The Hess Corporation – perhaps best known for its green and white trucks and gas stations – recently announced that it will be undergoing a significant shake up in the coming years, as it seeks to sell off all assets tied to its prominent retail operation and focus on producing crude oil.
The company also said that it intends to put its refining facilities up for sale, which indicates that its leadership is serious about creating a company with an exclusive focus on petroleum production.
"It's the logical endpoint of our five-year plan," John Hess, the company's chief executive, said in an interview with the New York Times' Michael de la Merced.
Divesting the firm's retail and refining capacity will likely take a significant amount of time. There are more than 1,300 gas stations under the Hess brand. However, narrowing the company's focus may allow it to experience greater success going forward. According to Merced, several other major industry players, such as ConocoPhillips, have taken similar steps in the past few years.
A number of activist investors representing prominent hedge funds have expressed uncertainty about the course laid by the company's leadership. However, analysts from Wells Fargo praised Hess's plans in a recent research note, and the firm's share prices have risen since the new strategy was announced.
In order to successfully complete its transition to a production-focused company, Hess will need to ensure it is using – and appropriately maintaining – quality oil production equipment. Companies in the industry are increasingly realizing the benefits of using modern hydraulic lift solutions to bolster pumping efficiency.
Oil jet pumps can be particularly effective, as they can even be used to maintain production from oil and gas wells in which conventional artificial lift equipment can't be used due to problems with the casing.