Dallas, Texas-based HollyFrontier Corporation, a petroleum refiner and distributor of petroleum products, has announced that the company will convert its refinery in Cheyenne, Wyoming to produce bio-diesel fuel from renewable feedstock. The refinery will be modified over the next 12-18-months commencing in late summer, and result in the phased lay off of approximately 200 employees.
HollyFrontier’s President and Chief Executive Officer, Mike Jennings, noted, “Demand for renewable diesel, as well as other lower-carbon fuels, is growing and taking market share based on both consumer preferences and support from substantial federal and state government incentive programs. This represents an exciting opportunity to enhance both the profitability and environmental footprint of HollyFrontier through organic investment.
“Today’s announcements lay the groundwork for an integrated renewables business at HollyFrontier, including multiple renewable diesel plants with feedstock flexibility. After 86 years as a petroleum refinery, Cheyenne will take on a new challenge. We realize that this decision affects many employees, their families and the community. We are thankful to all of our colleagues in Cheyenne and will work closely with those impacted by this decision.”
"The conversion to renewable diesel production will result in HollyFrontier ceasing petroleum refining and reducing the workforce at the Cheyenne Refinery. This decision was primarily based on the expectation that future free cash flow generation in Cheyenne would be challenged due to lower gross margins resulting from the economic impact of the COVID-19 pandemic and compressed crude differentials resulting from dislocations in the crude oil market, coupled with forecasted uncompetitive operating and maintenance costs and the anticipated loss of the Environmental Protection Agency’s small refinery exemption."
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?
AM I NEXT? NO LOVE AT HELMERICH & PAYNE
Tulsa, Oklahoma-based Helmerich & Payne, a contract drilling and services provider to the oil and gas industry, has announced a reorganization program to meet the challenges of a depressed oil market and an interruption in the exploration and servicing operations of their customer base. The decision impacts 2,800 employees, the redeployment or sale of assets, and the decommissioning of 37 large drilling rigs.
According to a company statement...
"Throughout our history, the company has sought to be in a position of strength, both operationally and financially, to face the uncertainty and an inherent cyclicality of the energy industry. We have taken swift actions to maintain the health and safety of our employees and customers. We've also made difficult, measured but necessary decisions aimed at preserving the company's long-standing financial strength and its future.
"While the crude oil market imbalance is a global phenomenon, it has more acutely impacted the U.S. market as a result of storage limitations subsequent to March 31. The abruptness of and the overall size of the decrease in demand for refined products such as gasoline and diesel has created an abundance of supply, which has caused refining capacity to shrink, resulting in excess crude oil. This crude oil overhang in supply has created a storage dilemma for E&P companies, limiting opportunities to market their production. And even when they can sell, the prices are very depressed. Consequently, some E&P companies have chosen to shut in production, postpone completions of drilled and uncompleted wells, and many E&Ps have stopped drilling wells entirely until the market imbalance rights itself and it once again becomes economic to resume production and drilling. It is obvious that these current circumstances hold long-term negative implications for our industry. Our experience has shown us that two factors hold the key to surviving a downturn and ultimately furthering the strategic objectives of the company: first, maintaining financial strength; and second, maintaining a long-term view for future potential opportunities."
"In this regard, we will remain focused on establishing new commercial models, expanding our digital technology offerings to customers, increasing our international presence, and cost management. Liquidity is critically important at a time like this, and we are actively reducing expenses in a thoughtful and intentional manner. We are drawing on learnings from the 2015/2016 downturn to idle rigs more efficiently, and we're seeing additional innovative efforts throughout the company pay off and anticipate that this will continue. Given this current environment, we are rightsizing our organization to reflect these new realities."
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?
AM I NEXT? NO LOVE AT RIGUP
Austin, Texas-based RigUp, a workforce bidding platform for on-demand on-demand services and workers in the oil and gas and alternative energy sectors, has announced the layoff of 120+ employees as the energy sector continues to decline.
The technology-based company is an example of financial engineering where the founders are an energy investor and a specialist in private equity transactions in the energy -- with the enterprise funded by venture capitalists.
According to CEO Xuan Yong. "Based on the economic hit in oil and gas coupled with the impacts of the COVID-19 outbreak, we believe this decision was necessary to support our company’s long-term commitment to our contract workforce and the industries they serve. All departments were affected differently. However, our oil and gas-related teams were certainly hit the hardest.”
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?