In our top story, investors in the world’s largest oil and gas companies are eyeing a windfall from rising crude prices as the sector heads toward its strongest financial performance in a decade. But they’re keeping a tight rein on spending. European companies Total and BP have already launched share buyback programs, and Royal Dutch Shell is preparing to follow suit. Meanwhile, U.S. majors Exxon Mobil and Chevron, are also benefiting from this year’s faster-than-expected upturn in oil prices. Barclays analyst Lydia Rainforth told the Financial Times the oil market is tightening and it’s now appropriate to factor in at least some of the windfall profitability that higher prices are generating.
Cheniere Energy has approved the construction of a third liquefaction unit at its Corpus Christi export terminal. It’s the first new LNG project to go ahead in the U.S. since 2015. The positive investment decision comes as Washington and Beijing have stepped back from the brink of a trade war and agreed to hold further talks to boost U.S. exports to China. Cheniere signed long-term deals with China National Petroleum Corporation in February to export LNG to the state-owned oil and gas firm.
Australia major Santos ended talks with Harbour Energy and rejected the U.S.-based firm's $10.8 billion takeover offer.
And oilfield service company Weatherford may have to sell one of its larger businesses next year to pay down its sizeable debt, said CEO Mark McCollum at the UBS Global Oil and Gas Conference in Austin, Texas. He didn’t identify which businesses the company was considering selling.
Day’s insights covered the burgeoning LNG business, the growing eastern Eagle Ford, and opportunities in the Gulf of Mexico and Bakken Shale, and how insurance can reduce business risk.
Souki’s departure comes about four months after Icahn took a stake in the company that eventually rose to 13.8%. He also won control of two seats on the company’s board.
At DUG East, executives and experts touted Appalachia’s natural gas potential and pick up in infrastructure projects.