Energy Pulse: Chevron Corporation (CVX), Exxon Mobil Corporation (XOM), and BP Plc (ADR) (BP)
Chevron Corporation (NYSE:CVX) has started producing oil at an offshore site in a zone between the Republic of Congo and the Republic of Angola. First discovered in 2004, the oil well should produce up to 40,000 barrels of oil a day according to the company’s initial estimates.
The discovered field includes a subsea system and a 27-mile flow line system that Chevron will use to carry oil to an offshore platform in Angola. Chevron holds a 15.75% stake interest in the project through its subsidiary in Congo as well as a 15.5% stake through another subsidiary in Angola. French oil company Total, Angola Block 14 BV, Italian Oil Company among others, own the remaining stakes.
Just like other oil companies Chevron Corporation (NYSE:CVX) has been hit hard by the current downtrend of low oil crude prices. The company continues to bolster its production growth outlook despite the uncertainty that has gripped the sector. However, it is also reducing its capital spending and overall cost structure as it moves to shield itself from the onslaught in the sector.
Politicians are weighing into allegations that Exxon Mobil Corporation (NYSE:XOM) might have lied about risks pertaining to climate change. Several Congress members have asked the Securities and Exchange Commission to investigate the oil giant. The legislators allege that the company omitted or misrepresented material information on its official filing pertaining to climate change.
Presidential candidates Bernie Sanders and Hilary Clinton are some of the high profile politicians pushing for the SEC to investigate Exxon Mobil claims. The oil giant has allegedly been funding climate denying organizations to quash concerns over the potential impact of climate change.
A report by InsideClimate alleges that the company has been working to thwart global warming solutions that have the potential to harm its operations. Exxon Mobil Corporation (NYSE:XOM) has vehemently refuted the allegations terming InsideClimate News an ‘anti-oil and gas’ activist organization.
Companies in the oil sector have all but made it clear that no legislation on climate change that has the potential to affect their operations will ever see the light of day. The likes of Chevron Corporation (NYSE:CVX) and Exxon Mobil Corporation (NYSE:XOM) have turned to lobbying and spending big to safeguard their interests.
More than $11.3 million was reportedly spent between Jul 1 and September 30 all to sway the outcome of the climate change legislation. Oil and Energy sectors outspent environmental advocates calling for stringent measures on the use of fossil fuels.
Chevron Corporation (NYSE:CVX) spent $1.8 million to protect its interests during the summer. BP Plc (ADR) (NYSE:BP), Valero Energy Corporation (NYSE:VLO) and Exxon Mobil Corporation (NYSE:XOM) also joined the wave in courting a handful of key legislators. The focus of the battle revolved around legislations that intended to reduce oil consumption for transportation. The legislation also sought to increase energy efficiency while also advocating for an accelerated shift to renewable energy.
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