But high oil prices may not be good for economy, oil companies: CEO
From Bloomberg
Total SA is among a growing chorus that sees $100 oil on the horizon. But the French energy giant isn’t thrilled about it.
Chief Executive Officer Patrick Pouyanne sees supportive elements, such as looming sanctions on Iran and disruptions in Venezuela, that are stripping supply from the market and pushing prices back into triple digits for the first time seen since 2014, he said in a Bloomberg television interview.
“I’m not sure it’s a good news” for the global economy, Pouyanne said. “Even for the oil industry, because you know, when price goes too high then you open the door to your competitors” and demand will fall, he said.
While oil’s rally has stabilized an industry pulverized by the 2014 crash, there’s growing concern that it may become a drag on global growth. It could prove particularly damaging for emerging economies, where weakening currencies are making dollar-denominated imports costlier. Meanwhile, competition from new energy vehicles is seen carving out a chunk of future global demand.
Brent crude climbed back above $80 this month for the first time in almost four years as the Organization of Petroleum Exporting Countries signaled it won’t take rapid action to temper prices. Impending U.S. sanctions targeting Iranian oil sales are likely to have a bigger impact on the market than they did last time, BP Plc CEO Bob Dudley said this week.
‘It takes time’
Major trading house Mercuria Energy Group Ltd. said this week that prices may spike over $100 a barrel in the fourth quarter, while competitor Trafigura Group expects it in early 2019. Not all are convinced, however. Goldman Sachs Group Inc. thinks another supply shock beyond Iran is needed for oil to return to that level.
The U.S. has ruled out releasing oil from emergency stockpiles to prevent prices from spiking when Iranian sanctions start in November. Energy Secretary Rick Perry said to unleash crude from the Strategic Petroleum Reserve would have a “fairly minor and short-term impact” and that other producers can offset the losses.
Any help from OPEC kingpin Saudi Arabia to plug the supply gap will take time, according to Total’s Pouyanne, who said he’d been calling the return of $100 since June.
“In our industry, you don’t push a button and then oil flows,” Pouyanne said. “It’s more complex than that, so it takes time.”
Total Energy Services Inc. Plans to Repurchase Shares
CALGARY, Alberta, Sept. 28, 2018 (GLOBE NEWSWIRE) — Total Energy Services Inc. (TSX:TOT) (“Total Energy”) announced today that it has filed a Notice with the Toronto Stock Exchange (the “TSX”) to undertake a normal course issuer bid that will expire on October 1, 2019. Total Energy has been informed that the TSX has accepted its notice to make the normal course issuer bid. All purchases of common shares (the “Shares”) will be effected through the facilities of the TSX and one or more of the Canadian alternative trading systems and all Shares purchased will be cancelled by Total Energy.
As of today, there are 46,063,700 Shares issued and outstanding. In connection with the normal course issuer bid, which will commence on October 2, 2018, Total Energy may purchase up to 500,000 Shares, being 1.1% of the total number of outstanding Shares, during the period from October 2, 2018 to October 1, 2019, subject to a maximum daily purchase limit of 5,697 Shares based on an average daily trading volume for the last six calendar months of 22,971 Shares.
From time to time, purchases of Shares may be undertaken at prices that represent an attractive investment opportunity for Total Energy. Total Energy expects that the purchase of Shares will benefit the remaining shareholders of Total Energy by increasing their proportionate equity investment in Total Energy.
On September 28, 2017, Total Energy announced its intention to undertake a normal course issuer bid, which remains in effect during the 12-month period ending October 1, 2018. Under that normal course issuer bid, as of the date hereof, Total Energy purchased a total of 230,936 Shares, at an average price of $11.77 per Share.
Headquartered in Calgary, Alberta, Total Energy provides contract drilling services, rentals and transportation services, well servicing and compression and process equipment and service to oil and natural gas producers operating in North America, Australia and other international markets. The common shares of Total Energy are listed and trade on the TSX under the symbol TOT.
For further information, please contact Yuliya Gorbach, V.P. Finance and CFO at (403) 216-3920 or by e-mail at: investorrelations@totalenergy.ca or visit our website at www.totalenergy.ca.
