2025-11-03 20:13

Exxon has completed four of six planned refining, chemical projects Q3 refining profit jumped 41%, chemical earnings decline Exxon executive says company may pursue more upgrade projects HOUSTON, Nov 3 (Reuters) - After starting up operations at four new refining and chemicals initiatives this year, Exxon Mobil (XOM.N) , opens new tab is surveying more opportunities to revamp other sites, an executive told Reuters in a recent interview. The projects form what Exxon CEO Darren Woods has described as a wider strategy to turn low-value feedstocks into products that can be sold at a higher price. Upgrading existing refineries and diversifying production allows the company to keep investment costs low and better withstand fluctuating supply and demand markets, he said during the third quarter earnings call with analysts on Friday. Sign up here. "We're looking at our existing facilities, finding opportunities where we can upgrade across and then provide high-value products," Exxon president of product solutions Matt Crocker said in an interview last Wednesday, before the earnings report. "As we look forward, I can see us doing more of those kinds of projects." Exxon recorded a 41% year-over-year jump in third quarter refining profit to $1.8 billion as refining margins improved. However, earnings in the chemicals segment declined 42% from the previous year to $515 million. The top U.S. oil producer started production at new facilities at its Singapore refinery complex in September to convert residue and fuel oil into base stocks. It also began producing renewable diesel at the Strathcona refinery in Canada and increased low-sulfur diesel production at the Fawley refinery in the UK. On Friday, Woods highlighted projects at the company's Baytown refining and chemical complex as another example of the strategy. "We have really good opportunities with that asset base. We’re pursuing them aggressively, and they come with very good returns and very resilient returns," Woods said. Exxon targeted six projects this year in its product solutions business, which includes refining and chemicals. The remaining two - expanding advanced plastics recycling and manufacturing more thermoset resin - are still on track for startup by the end of the year, Crocker said. The company also began operations at a new, major petrochemical complex in China, which has led a rapid expansion in global capacity for petrochemicals and put pressure on industry margins. Even though the industry is currently at the bottom of the cycle, Crocker said the company sees a stronger market returning and is focused on the long term. "There's plenty of demand growth typically linked to (gross domestic product), and that fundamental hasn't changed," he said. Exxon's chemical complex has an advantage because it can use lower-cost feedstocks like propane and butane, unlike smaller traditional crackers in China that use higher-cost naphtha, said Wood Mackenzie senior research analyst for base chemicals Shruthi Vangipuram. https://www.reuters.com/business/energy/exxon-explores-more-refinery-upgrades-it-hones-higher-value-products-2025-11-03/

2025-11-03 20:10

LIMA, Nov 3 (Reuters) - Peruvian oil firm Upland Oil and Gas said on Monday it would ask the South American nation's regulator to review its application to operate in Block 192, once Peru's largest Amazon oilfield, days after it was disqualified. State agency Perupetro disqualified Upland, which operates other reserves in the country's Amazon region, on grounds it did not demonstrate financial capacity, but Upland said it did have sufficient capital to invest and resume exploitation. Sign up here. The now dormant block has been the site of protests by local Indigenous communities demanding remediation for extensive damage to the surrounding forest, soil and waterways. Block 192, which is located near the border with Ecuador, is considered key to supplying the Talara refinery of state oil firm Petroperu (PETROBC1.LM) , opens new tab, which is battling a debt crisis following its expensive modernization of the plant. A Perupetro commission determined late last week that the financial solvency presented by Upland was "insufficient to prove its economic and financial capacity to assume 79% of the license contract for Block 192." "Upland Oil and Gas reiterates that it has sufficient capital and financing to comply with the investment program indicated by Perupetro - despite considering it excessive," Upland responded in a statement. It added that it was willing to provide a credit line to the embattled state oil firm. A source close to Upland said the firm already had the $147.5 million Perupetro had asked of the private oil firm to demonstrate its financial capacity, and that it had informed the regulator in early October. Perupetro was not immediately available to comment. State producer Petroperu, which would be a minority partner in the block, has previously said it expects to produce up to 12,000 barrels per day of crude oil from the reserve. "This important asset for the country has been paralyzed for more than five years, causing the Peruvian government to lose more than $1 billion in taxes and royalties," Upland said. Once Peru's largest - and leakiest - field, Block 192's production was put on hold largely as a result of a number of oil spills permeating the tropical topsoil, native plants and streams that flow to the Amazon River. https://www.reuters.com/business/energy/perus-upland-challenges-disqualification-relaunch-top-amazon-oilfield-2025-11-03/

2025-11-03 20:09

COPENHAGEN, Nov 3 (Reuters) - Denmark's Orsted (ORSTED.CO) , opens new tab said on Monday it agreed to sell a 50% stake in Britain's Hornsea 3 offshore wind farm for around 39 billion Danish crowns ($6.09 billion), widely regarded as a crucial move to prevent a crippling credit rating downgrade. Orsted, the world's largest offshore wind developer, is trying to restore investor confidence as it faces rising costs from supply chain disruptions and inflation, as well as uncertainty wrought by U.S. President Donald Trump's opposition to renewable energy. Sign up here. The stake in the 8.5 billion pound ($11.41 billion) project was sold to New York-listed Apollo Global Management (APO.N) , opens new tab, which manages more than $800 billion in assets, leaving Orsted with 50% ownership. "The transaction represents a key milestone in Orsted's funding plan and balances the key objectives for partnerships and divestments with an emphasis on capital management," Orsted said in a statement. Apollo's investment includes a 50% stake and a commitment to fund 50% of the project's remaining construction costs, the company added. Orsted in October raised $9.4 billion through a heavily discounted rights issue to shore up its balance sheet, and later announced it would cut about a quarter of its workforce by the end of 2027. Shares closed at 115 Danish crowns on Monday, marking an 85% drop from their 2021 peak. The 2.9-gigawatt Hornsea 3 project in the North Sea, expected to become the world's biggest offshore wind farm upon completion in 2027, will produce enough energy to power more than 3 million homes in Britain. Orsted in May discontinued its Hornsea 4 project, citing steep supply chain costs, higher interest rates and increased execution risk, and said the cancellation would cost the company up to 5.5 billion Danish crowns. ($1 = 6.4029 Danish crowns) ($1 = 0.7451 pounds) https://www.reuters.com/sustainability/climate-energy/orsted-sells-50-stake-uk-wind-farm-6-billion-2025-11-03/

2025-11-03 20:02

Miran argues financial markets don't necessarily reflect monetary policy Fed split on rate-cut decision, Powell noted differing views Cook says December meeting is 'live' for possible rate cut Daly says she supported rate cut, open-minded on December meeting WASHINGTON, Nov 3 (Reuters) - Federal Reserve officials on Monday continued pressing competing views of where the economy stands and the risks facing it, a debate set to intensify ahead of the U.S. central bank's next policy meeting and in the absence of data suspended due to the federal government shutdown. In her first public remarks since President Donald Trump launched a so-far unsuccessful attempt to remove her from her position, Fed Governor Lisa Cook portrayed a tug-of-war view of the policy debate, saying elevated risks to both the central bank's employment and inflation mandates leave the December 9-10 meeting "live" for a possible rate cut, but not a lock. Sign up here. "Keeping rates too high increases the likelihood that the labor market will deteriorate sharply," though for now the labor market is "still solid," she said during an event at the Brookings Institution. On the other hand, Cook said, "lowering rates too much would increase the likelihood that inflation expectations will become unanchored," though at this juncture "it is encouraging that most long-run inflation expectations ... are low and stable." "The dual mandate is in tension ... so I'm attentive to both sets of risks," said Cook, who is embroiled in a legal battle with Trump over his effort to remove her as a Fed governor. The U.S. Supreme Court is due to hear arguments in the case early next year. SHARP SPLIT, DOVISH ANXIETY Speaking earlier in the day San Francisco Fed chief Mary Daly offered a similarly even-handed perspective, saying she viewed last week's cut as further "insurance" against labor market weakening and has an "open mind" about the need for a similar move in December. "It would be an unfortunate outcome, one that we would absolutely want to avoid, if we get inflation to 2% at the cost of millions of jobs," she said. At the same time, she said, inflation remains too high and the Fed must make a decision that "balances those risks." The remarks, from two policymakers often aligned with the views of Fed Chair Jerome Powell, "give no indication the Fed is trying to socialize a planned December skip, but confirm sentiment on the Committee broadly has shifted in the direction of viewing a cut at that meeting as less clear-cut and less certain," wrote Evercore ISI's Krishna Guha. The pair's "lingering dovish labor anxiety," he said, suggest the Fed is still about twice as likely to cut in December as not to cut. That's about the same odds currently priced into interest-rate futures markets. MIRAN SAYS FINANCIAL MARKET BUOYANCY NO BAR TO RATE CUTS The 10-2 policy vote at the central bank's October 28-29 meeting to lower the benchmark interest rate by a quarter of a percentage point to the 3.75%-4.00% range was only the third time since 1990 that dissents were cast in favor of both tighter and looser monetary policy at the same meeting. Fed Chair Jerome Powell, speaking after the decision Wednesday, indicated an even deeper divide as he noted the "strongly differing views about how to proceed" at the December meeting and said another rate cut then "is not a foregone conclusion - far from it." In an appearance on the Bloomberg television program, Fed Governor Stephen Miran restated the case for deep interest rate cuts that he has voted for since joining the central bank's Board of Governors in September. He argued buoyant stock and corporate credit markets are no reasons to think monetary policy is too loose. "Financial markets are driven by a lot of things, not just monetary policy," said Miran, who is on leave from his job as a top economic adviser in the White House, in explaining why he dissented last week against the Fed's decision in favor of a bigger half-percentage-point reduction. Miran's preference for steep rate cuts remains an outlier, though others at the central bank, including Fed Governor Christopher Waller, have similarly indicated they feel short-term borrowing costs are restraining the economy, which allows room for further rate cuts. Rising equity prices, narrow corporate credit spreads, and other factors don't "necessarily tell you anything about the stance of monetary policy" at a moment when interest-sensitive sectors like housing are less buoyant and some parts of the private credit market appear under stress, Miran said. He added that he is more sanguine than his colleagues about inflation, and feels that by keeping policy too restrictive the Fed is heightening the risk of a downturn. GOOLSBEE NERVOUS ABOUT INFLATION Kansas City Fed President Jeffrey Schmid, who dissented last week in favor of no rate cut because inflation remains too high, had argued that high equity prices and elevated high-yield bond issuance showed policy was only modestly restrictive. Two non-voting Fed bank presidents - Dallas Fed's Lorie Logan and Cleveland Fed President Beth Hammack - late last week said they too had opposed the rate cut, while Atlanta Fed President Raphael Bostic indicated discomfort at the prospect of more cuts. Chicago Fed President Austan Goolsbee, who voted for last week's rate cut, told Yahoo Finance Monday that he was leery of further rate cuts while inflation remains significantly above the central bank's 2% target and is expected to accelerate through the rest of 2025. "I'm not decided going into the December meeting," he said. "I am nervous about the inflation side of the ledger, where you've seen inflation above the target for four and a half years, and it's trending the wrong way." https://www.reuters.com/business/feds-miran-cant-judge-stance-monetary-policy-buoyant-financial-markets-2025-11-03/

2025-11-03 20:01

HOUSTON, Nov 3 (Reuters) - Energy technology company SLB (SLB.N) , opens new tab launched a new artificial intelligence tool on Monday to automate processes and workflows for energy companies moving to leverage AI to unlock growth. SLB's new technology, Tela, will be embedded into the company's portfolio of applications and platforms, and users will interact through a simple conversational interface. Sign up here. Tela agents can work in collaboration with humans or autonomously to take decisions on things like interpreting well logs, predicting drilling issues, or optimizing equipment performance. "We've been very successful with this (AI) business for the last many years, and absolutely, digital will be an integral part of the success of SLB for many decades to come," Rakesh Jaggi, SLB's president of Digital & Integration, told Reuters. "Today, the industry faces a dual challenge: a leaner workforce and increased technical complexity, and Tela can address both," Jaggi said. Faced with a slump in global crude oil prices as the OPEC+ group of oil producers has increased output , opens new tab, energy companies have announced thousands of job cuts this year to rein in costs while they contend with lower profits. The digital sector has been one of the main drivers of SLB's revenue growth, jumping 11% in the third quarter from the second quarter. The company began reporting its digital business as a standalone division in the last quarter and forecast double-digit sales growth year-on-year for the segment. Shares of SLB, formerly known as Schlumberger, were up 2.8% at $37.10. https://www.reuters.com/business/energy/slb-launches-new-ai-product-it-focuses-digital-sales-growth-2025-11-03/

2025-11-03 18:10

Nov 3 (Reuters) - San Francisco Federal Reserve President Mary Daly on Monday said she supported the U.S. central bank's interest rate cut last week, and will want to sift through incoming data to assess if another reduction in borrowing costs is warranted at the December 9-10 meeting. "I thought it was appropriate to take another bit off the policy rate," she said at the Forum Club of the Palm Beaches in Florida, noting that the U.S. economy has been resilient, and that while inflation is running above the Fed's 2% target, the labor market has also softened. As for next month's policy decision, Daly said she will "keep an open mind." Sign up here. The Fed's quarter-percentage-point rate reduction at its October 28-29 meeting was the second such cut of the year, and brought its benchmark policy rate to the 3.75%-4.00% range. Several policymakers since the meeting have said they thought the rate cut was not needed; a couple of officials, however, have said they already feel that another rate cut will be needed at the Federal Open Market Committee meeting in December. Daly said by the time of that meeting she will want to assess if the 50 basis points of rate cuts so far this year have delivered enough insurance against further softening in the labor market, or if more support might still be needed. Data including state-based unemployment insurance claims suggests the labor market is not on a "precipice," she said, adding that inflation is running at around 3%. Despite the absence of official economic statistics during the ongoing federal government shutdown, she said, the central bank has access to a lot of data, including from surveys and conversations with businesses and communities that will help inform views about appropriate policy. "Oftentimes, before a meeting of the FOMC, the views are widely different," she said. "But then, by the time you get to the meeting, so much more information has been given that it's easier to see a convergence around at least a couple of ways to go." https://www.reuters.com/business/feds-daly-says-she-backed-latest-rate-cut-open-another-one-december-2025-11-03/