Canada hosts one of the most expansive petroleum reserves in the world, ranked number three after Venezuela and Saudi Arabia. It is one of the major oil exporters in the world, it got recognized in 2015 as the most significant supplier to the United States. The reserve is situated along the Western Sedimentary Basin in Alberta. It supplies raw materials to Obsidian Energy Limited, a company dealing in the production of natural gas and oil. Obsidian Energy Ltd., whose headquarters are in Calgary, Alberta, Canada, was founded in 1979 as Penn West Petroleum Ltd.
The company went through some restructuring and changes due to a financial crisis and decided to change its name to Obsidian Energy Ltd. on the 26th of June 2017. The financial crisis began back in 2014 when there was a huge reduction in the prices of crude oil. It led to the then Penn West Petroleum accruing debts of up to $3 billion. The management decided to sell some company assets to pay off the debts which have since reduced to about $384 million. The name change got approved by the companies’ shareholders who supported it with a 92% voting outcome.
According to David French, the company’s President and Chief Executive Officer, they had settled on the name Obsidian because it described a new business firm that would be taking on a new structure different from the old Penn West. As part of restructuring plans, the employee number was also cut down from a little over 1400 to about 300. French took over control of the company in October of 2016.
Obsidian now focusses on achieving overall growth and this it plans to do by strictly adhering to some laid-down guiding principles. These principles include accountability and transparency especially with investors, disciplined decision-making aimed at protecting the values and interests of the company and pursuing progress and new inventions with a renewed energy. Refer to This Article for additional information.
CEO David French is optimistic that the changes will ensure that the company’s output, which they were forced to reduce from 135,000 to 28,000 barrels of oil equivalent per day, will increase with time while lowering operational costs.