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Posts on ‘July 5th, 2017’

Eventual Groningen shutdown can’t be ruled out, hitting Exxon, analyst says

Jul. 5, 2017 11:40 AM ET|About: Exxon Mobil Corporation (XOM)|By: , SA News Editor

Exxon Mobil’s (XOM -1.4%) organic growth could be hurt by problems at the Groningen gas field it shares with Royal Dutch Shell, as production caps caused by rising earthquakes in the region eventually could even lead to a total shutdown, says Raymond James analyst Pavel Molchanov.

“An eventual field shutdown, which cannot be ruled out, would erase nearly all of Exxon’s organic growth through 2020,” Molchanov writes, seeing little chance that the top Dutch administrative court will grant the oil companies’ appeal against the most recent strict cuts. read more

Nigeria Parliament Inquiry Calls Ex-President Jonathan Over Oil Block Sale Scandal

July 5, 2017

ABUJA (Reuters) – Nigeria’s lower house of parliament called on Wednesday for ex- president Goodluck Jonathan to testify in an inquiry into the contested sale of an oil block during his tenure, the investigating committee said.

Investigations into the $1.3 billion sale in 2011 of oil prospecting license (OPL) 245, which could harbor more than 9 billion barrels of oil, have involved Nigerian, Italian and Dutch authorities, two of the world’s largest international oil companies as well as a convicted money launderer. read more

ExxonMobil/Shell: Haven’t Heard of Groningen? You Might Want to Read This

One team of analyst contends Exxon’s organic growth could be hurt by problems at its Groningen gas field.

By Ben Levisohn: 

ExxonMobil (XOM) has enough problems with the price of oil dropping, but it may have on in a large Dutch gas field known as Groningen.

Exxon runs the field with Royal Dutch Shell (RDS.A), which is being blamed for an increase in the number of earthquakes in the region. That’s led to caps being imposed on production, and could eventually lead to a shutdown altogether say Raymond James analyst Pavel Molchanov and Muhammed Ghulam. They look ahead to the Groningen endgame: read more

Hiring dispute brings second lawsuit against Shell

A decision by Shell Oil Co. to reject the hiring recommendation of its former head of U.S. security has led to another discrimination lawsuit against the company, a subsidiary of the international oil major Royal Dutch Shell.

Earlier this year Crockett Oaks III sued Shell for allegedly firing him after he objected to hiring preferences based on age and gender. Oaks and a selecition committee chose a 53-year-old man with a military background for a security advisor opening, but Shell executives allegedly blocked his hiring and directed Oaks to find a young, female candidate instead, according to court documents.

RELATED: Shell sues former head of security 

The case was settled —no details are available in the federal court records —but the man Oaks sought to hire sued Shell in June for age discrimination and retaliation after the energy giant revoked his job offer. read more

Shell director says downstream business fundamental to paying off debt, maintaining dividends

Oil and gas giant Royal Dutch Shell has delivered far more cash from its downstream business than its upstream recently, Downstream Director John Abbott told CNBC on Wednesday, with the firm positioned to use the extra funds to pay off debt and maintain its dividends.

“I have seen times in my 36 years in Shell where upstream has delivered far more cash than the downstream (but) we are seeing a reverse at the moment,” Abbott said. read more

Qatar signals LNG price war for market share in Asia

U.S. and European oil majors such as Royal Dutch Shell and Chevron have invested huge sums over the last decade – often more than they have spent on oil – in an attempt to dominate the LNG market, especially through mega-projects in Australia such as Chevron’s Gorgon or Shell’s Prelude.

By Henning Gloystein and Mark Tay | SINGAPORE

Qatar’s plan to boost liquefied natural gas (LNG) output by 30 percent is the opening shot in a price war for customers in Asia pitting the Gulf state against competitors from the United States, Russia and Australia.

Qatar, facing regional isolation in a diplomatic dispute with its Gulf neighbors, took energy markets by surprise on Tuesday when it said it would raise its LNG production to 100 million tonnes per year – equivalent to a third of current global supplies – within the next five to seven years. read more

Oil majors lost $115 billion in market value since April

ExxonMobil, Chevron, Total, Royal Dutch Shell, and British Petroleum are the five biggest players on the index, which includes 85 other majors. Together, they have lost $115 billion in market value since the beginning of April, Bloomberg reports, according to World Oil.

By Zainab Calcuttawala – Jul 04, 2017, 5:00 PM CDT

Operational improvements in shale and non-shale oil drilling, on top of lower expenses for oilfield services and access to pipeline capacity, have driven down the costs of producing the fossil fuel since the 2014 market crash. But the increase in output has forced barrel prices into a deeper bearish market, causing further damage to corporate bottom lines.

This trend is mapped clearly in the MSCI’s World Energy Index, which measures the progress of large and medium sized companies in 23 oil-producing countries on a quarterly basis. ExxonMobil, Chevron, Total, Royal Dutch Shell, and British Petroleum are the five biggest players on the index, which includes 85 other majors. Together, they have lost $115 billion in market value since the beginning of April, Bloomberg reports, according to World Oil. read more

Shell withdraws Malaysia cardboard cutouts after ‘distasteful’ groping

5 July 2017

Shell is removing life-sized cardboard cutouts of a female employee from all of its Malaysian petrol stations after “distasteful” images appeared online.

Pictures of men kissing the figure, holding her hand and touching her chest and crotch have gone viral on Facebook and other social media.

Malaysia is a Muslim-majority country which has seen religious conservatism on the rise in recent years.

Shell said the acts went against local culture and its own values.

The energy giant, which has more than 950 outlets in Malaysia, said it would not condone the “distasteful and suggestive acts”, which it said were “disrespectful”. read more

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