Tullow Oil shares fell by almost 16% after the company warned of a likely $1.5bn (€1.3bn) financial hit to its 2019 figures due to a lower oil price forecast and a reduction in reserves at one of its flagship fields offshore Ghana.
Shares in Irish exploration company Providence Resources jumped by as much as 12% after it announced that Tony O’Reilly - its chief executive since 2005 - has left the company; stepping down as CEO and resigning from the board with immediate effect.
Providence Resources has hit a second major setback in the Porcupine Basin after summer drilling at the Drombeg well 220km off shore failed to hit oil and has been abandoned. The shares, which had one stage plunged by a third, ended the session 16.5% lower.
As far as energy is concerned, potential Brexit tariffs and the sterling exchange rate are red herrings. Tariffs — as opposed to transport costs — are no big deal in the oil, gas or electricity exploration and production industries.
Oil prices were largely flat yesterday after steep losses the previous session, with rising US production weighing against comments from leading Gulf oil producers that an extension to Organisation of the Petroleum Exporting (Opec)-led supply cuts was likely.
Royal Dutch Shell is to axe 6,500 jobs this year and step up spending cuts, responding to an extended period of lower oil prices which contributed toa 37% drop in the oil and gas group’s second-quarter profits.
Tesla Motors’ plan to generate revenue by repackaging electric car batteries as home and business power storage systems faces stiff competition for both customers and the government subsidies that are critical to the market’s growth.