Latest news with #upstream
Fast Company
4 days ago
- Business
- Fast Company
Always putting out fires at work? Here's how to interrupt the cycle
Dan Heath's problem-solving book Upstream opens with a vivid scene: Two friends keep hauling drowning swimmers out of a river, pulling person after person from the current. The catastrophe seems insurmountable—until one of them heads upstream to stop whoever's pushing them in. Organizations replay that drama daily. Executives sprint from burnout to data breaches to supply-chain snarls, applauded for their stamina even as the current churns faster. Imagine directing even a fraction of that adrenaline toward stopping the cause instead of managing the chaos. The Hidden Cost of Endless Firefighting Downstream heroics may seem essential, but they siphon money and morale away from efforts to confront their root causes. The toll is hard to ignore. The Centers for Disease Control and Prevention estimates that 90% of U.S. healthcare spending is allocated to largely preventable chronic diseases. Gallup 's latest poll reveals global disengagement at 79%, resulting in a $9.6 trillion productivity loss. Burnout now costs employers $3,999 per employee per year, according to the American Journal of Preventive Medicine. And McKinsey, a multinational strategy and management consulting firm, warns that climate-related shocks could shave four points off the global GDP by 2050. Crisis mode isn't simply exhausting; it's economically irrational. When New Zealand trust company Perpetual Guardian piloted a four-day workweek, productivity increased by 20%, stress levels fell markedly, and electricity use decreased, all without implementing pay cuts. The takeaway isn't necessarily 'fewer hours'—it's smarter design. Leaders looked upstream at workload, well-being, and carbon impact, then adjusted the system before it broke. A Practical Playbook for Going Upstream Upstream thinking may sound lofty, yet it can be a methodical approach. Think of the following four moves as checkpoints on a continuous loop. Examine root causes. If turnover is climbing, probe beyond exit interviews to the sales quotas or approval bottlenecks that prompt people to leave. The goal is to surface the lever that actually moves the metric. Map system incentives. Every culture is perfectly designed to get the results it rewards. When speed and quarter-end revenue drive promotions, then quality and sustainability predictably lag. Audit performance goals, bonus structures, even cultural rituals; they often explain why yesterday's fires keep reigniting. Invest in preventive measures. Carve out 5% to 10% of the operating budget for early-warning tools like AI dashboards that flag burnout patterns, mandatory ethics reviews for machine-learning products, or circular-economy pilots like Patagonia 's repair hubs. Those hubs diverted nearly a thousand tons of gear from landfills in a single year while deepening loyalty. Test and iterate. Upstream work scales best from pilot to platform. Cal Fire and Google trialed wildfire-prediction AI in one California county; when alert times dropped by 20 minutes, they expanded statewide. Data, not hype, financed the rollout. Making Prevention a Daily Reflex Upstream habits stick when they're baked into calendars and compensation. Several of my client teams now block a weekly 'Look-Forward Hour' focused solely on emerging risks and design ideas—no status updates allowed. One multinational business rewired variable pay so that managers earn more for problems averted than for heroic recoveries. And in every new-product sprint, we run a premortem analysis: The team imagines total failure, surfaces the causes, and fixes them before launch. Attention gradually shifts from a reactive to a proactive mindset. A recent client engagement with a global biotech company underscores the payoff. Scientists were burning out during regulatory sprints. Instead of hiring more staff, leadership paused to map root drivers: Conflicting approval gates and a siloed culture had been holding them back. By redesigning the approval process, rewarding early-warning data, and incentivizing collaboration, they reduced rework by 30% and cut voluntary turnover in half within nine months. Wisdom From Practitioners Who Live Upstream Surgeon-author Atul Gawande developed operating-room checklists that prevent complications before they occur, writing: 'The cost of complication avoidance dwarfs the cost of treatment.' And they work: Those checklists have saved thousands of lives and cut surgical mortality by double-digit percentages, demonstrating that a simple upstream tool can outperform millions in downstream ICU costs. AI ethicist Timnit Gebru fights bias at the design stage because 'bias is cheaper to prevent than to litigate,' she writes. Her work on diverse AI training data and ethics review boards demonstrates that identifying discriminatory patterns early saves companies the multimillion-dollar expense and reputational damage of post-deployment recalls and lawsuits. Author Heath reminds us: 'Every system is perfectly designed to get the results it gets.' His research on upstream interventions—from Chicago Public Schools' early-warning dropout flags to hotel housekeeping teams that reduce injuries by redesigning carts—demonstrates that when you address the system, problems often disappear quietly. Their collective message is clear: Prevention isn't a perk; it's the most strategic investment a leader can make. Three Questions for Your Next Strategy Retreat Before your team locks in next year's goals, pause to ask: Where are we spending more on remediation than we would on prevention? Where are people metaphorically drowning downstream, and what is happening upstream that might be causing it? Which single budget shift this year would erase the most recurring headaches next year? Heroic responses make great headlines, but they seldom solve systemic flaws. The leaders who will thrive in the coming decade are not the fastest firefighters; they are the architects who design buildings that do not ignite. Going upstream means less adrenaline and more intention, fewer dramatic rescues and more quiet wins. Let's stop bracing for the next crisis and shape conditions that prevent far fewer crises from arising in the first place.
Globe and Mail
02-07-2025
- Business
- Globe and Mail
Can Disciplined Cost Management Fuel ExxonMobil's Future?
Exxon Mobil Corporation XOM emphasizes making its business more efficient and resilient. This is clear from its last earnings call, where it stated that since 2019, it has reduced $12.7 billion in structural costs. This means XOM is achieving the same or better results while spending less. On average, this saves about $2.5 billion annually, supporting ExxonMobil's bottom line in a volatile business environment. ExxonMobil mentioned on its recent earnings call that it aims to slash its breakeven costs to $35 per barrel by 2027 and $30 per barrel by 2030. Thus, XOM's upstream operations, which derive the majority of earnings, will probably remain profitable even if there is a plunge in oil prices in the future. It can also be said that the integrated major stands to earn substantially more from its upstream business, reflecting its strong footprint in the most prolific Permian basin, when prices climb. Importantly, XOM has aimed to lower its breakeven costs while maintaining its investment program. This will not only keep its operations profitable and resilient during a challenging business environment but also help it generate long-term value for shareholders while continuing to invest in major projects. Other Upstream Firms With Low Breakeven Costs: CVX, EOG According to Statista, a leading platform for data collection and visualization, the breakeven price in the Permian, especially in the Delaware and Midland sub-basins, is well below $40 per barrel. Hence, companies operating in the Permian, like Chevron Corporation CVX and EOG Resources Inc. EOG, are experiencing low breakeven prices. In 2024, CVX conducted 80% of its development activities in the Delaware basin. Chevron plans to increase the development program in the Delaware basin to 85% this year. This simplifies CVX's strong focus on low breakeven-cost operations, enabling it to maximize its profit. On its recent earnings call, EOG stated that it could easily handle all its planned spending for this year, even if oil prices trade in the low $50 per barrel. It means that to remain financially healthy, EOG does not need high oil prices. XOM's Price Performance, Valuation & Estimates Shares of XOM have declined 1% over the past year compared with the 2.8% fall of the composite stocks belonging to the industry. From a valuation standpoint, XOM trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 6.77X. This is above the broader industry average of 4.14X. The Zacks Consensus Estimate for XOM's 2025 earnings hasn't been revised over the past seven days. XOM stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chevron Corporation (CVX): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report EOG Resources, Inc. (EOG): Free Stock Analysis Report
Globe and Mail
27-06-2025
- Business
- Globe and Mail
OXY's International Operations Are Powering Multi-Dimensional Growth
Occidental Petroleum 's OXY global upstream footprint plays a pivotal role in driving its growth and resilience. International assets, such as Qatar's Dolphin gas project, Oman's Mukhaizna oilfields and the UAE's Al Hosn Gas, contribute significantly to production and cash flow. These diversified operations help cushion the company from volatility in U.S. shale markets and reduce exposure to domestic regulatory and market fluctuations, providing a more stable foundation for consistent shareholder returns. Occidental continues to deepen its presence in the Middle East and North Africa, with strategic stakes in high-potential regions. The company is the largest independent oil producer in Oman. OXY derives nearly one-fifth of the total production and over a quarter of its proved reserves from the broader Middle East. Occidental is also integrating decarbonization into its global operations through the 1PointFive platform, which is pioneering direct air capture technology. The company's recent memoranda of understanding with Algeria's Sonatrach signal ongoing efforts to explore new hydrocarbon zones, unlocking further production upside and strengthening long-term international partnerships. Occidental expects its international operation to contribute in the range of 226-236 thousand barrels of oil equivalents per day in 2025 to total production. The international initiatives enhance Occidental's free cash flow profile and provide a cushion against domestic concentration risk. With robust operations in resilient global basins and a growing portfolio of low-carbon technologies, Occidental trades at an attractive valuation and offers compelling upside potential as its international strategy continues to evolve. How International Operations Aid U.S. Oil & Gas Companies International operations support U.S.-based oil and gas companies by diversifying revenue streams, stabilizing cash flows and reducing reliance on domestic markets. It supports companies like ExxonMobil XOM and Chevron CVX by providing diversified production sources and reducing exposure to domestic market fluctuations. ExonMobil's offshore assets in Guyana and LNG projects in Papua New Guinea drive high-margin growth, while Chevron's stakes in Kazakhstan's Tengiz field and Australia's LNG operations contribute significantly to earnings and cash flow. International exposure positions both companies to capitalize on emerging market demand and global energy transition opportunities. OXY's Earnings Estimate is Going Down The Zacks Consensus Estimate for Occidental's earnings per share in 2025 and 2026 has decreased 10.16% and 17.38%, respectively, in the past 60 days. Occidental's ROE Lower Than the Industry Return on equity ('ROE'), a profitability measure, reflects how effectively a company utilizes its shareholders' funds to generate income. The trailing 12-month ROE of OXY is 16.6%, a tad lower than its industry's 16.89%. OXY Stock's Price Performance Occidental's shares have gained 3.2% in the past month compared with the industry 's growth of 5.4%. OXY's Zacks Rank Occidental currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Picks Stock Most Likely to "At Least Double" Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren't winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%. See Our Top Stock to Double (Plus 4 Runners Up) >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chevron Corporation (CVX): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report This article originally published on Zacks Investment Research (
Globe and Mail
20-06-2025
- Business
- Globe and Mail
Iran-Israel Conflict Escalates: Boon for ExxonMobil's E&P Business?
The West Texas Intermediate crude price is currently nearing the $75-per-barrel benchmark, representing a significant improvement from $60.79 on May 30, thanks to the escalating tensions between Iran and Israel. This is a boon for Exxon Mobil Corporation 's XOM exploration and production (E&P) activities, as upstream operations are positively correlated with oil prices. Crude price data are as per In other words, with ExxonMobil generating the majority of its earnings from upstream operations, almost 88% in the first quarter of 2025, the rise in oil price is a positive development for its E&P business, aiding its bottom line. Delving into the large integrated energy player's upstream business, XOM has a strong footprint in the oil-rich Permian, the most prolific basin in the United States. With operations spread across the low-cost basin, the high oil price will likely generate significant cash flows for XOM. To describe XOM's strong focus on the Permian, the energy giant acquired Pioneer Natural Resources, with integration progressing well, and the company has revised its annual synergy estimates upward from $2 billion to $3 billion for the first decade. Thus, strong Permian operations amid the favorable crude pricing environment are aiding ExxonMobil. Are CVX & BP Also Gaining From High Oil Prices? Both Chevron Corporation CVX and BP plc BP generate significant earnings from their upstream operations, and hence, they benefit from higher oil prices. In the Permian, Chevron's operations cover approximately 1.8 million net acres within the sub-basins of Delaware and Midland. Being a major player in the region, CVX's breakeven costs are also low. Hence, it can generate handsome cashflow from a high crude pricing environment. In the first quarter of this year, CVX mentioned that Permian primarily aided its production volumes. BP also has a solid upstream operation, comprising a top-tier oil and gas business in attractive basins. BP is also a low-cost producer. The British energy giant claimed that it has been able to keep the cost of producing oil very low. Thus, BP is among the lowest-cost producers in the industry to capitalize on increasing oil prices. XOM's Price Performance, Valuation & Estimates Shares of XOM have gained 7.9% over the past year, outpacing the 3.7% improvement of the composite stocks belonging to the industry. From a valuation standpoint, XOM trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 7.06X. This is above the broader industry average of 4.26X. The Zacks Consensus Estimate for XOM's 2025 earnings hasn't been revised over the past seven days. XOM stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BP p.l.c. (BP): Free Stock Analysis Report Chevron Corporation (CVX): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report This article originally published on Zacks Investment Research (
Zawya
20-06-2025
- Business
- Zawya
African Energy Week (AEW) 2025 Upstream E&P Track to Foster Dialogue and Deals Amid African Exploration Surge
Amid Africa's ongoing exploration and production surge, this year's African Energy Week (AEW): Invest in African Energies conference will host a dedicated Upstream E&P Track. The track - taking place as part of the main conference agenda from September 29 to October 3 – will tackle the most pressing challenges and opportunities across the upstream oil and gas sector, delving into topics such as deepwater development, onshore prospects, the role of independent firms and balancing African priorities with global supply dynamics. As the largest event of its kind on the continent, AEW: Invest in African Energies 2025 represents the platform of choice for Africa's upstream sector. Africa's upstream oil and gas sector is on the precipice of significant growth, boosted by a $54 billion capital expenditure drive expected by 2030. Across the continent, both established oil and gas markets and frontier players are seeking capital to bolster production while unlocking new basins in deepwater and onshore basins. The continent's exploration surge is further supported by growing demand in African markets as well as a rise in global gas imports. The AEW: Invest in African Energies 2025 Upstream E&P Track will explore these shifting dynamics, offering a platform for new exploration and production deals to be signed. AEW: Invest in African Energies is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit for more information about this exciting event. To entice greater spending across the upstream sector, many African countries are laying the foundation for new investments by both majors and independent energy companies. A string of licensing rounds is being launched in 2025, offering exploration opportunities across a variety of acreage. Licensing rounds are planned in Angola, the Republic of Congo, Tanzania, Mauritania and South Africa, while Libya, Nigeria, Algeria and Liberia have already launched their respective bid rounds. The Upstream E&P Track will explore the impact of these rounds. Sessions include What's Next for African Upstream in 2026; Exploration Hotspots; and Basins Without Borders: Unlocking the Full Potential of Cross-Border Basins in the Transform Margin. Additionally, panel discussions will examine emerging prospects in frontier basins, with sessions taking place on Frontier Plays Within Africa's Mature Basins; Offshore and Deepwater Plays; and Unlocking Africa's Onshore and Shallow-Water Potential. While global energy majors expand their portfolios in Africa, independent oil and gas firms are taking on a more prominent role in exploration and production. International oil company divestment has opened-up new pathways for African independents, and as such, more companies are taking the lead on asset development. AEW: Invest in African Energies will host panel discussions on The Making of an African Independent; Technology and Innovation: Rethinking Asset Development to Accelerate Upstream Success; as well as Crude Value Benchmarking with Ever-Changing Light, Heavy Balance, exploring opportunities for independents in Africa. Meanwhile, with global gas demand projected to increase 10% between 2021 and 2030, African countries are strategically positioned to accelerate exploration and play a more central role in global supply chains. With over 620 trillion cubic feet of proven gas reserves on the continent – most of which remains under-developed – Africa has a unique opportunity to leverage its resources to produce low-carbon, cost-effective fuel. Panel discussions on Decarbonizing Pathways for African Oil and Gas; The Outlook for Global LNG; and The Role of African LNG in a Dynamic Export Market will address these opportunities, while a session on Beyond Exports: Developing Commercially Viable Domestic Gas Markets, will examine how the continent can leverage its resources for domestic growth. The track will also feature panel discussions on strategic oil and gas markets in Africa, including Algeria, Equatorial Guinea, Angola, and more. These sessions are geared towards companies seeking growth opportunities in proven markets and are expected to unlock new deal-signing and partnerships prospects. Beyond panel discussions, the Upstream E&P Track will feature a series of fireside chats, with participating companies including Renaissance Africa Energy, Northern Ocean, Seplat Energy and more. 'Africa's upstream oil and gas market is witnessing a surge of investment, as operators seek to expand their portfolios and governments target near-term production. Amid this growth, strategic financing gaps have emerged. The AEW: Invest in African Energies 2025 Upstream E&P Track seeks to address these challenges by bringing together major players from the market to engage and sign deals,' says Oré Onagbesan, AEW: Invest in African Energies Program Director. Distributed by APO Group on behalf of African Energy Chamber.
