Penn West Petroleum recently changed their business name into Obsidian Energy. They are dedicating themselves to provide the energy requirement of Canada and the medium-sized petroleum company stated that they will be exporting other reserves to the foreign market. Obsidian Energy came to be after the board of directors who are serving the Penn West Petroleum decided that the only way to save the company going downhill is to undergo a restructuring and rebranding process. All of the officials working for the company were either replaced or assigned to a new department, and after the change in name, Obsidian Energy promised to become more aggressive in serving the market.
Obsidian Energy was once named as one of the top companies in Canada, and they regularly receive a distinction saying that their stock market performance is superb. Because of the nature of their industry, Obsidian Energy posted an average annual revenue of about $9 billion, and they felt like their performance will last forever. The management working at Obsidian Energy felt like their growth would last for decades, provided that the price of oil and petroleum will keep its standard. However, everything changed in 2014, and Obsidian Energy never imagined that what they’ve built for a long time would crash instantly. As Russia and Iran manufactured more oil creating a huge surplus, the prices of oil and petroleum started to dwindle. Huge petroleum companies started to feel the effect, and their products soon became cheaper. For companies like Penn West petroleum, the effect of the price drop is devastating. They would have to lay off thousands so that they can cut their expenses. From having thousands of employees, only a hundred remained.
Obsidian is rooting to restore their previous status s a profitable company. They left a huge number of oil and petroleum wells in Northern Canada, and they are using these remaining oil and petroleum wells to get the remaining resources which they could sell someday. Recently, Obsidian Energy managed to extract more than 31,000 barrels of oil per day. They would love to sell it to the market to retrieve their previous revenues. Visit This Page for additional information.