Latest news with #BigOil
Yahoo
12 hours ago
- Business
- Yahoo
Why Big Oil Isn't Afraid of Peak Oil Demand
Big Oil firms expect global oil demand to stop growing at some point early next decade. But the decline will be very slow and gradual and will look more like a plateau than a downward spiral. The world's biggest international oil and gas companies have started to acknowledge that demand growth could slow or stop within a decade. But these firms keep pumping oil and gas more than they did earlier this decade as they expect that oil demand – regardless of a peak – isn't going the headline-grabbing surge in renewable energy capacity, solar and wind cannot replace fossil fuels in many industrial processes and production while demand for petrochemicals drives increased oil and gas consumption. The strategic shift of BP and Shell from early this decade to boost investments in renewables while scaling back oil production lasted only a couple of years. Europe's Big Oil found out firsthand that the renewables business isn't bringing the profits that the core oil and gas business is generating. Faced with the difficult task of rewarding shareholders with attractive yields and payouts and stopping the investor outflow from the industry, and with an energy crisis with soaring oil and gas prices, Shell and BP drastically scaled on their ambitions in renewables and shifted their focus on oil and gas again. Equinor of Norway, where electric vehicles hold an enormous market share and power comes from hydro and wind, also reduced investments in renewables, in order to boost returns for shareholders and adapt to an uneven energy transition. The Norwegian major, which dropped 'oil' from its name and rebranded to Equinor seven years ago with more renewables business in mind, acknowledged that market conditions in the clean energy sector have changed and the energy transition is going forward with an uncertain and uneven pace. At the same time, Equinor, which now produces a large part of the gas going to Europe via pipelines, expects to keep a high level of oil and gas production in Norway 'all the way to 2035.' 'What we are working on is to make sure that we are able to squeeze every molecule out of the Norwegian continental shelf,' chief executive Anders Opedal told the Financial Times. 'So we have to drill around 100 wells a year for the next decade.' Low returns from higher-cost renewables and the uncertain pace of the transition amid the push for security of supply have had European majors scale back plans and investments in renewables and look to grow low-cost lower-carbon oil and gas production. In the U.S., ExxonMobil and Chevron didn't have to pivot as they weren't deep into renewable energy even before the 2022-2023 energy crisis and soaring the International Energy Agency (IEA), which has just doubled down on its forecast of peak oil demand by the end of this decade, Big Oil companies don't see any peak by 2030. Some have put a peak at some point in the 2030s, but all say that oil and gas will remain essential for global economic growth and development in 2050. 'Under any credible scenario, oil and natural gas remain essential,' ExxonMobil says in its latest Global Outlook to 2050. The U.S. supermajor also believes that 'Lower-carbon technology needs policy support to grow rapidly but ultimately must be supported by market forces.' In 2050, more than 50% of global energy demand will still be met by oil and natural gas, Exxon reckons. 'The world will be different in 2050, but the need to provide the reliable, affordable energy that drives economic prosperity and better living standards, while reducing greenhouse gas emissions, will remain just as critical as it is today,' it says. Shell's CEO Wael Sawan has said that reducing global oil and gas production would be 'dangerous and irresponsible' as the world still needs those hydrocarbons. In its 2025 Energy Security Scenarios, Shell sees oil demand likely to grow by 3?5 million barrels per day (bpd) into the early 2030s, with a long but slow decline after that as petroleum remains an affordable and convenient fuel, particularly in transport, and an important feedstock for the petrochemical industry. In all three scenarios analyzed by Shell, upstream investment of around $600 billion a year 'will be required for decades to come as the rate of depletion of oil and gas fields is two to three times the potential future annual declines in demand.' In the most-discussed strategy reset this year, BP slashed spending on clean energy and boosted upstream investments. The UK-based supermajor will aim for 10 new major oil and gas projects to start up by the end of 2027, and a further 8–10 projects by the end of 2030. Production is also expected to grow: to 2.3–2.5 million barrels of oil equivalent per day (boed) in 2030, with capacity to increase to 2035. That's a stark departure from BP's previous strategy to lower oil and gas output by 2030. 'We will grow upstream investment and production to allow us to produce high margin energy for years to come,' CEO Murray Auchincloss said. Whenever peak oil demand occurs, it will not be a steep downhill in global consumption—it will be a long plateau with a soft decline afterward, Big Oil says. A steep drop could only occur if there is an aggressive political push toward net-zero emissions by 2050, Shell's head of scenario planning, Laszlo Varro, told FT. But such a push would be 'significantly outside society's current comfort zone.' By Tsvetana Paraskova for More Top Reads From this article on Erreur lors de la récupération des données Connectez-vous pour accéder à votre portefeuille Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données
Globe and Mail
09-06-2025
- Business
- Globe and Mail
Chevron's Texas Job Cuts: What's Really Driving the Layoffs?
Chevron Corporation CVX is moving forward with significant layoffs in Texas, shedding roughly 200 positions in Midland by July 15, 2025. This round of job cuts is part of the oil giant's broader global restructuring plan, targeting a 15% to 20% reduction in headcount, up to 9,000 employees, by the end of 2026. While Chevron initially reported 799 job losses in Midland to the Texas Workforce Commission, the figure was later revised due to a data error. Most of the affected roles are based at Chevron's Mid-Continent campus on Deauville Boulevard, with additional cuts across nearby operational sites. The company's rationale is clear: simplify the operating structure, increase execution speed, and maintain long-term competitiveness. As Chevron integrates new technologies and rethinks where and how work gets done, it aims to centralize key functions and expand its global service hubs. For Midland, a critical point in Chevron's Permian Basin footprint, signals a shift toward leaner on-the-ground operations and heavier reliance on centralized decision-making. Chevron is offering severance and transition assistance, but the scale and cadence of layoffs across California and Texas highlight just how deep its cost-cutting agenda runs. With more cuts expected through 2026, Chevron's restructuring may redefine how it operates across key U.S. basins. How Other 'Big Oil' Peers Are Reshaping Their Workforces ExxonMobil XOM, Chevron's primary competitor, has taken a deliberate and methodical path in reshaping its workforce, steering clear of sweeping layoffs seen elsewhere in the industry. Rather than focusing on broad structural cuts, ExxonMobil ties reductions to individual and business performance, with most changes occurring outside the U.S. Over the past two years, ExxonMobil has quietly trimmed headcount while leaning on technology to streamline operations globally. European supermajor Shell SHEL has also been undergoing workforce transformation. After Shell's new CEO, Wael Sawan, took office, the company has been focusing on creating more value for its shareholders by improving its performance and simplifying its business operations. A central element of Shell's strategy involves streamlining operations and consolidating management to reduce expenses, with a particular focus on regions where operating costs are higher. CVX's Price Performance, Valuation and Estimates Shares of Chevron have lost around 3% year to date. From a valuation standpoint, Chevron's forward 12-month P/E multiple stands at over 18X, well above the subindustry. CVX carries a Value Score of D. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Chevron's 2025 earnings implies a 32% decline year over year. The stock currently carries a Zacks Rank #5 (Strong Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks Names #1 Semiconductor Stock It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chevron Corporation (CVX): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report Shell PLC Unsponsored ADR (SHEL): Free Stock Analysis Report This article originally published on Zacks Investment Research (
Yahoo
06-06-2025
- Business
- Yahoo
1 Russell 2000 Stock with Promising Prospects and 2 to Approach with Caution
The Russell 2000 (^RUT) is home to many small-cap stocks, offering investors the chance to uncover hidden gems before the broader market catches on. However, these companies often come with higher volatility and risk, as their smaller size makes them more vulnerable to economic downturns. The high-risk, high-reward nature of the Russell 2000 makes stock selection critical, and we're here to guide you toward the right ones. That said, here is one Russell 2000 stock that could be the next big thing and two that may struggle to keep up. Market Cap: $674.7 million Committed to clean-label foods, SunOpta (NASDAQ:STKL) is a sustainability-focused food and beverage company specializing in the sourcing, processing, and packaging of organic products. Why Are We Cautious About STKL? Annual revenue declines of 4.2% over the last three years indicate problems with its market positioning Smaller revenue base of $742.7 million means it hasn't achieved the economies of scale that some industry juggernauts enjoy Gross margin of 16% is an output of its commoditized products SunOpta is trading at $5.75 per share, or 29.1x forward P/E. To fully understand why you should be careful with STKL, check out our full research report (it's free). Market Cap: $343.8 million With its watches displayed in 20 museums around the world, Movado (NYSE:MOV) is a watchmaking company with a portfolio of watch brands and accessories. Why Do We Think MOV Will Underperform? Annual sales declines of 6% for the past two years show its products and services struggled to connect with the market Operating margin of 4.4% falls short of the industry average, and the smaller profit dollars make it harder to react to unexpected market developments Shrinking returns on capital suggest that increasing competition is eating into the company's profitability Movado's stock price of $15.99 implies a valuation ratio of 0.5x trailing 12-month price-to-sales. Check out our free in-depth research report to learn more about why MOV doesn't pass our bar. Market Cap: $1.27 billion Founded during the emergence of Big Oil in Texas, DXP (NASDAQ:DXPE) provides pumps, valves, and other industrial components. Why Are We Fans of DXPE? Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient Share repurchases over the last two years enabled its annual earnings per share growth of 34.6% to outpace its revenue gains Improving returns on capital reflect management's ability to monetize investments At $80.99 per share, DXP trades at 14.7x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
05-06-2025
- Politics
- Yahoo
Letters to the Editor: The Dodgers' and Giants' Big Oil ads are just normal economic competition
To the editor: Neither the Dodgers nor the Giants are advocating for petroleum over clean energy ('What do the Dodgers and Giants have in common? An iconic ad — for Big Oil,' May 29). They are both providing paid ad services for competitors in the petroleum products industry, which will be with us until we are able to replace all fossil fuels with 100% clean energy sources. The clean energy cause is absolutely crucial to our future. We're getting there pretty quickly, but in the meantime, competitors gonna compete, and they're going to use ads to do so. Advertising for any one or all of them is neither a sin nor a crime, nor even naughty. It is simply competition, and none of it should be held as the least bit despicable as long as the economy continues to require some fossil fuels. After all, would you tell people who would freeze to death if they didn't burn coal that they were doing something immoral, unethical or even illogical, if that was all they had to heat their home? Mark Driskill, Long Beach .. To the editor: I appreciate columnist Sammy Roth's spirited commentaries about Big Oil advertising at sporting events. However, if ever there was a tempest in a teapot, it's this issue. I can't recall anyone ever saying, 'Wow! I saw the 76 ad at Dodger Stadium. I'm buying more gasoline!' To be fair, I've been going to Dodger Stadium for more than 50 years and I couldn't tell you who else has an ad. I'm generally watching the game. Jeffrey R. Knott, Fullerton .. To the editor: In the recent Boiling Point, the shot taken at Phillips 66 is open for debate. One part of the article conveys disappointment from local Dodger fans that the iconic 76 logo will now also adorn the outfield of the rival San Francisco Giants (seriously, who cares?). Others are asking to take down the logo in both stadiums because of its association with the fossil fuel industry. The average reader, I believe, can see both sides, although in most cases reluctantly. But here's a third topic of debate to consider. When you look around beautiful Dodger Stadium — be it the bull pens, the scoreboards or along the foul lines — what do you see? Huge four-color advertisements for alcoholic beverages that, when heavily consumed, can cause distraction and safety concerns for fans and families just wanting to enjoy a night out at the stadium. Heavy consumption of these products, and the aforementioned promotion of alcohol in this environment, never leads to anything good. Fan arguments and fights in the stands or, even worse, malicious attacks in the parking lot after the game. Yes, they're different topics, but it's something to think about. Richard Whorton, Studio City This story originally appeared in Los Angeles Times.
Los Angeles Times
05-06-2025
- Politics
- Los Angeles Times
Letters to the Editor: The Dodgers' and Giants' Big Oil ads are just normal economic competition
To the editor: Neither the Dodgers nor the Giants are advocating for petroleum over clean energy ('What do the Dodgers and Giants have in common? An iconic ad — for Big Oil,' May 29). They are both providing paid ad services for competitors in the petroleum products industry, which will be with us until we are able to replace all fossil fuels with 100% clean energy sources. The clean energy cause is absolutely crucial to our future. We're getting there pretty quickly, but in the meantime, competitors gonna compete, and they're going to use ads to do so. Advertising for any one or all of them is neither a sin nor a crime, nor even naughty. It is simply competition, and none of it should be held as the least bit despicable as long as the economy continues to require some fossil fuels. After all, would you tell people who would freeze to death if they didn't burn coal that they were doing something immoral, unethical or even illogical, if that was all they had to heat their home? Mark Driskill, Long Beach .. To the editor: I appreciate columnist Sammy Roth's spirited commentaries about Big Oil advertising at sporting events. However, if ever there was a tempest in a teapot, it's this issue. I can't recall anyone ever saying, 'Wow! I saw the 76 ad at Dodger Stadium. I'm buying more gasoline!' To be fair, I've been going to Dodger Stadium for more than 50 years and I couldn't tell you who else has an ad. I'm generally watching the game. Jeffrey R. Knott, Fullerton .. To the editor: In the recent Boiling Point, the shot taken at Phillips 66 is open for debate. One part of the article conveys disappointment from local Dodger fans that the iconic 76 logo will now also adorn the outfield of the rival San Francisco Giants (seriously, who cares?). Others are asking to take down the logo in both stadiums because of its association with the fossil fuel industry. The average reader, I believe, can see both sides, although in most cases reluctantly. But here's a third topic of debate to consider. When you look around beautiful Dodger Stadium — be it the bull pens, the scoreboards or along the foul lines — what do you see? Huge four-color advertisements for alcoholic beverages that, when heavily consumed, can cause distraction and safety concerns for fans and families just wanting to enjoy a night out at the stadium. Heavy consumption of these products, and the aforementioned promotion of alcohol in this environment, never leads to anything good. Fan arguments and fights in the stands or, even worse, malicious attacks in the parking lot after the game. Yes, they're different topics, but it's something to think about. Richard Whorton, Studio City
