CARACAS: The US Treasury Department on Saturday granted permission for Chevron Corp, the last major US oil company operating in Venezuela, to continue working in the country until April 22.
The US imposed sanctions last year that barred imports of Venezuelan oil and transactions made in US dollars with Venezuela’s state-run oil company PDVSA, in move a designed to starve Caracas of oil dollars and oust President Nicolas Maduro.
The restrictions cut Venezuela’s oil exports by 32 percent last year, but Maduro has remained in power, supported by PDVSA and the country’s military.
Chevron and oilfield service firms Baker Hughes, Halliburton, Schlumberger, and Weatherford International have regularly received permission to remain in the country. The four oilfield service firms have largely ceased operations there.
The extension was a win for some Trump administration officials, including Secretary of State Mike Pompeo, who see value in keeping the company in Venezuela, which has the world’s largest reserves of oil.
Chevron has been in Venezuela for nearly a century and has kept about 300 direct employees there through years of turmoil. The company’s Venezuelan oil and gas production has been falling and was about 32,000 barrels per day during the most recent quarter for which figures were available.
A Chevron spokesman declined to comment, whilst representatives for Baker Hughes, Halliburton and Schlumberger were not immediately available.
The company posted a $104 million loss on its Venezuela operations for the nine months ended Sept. 30, 2019. It would lose about $2.7 billion in assets if required to leave the country, Chevron said.
A 1 million-barrel cargo of Venezuelan crude consigned to Chevron was scheduled to load this month at Venezuela’s Jose port, according to internal PDVSA documents seen by Reuters.
The operation does not violate sanctions, and proceeds from the oil export are used by a joint venture to cover maintenance costs, Chevron said.
The Treasury Department said the license extension did not authorize transactions related to shipments of diluents, which Venezuela needs to thin its heavy oil for processing.
The US Treasury also issued a further license on Saturday, allowing transactions related to PDVSA’s 2020 bond, which is backed by shares in US refiner Citgo Petroleum Corp. The new license will take effect from April 22, replacing a previous license that last year had authorized transactions from Jan 22.
Rooftop revolution: Pandemic chill upends solar power industry
Executives in US and Europe rely on tech, finance plans in battle for survival
Updated 31 min 10 sec ago
LOS ANGELES: The booming rooftop solar panel industry nosedived overnight when the coronavirus forced homeowners to rein in spending and keep their distance from would-be installers.
Now, in their struggle to survive, companies on both sides of the Atlantic are turning to online marketing rather than knocking on doors, using drones to inspect roofs, arranging digital permits and coming up with attractive new financing plans, according to interviews with 12 executives.
At stake is the future of a key driver of the global transition from fossil fuels to renewable energy: solar power was the second-fastest growing renewable source after wind in 2019, according to the International Energy Agency.
And rooftop installations, which generate electricity used by homes or businesses rather than feeding into the grid, made up more than 40 percent of the market before COVID-19 struck.
Energy research firm Wood Mackenzie has slashed its rooftop solar installation forecasts for Europe and the US by a whopping 30 percent this year, while lifting its forecast by 3 percent in Asia, where China provides strong government support.
Joana Palau, 42, a council worker on the Spanish island of Ibiza, was one of the few in her neighborhood who pressed ahead with a plan to install 12 solar panels on her farmhouse in June: “If I had not been working and did not have the stability of a salary every month, I definitely wouldn’t have done it.”
By contrast, large-scale solar installations that power the grid have fared relatively well. Wood Mackenzie trimmed its forecast by less than 10 percent for Europe and barely touched its US outlook as rock-bottom prices, subsidies and government mandates helped insulate larger projects from the pandemic. In the US, the third biggest rooftop solar market after China and Japan, about 80 percent of the 100,000 job losses in the solar sector so far have been at rooftop installers, the Solar Energy Industries Association said.
Many of the staff who were not laid off, however, began to focus on one of the industry’s most persistent challenges: How to cut the cost of identifying homeowners with suitable roofs, and then persuading them to buy panels, executives said.
Quickly, companies made sales appointments virtual.
Leading US installers SunPower Corp., Vivint Solar Inc. and Sunrun Inc. said that reassured potential clients worried about the virus. It also cut the cost of acquiring customers, which Wood Mackenzie puts at nearly $4,000, or 22 percent of the average $18,000 cost of a US system.
Normally reliant on door-to-door visits, an effective but expensive sales tactic, Vivint trained hundreds of salespeople to canvass by phone as its sales slumped 60 percent following state lockdowns, CEO David Bywater said.
By early May, sales were down only 30 percent. “It was a radical shift,” said Bywater, adding that it had hastened Vivint’s plan to diversify sales strategies and cut costs: “I hope we never lose that and we accelerate that.”
In fact, the strategy was so successful that larger rival Sunrun announced on July 7 that it had agreed to buy Vivint in an all-stock deal valued at $3.2 billion, saving $90 million a year and creating a solar player with half a million customers.
Sunrun bought Vivint because of its focus on direct selling, a model Sunrun CEO Lynn Jurich said had become even more durable during the COVID-19 pandemic: “Both companies are delivering above where we expected.”
Solar panel firms go digital as lockdowns hit sales.
New sales strategies cut costs as firms battle to survive.
Solar power seen as key driver in climate change fight.
Rival SunPower has also seen a massive shift to digital sales, with about three-quarters of consultations now happening via video chat, up from a 10th previously.
CEO Tom Werner said he expected half of its sales would be digital from now on. He said it was harder to close deals in virtual chats but that was offset by cutting out travel time between appointments.
“Ideally, you have the day when solar is like Amazon, so you can buy and be fulfilled in a very efficient process,” he said.
Sunrun, meanwhile, had to pull its salespeople out of stores such as Costco and Home Depot during lockdowns, outlets that had been bringing in nearly a third of its sales. Within two weeks, Sunrun had moved its field sales team online and launched a promotion offering six months of home solar power for $6. While initial online commitments were lower, the percentage of customers following through was higher.
Sunrun said innovations like virtual sales and automating permits to avoid physical processing by authorities will trim about $2,000 off the cost of an array over the next year or so.
EmPower Solar, a rooftop installer based in Long Island, spent New York’s lockdown on “game-changing initiatives” such as digitising sales and paperwork, and using satellite imagery and drones to inspect roofs, said CEO David Schieren.
However, he said that it was harder to build rapport with customers without face-to-face contact.
In Europe, rooftop solar firms developed more enticing finance plans as the pandemic made clients wary about spending.
SotySolar in Gijon in northern Spain accelerated the roll-out of a “Netflix-style” subscription model. It installs panels and charges a monthly fee though homeowners can buy them or end their contract when they like, said co-founder Daniel Fernandez.
“We have been thinking about doing this for a while, but we brought it forward because of this situation,” he said, adding that he expected to triple installations with the offer.
In Barcelona, renewable energy utility Holaluz has accelerated an initiative to install panels free for people with available roof space — and use them to generate power for all its customers. It aims to extend the plan to apartment blocks and commercial buildings.
Holaluz expects to boost clients to one million and carry out 50,000 rooftop solar installations by 2023. It estimates fewer than 10,000 Spanish homes currently have panels.
“This is the rooftop revolution,” said co-founder Carlota Pi. “We have spent so much time at home, we have become much more conscious of the value you can create by transforming your roof into a source of energy generation.”