An Exxon Mobil Corp. (NYSE: XOM) employee working at the company’s Houston-area campus has been confirmed to have contracted Covid-19, the disease caused by the novel coronavirus, just as the company is reopening the property, according to a May 22 internal memo.

A spokesman for the Irving, Texas-based company confirmed to the Houston Business Journal that an Exxon employee had tested positive for Covid-19.

In an email with the subject line, “Houston campus confirmed Covid-19 case,” Jon Gibbs, who leads Exxon’s Americas Emergency Support Group, said the affected employee “developed mild symptoms at the workplace” and went home shortly thereafter. The email was sent to the company’s 13,000 local employees.

While at home, the employee contacted medical professionals, the memo states. The employee was later diagnosed with Covid-19.

Gibbs said in the memo that the employee was wearing a mask and adhering to social distancing guidelines at the time they developed symptoms of Covid-19.

The employee’s workstation and common areas that might have been used were thoroughly cleaned, Gibbs said.

“In this case, there were no close contacts identified; had there been, those people would have been asked to leave the workplace,” Gibbs said. “While our hope is no other colleagues become unwell, we will continue to follow these careful procedures in the event of another suspected case.”

The confirmed case of Covid-19 comes just days after the company began bringing employees back to Exxon’s 385-acre Houston-area campus, which is located at 22777 Springwoods Village Parkway in the Springwoods Village master-planned community.

Sources close to Exxon said the campus reopened to employees this week, though only 25% were allowed on-site at any given time.

The company plans to increase capacity to 50% in the coming weeks, the sources said.

The Exxon spokesman confirmed the company has implemented a phased approach to bringing personnel back to the campus. He said that phased approach will remain consistent and in compliance with all government orders and directives.

“As a matter of practice we do not release information on details of individual staffing arrangements, but we will make adjustments if and when they are needed,” the spokesman said.

The company has adopted additional precautionary measures that have been taken to “prevent further spread of the virus among our workforce,” the spokesman said. Those measures include reducing workforce density, adjusting building layouts, modifying operating practices, enhancing cleaning procedures and providing the necessary supplies to maintain good personal hygiene.

Exxon is the Houston area’s largest energy employer, according to HBJ research.

In April, more than one employee at Exxon’s Baytown facility tested positive for Covid-19, media outlets including Reuters and The Baytown Sun reported at the time. However, Exxon is not the only local energy company that has had to respond to a case of Covid-19 on property it owns.

In March, Houston-based Kinder Morgan Inc. confirmed it had taken steps to respond to potential contamination at its downtown Houston building after one of its employee tested positive for Covid-19.

Kinder Morgan (NYSE: KMI) owns the 33-story Kinder Morgan Building at 1001 Louisiana St., and the employee worked in the company’s headquarters for up to a week before becoming aware of the diagnosis.

By Jeff Jeffrey – Reporter

Courtesy of the Houston Business Journal

https://www.bizjournals.com/houston/news/2020/05/22/exxon-mobil-employee-covid-19-springwoods-village.html

As the global pandemic continues to impact various industries in Houston, one of the hardest ones hit has been the energy industry.

In April, the Houston Business Journal reported how oil and gas companies are cutting costs and/or headcount. One example is Houston-based Halliburton Co. (NYSE: HAL). The company put 3,500 Houston employees on a 60-day furlough. However, in May, Halliburton laid off about 1,000 employees at its corporate headquarters in Houston, in addition to more job cuts in Oklahoma and two facility closures in Texas.

Experts within the energy industry speculated on how the downturn will affect Houston’s economy, and shared their thoughts about the sector after Covid-19 at the Houston Business Journal’s first energy and virtual panel of 2020.

The panelists

  • Chad Burke, president and CEO, Economic Alliance Houston Port Region
  • Ken Medlock, James A. Baker III and Susan G. Baker Fellow in Energy and Resource Economics; senior director of the Baker Institute of Center for Energy Studies
  • Maynard Holt, CEO at Tudor, Pickering, Holt & Co.

Moderator: Scott Nyquist, director emeritus and senior advisor of McKinsey and Co.


Can you start us off with an overview of what’s happened in the energy markets in the last quarter or so?

Medlock: This is literally a black swan event. There’s really no way to summarize what’s been going on. The current environment has seen crude oil inventories grow to levels not seen since March of 2017. Importantly, though, prices have been much more volatile and quite a bit lower than they were back then and that really is a reflection of a lack of absorption capacity in the marketplace.

The stressors really originated from the demand-side of the discussion. Make no mistake — this is not an energy-only event. This is an economy wide event that we’re living through.

How is the crude oil refining industry handling this kind of shift of environment?

Burke: Obviously, with the lack of movement for the last almost three months now, demand is down significantly. Refining capacity is at about 68 percent utilization a week or two ago. It is ticking up a little bit. I think the latest number I saw was at about 70 percent utilization. (But) that number should be between 90% and 100% utilization.

The interesting dynamic that exists here in Houston and along the Houston Ship Channel is we’ve got well over 130 plants or facilities in the Houston Ship Channel region. About six of those are crude oil refiners. The vast majority of the manufacturing going on here is the 130 or so chemical plants that get most of their feedstock from the natural gas side of the equation.

They have an array of products that are made from the chemicals that come out of these facilities. All of those products that we touch every day comes out of the chemical side of the business.

How is Houston, and Texas more generally, positioned to deal with the emerging energy market realities post Covid-19, maybe even after next year?

Medlock: You have to realize that Houston and Texas has what we call a comparative advantage. It’s obviously geology oil and gas, and as a matter of fact the oil and gas industry provides roughly 13% of gross state product, which makes it the largest single industry in the state.

When things are bad in that sector, it hurts across the board for the State of Texas and Houston. But geology aside, we also have a tremendous amount of capital already deployed refining chemicals, petrochemicals, pipelines, port facilities, all of these things really bode well because the capital’s not being destroyed right now. It’s still in place, so it bodes well when things do begin to turn for Texas to be able to respond very quickly.

The other thing that is unique about this part of the country is the human capital advantage that we have — the amount of engineering talent, industry knowledge and economics knowledge that exists in Houston. It is in many ways unparalleled, so that really does bode well for the city and the state in terms of recovery, regardless of what it looks like.

As we go forward post Covid-19, those sorts of things fit very well with the skill sets that we have already in the region. I don’t think you’re talking about a Herculean lift. I think they’re just talking about redeploying skills and really leveraging the advantages that we already have in this part of the country.

When you look at the range of companies that are operating at the port, what do you think it says about the future of investment and growth in the port region?

Burke: I like to explain it this way: With the advantage in feedstock and prices of natural gas that we’ve had and will continue to have for decades, you’ve seen a repositioning of manufacturing to the Gulf Coast from Brownsville over to Louisiana. Houston’s getting the lion’s share of that because we have what was, at the beginning of the last 10 years, the second largest petrochemical complex in the world. Now, after nearly a $100 billion worth of investment in manufacturing right along the ship channel, we surpassed Rotterdam in productivity or production capacity.

I think most of the experts in the industry have begun to look at the next three to five years max. At the Economic Alliance, our business is to land those capital investment projects here. With this Covid-19 stoppage, we postponed a lot of the large cap projects. The projects are still on our list, it’s just that nobody’s moving right now.

We may we may go up to 24 months and not see a brand new project be announced, but then two or three years from now, it’ll be time to re-engage and catch back up with the global GDP of 3%. You’ll see that continue because we will we still have the advantage, feedstock, technology and proximity to markets to our own feedstock here.

What are your views on whether or not unconventionals will be crushed by OPEC or make their way back?

Holt: Well, we’re very bullish on it, too. One reason why it’s taking such a big hit is because you can shut it down so quickly, and that’s one of its great advantages. It’s illustrating why companies want to own it because it’s something you can dial up and down.

I would feel very optimistic about the U.S. as a center of oil and gas production, with Texas being the leader in that. Oil and gas as a fuel is certainly not going away, but we do have to get through a super challenging period. We are not alone and we’ll get through this.

By Sara Samora – Reporter

Courtesy of The Houston Business Journal

https://www.bizjournals.com/houston/news/2020/05/15/panel-recap-energy.html

Today, IPS Pump Service decided to bring some breakfast to the Galveston County Sheriff’s Office to honor them on National Police Memorial Day, and to wish them the best of luck with the opening of County beaches and the annual Jeep Weekend.

Thank you to Sheriff Trochesset for your leadership, and to Chief Deputy Darrell Isaaks, Major Ron Hill, Captain Ray Nolen, and Captain Mark Bonner for making the time for me this morning.

IPS Pump Services had the honor of giving back this past Good Friday. We took our hard working first responders, over at the League City Police Department, some delicious pizza. We are proud to support those that are helping take care of our community during these trying times.

Schlumberger Ltd. (NYSE: SLB) plans to cut its workforce in Houston as it contends with supply and demand pressures and closes facilities outside the metro area.

The oil field services giant confirmed Houston layoffs are in the works but declined to provide more information about how many people will be affected.

Schlumberger has already implemented a furlough program in Houston earlier this year. It is also planning 51 more layoffs elsewhere in Texas as it closes two facilities associated with one of its subsidiaries, Cameron International. Cameron also plans to close a facility in Moore, Oklahoma, affecting 74 employees. That facility is slated to lay off its employees in June and July.

“In Texas, Schlumberger has accelerated the restructure of its land-based operations by reducing its personnel and instituting furlough programs, by business line and location. These organizational changes are expected to continue over the next couple of months,” Schlumberger said in an emailed statement. “In light of these realities, we have made the difficult decision to reduce our workforce in Houston and close both our Cameron facilities in Kennedy and Corpus Christi, Texas.”

Schlumberger and others in the oil and gas business are dealing with problems from both sides of the supply-demand equation. Social distancing as a response to the Covid-19 pandemic has resulted in a massive reduction in demand for transportation fuels, while a price war between OPEC member states and other large, oil and gas producing countries has layered on further pressure.

“This combination has created shocks in both oil supply and demand, resulting in the most challenging environment for the industry in many decades,” Schlumberger said. “As a direct result of this environment, much of our operational capacity is unneeded, and some of our facilities are underutilized.”

Job cuts associated with the latest price crisis are likely to come in two waves. The first wave is associated with the cessation of some portion of the industry’s operations and typically involve layoffs among field personnel. The second phase will come later, when companies go bankrupt and much-anticipated consolidation sweeps across the sector. Layoffs in that wave will hit hardest among corporate support staff, engineers and other technical employees — the kinds of people who work in Houston, in other words.

Schlumberger has primary offices in Houston, Paris, London and The Hague.

By Joshua Mann – Senior Reporter

Courtesy of Houston Business Journal

https://www.bizjournals.com/houston/news/2020/05/08/schlumberger-to-cut-jobs-in-houston.html

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Houston-based Callon Petroleum Co. seeks to drill four new wells in South Texas last week as it looks to reorganize its business to avoid delisting.

Callon (NYSE: CPE) came out ahead on this week’s drilling permit roundup, filling more new permit applications between April 20 and 26 than any other company besides ConocoPhillips, which also filed four. Callon wants to drill for oil and gas in the Eagleville Field on a lease in La Salle County. So far this year, the company has asked the Railroad Commission of Texas for permission to drill 11 new wells in the Eagle Ford Shale, all in La Salle County.

Callon is one of at least 10 Houston-based oil producers facing delisting as the oil market flounders with an oversupply and lack of demand. On April 16, the company was informed that it had six months to get its 30-day average stock price to $1 per share or it would be booted from the New York Stock Exchange. The company’s stock opened at 58 cents per share on Tuesday.

The company has already cut its 2020 budget by at least $250 million and plans to take further steps to reduce spending, including reducing the size of the crews and the number of drilling rigs on its leases. Only one of its three rigs will be placed in the Eagle Ford somewhere on the 91,000 gross acres it acquired when it bought Carrizo Oil & Gas Inc. last year.

South Texas Drilling Permit Roundup

The South Texas Drilling Permit Roundup is a weekly review of new drilling permit applications filed with the Railroad Commission of Texas for a 67-county area of South Texas. For the full drilling data table, see below.

Date Range: April 20 to 26

New Permit Applications: 18

Companies Filing: 12

Most Active Company: ConocoPhillips (Burlington Resources) and Callon Petroleum Co. with four applications each

Most Active County: La Salle County with five applications

New and Noteworthy:

The U.S. arm of British chemical and gas company Ineos filed its second-ever Texas permit to drill for oil in the Austin Chalk last week. Ineos USA Oil & Gas LLC, which is based just south of Houston in League City, plans to drill for oil in the Giddings Field of Fayette County. The well would only be Ineos’ second in the U.S. if it drills on an earlier permitted site also in Fayette County. In the U.K., Ineos is both a petrochemical manufacturer and the biggest player in the U.K. onshore gas sector with access to over a million acres for drilling in England and Scotland, according to its website.

Helotes-based Verdisys LLC submitted an application to drill an oil and gas well in the border county of Val Verde. Though the well will sit within the same Railroad Commission district as San Antonio, it will lie within the Permian Basin. The permit is the first filed in 2020 for Verdisys and the third overall. It filed to drill its first Texas well in 2018.

By Jessica Corso – Reporter, San Antonio Business Journal

Courtesy of Houston Business Journal

https://www.bizjournals.com/houston/news/2020/05/01/struggling-houston-firm-to-search-for-oil-gas-in.html