Obsidian Energy

Obsidian Energy is a mid-sized oil and gas producer. The company is very much a bottom line results oriented company. With Obsidian Energy high-quality assets, disciplined and passionate workforce, its no wonder why the company is producing nearly thirty thousand boa a day per year. With its entrepreneurial spirit and organizational capabilities, it’s no wonder that it has become so successful. Its resolve to make its self-accountable to both its shareholders and the community at large. That should make the shareholders confident in the company’s future. Although the company is only mid-sized, its crafted a well thought out strategy around its assets.

 

David French, who recently took control of the company as its CEO. He has already made his mark in the company that will reverberate for years to come. He has spearheaded a complete reorganization of the company from top to bottom. He has streamlined its operations to be more efficient. He has stabilized employment with the company to an average of about three to four hundred workers. See This Page for more information.

 

 

David French has also recently cut the companies debts from approximately three billion dollars to about three hundred ninety million. That is an amazing achievement that the company should be proud of. In a remarkable way he has changed the company forever. He wasn’t done though. He thought it was time to change the companies name as it was no longer the same old Penn West Petroleum. He was able to gather nearly ninety two percent of the shareholders support in the name change. So, from that point on the company became Obsidian Energy. Obsidian was named after the volcanic glass that can be sharpened and honed.

 

David French is no stranger to the oil and gas industry. He has been President and CEO of Bankers Petroleum Ltd., a Calgary-based publicly-traded oil and gas company. He has also served as management and consultant to other companies such as Apache Corporation and McKinsey and Company. He also holds a Bachelor’s Degree and a MBA. With David French at the helm with all his vast experience, I don’t think the company could do better than this winner.

 

Learn More: https://globalnews.ca/news/3481168/penn-west-proposes-name-change-to-obsidian-energy/

 

Obsidian Moves Into The Future

Obsidian Energy, once known as Penn West Petroleum began its transition into a profitable oil and gas producer as of 2013 with the sale of many assets. With these and other sales, it reduced its debt load from $3 billion down to $384 million as of March 2017. Now Obsidian Energy is far smaller, but it is streamlining has led to more focused production.

 

Three years before, Obsidian Energy produced as much as 135,000 barrels of oil equivalent per day (BOEPD). After oil prices dropped in 2014, Obsidian was forced to restructure. It now produces somewhere around 28,000 to 31,000 BOEPD. Its workforce consisted of 1,415 employees and now has shrunk to a mere 407. Selling off its assets, one of its core properties, Slave Point, its resources have been streamlined to leave intact only its most productive oil fields and only the absolutely necessary elements needed for its effective function.

 

Obsidian’s oil and gas fields are in Alberta, Canada. Alberta is the home of the Western Canadian Sedimentary Basin. It is one of the world’s largest petroleum reserves. Obsidian joins other Canadian producers in making Canada the world’s third largest natural gas producer and second largest exporter. Still, Canada’s reserves only represent one percent of the world’s natural gas supply. Canada’s conventional oil reserves, both light and heavy oil reserves are declining. Light oil is declining by a rate of three to four percent each year. Read This Article for more information.

 

Despite these drops in reserves, Canada still has the largest reserve of oil sands or bituminous sands. It overwhelms both Russia and Venezuela, the other locations of oil sands. Canada is the location of 70% of the world’s supply of oil sands. There is some controversy about burning the product from oil sands, but Canada insists that emissions from oil sands only exceed conventional oil emissions by 12%. Obsidian produces from its Peace River property those controversial oil sands.

 

Obsidian is one of the top sixty stocks on the Toronto Stock Exchange. Obsidian’s CEO announced that the company had three principles it would use for action:

 

1) Disciplined decision making to advance and protect innovation and progress.

2) Be accountable to stakeholders, partners and the community at large.

3) Maintain the right assets, use a sensible hedging strategy, and keep a healthy balance sheet in preparation for lower price environments.

 

See: https://en.wikipedia.org/wiki/Obsidian_Energy