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December 12th, 2014:

Leaked BP CEO Internal Memo

Screen Shot 2014-12-04 at 20.54.03It’s completed about $43 billion of asset sales since the 2010 oil spill in the Gulf of Mexico. The offshore disaster has cost London-based BP more than $28 billion in clean-up costs and damages, and the company is still fighting legal battles on multiple fronts.

BLOOMBERG NEWS ARTICLE

BP Chief Says Company Must Slim Down to Match Rivals on Costs

Dec 12, 2014 11:07 AM GMT

BP Plc (BP/), dealing with the lowest crude prices in five years, must cut jobs because costs are higher than at the oil company’s global competitors, the chief executive officer told staff this week.

“In many parts of BP, we have higher costs and larger teams than other companies operating at a similar scale,” Chief Executive Officer Bob Dudley said in an internal memo to staff obtained by Bloomberg. Programs are “well underway in many areas to streamline our work and refocus our activities.” read more

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Why Is Shell Divesting Stake In China Lubricants Business

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By: MICHEAL KAUFMAN
Published: Dec 12, 2014 at 10:05 am EST

Royal Dutch Shell plc (ADR) (NYSE:RDS.A) has announced plans to sell off stake in the Tongyi oil lubricants joint venture. The company holds a 75% stake in the lubricant firm, while the remaining 25% stake is held by Huo Zhenxiang, the founder of the joint venture. Shell has hired services of China’ investment bank China International Capital Corp to aid in the sale of its 75% stake in Tongyi, which comprises of oil lubricants for motorcycles, cars, and other vehicles. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

US oil price below $60 a barrel

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From a Financial Times article published 11 December 2014 @10.49pm:

US crude closed below $60 a barrel

US crude closed below $60 a barrel for the first time in five and a half years… The declines came on top of falls of more than $2 on Wednesday after the Opec producers’ cartel said demand for the group’s crude in 2015 would be the lowest in a decade and below current levels.

FULL ARTICLE

From a Motley Fool Article published Friday 12 December 2014

THE OIL PRICE CRASH

If 2014 is remembered for anything, economically, it will be the oil price crash. In July, Brent Crude traded at $115, and that seemed perfectly rational. Today, it has plunged to $64. The share prices of BP and Royal Dutch Shell have duly crashed as well. As global, vertically-integrated businesses, the UK-listed oil giants aren’t a pure play on the oil price, but they can’t escape unscathed in times like these. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

WILL BP BE ABLE TO SURVIVE?

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By: MICHEAL KAUFMAN
Published: Dec 11, 2014 at 4:50 pm EST

The operating cashflow for BP plc (ADR) (NYSE:BP) is expected to grow 5.3% between 2014 and 2017. BP is slightly above Royal Dutch Shell plc’s (ADR) (NYSE:RDS.A) growth rate of 4.1%.There have been several factors that have contributed to low expected growth for the future operating cash flow.

Oil price has dipped 40% since June, with the West Texas Intermediate trading at $61.24 per barrel and the Brent crude trading at $64.56. The falling oil price has led to a decline in the cash flows for oil giants globally. BP has been adversely impacted due to the huge amounts it has paid in fines and settlements. The Californian lawsuit against the company along with the Gulf of Mexico 2010 settlement charges has clearly dampened the company’s liquidity position. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.