from adjusted funds flow of $1.81 per diluted share a year earlier.

This report by The Canadian Press was first published Oct. 31, 2024.

Companies in this story: (TSX:CVE)

The Canadian Press. All rights reserved.

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