Last week in world oil:
- Rising production in the US and Iraq have raised fears that OPEC’s attempt to raise prices might be prove to be insufficient. While the rise in the US is expected, additional output from Iraq over December based on loadings in Basra points to the difficulty in whipping OPEC members in line. Oil started this week at US$55/b for Brent and US$52/b for WTI.
Upstream & Midstream
- The rise is Iraqi exports of crude oil, responsible for the dip in crude oil prices as the week started, has been blamed on the country’s Kurdish region. The autonomous Kurdish region has been exporting more than its allocated share of oil, hampering Iraq’s attempt to comply with its OPEC quota, which is now 4.3 mmb/d. Kurdish authorities reportedly pumped more than twice its allocated crude amount under the national Iraqi budget, funnelling it through Turkey to avoid passing through Baghdad.
- The US rig count increased for the tenth consecutive week, gaining four oil and three gas sites to start the year with a total active rig count of 665.
- US refiner LyondellBasell has decided to retain its Houston refinery following a broad strategic review of options. The Houston site was reportedly up for sale last year, in the crosshairs of Saudi Aramco’s post-divorce Motiva as an acquisition target, but the company has now decided to keep the 264 kb/d site within its asset portfolio. Natural Gas & LNG.
- Mexican gasoline prices have risen, part of a broader price liberalisation strategy pursued by President Enrique Pena Nieto. While necessary to make the Mexican energy sector more competitive, the hikes have proven highly unpopular. Mexicans have been taking the streets to protest daily since last Friday, spilling over into wider violence and looting.
- Nigeria’s oil union is threatening to strike at fuel depots in the country owned by Chevron and ExxonMobil if talks with the government fail. The union is unhappy over a spat of recent sackings. If the strike goes ahead, as many as 10,000 union workers could down tools, potentially crippling distribution across Nigeria’s entire downstream sector.
Natural Gas & LNG
- ExxonMobil has taken over at the Mamba gas field in Mozambique. The American supermajor bought a 20% stake in the project from Italy’s Eni in August, fulfilling its goal of expanding its natural gas asset portfolio while assisting Eni in monetizing its Mozambique LNG ambitions. As part of the deal, ExxonMobil also takes over operatorship of Mamba from Eni.
- The Blackstone Group has abandoned its US$5 billion attempt to purchase assets owned by Energy Transfer Partners. Energy Transfer is one of the largest oil and gas infrastructure firms in the US, while the Blackstone Group is a major buyout firm globally. Instead, Energy Transfer Partners will pursue a private placement deal worth US$568 million with its parent entity Energy Transfer Equity, as it gears up to face challenges it’s the Dakota Access oil pipeline it is currently building.
Last week in Asian oil:
Upstream & Midstream
- Timor Leste has torn up its maritime treaty with Australia. The CMATS agreement – which created a temporary maritime border in the Timor Sea and its estimated US$40 billion of oil/gas deposits – will end in three months. The move follows Timor Leste’s attempt to negotiate the maritime border with Australia at the International Court of Arbitration, and is likely an acknowledgement by Australia that it can no longer bully its smaller neighbour. The next step is for both countries to agree on a permanent maritime border.
- China has revised its crude oil production target for 2017, down to 4 mmb/d as it acknowledges that a deficit of new production sites will be unable to offset the natural decline in the country’s largest fields in the northeast and Bohai Bay. Falling domestic production means increased imports, which will only strengthen China’s resolve to acquire overseas upstream assets to secure a steady supply of necessary crude.
Downstream & Shipping
- After years of promises, Indonesia has finally officially lowered the sulphur content in its subsidised diesel, from 3,500ppm to 2,500ppm. Indonesia is one of the main laggards in Asia in terms of fuel specifications, still tottering around Euro II levels while the rest of the continent is adopting Euro IV. The move won’t have a significant impact on trade flows; in fact, it will be welcomed by refiners, who have found it increasingly hard to supply high-sulphur gasoil to Indonesia, which is off-spec for Asia. Higher spec diesel – 500ppm and 350ppm – is also used in Indonesia, but is only a fraction of the volumes of subsidised diesel.
- China has announced ambitious plans to plough some US$362 billion through 2020 into renewable power generation, focusing on wind, solar, hydro and nuclear power over its existing reliance on dirty coal power. In this drive, other fossil fuels, mainly natural gas/LNG, will also gain as China seeks a multi-pronged approach to reduce its excessive pollution.
Natural Gas & LNG
- BP has signed a long-term agreement with Thailand’s PTT, which will see the UK supermajor supply the Thai energy conglomerate with 1 millions tons per annum of LNG over 20 years. Faced with declining domestic production, Thailand and its power utilities have been on the hunt for LNG contracts over last year, to ensure that its natural gas-fed power and petrochemicals infrastructure does not go hungry.
- Chevron’s massive Gorgon project is back online after being out for a month. Gorgon LNG Train 1 was taken offline in late November to ‘assess performance variations’, while Gorgon LNG Train 2 remained unaffected. The US$54 billion, with its masses of LNG destined for East Asia, has been plagued by a string of operational issues since its start up in March 2016.
- The first LNG from a US shale source has arrived in Japan, opening what American shale gas producers hope will be a floodgate to Asia. Japan’s JERA – a joint venture between Tokyo Electric and Chubu Electric – received the shipment from Cheniere’s Sabine Pass terminal in Louisiana, which is also the first American LNG to arrive in Japan from the lower 48 states of the USA. The parcel is the first of a contracted 700,000 tons through January 2018 in a short-term agreement between JERA and Cheniere.
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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.