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Shell looks beyond road fuels to secure future of refining

REUTERS STAFF: NOVEMBER 6, 2017 / 7:00 AM

* Asphalt, plastics, chemicals to sustain demand, Shell says

* Shell to double chemicals business by mid-2020s

* Downstream highly independent from oil prices – Shell’s Abbott 

By Ron Bousso and Dmitry Zhdannikov

LONDON, Nov 6 (Reuters) – While the world braces for the electric-vehicle revolution, Royal Dutch Shell is betting on growing appetite for asphalt and plastics to sustain its century-old oil refining business for the coming decades. read more

The World’s Hidden Gas Giant

The world’s biggest new gas giant has been hiding in plain sight.

Despite some of the world’s largest reserves of natural gas, PetroChina Co. is still predominantly viewed through the lens of crude oil. That’s overdue a change.

Oil production in the nine months through September fell 5.2 percent while natural gas climbed 4.5 percent, the Beijing-based company said Monday. Based on those numbers, third-quarter oil production of 224.3 million barrels represented less than 60 percent of the total when set against natural gas output of about 152.1 million barrels of oil equivalent. read more

Planning for a green future

Zhang Xinsheng, executive chairman of Shell Companies in China. [Photo provided to China Daily]

Editor’s Note:

The Communist Party of China has just concluded its 19th National Congress in Beijing. In the runup to the meeting, China Daily asked business leaders from major multinational companies for their views on economic developments here and the country’s global leadership role.

China Daily: 27 October 2017

Zhang Xinsheng is executive chairman of Shell Companies in China, a subsidiary of Royal Dutch Shell Plc, the global energy group.

How can China achieve stable and sustainable economic growth? read more

US shale to help power Shell’s multi-billion dollar chemicals drive

Jillian Ambrose: 

Royal Dutch Shell will begin construction of a new $10bn petrochemicals site in the gas-rich Marcellus shale basin in the US within the next ten weeks as part of a radical growth plan for its petrochemicals business.

The oil major told investors that global demand for petrochemicals – which are used to manufacture the raw materials used to make plastics, paints and textiles – is set to grow by around 50pc by the end of the decade, making it a key area for the company’s growth. read more

Slowing Demand Growth to Push Big Oil From Cars to Chemicals

Global oil demand growth will slow to a crawl and gasoline use will peak within the next decade, prompting the world’s biggest energy companies to accelerate the shift to natural gas and chemicals, according to consultant Wood Mackenzie Ltd.

Major crude producers will have to adapt to significant changes in the coming years, but their businesses can grow. Oil consumption will keep expanding until at least 2035 as the petrochemical industry, which provides the building blocks to manufacture everything from plastics to pesticides, makes up for the contraction in some transport fuels, Wood Mackenzie said in a report on Monday. read more

Gazprom and Shell confirm their interest in implementation of Baltic LNG project

2017 October 5 15:37

Gazprom and Shell have confirmed their interest in implementation of the Baltic LNG project, IAA PortNews correspondent cites Aleksandr Medvedev, Deputy Chairman of the Board, Gazprom, and Maarten Wetselaar, Integrated Gas and New Energies Director, Shell, as saying at the 7th St. Petersburg International Gas Forum (SPIGF-2017).

“Baltic LNG project will develop and we are participating in it financially”, said Maarten Wetselaar.

According to Shell, global LNG demand is 265 mln t per year and its growth prospects are good, particularly due to the markets of China, India and other Asian countries. read more

Shell takes venture fund into ‘explosive’ Chinese market

AMSTERDAM (Reuters) – Royal Dutch Shell is opening the first Chinese office of its venture capital fund and recruiting three local investment staff there to tap a market where it sees “explosive” growth, the head of the business told Reuters on Thursday.

Shell Technology Ventures (STV), internally known as “Stevie”, is the oil major’s vehicle through which it seeks to stay on top of technological changes in the energy market that could threaten its business, and provide new areas for growth. read more

Economic storm on the horizon

The rise of battery-powered cars threatens disaster for Houston’s oil and gas economy.

Halfway around the globe, a storm is brewing that will pose a greater threat to our oil and gas industry than Hurricanes Harvey or Ike, or even a massive storm surge right up Houston Ship Channel.

The danger: China wants to stop buying gasoline. Specifically, at an automotive conference in Tianjin, the nation’s vice minister of industry and information technology stated that the government is planning on a total phaseout of vehicles powered by fossil fuels. This announcement follows similar plans from Britain and France to ban sales of diesel and gasoline cars by 2040. That’s decades away, but the world is undeniably moving towards a future where the internal combustion engine is a thing of the past. read more

Shell to Expand Presence in Asia and Alternative Fuel Market

September 20, 2017, 01:35:00 PM EDT By Zacks Equity Research,

Per Reuters, integrated oil and gas company, Royal Dutch Shell plc RDS.Aintends to increase its marketing operations in Asia region. The company’s effort to de-carbonize the energy system was reconfirmed as it targets to attain 20% of its global fuel station sales from electric vehicles recharging and fuels with a lower level of carbon by 2025.

Expanding Asia Operations

The oil major has 43,000 fuel stations in 80 countries and is now trying to reach the fuel markets of China and India, the two most populous countries in the world with high demand for energy. Shell is also eyeing the Indonesian fuel market. The company believes there will be continued growth in the Asian market over the next decade. read more

Will Shell’s Gas Gamble Pay Off?

By Cyril Widdershoven – Sep 16, 2017, 6:00 PM CDT

Supermajor Royal Dutch Shell has decided to divest its Iraqi oil assets in a move to focus on its future in natural gas.

The industry giant is seemingly breaking from its oil heritage to head full speed into the “Golden Age of Gas.” Shell’s decision to leave Iraq’s upstream oil assets is not without risk, however, as the market for natural gas is even more oversupplied than it is for crude oil.

Reuters reported the move first, based on a letter from the Iraqi ministry of oil, followed by a confirmation from Shell. The Dutch heavyweight indicated to the press that its oil asset divestment in Iraq is in line with its strategy to focus more on natural gas and downstream activities. read more

Shell Targets Alternative Fuel Stations

By Tsvetana Paraskova – Sep 12, 2017, 12:30 PM CDT

Shell—one of the oil majors that is increasingly betting on natural gas and low-carbon fuels—is targeting 20 percent of its global fuel station sales to come from electric vehicles recharging and low-carbon fuels by 2025, John Abbott, Downstream Director at Shell, told Reuters in an interview published on Tuesday.

While Shell plans to expand fuel stations in China, India, and Mexico—where it sees growth in this market over the next decade—it would continue to focus on meeting demand for cars running on fuels alternative to gasoline and diesel, Abbott said. read more

Shell eyes Asia, aims to expand vehicle recharging at fuel stations

SEPTEMBER 12, 2017

* Shell is world’s biggest fuel station operator

* Pilot projects to recharge cars in Europe, California

* Company sees fossil fuel growth in China, India, Mexico

* Focus on downstream earnings as crude price falls 

By Ron Bousso and Dmitry Zhdannikov

LONDON, Sept 12 (Reuters) – Royal Dutch Shell aims to expand marketing operations in Asia and wants 20 percent of sales from its fuel stations worldwide to come from recharging electric vehicles and low carbon fuels by 2025, as the world shifts away from crude.

The Anglo-Dutch firm, with 43,000 fuel stations in 80 countries, aims to expand in China and India, as well as Mexico, where it sees fossil fuel growth in the next decade, John Abbott, the head of refining, trading and marketing, told Reuters. read more

Shell’s defence of big oil is too hopeful

September 11, 2017, 11:40:00 AM EDT By Reuters

By Andy Critchlow

LONDON, Sept 11 (Reuters Breakingviews) – Royal Dutch Shell, looking deeply into its crystal ball, sees a future that’s still heavily dependent on oil. The Anglo-Dutch giant expects crude will continue to play a major role in global energy supply for decades, even in its less oil-friendly scenario. That optimism goes someway to justifying the billions of dollars it continues to invest in exploiting new reserves and expanding its fuel network. But it’s also a view that may place too much faith in the combustion engine – and China staying with its current strategy. read more

Shell Retail Looks to the Future With Car Charging, Clean Fuels

A Mirai hydrogen fuel powered automobile, manufactured by Toyota Motor Corp., sits on the forecourt at Royal Dutch Shell Plc’s first U.K. hydrogen refueling station in Cobham, U.K., on Wednesday, Feb. 22, 2017. Shell, crafting a strategy to wean itself off oil, is expanding its operations in the refueling market for hydrogen cars. Photographer: Chris Ratcliffe/Bloomberg Rakteem Katakey, Javier Blas: BloombergSeptember 11, 2017

Royal Dutch Shell Plc wants 20 percent of income from its retail forecourts to come from vehicles that don’t burn diesel or gasoline, as the company anticipates an accelerating transition to clean energy over the coming decade. 

Shell set up its first hydrogen refueling station in the U.K. earlier this year and will install its first electric car charging point later this month, said John Abbott, the top executive of its downstream business, which includes refining, marketing, retail, trading and chemicals. By 2025, he expects these new operations supplying cleaner fuels, including natural gas, to make up a fifth of retail earnings. read more

UPDATE 1-Kazakhstan may strike separate deal with OPEC on oil output curbs

Kashagan has been developed by a consortium of China National Petroleum Corp, Exxon Mobil, Eni , Royal Dutch Shell, Total, Inpex and KazMunaiGas.

By Mariya Gordeyeva: SEPTEMBER 7, 2017 / 2:28 PM

ASTANA, Sept 7 (Reuters) – Kazakhstan is aiming for a standalone deal with leading global oil producers on restraining its crude production due to a need to crank up output at its Kashagan field, a Kazakh official said on Thursday. 

The Central Asian nation increased oil and gas condensate output by 9.9 percent in January-July to 49.907 million tonnes, or 1.724 million barrels per day (bpd), exceeding its quota of 1.7 million bpd under a global supply pact. read more

Shell finds $1bn buyer for Argentine gas stations, report says

Shell has found a buyer for a chain of Argentine gas stations worth more than $1billion, a news report said.

Shell put the 630 Argentine gas stations up for sale as part of a £23.5billion divestment plan intended to balance the books in the wake of its takeover of BG Group.

Brazil’s Raizen Energia, a subsidiary of Shell, has outbid rivals including Argentina’s YPF, Chile’s Quinenco and China’s CNPC, Reuters reported, citing unidentified sources.

Shell and Cosan each own 50% of Raizen, which controls Brazil’s second largest chain of gas stations.

Shell said it would not comment on potential deals. Raízen also declined to comment. read more

Shell Prepares For A Different Energy Reality

: 14 August 2017

Summary

  • This summer has seen the governments of several of the world’s major economies propose to eliminate internal combustion engine vehicles over the next 10-30 years.
  • At the same time, Royal Dutch Shell announced several major clean energy investments over the summer in anticipation of a drop-off in petroleum demand.
  • This article looks at how Shell’s clean energy investments fit into its energy profile forecasts compared to its peers.

This summer has been filled with the sort of headlines that can give strategic planners in the petroleum & gas sector heartburn. One-upping Germany’s earlier non-binding pledge to ban new internal combustion engine [ICE] vehicles by 2030, the government of France’s new centrist president Emmanuel Macron announced in early July that the country will end sales of ICE vehicles by 2040. This move, which is part of that country’s efforts to comply with its greenhouse gas emission reduction target under 2015’s Paris Climate Agreement, would eliminate gasoline- and diesel-only engines and is aimed at reducing the country’s air pollution as it is at mitigating climate change. Britain intends to do the same by 2050. Even China and India, which have long been posited as important future sources of petroleum demand, are moving to electrify their vehicle fleets: China recently announced that it wants 25% of the country’s vehicles to be “alternative fuel” by 2025, while India is drafting plans to electrify all of its vehicles by 2030. read more

Shell CEO Ben Van Beurden says his next car will be an electric Mercedes S500e


Jul 28 2017 at 9:03 AM

When the boss of Europe’s biggest listed oil company says his next car will be electric, it says a lot about the future of fossil fuels.

Royal Dutch Shell responded to the worst oil-price crash in a generation with its $US54 billion ($68 billion) takeover of BG Group, betting that demand for natural gas will rise as the world shifts to cleaner-burning fuels. Now chief executive officer Ben Van Beurden says the next thing he’ll buy is a car that doesn’t depend on either oil or gas to run. read more

Shell shifts focus to chemicals, refining: Financieele Dagblad

Anglo-Dutch energy giant Royal Dutch/Shell is shifting its focus toward downstream operations like refining and chemicals and away from traditional upstream activities like exploring for oil and gas, the Financieele Dagblad said on Wednesday.

This shift is likely to become even clearer when the company publishes its second quarter figures on Thursday, the paper said.

Shell’s investment in exploration slumped to $157m in the first quarter of 2017 from an annual quarterly average of between $500m to $600m in recent years, the paper points out.  This is partly due to the group’s recent acquisition of the BG Group which has large deep-sea reserves off the coast of Brazil. read more

Chinese appetite for LNG increasing

By Daniel J. Graeber: July 24, 2017

July 24 (UPI) — The Chinese appetite for liquefied natural gas increased more than 30 percent from last year, according to the latest government data.

The Chinese General Administration of Customs reported LNG imports to China increased dramatically as the country looks to rely less on coal for its energy needs. First half demand was up 38.3 percent from last year.

“The growth rate is higher than the 21.2 percent increase registered in the same period last year, partly encouraged by the lowering policy barriers for LNG from the United States to enter the Chinese market,” the official Xinhua News Agency reported. 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 No.9 in Top 100 greenhouse gas emitters since 1988

Jon Yeomans: 

The Chinese coal industry and stock market debutant Saudi Aramco have been named as the world’s biggest emitters of carbon dioxide.

As new data claims to have identified the top 100 emitters of greenhouse gases over the last three decades, a leading NGO has warned that natural  resources companies need to transform their business models to adapt to a low-carbon future.

Just 100 firms are responsible for 71pc of carbon dioxide gases released into the atmosphere since 1988, the year that climate change was first recognised as an international problem, according a report by the Carbon Disclosure Project (CDP). 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

China pumps cash into African floating LNG projects in strategic push

The $12.6 billion Prelude project, which is due to start operating off Australia in 2018, is typical of those conceived during the era of high energy prices.

By Oleg Vukmanovic and Colin Leopold | LONDON

China plans to pour almost $7 billion into floating liquefied natural gas (FLNG) projects in Africa, betting on a largely untested technology in the hope that energy markets will recover by the time they start production in the early 2020s.

Western banks are wary due to the depressed state of the shipping and gas markets, as well as the technical difficulties of pumping gas extracted from below the ocean floor, chilling it into liquid form on a floating platform and transferring it into tankers for export. read more

India’s LNG-led gas market may grow over 6 times by 2030: Royal Dutch Shell

Shine Jacob  |  New Delhi  June 22, 2017 Last Updated at 15:47 IST

Global oil major says that India may see at least six times growth in by 2030 from the current levels. It adds that liquefied natural gas (LNG) may be the largest contributor to it. The prediction comes at a time when India is trying to increase the share of gas in the overall energy mix to over 15 per cent by 2030. read more

Shell claims low-carbon edge

On Monday, reports surfaced that some of Shell’s money circulating in Nigeria was used for payoffs.

April 12 (UPI) — One of the largest oil companies in the world, Royal Dutch Shell said Wednesday it was focused on a low-carbon strategy that was geared toward long-term growth.

Shell highlighted its movement through a changing energy landscape in a sustainability report on activities last year. Chief Executive Officer Ben van Buerden said in the report that lower crude oil prices and a global community coordinated around the U.N.-backed Paris climate agreement meant changes were necessary for the oil and gas business. read more

Shell’s QGC to sell gas to Orica, Engie as trims LNG exports

Shell’s QGC to sell gas to Orica, Engie as trims LNG exports

Shell has signed two new deals to supply gas to east coast buyers in response to mounting pressure on the Queensland LNG exporters not to let industrial customers on the east coast go short.

The short-term agreements to supply gas to Orica and power producer Engie mean that Shell’s LNG venture in Gladstone will trim LNG exports to make more available for local users, said the oil major’s new Australia chair, Zoe Yujnovich.

However Shell wouldn’t disclose its revised forecasts for LNG exports from its $25 billion Queensland Curtis venture which typically ships about eight cargoes a month from its 8.5 million tonnes a year Curtis Island plant. read more

Shell defies doubters by predicting boom for liquefied natural gas

The Telegraph: Shell defies doubters by predicting boom for liquefied natural gas

Jillian Ambrose20 FEBRUARY 2017 

Royal Dutch Shell has brushed off concern that the burgeoning market for liquefied natural gas is already oversupplied, after paying £36.5bn to buy market leader BG Group.

Shell’s first outlook report for LNG since the tie-up has predicted a market boom as demand from countries including China and India which will outpace the string of new project start-ups.

The market for LNG imports has already grown considerably in recent years but market commentators have raised fears that an explosion of new projects might flood the market. A deluge of LNG could push down prices just as Shell works to pay down the heavy cost of the tie-up. read more

Shell says new LNG buyers want shorter, smaller contracts

Shell says new LNG buyers want shorter, smaller contracts

By Reuters20 February 2017

LONDON, Feb 20 (Reuters) – Royal Dutch Shell, the world’s biggest liquefied natural gas (LNG) trader following its takeover of BG Group last year, said new LNG customers that will drive demand are looking for shorter and smaller contracts.

Shell expects much of new LNG demand to come from countries that want to replace declining domestic gas production — which has already happened in Egypt and Pakistan — and those countries that are looking at LNG to complement pipeline and domestically produced gas, like China or Morocco. read more

Opec outflanked

By Ed Crooks of the Finacial Times: January 13, 2017

In the 1930s many newspapers carried impressively detailed diagrams showing France’s defences along the German border, described by Popular Mechanix and Inventions magazine as the “world’s greatest underground fortifications”. By the end of May 1940, Hitler had demonstrated that while the Maginot Line might indeed be an engineering marvel, it was also irrelevant, as his panzer divisions swept past it through Belgium and into France. Last year’s agreement between leading oil-producing countries to curb their output had something of the same feel about it this week. read more

Trump energised

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By Ed Crooks, November 11, 2016

“Between a battle lost and a battle won, the distance is immense and there stand empires,” said Napoleon. The same is true of elections.

Donald Trump may have come slightly behind Hillary Clinton in the popular vote for the presidency, but his convincing victory in the electoral college will give him the ability to reshape the energy industry in the US and around the world.

His hand will be strengthened by Republican control of Congress. Parts of Mr Trump’s agenda will face resistance in Congress, but his energy policy is unlikely to be one of those areas. His support for oil, gas and coal, his commitment to deregulation and his rejection of climate policy are all well aligned with mainstream Republican thinking. read more

Oil From $50 Billion Kashagan Field Starts Flowing to Export

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By Nariman Gizitdinov: 14 October 2016

Kashagan, a vast oil field in the Caspian Sea, sent its first crude for export after about 16 years in development and more than $50 billion of investments.

The venture loaded 26,500 metric tons of crude for export into the country’s pipelines, Kazakhstan’s Energy Ministry said in an e-mailed statement. Of that, 7,700 tons was sent to the Caspian Pipeline Consortium. Reaching stable production will take “some time” as commissioning work continues both offshore and onshore, the ministry said.

The project has been plagued by multiple delays and cost overruns. A 2008 budget estimate of $38 billion jumped to $53 billion by the end of last year as the partners replaced undersea links after sour gas cracked the pipes. The crude from Kashagan is reaching an already saturated market, with prices at less than half the level of 2013 when the project hit a setback. Expectations for the field’s exports even prompted OPEC to flip supply predictions for next year. read more

Shell’s Growth Priority Over The Next Five Years — Deepwater

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Trefis Team SEP 29, 2016 @ 08:42 AM

With the ever-growing energy needs worldwide, the conventional sources of energy are likely to exhaust soon. Having explored the majority of the onshore reserves, oil and gas producers around the globe are now moving to offshore reserves, that are primarily formations in deep waters, containing thick layers of oil and gas in permeable rock. Consequently, Deepwater drilling, often used to categorize drilling in water depths of greater than around 400 meters, has become an attractive alternative to onshore drilling. In line with this growing trend, Royal Dutch Shell (NYSE:RDS.A) has categorized Deepwater as one of its growth priorities for the next five years. (Also Read: Shell’s Growth Priority Over The Next Five Years – Chemicals) In this note, we discuss the growth potential of the deepwater market, Shell’s positioning in this market, and its strategy going forward. read more

Shell Says While Gas Is the Future, It Won’t Be Traded Like Oil

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At the moment, there is a global glut of natural gas…

Screen Shot 2016-08-29 at 22.18.50By Kelly Gilblom and Rakteem Katakey: August 30, 2016

Natural gas is rapidly becoming one of the most traded global commodities, but that doesn’t mean it will have a global price, according to Royal Dutch Shell Plc.

While the fuel can be transported anywhere on liquefied natural gas carriers, it will probably remain regionally priced for the time being, with some contracts continuing to track oil, said Roger Bounds, senior vice president for global gas at Shell. Prices will depend on location, regulation and infrastructure, as some countries replace coal in electricity generation to cut carbon emissions. read more

The Future of Big Oil? At Shell, It’s Not Oil

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Screen Shot 2016-07-20 at 07.42.44The energy giant is shifting to gas as the industry adapts to climate change.

By Matthew CampbellRakteem Katakey and James Paton: 20 July 2016

At Australia’s Curtis Island, you can see Big Oil morphing into Big Gas. Just off the continent’s rugged northeastern coast lies a 667-acre liquefied natural gas (LNG) terminal owned by Royal Dutch Shell, an engineering feat of staggering complexity. Gas from more than 2,500 wells travels hundreds of miles by pipeline to the island, where it’s chilled and pumped into 10-story-high tanks before being loaded onto massive ships. “We’re more a gas company than an oil company,” says Ben van Beurden, Shell’s chief executive officer. “If you have to place bets, which we have to, I’d rather place them there.” read more

Shell with a full tank of debt

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By JACK HOUGH: JULY 16, 2016

A dash of desperation is working wonders for module article chiclet Royal Dutch Shell. The price of Brent crude oil has fallen by half in two years, pulling Shell’s cash flow from operations well below what it typically needs to pay its dividend and fund exploration. Meanwhile, the purchase of United Kingdom gas specialist BG Group, completed in February, left Shell with a full tank of debt.

Something had to give. Investors braced for a dividend cut, which is why the American depositary receipts (ticker: RDS.B) started the year priced low enough to yield 8%. But rather than reduce its payout, Shell slashed spending on projects and sold low-return businesses. Last month, it announced a capital plan through 2020 that calls for more asset sales and a limit on capital spending. read more

Uncertainty in the oil price war

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By Ed Crooks: JULY 15. 2016

“War is the realm of uncertainty,” wrote the great Prussian military theorist Carl von Clausewitz. “Three quarters of the factors on which action in war is based are wrapped in a fog of greater or lesser uncertainty.”

That applies to price wars every much as it does to the real kind. Almost from the moment crude began falling in 2014, news outlets started running confident-sounding claims that one side or another was winning the battle often depicted as a struggle between Saudi Arabia on one side and US shale producers on the other. read more

Oil Is Still Heading to $10 a Barrel

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By A. Gary Shilling:JUNE 28, 2016 12:00 PM EDT

Back in February 2015, the price of West Texas Intermediate stood at about $52 per barrel, half of its 2014 peak. I argued then that a renewed decline was coming that could drive it below $20, a scenario regarded by oil bulls as unthinkable. But prices did fall further, dropping all the way to a low of $26 in February. Since then, crude rallied to spend several weeks flirting with $50 per barrel, a level not seen since last year. But it won’t last; I’m sticking to my call for prices to decline anew to $10 to $20 per barrel. read more

Shell’s Ambitious Plan To Topple Exxon

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By Rakesh Upadhyay – Jun 22, 2016, 5:17 PM CDT

Ben Van Beurden, Chief Executive Officer of Royal Dutch Shell has laid out an ambitious plan to overtake ExxonMobil as the number one oil company in the world.

Prior to the 1990s, Shell was the leader in total shareholder returns, however, its rivals went on a deal-making spree to gain the lead, while Shell shied away from making any acquisitions. Now, Mr. Beurden believes that Shell will be able to regain its lost glory post the acquisition of the BG group. read more

Bad news for fossil fuels

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By Ed Crooks: June 10. 2016

Two of the most widely respected energy analysts – BP’s economics team and the International Energy Agency – published reports this week, and both brought bad news for fossil fuel producers. They differed, however, in the focus of their gloomy perspectives. For BP, publishing its 65th annual Statistical Review of World Energy, it was coal that came off worst. As Spencer Dale, BP’s chief economist, put it in his presentation, “2015 was undoubtedly an annus horribilis for coal”. The shift to natural gas for power generation in the US gathered pace, and there was a second consecutive year of declining consumption in China. read more

Shell sidesteps electric bandwagon with petrol-powered concept car

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BEIJING | BY JAKE SPRING: Fri Apr 22, 2016

Royal Dutch Shell PLC (RDSa.L) unveiled a high-efficiency petrol-burning concept car in China on Friday, to show the world’s biggest electric vehicle (EV) market that there is a lot of mileage left in conventional internal combustion engines.

Shell, one of the largest producers of automotive fuel, said it could take decades before EVs help arrest a rise in exhaust emissions, and that its concept car – which it has no intention of mass producing – demonstrates what can be done now. read more

Exclusive: How ChemChina tried to gatecrash Shell’s BG mega-deal

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Screen Shot 2016-03-15 at 10.28.52LONDON | BY DMITRY ZHDANNIKOV, FREYA BERRY AND RON BOUSSO: Business | Tue Apr 19, 2016

Chemical giant ChemChina approached BG Group with a possible bid late last year, just as Royal Dutch Shell was preparing to close a $52 billion deal to buy the British energy company, seven banking and industry sources with knowledge of the matter said.

Working with investment bank HSBC (HSBA.L), China’s most acquisitive company of the past year flew a delegation to Britain in December and approached BG Chairman Andrew Gould with plans for a full cash bid, two sources close to ChemChina said.

Shell and HSBC declined to comment. ChemChina did not immediately respond to requests for comment. Reuters could not reach Gould for comment.

That trip was eight months after Shell announced the energy sector’s largest deal in a decade and just weeks before the BG purchase received final anti-trust and shareholder clearances. read more

Sideways moves

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By Ed Crooks: April 1, 2016

Oil prices went sideways all week, with Brent crude edging up above $40 on Thursday.  Hedge funds have made record bets on rising crude prices, but everyone is still watching prospects for the scheduled meeting of Opec and non-Opec oil producers in Doha, Qatar on April 17. Qatar’s oil minister said 12 countries had so far agreed to attend, including most Opec members and Russia. Reuters provided a useful factbox on the countries that could be present at the meeting.  Ecuador is one of the Opec members trying to persuade non-member countries to join in a commitment to freeze production. read more

Royal Dutch Shell Limiting Investment in Chinese Shale Gas

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By Muhammad Ali Khawar on Apr 3, 2016

Royal Dutch Shell plc. (ADR) (NYSE:RDS.A) unlike BP plc. (ADR) (NYSE:BP) is looking less enthusiastic for the exploration and production of shale gas. As reported by Bloomberg, Shell has indicated that it is not pursuing with the development of the Fushun-Yongchuan shale gas block in the China’s Sichuan province.

The news comes following BP and China National Petroleum Corporation (CNPC) latest deal for shale gas exploration in the country. Both the parties signed a production sharing contract (PSC) for shale gas exploration, development, and production in China’s Nejiang-Dazu block in the Sichuan basin. read more

Australian Energy Giant Woodside Delays Large Offshore L.N.G. Project

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By STANLEY REED: A version of this article appears in print on March 24, 2016, on page B2 of the New York edition

Woodside Petroleum and its partners, including the energy giants Royal Dutch Shell and BP, have decided to delay indefinitely the development of a huge liquefied natural gas project off Western Australia, the company said on Wednesday.

The decision to postpone the project, called Browse, comes as L.N.G. prices in Asia have fallen by around two-thirds since 2014. The slump is attributed to a supply glut set off largely by a building boom and by lower-than-expected demand from major customers like China. read more

CNOOC and Shell take final investment decision to expand petrochemical complex in China

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TUESDAY, MARCH 22, 2016

China National Offshore Oil Corporation (CNOOC) and Shell Nanhai B.V. today announce the final investment decision to expand CNOOC and Shell Petrochemical Company’s (CSPC) existing 50:50 joint venture (JV) in Huizhou, Guangdong Province, China. This decision follows the announcement of a Heads of Agreement in December 2015 between the two partners. Subject to regulatory approvals, CNOOC and Shell have agreed that CSPC should take over CNOOC’s ongoing project to build additional chemical facilities next to CSPC’s petrochemical complex. read more

Shell’s credit rating cut from AA to AA- following £36bn takeover of gas giant BG Group

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By RUPERT STEINER FOR THE DAILY MAIL19 February 2016

Royal Dutch Shell has seen its credit rating slashed following its £36billion takeover of gas giant BG Group.

The credit score of the FTSE 100 oil company – a barometer of its financial strength – was lowered by Fitch from AA to AA-.

Ratings agency Fitch said its outlook on Shell was ‘negative’ in a sign a further cut could follow.

Shell used some of its cash reserves to fund the takeover of BG. Following the completion of the mega-deal on Monday, Shell plans to sell £20billion of assets in the next three years.

However, Fitch warned it downgraded its view on the company because Shell (down 26.5p to 1560.5p) had ‘materially missed the targeted level’ of sell-offs so far.  read more

Oil Prices Slide Again as Oversupply Fears Persist

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By TIMOTHY PUKO and GEORGI KANTCHEV: Feb. 8, 2016 

Oil prices dropped back below $30 Monday amid continuing fears about the global oversupply of crude. A Sunday meeting between Saudi Arabia and Venezuela ended without any plans for production cuts, damaging hopes that the world’s major exporters will cooperate on output cuts. Data from Barclays also suggested softer demand from the world’s largest consumers, the U.S. and China. read more

Oil market spiral threatens to prick global debt bubble, warns BIS

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By Ambrose Evans-Pritchard6:33PM GMT 05 Feb 2016

The global oil industry is caught in a self-feeding downward spiral as falling prices cause producers to boost output even further in a scramble to service $3 trillion of dollar debt, the world’s top watchdog has warned.

The Bank for International Settlements fears that a perverse dynamic is at work where energy companies in Brazil, Russia, China and parts of the US shale belt are increasing production in defiance of normal market logic, leading to a bad “feedback-loop” that is sucking the whole sector into a destructive vortex. read more

Oilmageddon

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Katy Barnato: 5 FEB 2016

The global economy seems trapped in a “death spiral” that could lead to further weakness in oil prices, recession and a serious equity bear market, Citi strategists have warned.

Some analysts — including those at Citi — have turned bearish on the world economy this year, following an equity rout in January and weaker economic data out of China and the U.S.

“The world appears to be trapped in a circular reference death spiral,” Citi strategists led by Jonathan Stubbs said in a report on Thursday. read more

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