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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.

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Oil majors BP and Royal Dutch Shell blighted by Citigroup rating downgrades

19 April 2017

In a note to clients, the US bank cut its stance on BP to ‘neutral’ and chopped its rating for Shell to ‘sell’ after scrutinising recent annual reports

Oil majors BP PLC (LON:BP.) and Royal Dutch ShellPLC (LON:RDSB) both fell back this morning under pressure from comment by Citigroup, which downgraded its ratings for both.

In a note to clients, the US bank cut its stance on BP to ‘neutral’ and chopped its rating for Shell to ‘sell’ after scrutinising recent annual reports.

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Shell says Nigerian oil theft volume fell nearly 80 pct in 2016

Reuters | Apr 12, 2017, 04.10 PM IST

April 12 (Reuters) – ** Shell said the volume of oil stolen from its joint-venture operations in Nigeria fell to 5,600 barrels of oil per day (bpd) in 2016, the company said in its annual sustainability report

** This represents a 77.6-percent fall from 25,000 bpd in oil thefts in 2015 partly due to better air and ground surveillance and anti-theft mechanisms installed on equipment

** Shell said its Nigerian subsidiary Shell Petroleum Development Company (SPDC) had removed more than 880 theft points since 2012

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Royal Dutch Shell: Unsustainable

Quad 7 Capital: Apr. 6, 2017 12:43 PM ET

Royal Dutch Shell (NYSE:RDS.A) (NYSE:RDS.B) has been a name of controversy of late. Why? Well, this is an oil stock and oil prices have meandered. While shares are up substantially off of their multi-year lows seen a year ago, this stock still yields 7%. The dividend payment is the center of most controversy, with so many feeling it is unsustainable. That is what I keep hearing. Unsustainable. They tell me Shell is ‘unsustainable’ at $40 oil. They tell me the dividend is most certainly ‘unsustainable’ in the current climate. Some go so far as to say the entire oil industry is ‘unsustainable.’

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Shell switches New Zealand holdings ahead of possible divestment

By Charlotte Greenfield | WELLINGTON

Royal Dutch Shell (RDSa.L) sold its stake in a New Zealand gas field while taking over the field’s operating company as part of a plan to possibly divest its holdings in the country later on, the company said Thursday.

Shell has sold its 50 percent stake in the Kapuni Gas Field, New Zealand’s second-largest, for an undisclosed price and has increased its holding to 100 percent in the joint venture that operates the field, Shell Todd Oil Services (STOS), it said in a statement.

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Despite cuts to jobs, spending, oil giants fail to cover costs

  • SARAH KENT
  • The Australian
  • 12:00AM April 4, 2017

The world’s biggest oil companies are struggling just to break even.

Despite billions of dollars in spending cuts and a modest oil price rebound, ExxonMobil, Royal Dutch Shell, Chevron and BP didn’t make enough money last year to cover costs, according to a Wall Street Journal analysis.

To calculate each companies’ free cash flow — the excess cash remaining after costs — the Journal deducted the firm’s dividends and capital expenditures from its cash from operations. All four firms fell short of cash flow for the year, although Exxon said it broke even by its own metrics, which exclude dividends. The analysis also showed that the four companies ended last year with more debt than they began it.

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Why Royal Dutch Shell plc should be worth £40 per share

Peter Stephens | Monday, 3rd April 2017

Shell (LSE: RDSB) has enjoyed a relatively prosperous recent period. Since the start of 2016, its shares have risen in price by around 42% as the outlook for the Oil & Gas industry has improved. However, there could be a long way to go until the company appears to be fully valued. In fact, a share price of £40 would not be excessive. This means there could be the potential for an almost 100% capital gain over the medium term.

Dividend strength

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Oil Companies’ Modest Prize: Breaking Even

By SARAH KENT: April 2, 2017 8:00 a.m. ET

The world’s biggest oil companies are struggling just to break even.

Despite billions of dollars in spending cuts and a modest oil-price rebound, Exxon Mobil Corp., Royal Dutch Shell PLC, Chevron Corp. and BP PLC didn’t make enough money in 2016 to cover their costs, according to a Wall Street Journal analysis.

To calculate each companies’ free cash flow – the excess cash…

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As oil prices falter, fears return on BP and Shell dividends

FRIDAY, 31 MARCH 2017

LONDON: As they guided Europe’s largest oil companies through the industry’s worst slump in two decades, the bosses of Royal Dutch Shell Plc and BP Plc had a simple message for investors: we’ll protect the dividend at all costs.

Not everyone is convinced they’ll be able to keep their word.

Even after they raised billions of dollars by cutting costs, selling assets and adding debt, cash is pouring out of both companies in the form of hefty shareholder dividends. Yields on those payments – which fell through 2016 as crude started to recover – have risen this year, typically a signal that investors fear a cut in payouts.

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FT: Shell’s top oil trader defends North Sea Brent activity


Mar. 29, 2017 12:57 PM ET|By: Carl Surran, SA News Editor

Royal Dutch Shell’s (RDS.A, RDS.B) VP of crude oil trading is out with a strong defense against accusations that the company’s activity in the North Sea crude market has skewed the benchmark Brent contract that underpins global oil prices.

Shell allegedly traded very aggressively in the region during 2016, with large positions in North Sea crude at times running contrary to clear signs of oversupply in the market, with the buying spree seen potentially pushing up prices.

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Big Oil Vows to Keep Dividends Up as Prices Falter

by Rakteem Katakey: 30 March 2017, 00:01 BST 30 March 2017, 11:40 BST

As they guided Europe’s largest oil companies through the industry’s worst slump in two decades, the bosses of Royal Dutch Shell Plc and BP Plc had a simple message for investors: we’ll protect the dividend at all costs.

Not everyone is convinced they’ll be able to keep their word. Even after they raised billions of dollars by cutting costs, selling assets and adding debt, cash is pouring out of both companies in the form of hefty shareholder dividends. Yields on those payments — which fell through 2016 as crude started to recover — have risen this year, typically a signal that investors fear a cut in payouts.

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Shell Throws The Blame To Residents on Slow Cleanup of Oil Spills In Nigeria

(Photo: John Li / Getty Images)

Regin Olimberio: Mar 28, 2017 07:10 PM EDT

Oil and petroleum giant Shell blamed the Nigerian residents in the Delta community for its slow response in cleaning up the two oil spill incidents in 2008. Amidst almost a decade-long effort, Shell wasn’t able to fully contain the spill. However, there is a possibility that the clean-up might start next month.

To recall, the Royal Dutch Shell admitted responsibility for two pipeline leaks that subsequently contaminated the Bodo community. Shell also agreed to a $68 million settlement after accepting the liability over the corroded pipelines in 2015. Since then, the oil spills haven’t yet been addressed.

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This is what’s really behind the America’s sudden oil production boom

This is what’s really behind the America’s sudden oil production boom

Patti Domm

When OPEC points at U.S. oil producers, it’s always the shale drillers they blame for oversupplying the world market.

But while shale is in resurgence, the real source of recent growth has been the offshore drillers in the Gulf of Mexico.

According to Bank of America Merrill Lynch, U.S. oil production growth between September and December was almost entirely the result of offshore wells, which increased production by 220,000 barrels a day in that period.

Offshore projects are much more long-term investments. They are far more costly to develop and take years to get started. “Those projects have an inertia,” said John Kilduff of Again Capital.

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OPEC Has To Extend Cuts – Shell Will Benefit Strongly From The Action

Gary Bourgeault: 28 March 2017

One of the best things to happen to the U.S. shale industry was the plunge in the price of oil. It caused creative companies with good management to aggressively pursue ways of slashing costs, while at the same time improving productivity.

A number of the pure plays like EOG Resources (NYSE:EOG) have been able to significantly improve efficiencies, to the point EOG can generate a 30 percent return when oil is at $40 per barrel. Lately, major producer Royal Dutch Shell plc (NYSE:RDS.A) (NYSE:RDS.B) has taken a larger position in shale, and says new wells in its Permian holdings can generate a profit at $20 per barrel. Overall, it can make money when oil is at $40 in the Permian.

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Shell and Anadarko mull clean break from Permian venture -executive

By REUTERSPUBLISHED: 06:03, 27 March 2017

By Ron Bousso and Ernest Scheyder

LONDON/HOUSTON, March 27 (Reuters) – Royal Dutch Shell Plc and Anadarko Petroleum Corp may let a 10-year joint venture in the oil-rich Permian Basin of Texas expire and split their properties, hoping to speed up development, according to a senior Shell executive.

The divorce and re-parceling of acreage would let each company drill and develop new wells at its own pace in the Permian, which has become the U.S. oil industry’s hottest development area for its low operating costs as crude prices hover under $50 per barrel.

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Costs tumble as Shell masters ‘budget’ deepwater drilling


  • LYNN COOK, SARAH KENT
  • The Australian
  • 12:00AM March 22, 2017

Royal Dutch Shell is trying to ­reinvent its business with a concept that sounds oxymoronic: budget deepwater drilling.

On the Mars oil platform, a hulking steel behemoth 200km southeast of New Orleans, more than 170 roughnecks and engineers are working to quickly wring more oil out of a massive field — and keep it profitable even if oil sinks to $US15 a barrel.

Shell, the world’s second-largest publicly traded energy company, is making a high-stakes bet that it can take highly efficient technology and processes per­fected onshore and deploy them in deep-sea production.

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Would you bet on a rapid rise in the oil price?

By Holly Black for the Daily Mail: PUBLISHED: 21:51, 17 March 2017 

Oil stocks took a knock this week as the price of the black stuff slipped to its lowest level since November.

Despite an agreement to cut production by 1.2m barrels a day by the oil cartel Opec being widely adhered to, supply is still outpacing demand.

Now some experts are concerned the deal could be derailed by a surge in the US, where a 55 per cent year-on-year jump in active rigs has driven production levels to record highs. 

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Shell adds hundreds of jobs in new unit focusing on alternative energy

LeAnne Graves

SINGAPORE // Shell has added hundreds of jobs to its New Energies division as it plans to expand further in alternative fuels, wind and solar, a company executive said.

The oil and gas giant created a new division last year that focuses on investing in hydrogen, biofuels, solar and wind. Mark Gainsborough, Shell’s executive vice president of new energies, said the division’s workforce has expanded to more than 200 staff as the company looks to invest in excess of US$1billion per year by 2020.

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BP Rallies on Possibilities of a Takeover by ExxonMobil

Zacks: March 14, 2017

Shares of BP plc BP rallied after a London-based newspaper claimed that ExxonMobil Corporation XOM is looking to place a takeover bid for the British energy group.

A bid for BP cannot be ignored as these rumors about ExxonMobil’s interest have been doing the rounds for years. However, analysts believe that such a deal is unlikely as it does not seem to be a strategic fit.

The merger would create a company too big and complex to be managed. The weak oil price environment has resulted in just one big deal – Royal Dutch Shell plc’s RDS.A $54 billion purchase of BG Group Plc in 2016. Other key oil players in the industry have embarked on smaller acquisitions as they intend to preserve cash and maintain their balance sheets. Though oil prices have increased from the 12-year lows of last year, companies are still uncertain if the recovery is sustainable.

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Shell updates Brent oil trading terms to add Troll to benchmark

Royal Dutch Shell (RDSa.L) has updated the terms which govern Brent oil trade to allow for the addition of a fifth crude oil grade into the basket used to assess the global oil benchmark.

Oil pricing agency S&P Global Platts (SPGI.N) plans to add Norway’s Troll crude to the four already used to assess Brent from January 2018. This will join Brent, Forties, Oseberg and Ekofisk, or BFOE as they are known.

With effect from Friday, Shell updated its “SUKO 90” terms and conditions on its website to add Troll to the existing four crudes, and so bring them into line with the plans of Platts.

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Despite sanctions relief, Shell still cool on Iranian oil buys

By Dmitry Zhdannikov | LONDON

Royal Dutch Shell has bought only three cargoes of Iranian oil since sanctions were eased a year ago, a small fraction of what it used to buy and an indication of the legal difficulties and high prices that still hamper the trade.

The Anglo-Dutch firm did not give a reason for the drop in purchases, which were disclosed in its annual report, and the company declined to comment further.

But oil trading sources say Iranian oil is often too expensive and in any case remaining sanctions make dealing with the Islamic Republic a legal minefield.

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Shell sells out of the oilsands. Was it climate or costs?

By Tracy Johnson, CBC News Posted: Mar 09, 2017 4:17 PM ET

Royal Dutch Shell’s deal to sell most of its stake in Alberta’s oilsands was in the works for more than a year, says the company’s chief executive Ben van Beurden.

“We said we would high-grade the portfolio,” he said at the CERAWeek energy conference in Houston.

“We would get out of positions where we do not have the scale or the capability, or that did not fit us in the longer run strategically. And the oilsands is one of them.”

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Shell CEO’s plan for a smaller carbon footprint

Patti Domm: 9 March 2017

Royal Dutch Shell‘s announcement of the sale of $7.25 billion in Canadian oil sands assets Thursday is an important step to turning itself into a company of the future — with a broader mix of energy assets and a smaller carbon footprint.

Shell CEO Ben van Beurden said the company is committed to reshaping itself and believes that renewables and new energy will play a bigger role. The company is retaining just 10 percent of its Canadian sands assets.

“We are right in the middle of transforming the company into the company of the future,” he said at the CERAWeek conference in Houston, sponsored by IHS Markit.

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Shell cuts debt with US$7.25 billion sale of Canada oil sands

9 March 2017

TORONTO (BLOOMBERG) – Royal Dutch Shell will sell almost all its production assets in Canada’s oil sands in a US$7.25 billion (S$10.24 billion) deal that cuts debt and reduces involvement in one of the most environmentally damaging forms of fossil-fuel extraction.

The company will sell all of its oil-sands interests apart from a 10 per cent stake in the Athabasca Oil Sands mining project, The Hague-based Shell said on Thursday (March 9). It will also continue as operator of the Scotford upgrader and Quest carbon capture and storage project.

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Shell accelerates plan to boost U.S. shale output -exec

* Shell to boost shale output by 140,000 bpoed by 2020

* Shell shale output profitable at average oil price $40/bbl

* Argentina shale development decision in 18 months

By Ron Bousso and Ernest Scheyder HOUSTON, March 7 (Reuters) – Royal Dutch Shell is ramping its North American shale output earlier than planned to lock in quick returns from what has become one of its most profitable businesses, the head of Shell’s unconventional energy business said. The Anglo-Dutch company plans to make shale oil and gas in the United States, Canada and Argentina a key engine of growth in the next decade, targeting output of around 500,000 barrels of oil equivalent per day (boepd), Greg Guidry told Reuters in an interview.

A drive to cut the cost of producing oil and gas from U.S. shale deposits has proven so effective that Shell has accelerated development plans, Guidry said on the sidelines of the CERAWeek industry conference in Houston.

It aims to boost output by 140,000 boepd over the next three years in the Permian basin in West Texas and the Duvernay region in Canada, said Guidry, an executive vice president.

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Shell Fears Reopening Twice-Bombed Nigerian Pipeline

By Zainab Calcuttawala – Mar 06, 2017, 4:40 PM CST

Royal Dutch Shell fears that reopening a pipeline in Nigeria will cause local separatist groups to re-bomb the facility for a third time, according to reports emerging from the area.

The Trans Forcados Pipeline, which takes 400,000 barrels to the Forcados export terminal every day, has been out-of-operation for all but three weeks in the past year, according to risk analysis published by SBM intelligence on Friday.

Previously, militants dove underwater to install bombs near the section of the pipeline in the Atlantic Ocean that they aimed to destroy. Shell brought in underwater engineers to repair the pipeline in an act of defiance against the militants and their most sophisticated attack to date.

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Nigeria wants Shell to open major pipeline but attack feared

By MICHELLE FAULThe Associated Press: March 4, 2017

JOHANNESBURG (AP) — Nigeria wants Royal Dutch Shell to reopen one of its main pipelines but the oil multinational is resisting, analysts say, for fear it could once again be bombed by militants.

The Trans Forcados Pipeline, the main feed to the 400,000-barrel-a-day Forcados export terminal, has been shut for all but three weeks of the past year, Lagos-based SBM Intelligence said in its weekly risk analysis published Friday.

In their most sophisticated attack, militants used divers to blow up an underwater section of the pipeline in the Atlantic a year ago. Defying militant death threats, Shell flew in underwater engineers who took seven months to get the pipeline operational.

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Shell Shuns New Oil-Sands Projects as Low Prices Force Cost Control

by Rakteem Katakey: 27 February 2017, 14:52 GMT

Royal Dutch Shell Plc is unlikely to take on new oil-sands projects as it maintains a grip on costs after crude’s crash forced competitors to write down Canadian reserves.

While Shell’s existing oil-sands operations generate strong cash flows, the expense of developing new projects discourages additional investments, Chief Executive Officer Ben Van Beurden said in an interview.

Oil sands, the reserves of heavy crude found primarily in northern Alberta, lured investors in the past decade as oil’s surge above $100 a barrel made the difficult extraction process economic. But they’ve fallen out of favor following the subsequent market collapse as companies dump expensive projects amid fears that competition from low-cost crude could strand costlier assets.

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Shell Shakes Up Oil Trading World With Brash Brent Buying Sprees

Laura Hurst and Javier Blas: 20 February 2017

The giant tankers anchored along the Scottish coast in the Firth of Forth weren’t going anywhere. They were just providing floating storage because there was no demand for their cargo, North Sea crude oil.

But the flickering computer screens in the world’s trading rooms told a different story. Prices through the month of April were jumping, showing someone was buying, stunning traders and leaving some with heavy losses. That wasn’t the only bizarre gyration last year in the market for Brent, whose price determines the cost of just about every petroleum-based product, from jet fuel to plastic spoons. Such unusual moves damaged confidence so much that some traders retreated from the market.

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Alberta power company buys half-built Shell oil sands power plant

February 17, 2017

CALGARY, Alberta (Reuters) – Kineticor, a small privately held power producer, has partnered with one of Canada’s largest pension funds to buy a half-finished oil sands power plant in northern Alberta that was part of an abandoned Royal Dutch Shell (RDSa.L) project, the company said on Friday.

Alberta-based Kineticor said it had closed the acquisition of the partially constructed 690 megawatt cogeneration plant near Peace River that was part of Shell’s 80,000 barrel per day Carmon Creek project.

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Can BP plc and Royal Dutch Shell plc survive the coming oil price crash?

By The Motley Fool  Feb 15, 2017

Last year’s surprise OPEC and non-OPEC oil production cuts were supposed to herald a new area of higher energy prices, but it hasn’t really happened. Oil bulls who predicted oil could hit $60 or $70 a barrel will have been disappointed, with the price stalling around $55. If the price can’t rise now, when will it rise? Or could it even crash?

Oil slip

Any further slippage would spell bad news for FTSE 100 giants (LSE: BP) and Royal Dutch Shell(LSE: RDSB). They are banking on a higher oil price to keep the cash flowing, and ensure their dividends are sustainable in the longer run.

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3 big questions hanging over Royal Dutch Shell plc

The Motley Fool: 3 big questions hanging over Royal Dutch Shell plc

By The Motley Fool  Feb 14, 2017

A stagnating oil price has seen investor appetite for Royal Dutch Shell(LSE: RDSB) seep away from recent multi-year highs.

The crude colossus saw its share price strike its highest since November 2014 a month ago, but fresh fundamental fears have seen Shell — like many of its London-quoted peers — retrace more recently.

Shale producers returning

Arguably the biggest driver behind Shell’s decline has been a steady build in the US rig count.

With drillers across the Atlantic becoming ever-more-comfortable with oil prices anchored around the $50 per barrel mark, the number of units in operation has been steadily increasing since the autumn.

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Shell’s strategy is not reliant on a certain oil price, CEO says

Shell CEO: Our goal is to be number one again  17 Hours Ago | 05:35

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Royal Dutch Shell may have seen its profits slammed thanks to low oil prices, but its CEO told CNBC on Tuesday that the company’s strategy isn’t reliant on a certain oil price outcome.

“We have to be competitive, rather, at every oil price level, and that means that we have to continue to work on reducing our breakeven price of the company, making sure that we have a competitive sense of projects with a low breakeven price per project so that every point in the price cycle we are competitive,” Ben van Beurden said in an interview with “Closing Bell.”

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OPEC Output Cuts End Big Oil’s Trading Bonanza

The oil-trading boom that cushioned the profits of Royal Dutch Shell Plc and BP Plc through the price slump of 2015 and early 2016 is over.

BP said on Tuesday it made a “small” loss trading oil in the fourth quarter, while Shell last week said trading profits “flattened” in late 2016. The fall off in trading contributed to worse-than-expected fourth-quarter profits at Europe’s largest oil and gas producers.

Although better known for their oilfields, refineries and gas stations, Shell and BP are the world’s top energy traders, handling about 20 percent of global oil demand between them and dwarfing independent trading houses such as Vitol Group BV, Trafigura Group and Glencore Plc.

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Shell To Sell Another $5B In Assets, Misses Profit Expectations

By Tsvetana Paraskova – Feb 02, 2017, 3:03 PM CST

Royal Dutch Shell (NYSE:RDS.A) is making “significant progress” on selling another US$5 billion worth of assets, chief financial officer Simon Henry said on Thursday after the oil supermajor reported 2016 profits below analyst expectations.

Shell’s current cost of supplies (CCS) – a key measure comparable with net income – came in at US$1.8 billion, excluding identified items, compared with US$1.6 billion for the fourth quarter 2015, the company said today. Full-year 2016 CCS earnings attributable to shareholders excluding identified items dropped to US$7.2 billion from US$11.4 billion in 2015.

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Royal Dutch Shell is changing, CEO says

By Daniel J. Graeber: Feb. 2, 2017

(UPI) — Royal Dutch Shell continues to focus on an aggressive divestment strategy after cutting $15 billion from its books last year, its CEO said Thursday.

“We are gaining momentum on divestments, with some $15 billion completed in 2016, announced, or in progress, and we are on track to complete our overall $30 billion divestment program as planned,” CEO Ben van Beurden said in a statement.

The Dutch supermajor, trimmed down after a merger last year with British energy company BG Group, reported an 8 percent decline in profit last year for one of its weakest performances in more than a decade.

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Shell nears deals to sell $5 bln of assets -CFO

By Karolin Schaps and Ron Bousso | LONDON

Royal Dutch Shell (RDSa.L) is close to selling assets totaling $5 billion to cut debt following its acquisition of BG Group, the oil major said on Thursday as it reported its lowest full-year earnings in more than a decade.

Dealmaking in the oil and gas sector has been muted for more than two years due to collapsing oil prices, but as crude prices recover buyers and sellers are starting to agree on price tags.

For Shell, disposals of $3 billion in the fourth quarter helped shave $4.5 billion off its net debt and increase cashflow by 8 percent in the last three months of the year, Europe’s largest oil and gas company said.

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Shell posts earnings of $3.5 billion in 2016; an 8% slide from $3.8 billion in 2015

Silvia Amaro | @Silvia_Amaro: 2 Feb 2017

Oil major Royal Dutch Shell posted fourth-quarter earnings of $1.0 billion, compared with $1.8 billion for the same quarter a year ago.

Ben van Beurden, chief executive officer of Royal Dutch Shell, said that such earnings figures do not “look good” for investors but he is “very pleased” with the performance for the full year as the company completed its merger with gas utility BG. Shares were 1.5 percent higher in early trade on Thursday.

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Shell boss Ben van Beurden delivered worse than expected full year results

Jillian Ambrose2 FEBRUARY 2017 • 8:55AM

Royal Dutch Shell has dashed investor hopes for a resurgence in profits after reporting disappointing earnings from its exploration and production business.

Europe’s largest oil company was expected to announce full-year profits double those of last year, but instead they fell 8pc to $3.8bn (£2.99bn),  their lowest level in over a decade.

The results came in well below City forecasts. Analysts had been expecting the company to make $8.17bn on a current cost of supplies (CCS) basis, a standard measure of profit in the industry.

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Shell, BP results preview: Look past top line figures to find positive story, analyst says

Written by Mark Lammey – 30/01/2017 7:48 am

Investors monitoring the fourth quarter results of Shell and BP must look beyond the top line figures to get a good reading of the firms’ vital signs.

Iain Armstrong, divisional director at Brewin Dolphin, said the fourth quarter was notoriously hard to predict as oil and gas deliveries tended to be down.

Mr Armstrong said the two majors’ headline figures could be disappointing, unless strong demand from China gives them a boost.

He also said Shell should be in a position to sell more of its North Sea assets, thanks to improved oil prices and the BG Group acquisition showing signs of fruition.

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Shell is expected to report huge annual profit gains as oil prices recover

Recovering oil prices mean Shell will bag a huge profit compared with last year’s (Source: Getty)

Courtney Goldsmith: 29 Jan 2017

Royal Dutch Shell’s annual profits are expected shoot up following last year’s dramatic 80 per cent decline as oil prices continue to inch up.

The oil giant is forecasted to post a profit of $8.17bn (£6.51bn), more than double its profit of $3.8bn the previous year, the Telegraph reported.

The Anglo-Dutch business is also expected to announce the latest development in its drive to ditch $30bn worth of assets following its £35bn takeover of BG Group. Shell is predicted to report the $3bn sale of its North Sea oil and gas assets – almost half of its total assets worth $7bn in the North Sea – to a private-equity-backed explorer.

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Shell bounces back as oil price enjoys a slick resurgence

Shell bounces back as oil price enjoys a slick resurgence

Jillian Ambrose28 JANUARY 2017 • 7:00PM

Royal Dutch Shell is poised to lead a comeback this week as it reveals annual profits have more than doubled on the back of the recovering oil price.

The Anglo-Dutch oil giant is expected to post bumper profits of $8.17bn (£6.91bn), a huge jump on the $3.8bn it reported at the depths of the market downturn.

Alongside the profit boom, Shell is expected to announce the $3bn sale of its North Sea oil and gas assets to a private-equity-backed explorer.

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29 MORE reasons to sell BP plc and Royal Dutch Shell plc

By The Motley Fool  Jan 26, 2017

Those hoping that OPEC’s decision to finally curtail production at November’s Doha summit would go some way to balancing the oil market would no doubt have gasped at the latest US rig count data on Friday.

According to drill checkers Baker Hughes, the number of oil rigs up and running in the States rose by 29 during the seven days to January 20, taking the total to 551.

This was the largest one-week jump since April 2013 and means that the rig count has risen during 10 of the last 11 weeks. Meanwhile, the number of US rigs in operation now stands at a 14-month peak.

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Shitstorm of Nigeria related litigation hits Shell

Shell is facing what Americans might describe as a shitstorm of lawsuits arising from its Nigerian activities since the 1950’s. Litigation is current or pending in Nigeria, the USA, Italy, the UK and the Netherlands.

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Shell, Phillips 66 buy 6.4 mln bbls of oil from U.S. emergency reserve

Oil companies Shell and Phillips 66 together bought 6.4 million barrels of oil last week from the Strategic Petroleum Reserve (SPR), according to a Department of Energy document released on Tuesday.

Shell bought 6.2 million barrels of oil and Phillips 66 bought 200,000 barrels on Jan. 18, said the department document, seen by Reuters.

The federal government held the sale to fund a revamp of the emergency oil stash, which is stored in salt caverns in Louisiana and Texas along the Gulf Coast. The Department of Energy had said it would sell up to 8 million barrels as part of its modernization program.

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Royal Dutch Shell: A Lot Of Debt

Brandon Dempster: Jan 19, 2017

Royal Dutch Shell (RDS.A, RDS.B) has a sizeable debt wall ahead of them. With nearly $20 billion in debt due over the next five years, this company is going to have to be firing on all cylinders in order to not just meet these principal repayments, but to generate enough cash flow to fund the sizeable dividend, boost capital expenditure per the company’s Q3 2016 guidance, and still remain in positive free cash flow territory. It’s important that investors take a tough look at the debt due this year and understand the company’s current liquidity position.

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Shell, BP to reveal Q4 income surges, analyst says

Written by Mark Lammey – 19/01/2017 7:22 am

Oil majors Shell and BP are expected to reveal large increases in fourth quarter earnings next month, an analyst said yesterday.

Biraj Borkhataria of RBC Capital Markets estimated BP would record a net income of $1billion in Q4, up from $200million the previous year.

Mr Borkhataria said the firm’s production would edge up during the quarter due to lower seasonal turnaround and maintenance activities, though downstream margins will be under pressure.

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Nova Scotia offshore oil and gas ‘doesn’t look good’ after Shell seals 2 wells

By Michael Tutton, The Canadian Press Posted: Jan 18, 2017 5:12 PM

Shell’s decision to seal two exploration wells off Nova Scotia has set back the province’s dream of offshore riches, but analysts say it’s early days in what may prove to be a complex geological hunt.

Wade Locke, a resource economist at Memorial University says Shell’s confirmation this week it’s abandoning the Monterey Jack well, along with news its Cheshire deepwater well did not have commercial quantities of oil, are not confidence boosters.

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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.

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Nigeria’s Jonathan named in Italian ‘kickback’ probe

By AFPPUBLISHED: 17:39, 9 January 2017

Italian prosecutors have alleged that Nigeria’s former president Goodluck Jonathan and his oil minister received kickbacks as part of a $1.3 billion deal involving oil giants ENI and Shell.

Court documents filed late last month in the city of Milan and seen by AFP outline a case against 11 people, including senior executives from the two oil majors and the companies themselves.

Jonathan, who left office in May 2015, and Diezani Alison-Madueke, his long-time petroleum minister who was also the first woman president of OPEC, do not feature on the list.

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