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Posts from ‘July, 2017’

Shell profits set to treble as prices rise and costs cut

Oil companies have focused on cost cutting as they adjust to a prolonged period of lower prices, raising fears of more job losses

Analysts expect the Anglo-Dutch group to have one of the strongest performances of the oil majors in the three months to June, with profits leaping to $3.15 billion, from $1.05 billion in the same period last year.

However, the second quarter last year was a torrid one for oil giants after the collapse in crude prices.

Shell’s results a year ago were also weighed down by hundreds of millions of dollars of one-off redundancy and restructuring charges after its takeover of BG Group, cutting its headline profits to only $239 million. read more

After false dawn, Big Oil to double down on cost cuts

LONDON (Reuters) – After a brief respite at the start of the year, the world’s top oil and gas companies are set to double down on cost cutting as a recovery in crude prices after a three-year slump falters.

Corporate hopes were raised by a deal between members of the Organization of Petroleum Exporting Countries and other non-OPEC producers to cut production, which lifted oil prices above $58 a barrel in January, after they had slid to as low as $27 in 2016.

But Brent crude prices have since slipped back below $50 and banks have lowered price forecasts, amid surging output from the United States and other nations not bound by the global oil pact. read more

Oil Thieves Force Nigerian Pumping Station To Shutter

Oil thieves are bringing Nigerian crude oil pumping stations to their knees, according to a new report from World Oil.

The 60,000-barrel per day Agbada 2 flow station run by Royal Dutch Shell in Nigeria stood idle for most of June due to significant leaks in the pipeline used to transport its crude to export terminals. These leaks were likely deliberate, caused by illicit groups that collectively steal 30 percent of Nigeria’s crude that flows through pipelines. read more

The Abrupt Demise Of Dutch Gas

The phenomenon is no novelty, with 80 000 damage claims totaling €1.2 billion having been filed with the government and NAM, the operator of the Groningen field, a joint venture between Royal Dutch Shell and ExxonMobil.

By Viktor Katona – Jul 20, 2017, 3:00 PM CDT

The largest and oldest-producing gas field in Western Europe, the Groningen field, is on the verge of being shut down.

If that happens, it will entail the tumbling of Netherlands’ indigenous gas production, making it a net gas importer. This is a bitter pill to swallow for producers in the Netherlands, EU’s leading gas producer up to now, given that the Dutch led the world in the 1970s in natural gas exports volumes (the ramp-up in exports was so massive that the Dutch government implemented export caps to put some freeze on it). For Dutch locals, however, this might represent a long-awaited victory and a sign that governments can pay heed to their concerns, if sufficient pressure is applied. It remains to be seen whether an abrupt end to gas production in the Netherlands is in anybody’s interest. read more

This could be the next big strategy for suing over climate change

July 20 at 1:13 PM

Two California coastal counties and one beach-side city touched off a possible new legal front in the climate change battle this week, suing dozens of major oil, coal, and other fossil fuel companies for the damages they say they will incur due to rising seas.

The three cases, which target firms such as Chevron, ExxonMobil, BP and Royal Dutch Shell, assert that the fossil fuel producers are collectively responsible for about 20 percent of global carbon dioxide emissions between 1965 and 2015. They claim that industry “knew or should have known” decades ago about the threat of climate change, and want companies to pay the costs of communities forced to adapt to rising seas. read more

Who Stands To Gain The Most From Oil’s Rise In Price?

: 20 July 2017

Summary

*Five of the largest oil sector firms all move directly with the price of oil, but at varying degrees.

*ConocoPhillips has historically moved at an almost dollar per dollar ratio to oil.

*Shell and BP are far less sensitive to the change in oil prices as their American counterparts.

*BP has a quarter of the sensitivity to the price of oil as ConocoPhillips does.

By Eric Mason

As oil approaches its consensus floor for price per barrel, the next move can only be upwards. To take advantage of this pending uptick, which of the major oil sector firms offers the best growth relative to the price of oil? This article will help shine some light on which stock is the best pick for gains. read more

Investors Squeezing Oil & Gas Developers To Cut Methane

Investors Squeezing Oil & Gas Developers To Cut Methane

, I write about the global energy business.: July 20, 2017: Opinions expressed by Forbes Contributors are their own.

Oil and gas developers may soon be feeling the effects of a one-two punch — an adverse court ruling dealing with their methane emissions and now an investor-led initiative pushing them to be more transparent.

Natural gas, of course, has become the fuel of choice — a fuel that markets itself as far less pollutive than coal. But methane is its main component, which is 84 times more potent than CO2, although its lifespan is 20 years compared to 100. Indeed, methane makes up about 25% of the global warming today. read more

Shell Oil sued over claim of sexual harassment, discrimination in the East Bay

NEWTON worked at SHELL as a refinery process operator.  During her tenure, she was discriminated against and harassed by supervisors and co-workers because of her gender. She was taunted with comments like, “If your pussy hurts, just stay home.” (Extract from complaint – link below)

By | [email protected] | Bay Area News Group: PUBLISHED: | UPDATED:

MARTINEZ — A former employee at Shell Oil’s refinery in Martinez is suing the massive oil company for “sex-based harassment, sex discrimination, (and) failure to take reasonable steps to prevent discrimination and harassment,” according to a copy of the lawsuit given to this news organization and originally filed in the U.S. District Court for the Northern District of California. read more

Nigeria Oil Thieves Keep a Lid on Output Even as Bombs Abate

The Agbada oil flow station, operated by Shell in Port Harcourt, Nigeria. Photographer: George Osodi/Bloomberg

On top of that is the cost of clearing up the pollution from pipe ruptures. A 2011 UN study found that such an undertaking at Ogoni, just south of Port Harcourt, could exceed $1 billion and take 30 years.

By Paul Wallace: 20 July 2017, 05:15 BST

The Agbada 2 flow station should have been buzzing with activity, pumping crude to one of Nigeria’s largest export terminals. Instead it was idle in the muggy, mid-morning heat as Wilcox Emmanuel, the facility’s manager, shrugged in resignation about the thieves who’d shut him down.

As much as 30 percent of the oil sent by pipelines through the swampy Niger River delta is stolen, consultant Wood Mackenzie Ltd. estimates. That’s depriving the country of income amid a crippling recession and compounding the pain of a global price slump for Africa’s largest producer. read more

Iran Looks To Close More Deals But Oil Majors Are Cautious

By Gregory Brew – Jul 18, 2017, 9:30 AM CDT

Iran is on track to reach a major national milestone this year, if the nation’s oil spokesmen are to be believed. On Wednesday deputy oil minister Amir Hossein Zamaninia predicted oil production would reach 4 million bpd by the end of 2017, and certainly exceed that level by the end of the Iranian calendar year (March 2018).

Since international sanctions on its oil and gas industry were lifted in January 2016, Iran has managed to increase production to pre-sanctions levels, reaching 3.8 million in May 2017, the highest level in seven years. But 4 million bpd, long a national goal and symbolic of a full recovery, is now within reach. read more

Shell sells controversial Corrib gas project

Áine Ryan: 18 July 2017

IT was always about ‘sovereignty’ for retired teacher and one of the Rossport Five, Vincent McGrath. So last week’s news that Shell is in the process of selling the controversial Corrib Gas project reminded him of the lines from the War of Independence poem, Shanagolden:
“These hills are at peace again, the Saxon stranger gone.”

Speaking to The Mayo News yesterday (Monday), Mr McGrath, who with four other local men spent 94 days in jail in 2005 for flouting an injunction allowing Shell onto their lands, said: “For me it was always about sovereignty and the health and safety of our community and our Government ceded this to Shell and thus failed in their primary duty to protect their citizens in Erris.” read more

Shell Oil recently left the Corrib gas field with losses of 2 billion

Opinion: ‘Just one week after banning fracking, we started drilling for oil’

We need a just transition to a low carbon economy, not a sell-off of our future, write Sinead Mercier and Louise Michelle Fitzgerald.

IN AN ORWELLIAN twist of double-speak, on 11 July, just one week after onshore fracking was banned in Ireland, Minister of Communications, Climate Action and Environment Denis Naughten granted consent to Providence Resources PLC to commence drilling for oil in the Porcupine Basin off our south-west coast.

If catastrophic climate change is to be avoided, existing fossil fuels must be kept in the ground. Providence Resources states that they expect to find 5 billion barrels of oil.

As George Orwell wrote in 1984, “doublethink means the power of holding two contradictory beliefs in one’s mind simultaneously, and accepting both of them”. read more

Shell among firms fined over Indian oilfield dispute, report says

Written by

The dispute over the Panna Mukta oil field when in favour of the Indian Government, the Economic Times reported, citing sources familiar with the matter.

Reliance Industries and Shell have appealed the decision in a UK court, the report said.

The arbitration panel sided with the government in ruling that profit from the fields should be calculated after deducting the prevailing tax of 33%, and not the 50% rate that existed earlier.

The decision will significantly increase the government’s share of profit petroleum. read more

Idemitsu moves closer to Showa Shell deal after court nod to share sale

By Taiga Uranaka and Osamu Tsukimori

TOKYO, July 18 (Reuters) – Idemitsu Kosan Co said it would proceed with a $1.1 billion sale of new shares, after a court rejected the founding family’s petition to block the offering, potentially clearing the way for a takeover of Showa Shell Sekiyu.

The family has lodged an appeal with the Tokyo High Court, their lawyer said, calling the ruling “unjust”.

The descendents of the Idemitsu founder, Sazo Idemitsu, have been locked in a battle with the Japanese refiner’s management for more than a year over the proposed Showa Shell buyout. The new share sale would dilute the family’s stake and make it harder for them to oppose the deal. read more

Lawsuits rise against Big Oil

While Washington dithers, the courthouse could become the next battleground against climate change. San Mateo and Marin counties, along with San Diego County’s Imperial Beach, filed lawsuits Monday against 37 oil, gas and coal companies, accusing them of ramping up extraction of fossil fuels for decades even though they knew the resulting carbon pollution would have devastating effects on the planet.

To anyone who followed the long legal fight against Big Tobacco, the arguments have a familiar ring. The plaintiffs claim the defendants: read more

Shell, RIL, ONGC fined $3 billion in PMT oil field dispute: report

Mumbai: The government has ordered Reliance Industries (RIL), Royal Dutch Shell and Oil and Natural Gas Corp. (ONGC) to pay $3 billion in penalty following an arbitration award in the Panna Mukta Tapti (PMT) oil field dispute that went in favour of the government, Economic Times reported.

“The arbitration panel had upheld the government view that the profit from the fields should be calculated after deducting the prevailing tax of 33%, and not the 50% rate that existed earlier. This will significantly increase the government’s share of profit petroleum. The tribunal also upheld the government’s position that marketing margin should be included in the price of gas, which would also increase its share of profit petroleum as well as a royalty payment,” the ET report said. read more

4 Things Royal Dutch Shell’s CFO Thinks You Should Know

Tyler Crowe: (TMFDirtyBird): 17 July 2017

We all knew that Royal Dutch Shell‘s (NYSE:RDS-A) (NYSE:RDS-B) management had big plans to transform the company post-BG Group merger, but I don’t think we anticipated it to happen this quickly. Not only has the company executed tens of billions in asset sales over the past several months, but the company’s cash flows from operations seem to suggest that management is wringing out a lot of inefficiencies that have plagued Shell’s returns for years. read more

Shell to operate fast charging at selected Shell stations in the Netherlands and in the United Kingdom

Shell and Allego are working together to install and operate the first fast chargers for electric vehicles at selected Shell service stations. The project will include selected charging sites at Shell stations in the United Kingdom and in The Netherlands. The goal is that fast chargers are expected to be operational at all selected locations by the end of 2017. The first chargers are due to open in Greater London, Derby and the western part of the Netherlands (Randstad). read more

Kazakhstan and Eurasia new oil consortium in a multi-billion Caspian project

LONDON (TCA) — In a move presented as glorious and spectacular, oil companies from Russia (Rosneft), China (CNPC), Kazakhstan (Kazmunaygas), Azerbaijan (SOCAR) and Italy (Eni) have teamed up to form a consortium for the exploration and exploitation of what is expected to be a new “giant” located in the very heart of the northern Caspian tectonic structure. The project, if successful and market demand to remain unchanged, should prolong the position of Kazakhstan as a global-scale oil supplier from 2040 till 2080. The Kazakhs are committed to contribute in the order of a billion greenbacks each year from now to the project. No overall picture of the total price tag has been presented so far. read more

Shell’s textbook lesson on how to lose $1bn on a Mayo gas gusher

Don’t make the mistakes that Shell made in the early days in term of how it approached the concerns of the local community.

Richard Curran: 

The State could be a big loser from Shell’s heavy financial hit on the Corrib gas field. If tax losses racked up by Shell are carried over to the new owners, it will reduce the corporation tax receipts on what will be a profitable venture for some shareholders in the years ahead.

So how did Shell manage to lose nearly $1bn (€870m) on the enormous commercial gas find off the west coast? One easy but rather simplistic explanation is that the protests not only delayed the project but ended up costing Shell a fortune. But $1bn? Hardly. read more

Shell to Sea protesters ought to pipe down

The Shell to Sea campaign, led and supported by the miffeds, and backed by variegated bands of republicans, faced down the gardai in protest after protest.

Four binary questions divide most western societies. Which is the more important: mercy or justice? Idealism or pragmatism? Truth or freedom? Diversity or unity?

If you answered “mercy, idealism, freedom and diversity” you probably supported the Shell to Sea campaign and are delighted that Royal Dutch Shell, having got its fingers burnt in Co Mayo, is now leaving. You also think that anti-wind farm protesters are reactionary luddites who don’t care about global warming. Also, you are probably female or a “feminist” male, work in the public sector and are a soft republican. We’ll call you M-I-F-D: “miffed”. read more

Northern Panhandle Activity Picking Up in Wake of Shell’s Cracker Plans

Royal Dutch Shell is building a $6 million cracker in Monaca, Pennsylvania, and nearby businesses are already seeing positive effects

As signs go, Eagle Manufacturing‘s Joe Eddy sees plenty that tell him the Upper Ohio Valley’s economic fortunes are changing.

With one ethane cracker under construction in nearby Monaca, Pennsylvania, and another on the table in nearby Dilles Bottom, Ohio, Eddy says it’s no longer a question of “if” West Virginia’s Northern Panhandle will benefit, but when.

“This opportunity is generational; it’s the best opportunity we’ve had to see growth in the valley for 50 years,” Eddy said. “This type of growth has really never been afforded in the local area. It’s still a big story; it’s the best thing West Virginia has going for it.” read more

Oil companies facing legal action after breakdowns, flaring and pollution

Rob Edwards: 16th July 2017

THE multinational oil companies that run the Mossmorran petrochemical complex in Fife are facing a legal crackdown for breaching pollution limits and endangering health after nine days of “unplanned” gas flares.

ExxonMobil and Shell are also being beset by demands for an independent inquiry into their ageing plants, which suffered a series of breakdowns last month. The worst incident resulted in a large pall of thick black smoke over Fife on June 18.

Both companies have been accused of “showing contempt for the community” by failing to turn up for a packed public meeting in Lochgelly Town Hall on July 5. Angry residents also attacked public agencies for failing to do enough to protect them from pollution, noise and vibrations. read more

Scottish SPCA sells investments in oil company Shell

Scotland’s largest animal welfare charity has announced that it has sold its investments in an oil company that tests products on animals.

The Scottish SPCA move came after it faced public criticism for holding a £600,000 stake in Royal Dutch Shell.

Shell has admitted experiments on animals including rabbits, rodents, birds and fish.

The Scottish SPCA said it had sold the shares following “a full review” of its investment portfolio.

The charity had argued that most of its shares in Shell had been donated by supporters – but did admit to buying some shares back in 2005.

Figures published on Shell’s website show the firm was involved with laboratory experiments on more than 100,000 animals in 2015.

Critics had accused the charity of dragging its feet on the issue, which was brought to its attention by journalists in November last year. read more

Appeals court says third-party companies are liable for compensation in offshore Shell drilling unit collision

Appeals court says third-party companies are liable for compensation in offshore Shell drilling unit collision

by Todd Barnett | Jul. 15, 2017, 8:00am

NEW ORLEANS — A federal appeals court recently ruled that two third-party companies involved in conducting an archaeological sonar survey near an offshore drilling unit in the Gulf of Mexico are not responsible for compensating the two companies found liable for the accident.

On June 21, the U.S. Court of Appeals for the Fifth Circuit affirmed a district court’s ruling that Integrity Fishers Inc. and Sea Eagle Fisheries Inc. are not responsible for compensating Tesla Offshore LLC and International Marine LLC, the parties found at fault in a collision that damaged a submerged mooring line attached to Shell Offshore’s Nautilus offshore drilling unit. read more

How Europe’s Monster Gas Field Turned Into a Monster Headache

By Kelly Gilblom and Fred Pals: 13 July 2017

Judge to consider demands to close Europe’s largest gas field

Groningen has contributed almost 300 billion euros to budget

What was once a blessing is now an expensive curse

Officials are also considering criminal charges against NAM executives

Ebe Treffers’s dog was antsy for hours before the boom sounded and the house began to shake, scattering dishes across the kitchen floor.

Like other residents of the Groningen region near The Netherlands’ North Sea coast, the retired art teacher was used to the subtle tremors caused by decades of extraction at Europe’s largest gas field. But nobody was prepared for the magnitude 3.6 earthquake that struck after dark on Aug. 16, 2012, assured by both state and project officials that there was nothing to fear. read more

Trump administration approves Eni plan to drill offshore Alaska

Royal Dutch Shell Plc quit its exploration quest offshore Alaska in 2015 after a ship it had leased suffered a gash in mostly uncharted waters…

WASHINGTON (Reuters) – Eni US will become the first energy company allowed to explore for oil in federal waters off Alaska since 2015 after the Trump administration this week approved a drilling plan on leases the company has been sitting on for 10 years.

The Bureau of Ocean Energy Management approved the drilling plan of Eni US, a unit of Italy’s Eni on Wednesday as part of President Donald Trump’s plan to boost oil and gas drilling and make the country “energy dominant.” read more

Corrib gas timeline: 20 years of protests and controversy

12 July 2017

Energy company Shell has sold its 45 per cent stake in the Corrib gas field to a unit of Canada Pension Plan Investment Board (CPPIB) in a deal worth $947 million (€830 million).

Below is a timeline of the controversial gas field’s past.

1996 – Corrib gas field discovery declared by Enterprise Energy Ireland Ltd, which submitted plans to pump it ashore and build an onshore refinery in north Mayo.

2001 – Government petroleum lease granted for Corrib field

April 2002 – Corrib acquired by Shell, which became lead developer with Norwegian company Statoil and Marathon. read more

Critics argue for Groningen shutdown at Dutch court hearing

Jul. 13, 2017 2:59 PM ET|By: , SA News Editor

Angry Dutch residents living near the huge Groningen gas field told a hearing today at the Netherlands’ highest court that production should be totally stopped, accusing oil companies of causing minor earthquakes and the government of lying.

The Council of State is holding two days of hearings to consider appeals against a government plan to cut production at the field by an additional 10% starting Oct. 1.

Gas production company NAM, a joint venture between Royal Dutch Shell (RDS.A, RDS.B) and Exxon Mobil (NYSE:XOM), has accepted responsibility for damage caused by the quakes, for which it is paying more than €1B. read more

Dutch court hearing pits Big Oil against Groningen locals

Bart H. Meijer: JULY 13, 2017 / 12:59 PM

THE HAGUE, July 13 (Reuters) – Angry Dutch residents living near the huge Groningen gas field demanded a total halt to production, accusing oil giants of causing house-damaging earth tremors and the government of lying at a hearing in the Netherlands’ highest court on Thursday.

Two days of proceedings at the Council of State is considering appeals against a government plan to curb production at the massive field by an additional 10 percent from Oct. 1. read more

Shell unloads its stake in Corrib

Development of the Corrib field sparked a series of confrontations between the Irish police and environmental demonstrators before the first gas was brought ashore two years ago: NIALL CARSON/PRESS ASSOCIATION

Royal Dutch Shell has sold its stake in the contentious Corrib gas project off the Republic of Ireland to a Canadian pension fund for up to $1.23 billion.

The Anglo-Dutch energy group agreed to sell its 45 per cent stake in Corrib, about 50 miles off Ireland’s northwest coast, to a subsidiary of the Canada Pension Plan Investment Board.

The latest deal in a $30 billion divestment programme comprises a $947 million payment up front and up to a further $285 million between 2018 and 2025, depending on gas prices and production. read more

Shell’s Corrib exit leaves energy giants up to €2.5bn in the red

13 July 2017

Energy groups behind the controversial Corrib gas field off the Mayo coast are as much €2.5 billion in the red on their investment, as Shell’s move to sell a stake to a Canadian state pension fund has left it with loss of up to €1 billion.

Shell, currently in the middle of selling up to $30 billion (€26.3 billion) of assets to cut its debt pile, has agreed to sell its 45 per cent stake to a unit of the Canadian Pension Plan Investment Board (CPPIB).

The deal could be worth as little as €830 million to Shell but its return may rise by up to €250 million over the next eight years subject to future gas prices and the field reaching certain production targets. This would also boost the value of the other investors’ stakes in the project. read more

Shell secures more land for ethane pipeline

Mary Beth Eastman

Shell Pipeline Co. has acquired an additional six easements necessary for the company to build the 97-mile Falcon Ethane pipeline.

Since December, the company has acquired about 60 easements from Beaver County landowners, mostly in the southwestern in places including Raccoon, Greene and Independence townships.

The pipeline, which won’t be built until 2019, will transport more than 100,000 barrels of ethane and other natural gas liquids daily to Shell’s $6 billion cracker plant being built along the Ohio River in Potter Township. read more

Losses on Corrib near €2bn as Shell sells up

Losses on Corrib near €2bn as Shell sells up

It had been beset by more than a decade of delays and rows with protesters before production began.

Gavin McLoughlin: 

The Corrib gas field has left Shell and its partners in the project with losses running to the best part of €2bn to date.

Shell announced yesterday it was exiting the project in a deal worth potentially as much as €1.08bn, selling its 45pc stake in the project to a Canadian pension fund, Canada Pension Plan Investment Board (CPPIB).

The deal – which is expected to complete next year – will see Shell take an impairment charge of around $350m (€307m) and write off $400m (€350m) in historical currency movements that have impacted on its valuation of the asset. read more

Shell pays compensation to victims of Pakistani oil fire

ISLAMABAD — A subsidiary of Royal Dutch Shell said Wednesday that it made full payment in damages and compensation to the victims of an oil tanker fire in Pakistan that killed 215 people last month, hours after Pakistan’s oil and gas regulator threatened legal action.

The tragedy took place after a fuel tanker crashed and started leaking on the side of a highway and hundreds of people from a nearby village rushed to the scene to collect the spilled fuel. They were engulfed in flames when the spill ignited. read more

Canadian pension fund bullish as Shell pulls plug on Corrib stake

Shell’s disillusionment with the Corrib investment, where protests and opposition delayed production by more than a decade…

13 July 2017

No doubt, Shell is glad to see the back of the Corrib natural gas field, even if it is on track to lose about €1 billion on 15 years of heavy investment in the controversial project.

The sale of its 45 per cent interest in the gas field off the Mayo coast to the Canada Pension Plan Investment Board (CPPIB) for €830 million is part of a $30 billion (€26.3 billion) asset sale programme by the Anglo-Dutch group as it seeks to cut its $90 billion debt pile following its takeover of smaller UK rival BG Group early last year. read more

Little surprise in north Mayo over Shell sale of Corrib share

Barrington’s report highlighted Shell’s policy of employing former public officials, former gardaí and former journalists – “giving rise to the appearance that Shell is seeking to influence those who regulate them”.

Lorna Siggins: 12 July 2017

Royal Dutch Shell’s proposed sale of its major share in the Corrib gas field came as little surprise to residents in Erris, Co Mayo whose views are still divided on the multibillion euro project.

After years of acrimony and protest the first delivery of gas from the field was taken in December 2015 and the project was formally opened the following month. This was some 20 years after the gas discovery was reported off the north Mayo coast.

Rossport farmer Wilie Corduff, who was one of five men jailed indefinitely over opposition to the project’s high pressure pipeline route, said the decision by Shell came “16 years too late, as the damage to the community is done”. read more

Under the Hood of Shell’s $100 Million Loyalty Program

Shell Oil CMO Dan Little. Credit: Shell Oil.

By . Published on .

Did you know that Shell Oil is the only major fuel brand that still operates in all 50 states? The company boasts 14,000 sites across the country, in fact. But the proprietary gas stations of big box retailers and grocery stores have become formidable competitors in the last 20 years, and now account for about half of the market, increasing the pressure on Shell to drive loyalty.

“Forty-two percent of all U.S. drivers frequent or come to Shell,” says Dan Little, the company’s chief marketing officer. “But when it gets to loyalty, which is a measurement of frequency, we’re pretty much middle of the pack versus the other majors.” Little and his team hope to change this statistic with an innovative, many-pronged approach to building consumer loyalty. read more

Royal Dutch Shell: Talking The Talk, But Walking The Walk?

: July 12, 2017

Summary

  • CEO Ben van Beurden reinforces Shell’s readiness to play its part in achieving Paris agreement targets, but execution on this goal unclear.
  • Shell to acquire Texas company MP2 Energy, which has renewable energy and demand response focus.
  • Shell endorses Task Force on Climate-related Financial Disclosures report.

There is massive change happening in the transition from fossil fuels to renewable energy in the power and transport industries. While the major oil and gas companies have acknowledged the change, apart from Total (NYSE:TOT) there is little indication that other oil companies Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX) or BP (NYSE:BP) have concrete plans to change quickly. Here I consider whether Royal Dutch Shell (NYSE:RDS.A)(NYSE:RDS.B) is getting serious about the change.

All of the oil and gas majors are under pressure, but Shell is particularly challenged as its debt has blown out due the acquisition of BG Group for $50 billion. A key part of the next steps involves debt reduction through divestment. The BG investment could prove problematic as the world is awash with new LNG projects coming on stream. For the last 3 quarters it could pay its high dividend (6.9%) from free cash flow, but this was in an environment where the Brent price was $54/barrel. This can’t continue if the oil price stays where it is now. So it is a pretty challenging time for Shell. read more

Oil majors face downgrades if crude prices don’t pick up: S&P

JULY 12, 2017

LONDON (Reuters) – Big oil firms would face increased credit rating downgrade pressures if crude prices stayed below $50 a barrel on average until the end of 2018 and they did not compensate by cutting costs, S&P Global said on Wednesday.

S&P currently has downgrade warnings – or negative outlooks in rating agency parlance – on ExxonMobil XOM.n, Chevron Corp (CVX.N) and Total (TOTF.PA), while the other so-called ‘majors’ include Royal Dutch Shell (RDSa.L) and BP (BP.L). read more

The Latest: Shell offers to pay victims of Pakistan oil fire

ISLAMABAD — The Latest on efforts to compensate the victims of an oil tanker fire in Pakistan last month that killed 215 people (all times local):

4:30 p.m.

A subsidiary of Royal Dutch Shell says it will pay compensation to the victims of an oil tanker fire in Pakistan last month that killed 215 people, without specifying the exact amount.

After the fuel tanker crashed and started leaking on the side of a highway, hundreds of people from a nearby village rushed to the scene to collect the fuel. They were engulfed in flames when the spill ignited. read more

Shell offers to compensate victims of Pakistan oil fire

A subsidiary of Royal Dutch Shell said Wednesday it will pay compensation to the victims of an oil tanker fire in Pakistan last month that killed 215 people, after Pakistan’s oil and gas regulator threatened legal action.

After the fuel tanker crashed and started leaking on the side of a highway, hundreds of people from a nearby village rushed to the scene to collect the fuel. They were engulfed in flames when the spill ignited.

Pakistan wants Shell to pay $2.4 million, or $9,500 to the heirs of each person killed. read more

Shell Sells Irish Gas Field Stake for $1.2 Billion to Canada Pension Fund

LONDON—Royal Dutch Shell PLC has sold its stake in a controversial Irish gas field for up to $1.23 billion to one of Canada’s biggest pension funds, but the deal will result in a $350 million impairment charge, the company said Wednesday.

Shell the development of the Corrib gas field, located in the Atlantic Ocean about 52 miles off the coast of rural County Mayo.The field began pumping in 2015 after years of delays. WSJ ARTICLE

Shell to exit upstream business in Ireland with $1.23 billion stake sale

(Reuters) – Royal Dutch Shell is to sell its 45 percent stake in the Corrib gas venture to a subsidiary of Canada Pension Plan Investment Board for up to $1.23 billion, marking the oil company’s exit from the upstream business in Ireland.

The deal includes an initial consideration of $947 million and additional payments of up to $285 million between 2018-2025, subject to gas price and production, Shell said in a statement on Wednesday.

The transaction will result in an impairment charge of around $350m, which will be taken in Q2, 2017, Shell said. read more

Prelude

Shell sells Corrib stake to Canadian pension fund for €1.08bn

By Joe Brennan

Royal Dutch Shell has sold its 45 per cent interest in the Corrib gas field to a unit of Canada Pension Plan Investment Board (CPPIB) in a deal worth up to $1.23 billion (€1.08 billion), as the group continues to sell off non-core assets.

The deal includes an initial consideration of $947 million and additional payments of up to $285 million over the next eight years, subject to gas price and production. It is subject to partner and regulatory consents and is expected to be completed in the second quarter of 2018. read more

Pakistan threatens action against Shell over tanker fire

By THE ASSOCIATED PRESS: ISLAMABAD — Jul 12, 2017, 3:22 AM ET

Pakistan says it is considering legal action against a subsidiary of Royal Dutch Shell after the company refused to pay $2.4 million in compensation to the victims of a tanker fire last month that killed 215 people.

Imran Ghazanvi, a spokesman for Pakistan’s oil and gas regulator, said Wednesday that a probe found the company responsible for the disaster. After the fuel tanker crashed and started leaking, hundreds of people from a nearby village who had rushed to collect the fuel were engulfed in flames when it ignited. read more

Oil Majors Face Ratings Cuts Amid Weak Recovery, S&P Global Says

Exxon Mobil Corp., Chevron Corp. and other oil majors could see their credit ratings slashed again if they fail to cut costs and reduce their growing debt loads in the next year, according to an S&P Global Ratings report.

The world’s largest drillers failed to take advantage of high prices during the boom years before 2014 to repay debt, according to the report published on Tuesday. Instead they embarked on costly investments in new projects and dividends, leaving them unprepared for the painful downturn that ensued. read more

Shell and other supermajors say ‘no plans’ for return of Super Pumas

Oil supermajors including Shell have no plans to return controversial Super Puma helicopters to service in the North Sea.

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The Anglo Dutch giant has confirmed that the aircraft, which were subject to a lengthy grounding following a fatal crash off Norway last year, does not feature in the future of the firm’s UK operations despite aviation watchdogs making moves to lift the flight ban.

It comes just a day after fellow supermajor BP revealed it will not consider a return the aircraft to service until a root cause of the Norway crash, which killed 13 people last April, has been identified. read more

Aramco IPO: How It Will Stack Up Against Exxon & Shell

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As Saudi Aramco’s much hyped IPO approaches, the company’s most recent annual review, released last week, provides insight into its strategic direction. Aramco has positioned itself to be accepted by investors as a major international oil company (IOC) and as a globally diversified energy enterprise with integrated downstream and sales operations around the world. Currently, Aramco is a national oil company (NOC), owned by the government. But upon its expected public offering of shares, it will join the ranks of other major IOCs. read more

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