RP Weekly Recap | October 5 – 9

Summary

Chevron Corporation overtook Exxon Mobil Corporation as the largest oil company in America by market value, the first time the Texas-based giant has been dethroned since it began as Standard Oil more than a century ago. But neither are any match for a Hurricane as both majors have evacuated production platforms in the Gulf of Mexico ahead of Hurricane Delta. The Bureau of Safety and Environmental Enforcement estimated about 80% of the Gulf’s oil production and 49% of natural gas production has been shut-in, including over 180 production platforms. Hurricane season has chronically caused trouble in the gulf region and a historic 2020 is no different.

COVID-19 Updates

COVID-19 Statistics

• Number of Cases (Worldwide): 36,593,213 (up from 34,411,708 last week)
• Number of Cases (USA): 7,611,772 (up from 7,292,422 last week)
• Statistics courtesy of Johns Hopkins

Financial & Economic Updates

US Oil Market News

• Chevron Overtook Exxon Mobil As The Largest Oil Company in America By Market Value (Link)  
• 80% of the Gulf Of Mexico’s Oil Production Has Been Shut In Ahead of Hurricane Delta (Link, Link, Link)  
• EIA Reports Crude Oil Inventory Build For Second Time In Ten Weeks (Link)  
• U.S. Domination In Energy Should Not Change Post-Election, Top Energy Guru Predicts (Link)  
• Oil Falls As Trump Tests Positive For COVID-19 And Soars As Conditions Improve (Link,  Link, Link) **DON’T TRUST EVERYTHING YOU READ – OTHER FORCES AT PLAY** 
• There’s No Oil in Wisconsin. The Fracking Bust Hit It Anyway. (Link) **INTERESTING READ**    

Global Market News

• Saudi Arabia Pegs Budget to Oil Staying Around $50 Until 2023 (Link, Link) 
• Libya’s Central Banks Want To Lift Oil Output To 1.7 Million Bpd – Warns Of Financial Collapse If Oil Production Not Restored (Link) 
• Australia’s Ambitious Energy Plans At Odds With Lower Carbon Strategy (Link) 
• To Dodge U.S. Sanctions, Venezuela Turns To Asia Asphalt Giant (Link)  
• India Surpasses Renewable Goals But Still Struggles To Meet Demand (Link)
• OPEC Predicts Oil Demand Will Grow Until Late 2030s (Link) 
•  Petrobras Cuts E&P Capex, Buzios Oil Field To Account for 70% of E&P Investments (Link)  

Employment Updates

• ExxonMobil To Cut 1,600 Jobs In Europe (Link)
• The Pandemic Made 107,000 Oil and Gas Jobs Disappear. 7 of 10 Won’t Come Back (Link, Link)  
• Jobless Claims Dip Slightly But Remain at Historically High Level – applications for unemployment benefits have stayed between 800,000 and 900,000 for the last month and a half (Link)

US Rig Count

• UP 3 from last week for a total of 269
• Down 69% from one year ago
• Statistics courtesy of Baker Hughes

RARE PETRO Updates

Content Updates – News Pulse – Podcast

• Episode 2 (Enterprise Resource Planning) from our newest segment, the Modern Mobile Oilfield is available now! This series is a collaborative effort between world renowned author Geoffrey Cann and RP host Tavis Killian that will expand on topics covered in the book “Bits, Bytes, and Barrels”. This new segment is aimed at energy professionals at any level who are looking to better understand the future of a digital oilfield, and potentially implement these technologies into their company’s workflow. Be sure to watch or listen on all available platforms HERE! 
• A new episode of the Periodical Podcast is available now! Be sure to check out our discussion on how ridiculously cheap crude oil is compared to other essential goods, commodities, and stock indices. (Link)
• This week’s periodical uncovers the fact that the cost of many essential goods, commodities, and indexes have increased dramatically since 1980 while the crude spot price has remained relatively flat by comparison. If crude price escalation doesn’t outpace the inflation rate, investment will not be spent on developing new reserves which will yield a supply shortage. The result will be a re-valuation of the commodity compared to other essential goods and a violent correction upwards in price. Be sure to check out The Intrinsic Value of Crude: An Underestimated Commodity! (Link) 
• As Always, A New Monday Madness Podcast! (Link)  

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