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May 27th, 2015:

Shell faces what amounts to an almost existential crisis

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Analysts Downgrade Troubled Shell

Given Mornigstar’s view that long-term oil prices will be well below $100 going forward, we don’t believe Shell’s has a lasting competitive advantage over its peers

Stephen Simko, CFA 27 May, 2015

Shell (RDSB) faces what amounts to an almost existential crisis: even when oil prices were $100 its portfolio was strewn with problems. Huge bets on shale destroyed huge amounts of capital, cost overruns on key projects such as the Motiva refinery, and a chronically poor-performing downstream all combined to leave the company with very weak returns on capital.

We have recently lowered our Shell fair value estimate to £20.50 per share from £21 per share to reflect what we believe was an overpayment with respect to its planned acquisition of BG Group. 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.

Shell Polar Pioneer fails USCG inspection

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Screen Shot 2015-05-19 at 18.39.24By Donal Scully: 27 May 2015

Seattle: The Polar Pioneer, one of two huge drilling platforms Shell plans to deploy in the Arctic, came up short under a US Coast Guard (USCG) inspection on Tuesday.

Although the USCG said the unspecified hitch was minor and would be easily remedied it was another in an array of small snags surrounding Shell’s planned return to Arctic oil exploration after a three -year hiatus.

Two weeks ago the city of Seattle, where Shell is mooring its Arctic fleet ahead of the trip north, said that by housing Shell’s fleet the port of Seattle is in violation of its lease that designates Terminal 5 as a “cargo terminal.”

And the port of Seattle sent mixed signals when it simultaneously backed Shell’s right to moor its fleet but also requested the oil giant delay the arrival of the Polar Pioneer. That request fell on deaf ears. 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.

Arctic drilling invites disaster: Column

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Screen Shot 2015-05-19 at 18.39.24Arctic drilling invites disaster: Column

Nick Jans: EDT May 27, 2015

An oil spill in sea ice is permanent. And Shell is nowhere near prepared for summer drilling.

I stood on the shore of the Chukchi Sea, at the far northern rim of Alaska. On that late May evening, a maze of shifting ice spilled off to the horizon; a world of the same stretched beyond that, more than 1,000 miles to the North Pole. Out in that vast expanse, Inupiat whalers waited in traditional camps for their first bowhead whale of the season; polar bears roamed, hunting walrus and seals. Slanting in, the midnight sun cast mirages and colors that have no earthly name. I squinted into the distance and tried to imagine oil wells out there, too — dozens, and eventually hundreds, scattered across the face of this harsh but fragile ocean wilderness. 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.

Shell drilling may spur Arctic resource race

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Screen Shot 2015-05-19 at 18.39.24Colin Chilcoat, Oilprice.com: May 27, 2015

In a few short months Shell will (re)enter the Chukchi Sea, between Alaska and Russia. The oil and gas major still awaits approval from a number of state and federal agencies, but in early May the company received the consent of the Obama administration to explore the remote Arctic sea 70 miles off the coast of Alaska.

If it sounds familiar, that’s because it is. Shell was in the Chukchi and Beaufort Seas for much of 2012 – a stint that ended with more headaches than drilling. Following some high-profile failures with its Noble Discoverer and Kulluk rigs, Shell put its Arctic operations on pause in early 2013. Amid slumping profits, the group called off its 2014 plans to resume. Today, the economic indicators are not much better – Shell lost $1.1 billion in the Americas in the first quarter of 2015 – but the company is committed to moving forward. 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.

Oil Majors Falling Out Favor With This Hedgefund Boss

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Screen Shot 2014-12-22 at 21.08.35By Andy TullyPosted on Tue, 26 May 2015

Huge oil companies, among the largest businesses in the world, don’t excite hedge fund manager Jim Chanos because today they have to work harder and more inefficiently than ever to bring their products to market.

“[W]e’re just seeing that … these guys like Exxon and Chevron and Royal Dutch Shell are simply replacing $20 [per barrel] oil with $80 oil,” Chanos said May 24 on the PBS television program “Wall Street Week.” “So high return-on-capital businesses are becoming more mundane return-on-capital businesses.” 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.

Exxon, Hunt among companies approved to bid on drilling in Gulf of Mexico

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“Shell, the European oil giant, and Brazil’s national oil company Petrobras, both of which had initially explored pursuing drilling rights in Mexico, ultimately decided to pull their applications…”

By JAMES OSBORNE: Staff Writer: Published: 26 May 2015 

Exxon Mobil and Hunt Oil aren’t turning their backs on Mexico’s oil fields yet.

The North Texas-based oil companies were among 26 entities approved to bid on drilling rights in the shallow-water Gulf of Mexico off Veracruz, the Mexican government announced Monday.

Mexican President Enrique Peña Nieto announced in 2013 that the country was opening its oil and natural gas fields to foreign companies for the first time in almost 80 years to try to revive lagging production. But enthusiasm has waned since last summer, as low crude prices threaten drilling projects worldwide. 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.