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What Oil Companies Face: The WTF-Collapse of Consumption of Gasoline & Jet Fuel from Long-Term Weakness

What Oil Companies Face: The WTF-Collapse of Consumption of Gasoline & Jet Fuel from Long-Term Weakness

Transportation fuel demand rose to where it had been in … 1997.

While the overall S&P 500 Index is down 2.7% in October, about flat for the three-month period, and up 2.8% for the year, the S&P 500 Energy Index is down 4.4% for the month, down 19% for the three-month period, and down 50% year-to-date.

On Friday, Exxon Mobil reported a 29% plunge in revenue in the third quarter, and a loss of $680 million – its third loss in a row, the three of them totaling $2.34 billion. And it warned of possible “significant impairment” charges on “assets with carrying values of approximately $25 billion to $30 billion,” mostly related to its North American shale gas operations. The day before, it had announced job cuts of 14,000 employees and contractors globally, including about 1,900 folks at its Houston headquarters.

Chevron [CVX], which completed the acquisition of Noble Energy in early October, announced this week that it would lay off about one quarter of Noble’s employees. Those layoffs are in addition to the cuts of 10%-15% it’s planning for its own workforce. The cuts at Noble amount to nearly 600 people, and the cuts at Chevron amount to 4,500 to 6,750 folks.

Exxon shares [XOM] have plunged 53% year-to-date to $32.62 on Friday, and thereby edged closer to their March 23 decade-low of $31.45. In July 2014, at the cusp of the Oil Bust, XOM reached a high of $135, having since then plunged by 75%.  Exxon’s dividend yield is now over 10%, but everyone knows that, like other oil companies, Exxon could reduce or eliminate its dividend if push comes to shove.

Bankruptcies by US shale oil and gas companies with less heft and diversification than Exxon and Chevron have turned into a flood. The debts listed in the bankruptcy filings over the first nine months of 2020 reached $89 billion and surpassed year-total filings in the prior peak oil-bust year 2016.

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Chevron Shares Slide After Recording Historic Quarterly Loss

Chevron Shares Slide After Recording Historic Quarterly Loss

Chevron Corporation reported a loss of $8.3 billion for the second-quarter 2020, the worst quarterly decline in a generation, and warned: “COVID-19 significantly reduced demand for our products and lowered commodity prices.” 

Chevron lost $1.59 per share on an adjusted basis while recording revenues around $13.49 billion. In the same quarter last year, the oil giant earned $2.27 per share on $36.32 billion. 

The earnings bloodbath was mostly due to a collapse in demand for the company’s energy products and a 60% YoY plunge in its average price per barrel of oil and natural gas liquids. h/t Bloomberg 

The quarterly loss was also due to a massive write-down of $1.8 billion in energy assets. The company fully impaired its $2.6 billion Venezuela operations from its books following U.S. sanctions. 

Chevron shares slid 3% on the earnings announcement. 

“The past few months have presented unique challenges,” said Michael Wirth, Chevron CEO, in a statement.

 “The economic impact of the response to COVID-19 significantly reduced demand for our products and lower commodity prices. Given the uncertainties associated with economic recovery and ample oil and gas supplies, we made a downward revision to our commodity price outlook, which resulted in asset impairments and other charges,” said Wirth. 

Chevron warned, “demand and commodity prices have shown signs of recovery, they are not back to pre-pandemic levels, and financial results may continue to be depressed into the third quarter of 2020.” 

Despite the considerable loss, Wirth claimed the company would “protect the dividend, invest for long term value, and maintain a strong balance sheet.”

But, it is hard to believe Chevron can justify maintaining its dividend at such a high cost with the economy now reversing and demand for energy products likely to falter in the back half of the year. 

BIG TROUBLE FOR THE BIG THREE U.S. OIL COMPANIES: Financial Disaster In Its Domestic Oil & Gas Sector

BIG TROUBLE FOR THE BIG THREE U.S. OIL COMPANIES: Financial Disaster In Its Domestic Oil & Gas Sector

There’s no better way to describe what is taking place in the U.S. Big three Oil Companies domestic oil and gas sector than a complete and utter financial disaster. Honestly, I am not exaggerating.  The only place ExxonMobil, Chevron, and ConocoPhillips are making decent money is in their non-U.S. or International oil and gas sector.

While it’s no secret that the U.S. shale oil industry continues to be a trainwreck, the damage is now spreading deep into the financial bowels of the Big Three Oil Majors.  Unfortunately, the largest, ExxonMobil, has the worst-performing domestic oil and gas sector in the group.  So, it’s no surprise that ExxonMobil was forced to borrow money just to pay dividends.  I posted this chart in my last article on ExxonMobil:

As you can see, ExxonMobil’s long-term debt over the four-quarters (Q2-2019 to Q1 2020) increased nearly the same amount as the shortfall between the dividend payouts and the free cash flow.

However, if we look at the Big Three as a group, Q1 2020 wasn’t pretty at all.  The next chart combines ExxonMobil, Chevron, and ConocoPhillips Upstream Earnings and Capital Expenditures (CAPEX) from their U.S. sector versus their non-U.S. or International sector.  The upstream sector refers to the company’s oil and gas wells.

The Big Three suffered a net $900 million earnings loss from their U.S. upstream sector while spending a whopping $5.6 billion ($5,591 million) in CAPEX. Now compare that to the combined non-U.S. or International upstream earnings of $4.3 billion based on investing $4.6 billion in CAPEX.

…click on the above link to read the rest of the article…

Big Oil Doubles Down On Shale Despite Price Drop

Big Oil Doubles Down On Shale Despite Price Drop

big oil shale

It’s the time of the year when oil companies start announcing their budgets for next year and besides a steady albeit guarded optimism, one thing stands out: oil majors are doubling down on their shale endeavors.

Chevron, ConocoPhillips, and Hess Corp all announced their capex plans for next year in the last few days and all three have big plans for U.S. shale. In fact, Conoco said it would allocate half of its budget on onshore operations in the United States, while Hess Corp said the bulk of its US$1.89 billion production growth budget, or US$1.425 billion, would be poured into the Bakken play.

Chevron has  earmarked US$3.6 billion for expanding its production in the Permian and another US$1.6 billion will be invested in other shale plays in the United States. That makes a total of US$5.2 billion for U.S. shale, which is substantially higher than this year’s budget of US$4.3 billion.

Anadarko, which made its 2019 spending plans public last month, said it planned to allocate more than two-thirds of its 2019 budget to shale operations, with a particular focus on the Delaware Basin in the Permian and the DJ basin in Colorado.

According to Bloomberg, shale has become “a safe haven” for Big Oil amid the recent increased volatility in prices. The argument is that shale production costs are much lower than a few years ago and combine with the opportunity for a steady production increase and quicker returns than conventional projects.

The recent assessment of the U.S. Geological Survey of the recoverable reserves in the Wolfcamp basin must have added fuel to Big Oil’s shale enthusiasm.

…click on the above link to read the rest of the article…

Permian Drillers Prepare To Go Into Overdrive In 2019

Permian Drillers Prepare To Go Into Overdrive In 2019

Permian

In recent months, pipeline capacity shortage in the Permian has been the center of shale drillers and oil analysts’ attention as much as the surging production from this fastest-growing U.S. oil region that has helped total American crude oil production to exceed 11 million bpd for the first time ever.

Many of the big U.S. companies—including supermajors Exxon and Chevron—boosted their Permian oil production in the third quarter as they have firm capacity commitments and integrate Permian production with downstream operations.

Many smaller drillers, however, are going on a ‘frac holiday’—as Carrizo Oil & Gas said in its Q3 earnings release this week—in some of their Permian acreage by the end of this year, to sit out the worst of the pipeline constraints, and to be ready to return to completions next year.

The majority of company executives and industry analysts expect that the Permian bottlenecks and the wide WTI Midland to Cushing price differential are transitory issues that will go away by the end of 2019, when many of the new pipelines out of the Permian will have started operations.

Until then, some smaller drillers like Carrizo are on a ‘frac holiday’ this month and next. Commenting on the Q3 performance, Carrizo’s President and CEO S.P. “Chip” Johnson said that the company had been drilling more in the Eagle Ford than in the Permian in order to capture higher pricing from the Eagle Ford oil.

“We expect our activity to remain weighted to the Eagle Ford Shale until the second half of 2019, when we plan to begin moving rigs back to the Delaware Basin,” Johnson said. In the earnings call, he noted that the shift to the Eagle Ford “shielded us from the dramatic widening of differentials in the Permian Basin during the quarter.”

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Big Oil Walking A Tightrope As Prices Rise

Big Oil Walking A Tightrope As Prices Rise

offshore arctic

Supermajors have had a great year so far, and their third-quarter results, to be released over the next couple of weeks, are likely to strengthen this impression. But this does not necessarily mean that investors will reward them. Investors have become a lot more careful in the past few years, and chances are they will want to see more proof of post-crisis flexibility and strict cost discipline before stock prices reflect an increase in trust.

On the face of it, Exxon, Shell, Chevron, and their likes have everything going for them: oil prices are higher, free cash flow is coming in at higher rates, and there have even been a few discoveries, most notable among them Exxon’s 4-billion-barrel elephant off the coast of Guyana. But Big Oil still needs to be cautious.

In a recent article for 24/7 Wall Street, its senior editor Paul Ausick noted the heightened prospects of even higher oil prices after a Reuters report revealed that OPEC has been having trouble lifting production by the promised 1 million bpd. From May to September, the cartel’s combined production plus Russia’s had fallen well short of that figure because of production declines in Venezuela, Iran, and Angola, among others. These, the internal OPEC document that Reuters saw, offset some substantial output hikes from Saudi Arabia, Russia, the UAE, Iraq, and Kuwait.

What this means is that there seems to be less spare capacity than optimists believed. This, in turn, means prices are likely to climb further, despite a fresh assurance from Treasury Secretary Steven Mnuchin that traders have already factored in the U.S. sanctions against Iran. Mnuchin’s warning that Washington will insist on importers cutting Iranian crude imports by more than 20 percent most certainly has not helped rein in prices, though its effect has yet to be fully acknowledged.

…click on the above link to read the rest of the article…

WORLD’S LARGEST OIL COMPANIES: Deep Trouble As Profits Vaporize While Debts Skyrocket

WORLD’S LARGEST OIL COMPANIES: Deep Trouble As Profits Vaporize While Debts Skyrocket

The world’s largest oil companies are in serious trouble as their balance sheets deteriorate from higher costs, falling profits and skyrocketing debt.  The glory days of the highly profitable global oil companies have come to an end.  All that remains now is a mere shadow of the once mighty oil industry that will be forced to continue cannibalizing itself to produce the last bit of valuable oil.

I realize my extremely unfavorable opinion of the world’s oil industry runs counter to many mainstream energy analysts, however, their belief that business, as usual, will continue for decades, is entirely unfounded.  Why?  Because, they do not understand the ramifications of the Falling EROI – Energy Returned On Invested, and its impact on the global economy.

For example, Chevron was able to make considerable profits in 1997 when the oil price was $19 a barrel.  However, the company suffered a loss in 2016 when the price was more than double at $44 last year.  And, it’s even worse than that if we compare the company’s profit to total revenues.  Chevron enjoyed a $3.2 billion net income profit on revenues of $42 billion in 1997 versus a $497 million loss on total sales of $114 billion in 2016.  Even though Chevron’s revenues nearly tripled in twenty years, its profit was decimated by the falling EROI.

Unfortunately, energy analysts, who are clueless to the amount of destruction taking place in the U.S. and global oil industry by the falling EROI, continue to mislead a public that is totally unprepared for what is coming.  To provide a more realistic view of the disintegrating energy industry, I will provide data from seven of the largest oil companies in the world.

The World’s Major Oil Companies Debt Explode Since The 2008 Financial Crisis

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Gulf Of Mexico Output Falls Nearly 100% After Hurricane Nate

Gulf Of Mexico Output Falls Nearly 100% After Hurricane Nate

offshore rig

As of Sunday, 92.61 percent of crude oil production capacity in the Gulf of Mexico was shut in, the Bureau of Safety and Environmental Enforcement said. In barrels, this amounted to 1.62 million per day, with 298 platforms and 14 rigs evacuated, representing 40.43 percent and 70 percent of platforms and rigs in the Gulf, respectively. Another 10 rigs, dynamically positioned ones, were moved from their locations as a precaution.

Nate, which made final landfall in Mississippi, has been moving inland and has in the process weakened back into a tropical depression. Heavy rains are in the forecast, according to the Weather Channel, but oil and gas field and refinery operators are already preparing to restart their shut-in facilities

Chevron and Shell are bringing back personnel to the platforms and doing assessments on the infrastructure, including platforms, pipelines, and terminals. New Orleans has already resumed normal port operations and vessel traffic, quenching worries that Nate will disrupt oil and fuel shipments from one of the main Gulf Coast ports.

Chevron also said it was assessing the impact of the hurricane on its Pascagoula refinery, which has a daily capacity of 340,000 bpd, and which Genscape said Chevron had shut down on Saturday. Chevron never confirmed the report, and on Sunday there were signs of activity at the refinery.

Phillips 66, however, shut down its Alliance refinery, with a capacity of 247,000 bpd, and has now reported it undamaged from the hurricane. The company planned to restart the facility yesterday, but because of a crude oil shortage in the Gulf, it may take a few more days for the refinery to resume normal operations.

This shortage should have a beneficial if short-lived effect on prices as well as on inventories while the platforms and refineries that were shut down return to normal operation.

 

Oil and Gas Industry Publicly Supports Climate Action While Secretly Subverting Process, New Analysis Shows

A new report recently released by InfluenceMap shows a number of oil and gas companies publicly throwing their support behind climate initiatives are simultaneously obstructing those same efforts through lobbying activities.

The report, Big Oil and the Obstruction of Climate Regulations, comes on the heels of the Oil and Gas Climate Initiative, a list of climate measures released by the CEOs of 10 major oil and gas companies including BP, Shell, Statoil and Total.

According to InfluenceMap the initiative is an attempt by leading energy companies to “improve their image in the face of longstanding criticism of their business practices ahead of UN COP21 climate talks in Paris.”

The big European companies behind the OGCI…will come under ever greater scrutiny, as the distance between the companies’ professed positions and the realities of the lobbying actions of their trade bodies grows ever starker,” InfluenceMap stated in a press release.

The group’s analysis shows a major disconnect between climate rhetoric and action among three key policy strands: carbon tax, emissions trading and greenhouse has emissions regulations.

The findings show companies like Shell and Total publicly support carbon pricing while at the same time support trade organizations that systematically obstruct the legislation’s implementation.

Oil majors BP, Chevron and Exxon also support these lobby groups but spend less time publicly supporting a price on carbon.

Dylan Tanner, executive director of InfluenceMap, said industry is becoming more cautious of public oversight and as a result, has become subtler with its efforts to subvert climate progress.

Companies like Shell appear to have shifted their direct opposition to climate legislation to certain key trade associations in the wake of increasing scrutiny,” Tanner said.

Investors and engagers need to be aware that these powerful energy and chemicals-sector trade bodies are financed by, and act on the instruction of, their key members and should thus be regarded as extensions of such corporate-member activity and positions.”

…click on the above link to read the rest of the article…

 

Local Resistance Can Overthrow Our Political Masters

Local Resistance Can Overthrow Our Political Masters

   Smoke and fumes from a 2012 fire at the Chevron refinery in Richmond, Calif., sent 15,000 residents to hospitals or medical offices. Richmond City Council member Gayle McLaughlin, interviewed in the article below, is a vocal critic of Chevron’s effect on the environment and the corporation’s longtime political power over the city. (Eric Risberg / AP)

SANTA ANA, Calif.—All resistance will be local. We will have to dismantle the corporate state, piece by piece, from the ground up. No leader or politician is going to do it for us. Every community that bans fracking, every university and institution that embraces the boycott, divest and sanctions (BDS) movement, every individual who becomes vegan to thwart the animal agriculture industry’s devastation of the planet and holocaust of animals, every effort to build self-sustaining food supplies, every protest to halt the use of lethal force by police against our citizens, especially poor people of color, every act of civil disobedience against corporate power and imperialism will slowly transform our society.

Those who rebel, once they rise up, will build alliances with other rebels. This will give birth to a new political expression, one that will be fiercely anti-capitalist and will seek to sustain rather than destroy life. Rebellion will come from the bottom. I do not know if we can succeed. The forces arrayed against us are monstrous and terrifying. The corporate state has no qualms about employing savage and violent repression, wholesale surveillance, the criminalizing of dissent, and its propaganda machine to demonize us all. But I know this: We are the only hope. We are the people we have been waiting for. And if we do not act to save ourselves, the climate crisis and the corporate state that caused it will continue to ravage the ecosystem and human societies until catastrophic collapse occurs. Indeed, we are already frighteningly far down that road.

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Ecuador vs. Chevron, By Way of Canada

Ecuador vs. Chevron, By Way of Canada

comp_chevron17__01__630x420

In the latest twist to a 22-year-old legal saga, Canada’s Supreme Court ruled on September 4th that Ecuadorian villagers can seek to enforce an Ecuadorian legal judgment in Canada for $9.5 billion against Chevron Corporation for polluting the Amazon rainforest.

The plaintiffs were successful in arguing that since Chevron owns at least $15 billion worth of assets in Canada – including Newfoundland offshore oil fields, major investment in the Alberta tar sands, an oil refinery in B.C., natural gas holdings, and other assets – they can pursue the case in Ontario courts. In the unanimous 7-0 ruling, the Canadian Supreme Court sided with the villagers’ lawyers, agreeing that the province of Ontario has jurisdiction to recognize the $9.5 billion judgment obtained in 2011 by the villagers in an Ecuadorean court. [1]

Chevron Corp. had appealed to the Supreme Court in the hopes of overturning a lower-court decision that said the villagers could pursue their case in Ontario courts.
In the Supreme Court case, California-based multinational Chevron Corp. argued that its Canadian assets don’t belong to the parent company, but to a subsidiary called Chevron Canada Ltd. But the high court rejected the company’s arguments. Justice Clement Gascon ruled that Chevron Canada’s “bricks-and-mortar business in Ontario and its significant relationship with Chevron” is enough to establish jurisdiction for the case. [2]

The ruling does not mean that the Ecuadorian villagers can now seize Chevron’s Canadian assets. It only means that the case can go forward at a subsequent trial court in Ontario. As Justice Gascon wrote, “A finding of jurisdiction does nothing more than afford the plaintiffs the opportunity to seek recognition and enforcement.”

Nonetheless, the villagers and their lawyers believe the decision by the Supreme Court of Canada “has set an important milestone” [3] in a case that has been called “the trial of the century.”

 

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Canada Clears Way for Ecuadorean Case Against Chevron Over ‘Amazon Chernobyl’

Canada Clears Way for Ecuadorean Case Against Chevron Over ‘Amazon Chernobyl’

  A protestor shows his black painted hand as he carries an Ecuador flag to protest against Chevron and the oil contamination in Ecuador’s Amazon region during a joined global demonstration in Madrid, Spain, in 2013.. (Andres Kudacki / AP)

Canada’s Supreme Court ruled Friday that Ecuadorean villagers can go after Canadian assets of the US-based oil major Chevron. The lawsuit has been one of the most bitterly contested environmental cases in history, involving a contamination that environmentalists have dubbed the “Amazon Chernobyl.”

From Al Jazeera:

The plaintiffs, who include about 30,000 villagers and indigenous people, decided to go after the energy giant’s assets in Canada, Brazil and Argentina after the company contested a ruling by Ecuador’s highest court to pay $9.5 billion to clean up the contamination site.

Communities in the Lago Agrio region of Ecuador allege that Texaco, which was acquired by Chevron in 2001, dumped some 16 billion tons of oil and toxic waste in the Amazon rainforest as a cost-saving measure between 1964 and 1992, Telesur reported. That’s 80 times the amount of oil spilled in the 2010 British Petroleum Gulf of Mexico oil disaster, the Latin American news website added.

Ecuadorian villagers and indigenous communities affected by the contamination allege that it has resulted in illness and death, Telesur reported in June, and that they are still suffering the consequences of Texaco’s actions.

Plaintiffs claim that Texaco attempted to hide the dumping by covering nearly 1,000 oil pits with vegetation. People eventually built homes over some of the pits, and began coming down with mysterious illnesses, it is claimed.

“It has been 33 years … and I never knew that this was a covered pit,” local resident Serbio Curipoma told Telesur.

 

…click on the above link to read the rest of the article…

The Layoffs Return: Energy Giants Chevron, Saipem To Fire Over 10,000 Workers

The Layoffs Return: Energy Giants Chevron, Saipem To Fire Over 10,000 Workers

In the beginning of 2015 the biggest threat to the economy as a result of the collapse in oil prices, both in the US and worldwide, was the surge in layoffs among highly-paid energy sector job. This was confirmed in April when we showed the Challenger layoffs data for the energy-heavy state of Texas, and the energy sector in general where the 37,811 job cuts in Q1 were some 3,900% higher than a year earlier.

 

Then in Q2, after the price of oil staged a substantial rebound of about 50% from the year to date lows in the $40’s, energy-related layoffs trickled to a halt as corporations hoped the worst is behind them, and as a result would merely bide their time before redeploying their workforce toward exploration and production.

Alas, this was not meant to be, and as the events of the last month have shown, oil has resumed its downward slide. And, as expected, so have layoffs.

Overnight, US energy major Chevron announced it will cut 1,500 jobs globally “as the company aims to reduce internal costs in multiple operating units and the corporate center.” According to Rigzone, “the San Ramon, Calif.-based energy company will cut 950 positions in Houston, 500 positions in San Ramon and 50 positions internationally.”

Chevron is cutting jobs due to the current market environment and is “focused on increasing efficiency, reducing costs and focusing on work that directly supports business priorities,” Chevron spokesperson Melissa Ritchie said in an email to Rigzone.

Chevron will be cutting 1,500 employee positions across the 24 groups that comprise the corporate center; 270 of the positions are existing vacancies that will not be filled. Additionally, 600 staff augmentation contractor positions will be cut in the corporate center.

 

…click on the above link to read the rest of the article…

 

 

 

Is Mexico Ready For Life Without Its Sugar Daddy?

Is Mexico Ready For Life Without Its Sugar Daddy?

The autopsy has already begun.

As the world’s attention is transfixed by every new development in Chapo Guzman’s latest audacious prison break, something much more important – and potentially more dangerous – is happening in Mexico. Yesterday the country held its first auction of offshore oil leases, bringing to an end 77 long years of state control over energy.

Until yesterday, Petróleos Mexicanos, A.K.A. Pemex, the state oil company, ran all oil and gas production in Mexico. But that has now changed. With it a new age has begun, one in which Mexico’s energy sector will finally get the funds it needs to extract the vast hydrocarbon resources it has at its disposal. It will also get the technology it needs for deepwater drilling in the Gulf of Mexico as private companies, in particular from the US and the UK, provide essential know-how and best practices. In short, it is a perfect win-win for all concerned…

Or at least it was supposed to be, until the bottom fell out of the global oil markets. Now the stagnant market is overwhelmingly in the buyer’s favor and yesterday, as Bloomberg reports, the buyers weren’t interested in buying:

Mexico’s first auction of offshore oil leases fell short of the country’s expectations as several majors decided not to participate.

Only two of the 14 shallow-water blocks released on Wednesday received qualifying bids. Exxon Mobil Corp., Chevron Corp. and Total SA passed on the country’s sale of territory in the Gulf of Mexico, 77 years after the country nationalized crude. The 14 percent success rate was less than half the 30 percent to 50 percent goal that the government said would be its minimum for judging the event a success.

…click on the above link to read the rest of the article…

Another 4.4 Magnitude Industry Reported Quake in Alberta

Another 4.4 Magnitude Industry Reported Quake in Alberta

Chevron shuts down operations following seismic event near Fox Creek.

Chevron Canada has confirmed that “a magnitude 4.4 seismic event was recorded by seismic monitoring arrays operated by Chevron Canada and Natural Resources Canada” in the Duvernay shale near Fox Creek, Alberta on Saturday.

It’s the second record-breaking industry-reported tremor to hit the region in a year. In January, industry triggered a 4.4 magnitude earthquake in the Duvernay shale.

That event forced the Alberta Energy Regulator to adopt a “traffic light system” to regulate seismic events in the region. The system requires companies to report events greater than a magnitude of 2.0, and to shut down operations once a 4.0 magnitude event is observed nearby.

As a result of the new regulations, Chevron reported the earthquake to the regulator and shut down operations at a natural gas well pad located approximately 27 kilometres south of Fox Creek.

However, the regulator has given the company permission to finish securing the well before it temporarily suspends operations at the site.

A spokesman for Chevron Canada, Lief Sollid, said the company “was installing production tubing in a well on the pad at the time of the event. Multi-stage hydraulic fracturing operations were completed on the eight-well pad on June 5.”

 

Hydraulic fracturing, the cracking of rock with highly pressurized fluids, can trigger an earthquake days after the event.

Sollid added in an email that “no injuries, property damage or environmental impacts have been reported as a result of the event.”

Since 2013, when companies started to fracture the deep shale with one to two-kilometre-long horizontal wells, the region has experienced a wave of tremors.

The Duvernay shale, or what stock promoters have dubbed the “new millennium gold,” covers a 56,000 square mile region and contains natural gas liquids. An average horizontal well may cost $15 million to drill.

Chevron is part-owner of the Kitimat LNG project, which will operate as an export facility for unconventional natural gas that has been fracked and extracted from British Columbia’s Liard and Horn River basins.

…click on the above link to read the rest of the article…

 

Olduvai IV: Courage
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Olduvai II: Exodus
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