For such a long time, the prices of oil and petroleum remained high. However, in 2014, countries supplying oil to the world market like Iran and Russia started to over produce, creating surplus. It resulted to the lowering of the price of oil and petroleum, and many people around the world rejoiced. For the first time in history, the prices of oil decreased, and it would result in a positive chain reaction, bring the prices of goods and services down. However, on the other side of the spectrum, oil and petroleum companies perished, and one of those affected greatly by the decrease in the prices of oil and petroleum is Obsidian Energy, a once top performing Canadian company. The company was at the apex of its success and was even among the sixty most prominent firms in the Toronto stock Exchange and was also a Canadian Royalty Trust (CANROY).
Before the price changes in 2014, Obsidian Energy is ranked as one of the top 60 companies in Canada based on performance. They are constantly on the list of the top companies at the Toronto Stock Market, and the company was valued at $9.5 billion. People are buying their stocks, and investors are pouring in because of their potential to grow. However, things changed quickly after the movement of oil and petroleum price. Obsidian Energy almost became bankrupt, and their debts started to inflate. The company has to cut the number of employees working for them to save money, and from the original 2,500 labor force, it went down to just 300. Obsidian Energy also cut their expenditures, and they had to go under a restructuring and rebranding process to save more money. David L. French was named as the new president and CEO of Obsidian Energy, and he was tasked to find ways on how to save the company. Get More Information about the company by clicking the link.
David L. French accepted the challenge because he knew that Obsidian will bounce back. Today, he is focusing on the oil wells that the company built in the past, located on the western part of Canada. He believes that the oil wells still have oil and petroleum deposits that they can sell to earn additional profits. Obsidian Energy is able to produce about 31,000 barrels of oil daily, and David L. French is optimistic that this value would help the company to go back on track.
Visit Source: https://en.wikipedia.org/wiki/Obsidian_Energy