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Posts under ‘Exxon Mobil’

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

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

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

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

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

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

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

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

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

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

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

Oil majors among top contributors to greenhouse emissions, report says

by

More than half of global industrial emissions can be traced back to just 25 corporate and state producing entities, the report says.

China, India and Russia’s coal industries and major oil and gas players like Saudi Aramco, Gazprom, ExxonMobil, BP and Shell are among those named in the paper from CDP, formerly the Carbon Disclosure Project.

The research found that 100 active fossil fuel producers were linked to 71% of global industrial greenhouse gases since 1988. 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

After Iran move, Total seen in pole position to snap up Qatar gas deals

By | DOHA/LONDON:Mon Jul 10, 2017 | 8:13 AM BST

Total is well placed to take a lead role in helping Qatar expand output from the world’s largest gas field, largely thanks to its involvement in the Iranian side of the shared deposit, two sources familiar with Doha’s thinking said.

That puts the French oil major ahead of rivals like Exxon and Shell in the early running for developing the expansion, which the tiny Gulf state announced as it seeks to counter growing isolation caused by a regional diplomatic rift.

Total boss Patrick Pouyanne signed a deal this month to develop the South Pars field, as Iran’s part of the shared reserves are known, becoming the first oil major to return to the country since the lifting of sanctions. read more

It’s a world of worry for oil companies

By Ryan Maye Handy: 8 July 2017

India hopes to sell only electric vehicles by 2030. China is offering incentives to buy electric cars and investing heavily in renewable technologies. Volvo will scrap the pure internal combustion engine in favor of hybrids and electric cars.

And on Thursday, France announced it plans to ban the sale of diesel and gasoline-fueled cars by 2040.

The world’s major oil companies might disagree when global demand for petroleum will peak, but the news of the past seven months suggests that they should be worried, if they aren’t already. Nations, states and private companies are demanding cleaner energy, leaving the world’s oil producers to face a reckoning that many haven’t yet accepted. read more

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

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

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

U.S. Shale Just Triggered A Chemical Industry Renaissance

By Tsvetana Paraskova – Jul 03, 2017, 5:00 PM CDT

The shale revolution in the U.S. has led to a boom in domestic natural gas production, to the point that America is expected to become a net exporter of natural gas on an average annual basis by 2018.

Abundant gas at home has also led to a renaissance in the petrochemical industry in the U.S., which had suffered a downturn in 2008 and 2009. But then came the shale revolution, and chemical companies in the U.S. now use the affordable ethane—a natural gas liquid derived from shale gas—as a feedstock. read more

Shell, Exxon to appeal latest Groningen gas production cap

Shell, Exxon to appeal latest Groningen gas production cap

AMSTERDAM, June 28 (Reuters) – A joint venture between Royal Dutch Shell and Exxon Mobil said on Wednesday it will file an appeal against a Dutch government plan to lower a production cap at the Groningen natural gas field by a further 10 percent.

The 50-50 Exxon-Shell joint venture, known as NAM, said it has been left in an impossible position by being told it may continue production — vital to supply homes with gas — without guarantees it is meeting safety standards. It also opposes the latest, lowered production cap. read more

Big Oil: Surviving at $40, Thriving at $60

By Ben Levisohn:  The price of oil is rising today, but that hasn’t helped oil stocks like ExxonMobil (XOM), Chevron (CVX), Total (TOT), and Royal Dutch Shell (RDS.A), which remain little changed or under pressure.

The International Integrateds and Majors can survive in a $40-50/bbl oil price range, in our view; however, we continue to see >$60/bbl required for them to thrive. We expect companies to continue pulling on all operational and financial levers in order to adjust to the oil price reality… read more

Hackers Hit 75% of Drillers as Sketchy Monitoring Is Blamed

Three out of four oil and natural gas companies fell victim to at least one cyber attack last year as hacking efforts against the industry become more frequent and sophisticated.

That’s the finding from a report released Monday by industry consultant Deloitte LLP. Technology advances, such as Royal Dutch Shell Plc’s recent control of operations in Argentina from an operating center in Canada, offer new openings for hackers, the authors wrote.

At the same time, older equipment that must be retrofitted for cybersecurity, including the pumps known as nodding donkeys, make it tougher to defend against sophisticated attacks. Less than half of drillers use any monitoring tools on their upstream operations networks, the report found. Of those, only 14 percent have fully operational security monitoring centers. read more

In Disaster’s Wake, BP Doubles Down on Deepwater Despite Surging Shale

Majors including Exxon Mobil Corp, Chevron Corp and Royal Dutch Shell have maintained Gulf operations but focused expansions on U.S. shale.

THUNDER HORSE OIL PLATFORM, Gulf of Mexico — About 300 BP workers commute 150 miles here by helicopter, from the Louisiana coast to a deep-sea drilling platform that can produce more oil in a day than a West Texas rig can pump in a year.

On the deck of Thunder Horse, they work two-week shifts, drink seawater from a desalination plant, and eat ribs and chicken ferried in by boat. On the ocean floor, robots provide remote eyes and arms as drills extract up to 265,000 barrels per day. read more

Dutch Quakes Rattle Exxon, Shell — WSJ

Big gas field is causing tremors, exposing energy firms to criminal probe and rising bills

By Sarah Kent Dow Jones Newswires

GRONINGEN, The Netherlands — For decades, the giant Groningen gas field beneath the flat, green farmland in the north of this country counted among the greatest prizes for Exxon Mobil Corp. and Royal Dutch Shell PLC. Then the earthquakes started.

Shell and Exxon are pushing back through their joint venture, Nederlandse Aardolie Maatschappij BV or NAM.

NAM said it is considering formally contesting the government’s decision. It also expressed surprise at the Dutch court order to the prosecutor to open a criminal investigation this year… read more

Quakes Giving Dutch Province ‘A Makeover We Don’t Want’

Quakes Giving Dutch Province ‘A Makeover We Don’t Want’

By Sarah Kent Dow Jones Newswires

GRONINGEN, The Netherlands — Irma de Joode was talking on the phone with her brother when she heard what sounded like rolls of thunder and felt her entire house jump beneath her feet. The Aug. 16, 2012, earthquake was the biggest ever to rock the flat, green plains of this northern Dutch province. The source was Europe’s biggest natural gas field. The earthquake was one of more than 300 temblors since 1991 that Royal Dutch Shell PLC, Exxon Mobil Corp. and the Dutch government acknowledge were caused by their activities at the Groningen gas field. read more

Oil firms could waste trillions if climate targets reached: report

By Ron Bousso | LONDON

Oil giants including Exxon Mobil and Royal Dutch Shell risk spending more than a third of their budgets by 2025 on oil and gas projects that will not be feasible if international climate targets are to be met, a thinktank says.

More than $2 trillion of planned investments in oil and gas projects by 2025 risk becoming redundant if governments stick to targets to lower carbon emissions to limit global warming to 2 degrees celsius, according to a report by the Carbon Tracker thinktank and a group of institutional investors. read more

Exxon, BP and Shell back carbon tax proposal to curb emissions

Exxon, BP and Shell back carbon tax proposal to curb emissions

Oliver Milman: Tuesday 20 June 2017

In a full-page newspaper ad on Tuesday, the companies called for a “consensus climate solution that bridges partisan divides, strengthens our economy and protects our shared environment”. Exxon and the others were listed as founding members of the plan… “ExxonMobil will try to dress this up as climate activism, but its key agenda is protecting executives from legal accountability for climate pollution and fraud,” said Naomi Ages, senior climate campaigner at Greenpeace USA. “A nicely worded public relations exercise is no cure for decades of deception.” read more

Exxon Misled Investors Over Climate Risks, NY AG Says

By Keith Goldberg

Law360, New York (June 2, 2017, 1:28 PM EDT) — New York Attorney General Eric Schneiderman said Friday that ExxonMobil may have deceived investors about the climate change risks to its business in an ongoing fraud that stretched back to U.S. Secretary of State Rex Tillerson’s time heading the oil giant. New York Attorney General Eric Schneiderman’s office urged a New York judge Friday to deny Exxon’s bid to quash a subpoena seeking documents related to climate change risks. (AP) In a major escalation of Schneiderman’s climate probe of Exxon, his office said in a brief… read more

Big payout for Shell and ExxonMobil from NAM holding

Big payout for Shell and ExxonMobil from NAM holding

NAM has €3.4bn earmarked for provisions on its balance sheet. A small portion of this, 15% or €495m, is reserved for claims made against the company for earthquake damage.

June 2, 2017

Shell and ExxonMobil, the two shareholders in Dutch gas production company NAM, split €496m in dividend payments in 2016. This was revealed in NAM’s first-ever published annual report on Friday, the Financieele Dagblad said. This marked the first time that it was made clear just how much the two oil giants earn from gas production in the Netherlands. NAM reported net revenues of €3.4bn in 2016.

But NAM released no comparable profit and sales figures for previous years. NAM’s profit is determined after a payment of about €3bn to the Dutch government. read more

Shell, Exxon may appeal over planned Groningen gas output cut

Shell, Exxon may appeal over planned Groningen gas output cut

AMSTERDAM, May 24 (Reuters) – A joint venture between Royal Dutch Shell and Exxon Mobil said on Wednesday it was considering appealing against a Dutch government plan to cut production at the Groningen gas field by 10 percent.

The Dutch state earlier on Wednesday confirmed it intended to go ahead with a tightening of output at the massive field from Oct. 1. It said interested parties had until July 7 to announce an appeal.

The 50-50 Shell-Exxon joint venture known as NAM, said in a reaction that the measure was “disproportionate” and ignored previously agreed safety norms, which do not call for such a large reduction. read more

Shell shareholders reject emissions target proposal

By Karolin Schaps | THE HAGUE

Royal Dutch Shell (RDSa.L) shareholders on Tuesday widely rejected a proposal by an environmental group calling for the oil company to set and publish annual targets to reduce carbon emissions.

The vote is a setback for climate activists who are increasing pressure on global oil companies, including U.S. firms Exxon Mobil (XOM.N) and Chevron (CVX.N), to become more ambitious in helping combat climate change.

Around 94 percent of Shell shareholders who cast a vote decided against resolution 21, according to final results reported following the company’s annual general meeting (AGM) in The Hague. Roughly 5 percent of voters abstained. read more

Get Ready for Peak Oil Demand

By Lynn Cook and Elena Cherney: 

Forecasts for peak oil demand diverge by decades. The Paris-based International Energy Agency argues that demand will grow, albeit slowly, past 2040. And the two biggest U.S. oil companies, Exxon Mobil Corp. and Chevron Corp. , say peak demand isn’t in sight.

But some big European producers predict that a peak could emerge as soon as 2025 or 2030, and they are overhauling their long-term investment plans to diversify away from crude oil. Royal Dutch Shell PLC and Norway’s Statoil SA are placing bigger bets on natural gas and renewables, including wind and solar. read more

Nigerian oil workers extend Exxon Mobil strike to Chevron, Agip and Shell

May 16 Nigerian workers from an oil labour union have extended a strike to oil majors Chevron, Shell and Eni subsidiary Agip in protest over the sacking of members from Exxon Mobil Corp, the union’s general secretary said on Tuesday.

Lumumba Okugbara, of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), said union representatives would meet Exxon Mobil management on Tuesday for talks. Members of the union began a strike at Exxon Mobil last week.

(Reporting by Anamesere Igboeroteonwu; Writing by Alexis Akwagyiram; Editing by Mark Potter) read more

ShareAction urges investors to reject BP, Shell pay policies leftright 2/2leftright

Graphic from a Financial Mail On Sunday article published in Sept 2015

Campaign group ShareAction on Tuesday called for investors to oppose remuneration policies at oil majors BP and Royal Dutch Shell as the policies were not tied closely enough to targets to reduce carbon emissions.

ShareAction said this meant both companies’ plans were misaligned with the interests of long-term shareholders.

ShareAction said it had contacted shareholders at both companies and was helping pension savers to write to their funds about voting down the remuneration policies. read more

New Shell finance boss says North Sea remains important to oil and gas giant

MARK WILLIAMSON: 5 MAY 2017

ROYAL Dutch Shell’s new finance chief has said the company will continue to invest in the North Sea where it is making good returns but declined to rule out selling off more UK assets.

Speaking after Shell posted a 140 per cent increase in first quarter profits, Jessica Uhl said the North Sea remains important to the firm although rationalisation moves will leave it with a much reduced presence in the area.

The oil and gas giant agreed in January to sell a portfolio of mature assets which account for around half its UK production to Chrysaor for up to $3.8 billion. read more

Divestment, retooling strategy has paid off, Shell says

Divestment, retooling strategy has paid off, Shell says

By Daniel J. Graeber: May 4, 2017

May 4 (UPI) — A divestment and retooling strategy has paid off considerably with first quarter profits more than doubling on improved oil prices, Royal Dutch Shell said.

Shell joins industry peers like British supermajor BP in declaring a first quarter success. Crude oil prices and market conditions have improved since first quarter 2016, and Shell CEO Ben van Buerden said the debt load was cut in part by a free cash flow of $5.2 billion.

Shell in March announced plans to sell off its entire onshore interests in Gabon to Assala Energy Holdings, part of The Carlyle Group, for $587 million. In the fourth quarter alone, the company unloaded more than $1 billion in assets, in large part from North America. In January, it sold off its interests in a package of assets in the British waters of the North Sea for $3.8 billion. read more

Royal Dutch Shell sees profits jump as oil price rises

4 May 2017

The Anglo-Dutch giant said profits on a current cost of supply measure – which strips out price fluctuations – jumped to $3.4bn (£2.6bn) from $1bn last year.

A 55% rise in oil prices in the first quarter of 2017 compared with a year earlier was the main driver of profits.

Shell joins rivals BP, Exxon Mobil, Chevron and Total in reporting better-than-expected results.

More than $1bn in cost savings and budget cuts made over the past three years from cost-cuts and assets sales have also helped to increase cash flow and boost profits. read more

Shell’s first-quarter profit more than doubles

By Ron Bousso | LONDON

Royal Dutch Shell reported a sharp rise in net profit on Thursday, beating analyst forecasts and joining its peers as stronger oil prices and improved refining margins boosted revenue after nearly three years of downturn.

A billion dollars in cost savings and budget cuts made over the past three years, as well as around $20 billion of asset sales following the $54 billion acquisition of BG Group last February, also helped increase cash flow and boost profits.

After completing the integration of BG Group in the third quarter of last year, the company and investors are turning their focus to increasing revenue and reducing debt as oil prices appear to recover. read more

How Earthquakes Might Be Crimes in Netherlands

Can a natural disaster be a crime? That’s the question in The Netherlands, where an investigation has been ordered into whether Royal Dutch Shell Plc and Exxon Mobil Corp. are criminally responsible for earthquakes triggered by production at Europe’s largest natural gas field, Groningen. Some of the earthquakes have been strong enough to damage homes in nearby farming communities. Though Groningen is a mainstay of the Dutch budget, its output is gradually decreasing to protect residents. read more

Oil price surge set to lead Shell and BP to big profit jumps this week

Jillian Ambrose

Shell and BP are preparing to bask in the benefit of the recent oil price surge with big profit jumps helping to draw a line under years of ferocious cost cutting.

On Tuesday Shell is expected to unveil profit of just above $3bn after a loss of $460m in the same quarter last year, using the oil industry’s standard ‘current cost of supplies’ measure.

Meanwhile BP investors are poised for profits of $1.26bn in Thursday’s results, using the major’s equivalent measure, after reporting $532m in the first quarter of last year. read more

Oil Supermajors Dig Way Out of Doldrums as Cash Poised to Surge

by Rakteem Katakey: 26 April 2017, 00:01 BST

Big Oil’s struggle against crude’s collapse is starting to ease, giving some companies enough cash to pay shareholders without piling on more debt.

The world’s five biggest non-state oil producers, known as the supermajors, probably increased cash from operations by a combined 67 percent last quarter from a year earlier, according to HSBC Bank Plc analysts Gordon Gray and Kim Fustier. That may allow some to cover dividends and capital spending without borrowing for the first time since 2012, they said. read more

Court orders Shell-Exxon criminal probe over Dutch gas quakes

Court orders Shell-Exxon criminal probe over Dutch gas quakes

By Toby Sterling

AMSTERDAM, April 20 (Reuters) – A Dutch court ordered prosecutors to open an investigation on Thursday into whether a Shell-Exxon joint venture bears any criminal responsibility for earthquakes triggered by production at the country’s largest gas field.

No physical injuries have been caused by numerous small quakes, which have damaged thousands of buildings and structures across the north-eastern province of Groningen, and prosecutors had previously declined to act, arguing it was a civil matter. read more

Support grows for Australian cross-continent pipeline to combat gas shortages

Apr. 19, 2017 12:42 PM ET|By: , SA News Editor

Australia’s government may support construction of a 1K-mile gas pipeline likely to cost more than A$5B (US$3.8B), WSJ reports, amid growing concern about shortages of liquefied natural gas and blackouts on the country’s populous eastern seaboard.

Two senior ministers expressed support for a transcontinental pipeline as Prime Minister Turnbull met with major LNG exporters including Royal Dutch Shell (RDS.A, RDS.B), Exxon Mobil (NYSE:XOM) and Santos (OTCPK:STOSF) to discuss ways of getting more LNG into the domestic energy market. read more

Dutch to cut Groningen gas production to lower earthquake risk

Apr. 18, 2017 12:56 PM ET|By: , SA News Editor

The Netherlands will cut production of its Groningen gas field by 10% beginning in October to limit the risk of earthquakes, the country’s economy minister says.

Production would be reduced to 21.6B cm/year from 24B cm/year as a first step, according to the minister; output has been cut several times from 53.9B cm in 2013 as criticism mounted the Dutch government had failed to adequately assess the risk from earthquakes caused by production at Europe’s biggest field.

Groningen is operated by a joint venture between Royal Dutch Shell (RDS.A, RDS.B) and Exxon Mobil (NYSE:XOM). read more

Why Big Oil wants Trump to stay in Paris climate deal

  @mattmegan5 April 18, 2017: 12:27 PM ET

President Trump could deal the landmark Paris climate agreement a massive blow this week.

The U.S. president is huddling with advisers on Tuesday to explore whether he should yank America from the international accord aimed at slowing global warming.

But some powerful forces — with real skin in the game — are urging Trump not to abandon the 2015 Paris deal brokered among more than 175 nations.

Surprisingly, it’s the big oil companies who are vocally supporting the climate agreement, joining others in the administration that include Secretary of State Rex Tillerson, Ivanka Trump and her husband Jared Kushner. read more

Exxon and Shell Join Ivanka Trump to Defend Paris Climate Accord

by Jennifer A Dlouhy 17 April 2017, 19:30 BST

As President Donald Trump contemplates whether to make good on his campaign promise to yank the United States out of the Paris climate accord, an unlikely lobbying force is hoping to talk him out of it: oil and coal producers.

A pro-Paris bloc within the administration has recruited energy companies to lend their support ahead of a high-level White House meeting Tuesday to discuss the global pact to curtail greenhouse-gas emissions, according to two people familiar with the effort who asked not to be identified. read more

Nigeria to Start Repayment of $5 Billion Oil Debt This Month

by Elisha Bala-Gbogbo: 

Nigeria will start paying back a $5.1 billion debt owed to international oil companies, including Exxon Mobil Corp. and Royal Dutch Shell Plc, with a first installment this month in accordance with an agreement reached last year.

“The initial payments would be made by the end of April 2017,” Emmanuel Kachikwu, Nigeria’s Minister of State for Petroleum Resources, said in an emailed statement Wednesday. The energy companies are expected to reciprocate “by ensuring that they ramp up investments in the country’s oil and gas sector,” he said. read more

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