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Posts on ‘September 6th, 2017’

Shell Expects Australia Gas Shortage to Trigger Export Restriction

The world’s second-biggest liquefied natural gas exporting nation will probably curb shipments next year to avoid a domestic shortfall of the fuel, according to the Australian head of Royal Dutch Shell Plc.

The Australian Energy Market Operator will probably declare a shortage for eastern states in the next two to four weeks, Shell Australia Chairwoman Zoe Yujnovich said at a Bloomberg event Wednesday in Sydney. That would trigger the country’s domestic gas security mechanism, a policy announced in June that could limit LNG exports from plants that draw more gas from local markets than they supply. read more

BP, Shell tie future to North Sea despite broad retreat

* BP, Shell plan around 10 exploration wells

* Both companies have sold many North Sea assets

* Shell aims to keep production stable into 2030

* BP to double North Sea production by 2020

By Ron Bousso 

ABERDEEN, Scotland, Sept 6 (Reuters) – Two of the most veteran oil and gas producers in the UK North Sea, Royal Dutch Shell and BP, still tie their future to the ageing offshore basin despite a broad retreat in recent years.

Both companies plan to explore this year for new resources in the North Sea, one of the oldest deepwater hubs faced with harsh weather conditions, executives told Reuters.

The two oil giants have sold billions worth of North Sea fields, many of them nearing the end of their life, in recent years. But still they see golden opportunities there as new technologies open up resources that can be profitable with oil trading at around $50 a barrel and in some cases lower. read more

Shell to invest $1bn in Mexican petrol stations

Shell is to invest $1bn over 10 years to build a large network of petrol stations in Mexico. The Anglo-Dutch energy group said it will take advantage of the newly opened fuel market in the central American country, the Financieele Dagblad said on Wednesday, citing Bloomberg wire service and Mexcan newspaper El Financiero.

Bloomberg and the Mexican paper were quoting Alberto de la Fuente, Mexican country director for Shell who was speaking at the opening of the first Shell station in the country. read more

Shell opens first Mexico gas station, eyes up to $1 bln investment

MEXICO CITY, Sept 5 (Reuters) – Anglo-Dutch oil major Royal Dutch Shell opened its first gas station in Mexico on Tuesday, adding to a growing list of foreign-branded pumps in a market still dominated by the green-colored outlets of state-owned company Pemex.

Following a 2013 constitutional energy overhaul that ended Pemex’ decades-long monopoly, private companies can now brand gas stations and sell non-Pemex brand gasoline and diesel, as well as import fuels.

The opportunities are huge for the private sector in the fuel market of Latin America’s second-biggest economy, with Mexico now one of the world’s biggest gasoline consumers and the top foreign importer of U.S. gasoline. read more

Shell Invests to Boost Global Gas Demand

Europe’s biggest energy company is investing in projects to boost global gas demand and aims to continue feeding the market it’s nurturing with new liquefied natural gas export plants.

Royal Dutch Shell Plc is supporting the development of gas use in heavy transport such as shipping and is also helping smaller and less credit worthy customers begin importing LNG, Maarten Wetselaar, the company’s director of integrated gas and new energies, said at an event at Bloomberg’s Sydney office Wednesday. As new LNG customers enter the market, that will open a window for Shell and others to develop new low-cost export plants. read more

Shell Is Nothing Short Of Exemplary

Earnings Forecast Focus: Sep. 5, 2017 6:49 PM ET

Summary

  • Shell CEO Ben van Beurden’s “lower forever” quote was aimed at operating costs and overall company culture. It does not reflect the CEO’s oil price outlook.
  • The company’s operational excellence has been nothing short of exemplary.
  • Scrip dividend will be removed when gearing is down to 20% from the current 25%.
  • At the current rate, it should take no more than twelve months to reduce the gearing to 20%.
  • Obviously, the dividend is safe. More importantly, this is an opportunity to buy a company with excellent leadership.

Royal Dutch Shell’s (RDS.A) (RDS.B) transformation under CEO Ben van Beurden has been truly remarkable. The relatively new CEO has put his mark on the company. He has shown that Shell, under his leadership, has the ability to navigate the downturn with relative ease. Not only that, he has shown the ability to transform a company when most other companies are busy trying to survive. While I won’t be spending much time on the dividend safety, as that has been made clear over and over again, it is safe to say that the 6.6% yield is beyond safe. Investors now have the opportunity to purchase a 6.6% yield with additional capital appreciation should oil rebound. read more

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