Obsidian Energy: Western Canada’s Oil Producer

Obsidian Energy, based in the city of Calgary, Alberta, is a natural gas and oil company that operates on the western part of Canada. The company was previously known as Penn West Petroleum, but after going under a restructuring and rebranding phase, they changed their name to Obsidian Energy on June 26, 2017. Once recognized as a top performing Canadian company and consistently included in the top 60 performing companies at the Toronto Stock Exchange, Obsidian Energy’s value fell as the price of petroleum crashed. It also lost its status as a Canadian Royalty Trust, after the company was greatly devalued. The topmost value given to the company was $9.5 billion, but it declined after January 2008.

 

After the price of oil around the world became cheaper, petroleum companies like Obsidian Energy were negatively affected and the employees perished. The majority of the company’s assets were sold subsequently for the next two years, and Obsidian has undergone a restructuring process hoping that the move can save the company from becoming bankrupt. The number of employees working for Obsidian Energy was also decreased from more than 2,500 to 300. Obsidian Energy wanted to cut the amount of debt that they acquired, and they are hoping that by cutting their expenditures and manpower, the company can save a lot of money to pay for their debts.

 

Obsidian Energy focuses on extracting petroleum and natural gas on the western part of Canada, where the Western Canadian Sedimentary Basin is located. The region, found inside the territories of Alberta, is known for its rich petroleum reserves. The current president and chief executive officer of Obsidian Energy is David L. French, and he is leading the company to extract more petroleum and natural gas, with the hopes of increasing the company’s profit. The oil and gas wells owned by Obsidian Energy is scattered all throughout the western part of the country, and it can produce more than 31,000 barrels of oil per day. Being the leader of a struggling company is a big challenge for David L. French, but through his efforts, he is hoping that Obsidian Energy would one day bounce back.

 

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