Last week in the world oil:
- Though unexpected, the OPEC deal reached last week is certainly welcome news for the oil markets, sending crude oil rising to its highest level in nearly two years, reaching US$55/b today. OPEC producers agreed to shave 1.2 mb/d from January onwards, with non-OPEC contributing an additional 600 kb/d of cuts, numbers that could (if adhered to) reduce considerably the current global supply glut.
Upstream & Midstream
- Justin Trudeaus administration in Canada has been delicately maintaining a balance between the environmental and energy lobbies. His decision to approve the Kinder Morgan pipeline expansion is an example of this. While Kinder Morgan will be allowed to build a second pipeline as an upgrade to the existing Trans Mountain pipeline to bring more oil to the West Coast to send to Asia, Trudeau has also blocked Enbridge from moving ahead with the Northern Gateway pipeline that would transport oil sands to the Pacific Coast directly through pristine rainforest.
- Japans Mitsui has agreed to buy Shells stakes in four US Gulf of Mexico oil blocks. The deal, for an undisclosed amount, will see the Japanese trading house acquire 20% stakes in four Mississippi Canyon blocks, which have an estimated recoverable volume of 100 million barrels of oil equivalent. The move represents bold steps for Mitsui, after it signed off on developing the Greater Enfield reserves in Western Australia and the third train of Tangguh LNG in Indonesia earlier this year.
- Supermajor ExxonMobil has relinquished 60 deepwater blocks in the Gulf of Mexico, including 20 that were part of a joint venture with Russias Rosneft, citing disappointing exploration results alongside persistent low crude oil prices. The two companies joined forces in 2013, when Rosneft bought a 30% stake in the 20 blocks.
- The US rig count is up again. Three new oil rigs and one new gas rig was added last week, bringing the total up to 477 and 119, respectively, as US oil players saw the OPEC decision as a lead-in to higher prices.
- Brazil wants to further reduce its gasoline imports by stimulating domestic ethanol production. Sugar (from sugarcane) is the main source of biofuels in Brazil, but mills have been prioritising sugar production over ethanol owing to the tight global supply of sugar. All gasoline sold in Brazil now contains 27% sugarcane-derived ethanol, and the proposed new ethanol program is aimed to stimulating output to increase this.
Natural Gas & LNG
- Nigeria and Morocco has signed an agreement that could see a gas pipeline built linking Africa to Europe. The joint venture was reached as the Moroccan King visited Nigeria, with the project aimed at linking the gas resources of Nigeria and surrounding West African nations, and piping it north to Morocco with the intent of connecting to European demand centres via Spain or Portugal.
Last week in Asian oil:
Upstream & Midstream
- Less than a year after re-joining OPEC, Indonesia has once again suspended its membership in the cartel, as it was unable or unwilling to agree to a supply cut. Though its crude output is dwindling, Indonesia still depends heavily on oil to fund its government and the proposed 37 kb/d cut in Indonesian production was unacceptable, leading to the countrys second withdrawal from OPEC.
- India has invited initial bids to begin filling its Karnataka strategic petroleum storage facility. The Padur facility will be the third such site in India, and is the largest with 2.5 million tons of storage space. If experience at the previous two facilities in Vizag and Mangalore are to go by, then the crude oil sources are likely to be Iraq and Iran, which have helped India boost its strategic reserves to 10 days a small number by global standards of at least 50 days, but far better than the precariously tight position the country was in previously.
- Just months after Shell cancelled its US$4.6 billion order for three FLNG vessels, Samsung Heavy Industries has been hit with another major cancellation, this time for a US$777 million FLNG substructure for a European firm. The order was cancelled as the client did not issue a work order, with the low crude oil price environment possibly being the main concern. South Korean shipbuilders have been in trouble recently, and will be hoping that the recent upswing in prices will continue.
Downstream & Shipping
- The cheap price environment of LPG is causing a few Asian petrochemical crackers to turn to propane as a feedstock. Idemitsu in Japan is embarking on an expansion to boost propane processing by up to four times at its joint venture with Mitsui Chemicals in Q317, relying on imported LPG brought into the neighbouring LPG facility at the Chiba refinery.
Gas & LNG
- Chinas CNPC the parent company of PetroChina will separate its natural gas sales and transportation divisions. CNPC currently supplies nearly 80% of Chinas gas market, and the Chinese government wants to open the sector up to more competition, compelling CNPC to separate its gas sales and transportation arms, which should encourage investment in areas that were previously monopolised by CNPC.
- BP has acquired Repsols 3.06% stake in the Tangguh LNG project for US$313 million, bringing the UK operators stake to just over 40%. This consolidates BPs control over Tangguh, which has been given the go-ahead for the US$8 billion expansion of the Tangguh third LNG train.
- The Azerbaijan state oil company SOCAR is beefing up its crude trading division in London, targeting China. Specifically, Socar wants to sell crude directly to the independent Chinese refiners the so-called teapots that were given licences to import crude directly this year.
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Oil and gas sector is one of the most lucrative sectors for job seekers from industries all over the world. It offers great salaries and benefits packages and an opportunity to travel and work overseas. Due to its high demand, scammers are preying on the vulnerable oil and gas workers. To ensure you don’t fall prey to their mischievous tactics, we would recommend reading our guideline below:
How does scamming occur?
The scammer poses as an employer or recruiter of an oil and gas company or he may claim to be an employee or recruiter for a job consultancy firm catering to the oil and gas industry. They offer irresistible employment opportunities and often demand money in advance to conduct further processes. Money is often demanded on the pretext of work visas, travel expenses, background or credit checks that the job requires.
What do scammers want from you?
It is important to understand what the scammer's agenda is so that it helps you shield yourself from getting conned:
To extract money: On the pretext of getting you a job in the energy sector employing any of the tactics mentioned above
For identity theft: scammers look for valid identity of people and ask for confidential personal details including bank details to commit fraud through your name or to withdraw money from your account.
Whatever be their modus operandi, their goal is to either separate you from your cash or accomplish an identity theft. The bigger problem is, the scammers are getting better at their game and coming up with innovative ideas to lure innocent job seekers. In oil and gas industry, the scammers are targeting the job seekers from overseas, immigrants or contractors as they feel it is easier to attract them on the pretext of work permits, high salaries, paid travel, better lifestyle in the first world countries.
How to spot a job scam and keep yourself secure?
There is always a difference between real and fake, all you need to do is be watchful to notice the underlying discrepancies. There is a pattern that scammers usually follows, which is discussed below. Make sure you watch out for these red flags when you receive any job offer next time:
Free email provider - No legitimate hiring agency or company will use the services of free email provider like Gmail, Hotmail, or Yahoo. So, if you are receiving an email or have been requested to share your details on emails that use free email services, then be extremely cautious. The scammers try to trick the job seekers by using an email address that looks authentic for instance: [email protected]. It is important to notice here that the ‘xyz’ part of the email ID is usually a gmail, yahoo, etc. which is a free email address. A legitimate job provider would never use.
Fake or new company name - If company name or oil and gas recruitment agency name is mentioned along with the free email id, then do a quick search on the company. Verify its existence and contact them via official email address and contact numbers mentioned on the website. Check their social media presence too. If the website and social media page look new while the company claims to be in business for a substantial amount of time, know for sure that there is something fishy.
Bad grammar and confusing job details - The scammers usually do not pay much attention to structure the mail. You can spot grammatical errors and even the job descriptions are not explained well or is completely different than your skillset and experience. Any authentic mail from a company or oil and gas recruitment agency will ensure an error-free, concise, and clear communication
Fee to conduct a job interview - No legitimate oil and gas company or recruitment agency will ever ask for money to conduct a job interview or to apply to job positions. If the mail says, the money will be refunded once you appear for a job interview, then please do not trust such claims as it is always bogus.
Asking for confidential personal information - Anyone asking for information that you will never put on CV, is a warning sign. It includes your bank details, passport copy, identity cards, your current residential details and so on. No genuine company will ever ask for such details before you sign the offer letter. If by chance, you have shared your bank details or another confidential detail to the scammer, contact your bank and email service provider and register a complaint against it.
Unknown source - There are countries who have strict spam rules and until you subscribe or give consent to the company, they cannot send you emails. So, if you receive an email from a company you haven’t contacted or have not applied for jobs, then be cautious it might be a scam.
The principle on which scammers operate is “Too good to be true”. Don’t entertain any job offer that offers a position, you are not qualified for or offers a salary which is unrealistically high. In the oil and gas sector, be careful not to reveal your passport/work visa details to the scammer. Remember, if you find anything which is way beyond the realistic expectations, then trust your instincts and drop the offer and do not respond.
See our infographic below for a quick summarized glance -
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Searching for the right talent is often a tedious chore for the HR. However, with technological improvements, the usage of app-based recruitment has increased manifold. Recruiters and job seekers are increasingly adopting this new method. A mobile application simplifies the labor-intensive and time-consuming recruitment task and comes loaded with features that help to automate the recruitment cycle. For all the good, app-based approach can do, it still comes under fire from the critics. Here's our take on the pros & cons of App-based talent search.