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Shell has seen the future – and it’s several shades of green

Ben Van Beurden, chief executive officer of Royal Dutch Shell, sees a future dominated by gas and renewables, with gas the clear winner. Photo: Bloomberg

By Ben Marlow: 

If there is one subject that divides energy producers it’s the question of when oil demand will peak.

Indeed, it is such a controversial topic that some senior figures like Saudi Arabia’s Energy Minister, Khalid al-Falih, prefer not to discuss it at all.

He claims talk of peak demand is dangerous. It threatens to reduce vital investment, “compromising” energy security, al-Falih said earlier this year.

John Watson, boss of American oil giant Chevron, recently dismissed the idea of peak demand as “wishful thinking”. read more

Shell seeks buyers for Oman field stake – sources

Ron Bousso, Clara Denina: OCTOBER 10, 2017 / 3:55 PM

LONDON (Reuters) – Royal Dutch Shell (RDSa.L) is seeking to sell its 17 percent stake in the Mukhaizna oil field in Oman, which could fetch up to $200 million, banking sources said. 

The sale process is led by investment bank Rothschild, the sources said.

Shell and Rothschild did not respond to requests for comment. 

The Mukhaizna heavy oil field, operated by Occidental Petroleum (OXY.N), reached an average oil production rate of 127,000 barrels of oil equivalent per day in 2016, according to Occidental’s annual report. read more

Why Shell Investors Shouldn’t Ignore The Ongoing Security Situation In Nigeria

 Oct. 4, 2017 5:28 AM ET

Summary

  • Attacks on oil & gas infrastructure in Nigeria pose a serious risk to Royal Dutch Shell.
  • Looking at Shell’s footprint in the country.
  • How it has been impacted so far.

Royal Dutch Shell plc (NYSE:RDS.A) (NYSE:RDS.B) is a big player in Nigeria, a country that has been dealing with increases in civil unrest and sporadic violence over the past few years, particularly from the Niger Delta Avengers group that wants a larger portion of the oil & gas tax revenue to go to the Niger Delta region. This is on top of Nigeria’s ongoing fight against the Boko Haram insurgency in the northern parts of the country. The ongoing security situation is a major risk for Shell’s Nigerian operations, especially as the Niger Delta Avengers have shown the ability to repeatedly target bottlenecks like pipelines and force a lot of output offline. Let’s dig in by first going over what’s at stake for Shell. read more

The Next Big Offshore Boom Is About To Happen Here

Say what you will about offshore oil and gas exploration, but it’s still alive and kicking—high production costs and all. The latest demonstration of the viability of deepwater projects, even in the post-2014 oil industry era, comes from none other than Brazil.

On Wednesday, the country’s National Petroleum Agency put 287 oil and gas blocks up for auction, and only 37 found buyers. Too few, it might seem at first. But the proceeds came in at more than US$1.2 billion—a hefty share of this pledged by heavyweight Exxon. The NPA’s expectations for the proceeds were much more modest, at $157 million. read more

Shell takes cautious approach to green energy transition

by Andrew Ward, Energy Editor: 1 Oct 2017

Mr van Beurden, chief executive of Shell, allows himself only the briefest self-congratulation. “All the milestones, we are either ahead or on track,” he tells the Financial Times, referring to targets set at the time of the takeover. “But you are never done in this industry because everything is always in continuous decline.” The Dutchman is talking about the relentless pressure to find new resources… FULL ARTICLE

Lower for longer oil prices vs higher, sooner

by : Sunday 1 Oct 2017

To clarify Ben van Beurden’s point, he was not forecasting that oil would be “lower forever”; he meant that Shell should be operating with the mindset that it might be. If you are a risk-averse oil producer, that makes sense. Oil consumers should probably likewise be thinking about the possibility that prices could be higher, sooner.

FULL FT ARTICLE

Shell explores electric vehicle charging, energy management businesses

SEPTEMBER 28, 2017 / 8:20 AM

AMSTERDAM, Sept 28 (Reuters) – Royal Dutch Shell is working on developing new energy technologies like ‘smart’ electric vehicle charging and models to reduce customers’ energy use, the head of the oil company’s new energies division is set to say on Thursday.

Shell intends to invest up to $1 billion a year through its New Energies division by the end of the decade as the oil company adjusts to an energy market that is moving towards more electrification, decentralised energy use and cleaner fuels. read more

Shell CEO van Beurden says oil prices will be around $60 by the end of the decade

  • It would not be “unreasonable” to forecast oil at $60 a barrel at the end of the decade, said Royal Dutch Shell CEO Ben van Beurden
  • Oil supply was more unpredictable than demand, van Beurden added

| : 27 Sept 2017

It’s “not unreasonable” to expect oil prices at $60 a barrel by the end of the decade, Royal Dutch Shell CEO Ben van Beurden told CNBC’s “Managing Asia.”

To be sure, that’s not a large rise from current levels.

Brent crude rose 0.38 percent to trade at $58.66 a barrel in Wednesday Asia trade, after hitting a 26-month high on Tuesday, while U.S. crudewas higher by 0.5 percent at $52.14 at 12:00 p.m. HK/SIN. read more

Top BP Executive Warns OPEC Needs to Prolong Oil Output Curbs

OPEC and its allies need to extend their crude production cuts beyond March 2018 to rebalance the global oil market, a top executive at BP Plc’s trading arm said.

“Rebalancing is already on the way,” Janet Kong, Eastern Hemisphere Chief Executive Officer of integrated supply and trading at BP, said in an interview in Singapore. But OPEC needs “definitely to cut beyond the first quarter” to bring inventories down and back to historically normal levels, she said.

The view from BP follows a gathering in Vienna by the Organization of Petroleum Exporting Countries and its partners that concluded with no decision on an extension or deepening of supply cuts. Oil has struggled to hold above $50 a barrel in 2017 as investors weighed signs of a whittling worldwide crude glut against concerns the U.S. will boost oil production. read more

Iran Says OPEC Action on Output Cuts Must Address Libya, Nigeria

OPEC’s commitment to cutting production to clear a global glut is working, but the group needs to address rising output from Libya and Nigeria, Iran’s Oil Minister Bijan Namdar Zanganeh said. 

Compliance with the output cuts is “acceptable,” Zanganeh told reporters in Tehran. The Organization of Petroleum Exporting Countries should focus on “the situation with Libya and Nigeria,” he said, referring to the two countries exempted from capping production due to their internal strife. read more

Why $55 Brent Is Big News For Shell

: Sept 21, 2017

Summary

  • Checking out high-yielding Royal Dutch Shell plc.
  • Brent bouncing up to over $55/barrel is big news that I think has been under-reported in the financial media.
  • Overview of Shell’s finances and significance of higher Brent prices.

In light of material increases in realized upstream prices and an improving downstream sector, Royal Dutch Shell plc’s (NYSE:RDS.A) (NYSE:RDS.B) financials have shown tremendous improvement this year. The worst of the downturn is behind the oil sector, but keep in mind crude prices remain range-bound. That being said, with Brent (global oil benchmark) back over $55/barrel (high end of the range), things are looking brighter and brighter for Royal Dutch Shell every day. Especially when it comes to fully covering Royal Dutch Shell plc Class A and Class B shares’ lofty 6+% yields. Let’s dig in. 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’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 Is Nothing Short Of Exemplary

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

Summary

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

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

Shell’s Ben van Beurden: Oil vs Uber in the battle of reputations

In a throwaway comment, Ben van Beurden found himself front and centre on the national media’s radar. “It wasn’t a planned remark, it just came out,” he said.

Written by

But it wasn’t oil price, or strategy that landed him prime time interviews.

Instead, it was the comment that his next car would be electric.

“It wasn’t a planned remark, it just came out,” he said.

“But it shows how charismatic renewables and electricity is at the moment, much more charismatic than gas and definitely much more charismatic than oil.”

A perception that oil and gas have a shrinking role to play is one the industry needs to address head-on. read more

INTERVIEW-Electric cars and renewables not enough to meet Paris climate goal – consultant

Despite the rise in renewable energy, it is gas that will overtake oil as the world’s biggest energy source by 2034… This thinking underpinned, for example, Royal Dutch Shell’s $54 billion takeover of BG Group last year.

* World will miss Paris target under current projections

* Energy demand seen peaking around 2030

* Electricity output to rise 140 pct by 2050 

* Gas to overtake oil as main energy source by 2034

By Karolin Schaps

ARNHEM, The Netherlands, Sept 5 (Reuters) – The cost of electric vehicles (EVs) will fall to match those running on combustion engines by 2022, a key trigger that will mean by 2035 half of all passenger vehicles sold globally will be electric, according to the head of a top energy consultancy. read more

Exclusive Interview: Ben van Beurden – No North Sea retreat

A North Sea retreat is not on the cards for Shell, according to its chief executive.

Shell’s “rejuvenation” in the North Sea…

Written by

Ben van Beurden hailed the region’s “tremendous” progress.

His commitment to the region comes after it sold more than half of its North Sea oil and gas fields for $3.8billion to Chrysaor.

The sell-off included interests in the fields Buzzard, Beryl, Bressay, Elgin-Franklin, J-Block, the Greater Armada cluster, Everest, Lomond and Erskine, and a 10% stake in Schiehallion.

Mr van Beurden insisted the shift in assets was about breathing new life into the portfolio Shell ring-fenced to keep. read more

Exclusive: Shell’s CEO – Oil slide is “biggest blessing”

“There were a few mishaps in BG that really hammered their share price and we saw them coming into this funny situation where the share price came down, but we could only see the value go up so we needed to take a hardened look at it again,” Mr van Beurden said. “And then while we were looking at it the oil price started crashing, which actually opened the window even further.”

Energy editor Rita Brown heads to the Hague to hear exclusively how Shell’s chief executive has viewed the last three years since the oil price crash

Written by

Ben van Beurden’s rise to the top coincided with the oil price riding the crest of a wave.

But for a man who assumed Shell’s chief executive role just months before it all came crashing down, he sums up the last three years as “a blessing”.

“Less than a year into my new role, the oil price started going down and it’s been quite a journey, but if I look back on it I think this is probably the biggest blessing that I’ve had,” he said.

“It has done two things. First of all it provided a tremendous amount of focus on the things that needed doing. I mean, there’s nothing like a crisis to focus on cost efficiency. read more

Big Oil to be usurped by gas in little more than a decade, experts warn

Jillian Ambrose: 

THE dominance of Big Oil will be usurped in less than two decades by the dawn of a golden age for natural gas lasting at least until the middle of the century.

One of the world’s biggest risk assurance experts in the global energy ­industry has predicted that gas will emerge as the world’s most important source of energy by the mid 2030s ­after a slow descent for oil which will peak within ten years and the ongoing decline of coal. read more

Is it game over for BP plc and Royal Dutch Shell plc?

By  1 Sep 2017, 18:12 Do you drive an electric car? For most of you the answer will be a resounding NO. Do you think more people should drive electric vehicles to help protect the environment? I’m guessing the answer will be an emphatic YES. And therein lies the problem.

The end is nigh?

I’m sure most drivers stuck on the world’s largest car park, the M25, would agree that more people should use public transport. But few are prepared to make the change themselves. I think by now you’re probably getting my point. Most of us want to live in a better world, but we look to others to make the necessary sacrifices.

It’s for this reason that I don’t believe the end is nigh for fossil fuels. That really matters to companies like  and Royal Dutch Shell. In fact I’ve been listening to experts harping on about the end of our reliance on fossil fuels ever since I was a child. And believe me, that was a very long time ago. read more

Shell says no major damage to Perdido platform after Harvey

SEPTEMBER 1, 2017 / 7:01 PM

NEW YORK (Reuters) – Royal Dutch Shell (RDSa.L) said on Friday that early inspections show there was no major damage to its Perdido platform in the U.S. Gulf of Mexico after storm Harvey.

It added that crews are continuing to arrive on to Perdido to perform inspections and check operating systems to prepare for a restart. 

Reporting by Catherine Ngai; Editing by Chizu Nomiyama

SOURCE

What You Missed in Royal Dutch Shell plc’s Quarterly Report

Global energy giant Royal Dutch Shell hinted at how one number, over time, could change the future of the company

Reuben Gregg Brewer: (TMFReubenGBrewer): Sep 1, 2017 at 9:16AM Royal Dutch Shell plc (NYSE:RDS-A) (NYSE:RDS-B) is one of the world’s largest integrated oil majors. It competes with the likes of ExxonMobil, Chevron, and Total. It recently doubled down on the energy business with a $50 billion acquisition. But while it’s working to pay off the debt it took on to get that deal done, CEO Ben van Beurden made an interesting statement about the future that you may have missed in the numbers of Shell’s quarterly report.

What Shell looks like now

There’s no question about how Royal Dutch Shell makes money. It is one of the world’s largest oil and natural gas drillers, with a large footprint in liquified natural gas. Oil and gas have been the driving force, broadly speaking, throughout all of the company’s over 100-years of existence. Investor questions generally focus on what management is doing to support and grow its core operations.

In the first half of the year that included capital spending of roughly $11.5 billion. The goal for the year is for capital spending of between $25 and $30 billion. Right now management expects to be toward the low-end of that range. That range, meanwhile, is the goal every year from now until 2020. read more

Storm Harvey: Shell boss takes stock of disruption

Shell boss Ben Van Beurden says Storm Harvey is a “major event” for the industry and the firm’s staff in Texas.

Shell, which has its US base in the Texas city of Houston, has put some of its staff in emergency homes and closed two major facilities.

The storm, which earlier achieved hurricane status, has ripped through the US energy industry in the region.

However, Mr Van Beurden thinks the tropical storm will not have a major impact on its US oil production.

Large parts of Houston are under water, and more than 20 people are reported dead.

Thousands of people there have fled their homes in search of emergency shelter after record rainfall caused severe flooding.

The Shell chief executive said: “We’ve all seen the pictures. Many, many of our people – as with others as well – have been displaced… We’ve had to put people up in temporary accommodation.” read more

Hurricane Harvey Tosses Global Oil Markets Into Chaos

By Nick Cunningham – Aug 28, 2017, 6:00 PM CDT

The most powerful Hurricane to hit Texas in more than 50 years has devastated much of the coast, and the historic flooding is now causing havoc in the energy markets.

The rain is not over, and will continue over the next few days, spilling a year’s worth of rain within a week.

ExxonMobil shut down its Baytown refinery, the second largest in the United States with a capacity of 560,500 bpd. Royal Dutch Shell closed its 360,000 bpd Deer Park refinery, according to S&P Global Platts, and Phillips 66 shut down its 247,000 bpd Sweeny refinery. read more

Shell halts operations at Deer Park refinery

Royal Dutch Shell said Sunday the aftermath of Hurricane Harvey is causing the shutdown of its massive refining and petrochemical complex in Deer Park.

Shell is closing one of Texas’ largest refineries, which can refine more than 315,000 barrels of crude oil a day into gasoline and other petroleum products.

“The top priority of Shell Deer Park is to operate in a safe and environmentally sound manner. Due to continued inclement weather conditions from Hurricane Harvey, Shell Deer Park is conducting a controlled/planned shut down of the refinery and chemical plant,” Shell said in an email response. read more

Damage unknown to Shell’s Perdido platform in U.S. Gulf

AUGUST 27, 2017

HOUSTON (Reuters) – Royal Dutch Shell Plc said on Sunday it has not yet been able to assess damage to its deepwater Perdido platform in the U.S. Gulf of Mexico after evacuating it ahead of Tropical Storm Harvey, which came ashore as a hurricane.

The company scrapped plans on Saturday to send a reconnaissance flight over the platform, about 200 miles (321 km) south of Freeport, Texas, said spokesman Curtis Smith. A second flight will be attempted on Sunday.

Reporting by Ernest Scheyder; Editing by Sandra Maler read more

Royal Dutch Shell In The Clear

: Aug 23, 2017

Summary

  • Shell’s latest quarter was marked by successful cost reductions and acquisition-related synergies.
  • Shell seems to be able to meet its cash flow obligations without much trouble.
  • I recommend Shell for income investors, but with a few caveats.

Back on May 24th I “sounded the all clear” on Royal Dutch Shell (RDS.A) (NYSE:RDS.B). Shell, I felt, would henceforth be able to pay its dividends and capital expenditure from operational cash flow. Shell’s latest quarter was another continuation of that, with ongoing synergies from the huge BG Group acquisition two years ago and also continued opex savings. Shell’s pro-forma workforce is about 30% smaller than it was in the beginning of 2016, and while that may not be good for employees who were laid off, it is a reflection of impressive modernization and productivity gains from the company itself. read more

Canada’s Oil Industry Doomed If Prices Fall Lower

By Nick Cunningham – Aug 20, 2017, 6:00 PM CDT

Canada’s oil industry has faced a lot of strain lately. The list of oil majors selling off assets and withdrawing from high-cost oil sands is long. ConocoPhillips, Royal Dutch Shell, Marathon Oil, Murphy Oil and Statoil have sold upwards of $25 billion worth of oil sands assets this year. ExxonMobil also wrote down more than 3.5 billion barrels of oil reserves in Canada at the beginning of 2017. The companies viewed Alberta’s bitumen and heavy oil as no longer competitive in a $50 market, and many of them are focusing on other types of production, such as shale. read more

Hints Shell is searching for life after oil

The management team wants the company to focus on long-term returns, which means investing in different types of projects.

Tyler Crowe: (TMFDirtyBird):Aug 17, 2017 Like so many other integrated oil and gas companies, Royal Dutch Shell‘s (NYSE:RDS-A) (NYSE:RDS-B) goal of the past several years was to preserve capital by any means possible in the short term without giving up too much of the future. Based on the company’s most recent earnings report, it has done a pretty good job of achieving that first goal. The second part? That is all up to what Shell’s management does from here.There were several hints on the company’s most recent conference call that suggest Shell has developed a new playbook that looks very different than its prior one. Here are quotes from that conference call that show Shell’s possible future.

Making the grade

Shell has been trying to pull off an elaborate corporate shift over the past couple of years. It wanted to absorb and integrate BG Group into Shell, unload about $30 billion in assets from the combined company to lower total debt levels, reduce operating costs and capital spending, and get back to generating enough cash to cover capital expenditures and dividends. To make this transformation even more challenging, it was trying to do it in a low oil price environment.

Based on the company’s most recent performance, it looks like management has pulled it off. Here’s CEO Ben van Beurden taking stock of the situation. read more

Oil producers signal offshore return in latest Gulf of Mexico auction

 Unused oil rigs sit in the Gulf of Mexico near Port Fourchon, Louisiana August 11, 2010. Lee Celano/File Photo

Royal Dutch Shell claimed the largest number of blocks, with 19 high bids valued at a combined $25.1 million.

Liz Hampton: AUGUST 16, 2017

HOUSTON (Reuters) – Major oil producers pushed up high bids at a Gulf of Mexico offshore auction to $121 million (94.08 million pounds) on Wednesday, a nearly seven-fold increase from a year ago, as their return to deep water exploration gained momentum.

This compared with $18 million in high bids at the Bureau of Ocean Energy Management’s (BOEM) Outer Continental Shelf auction last summer. read more

The Oil Price Tug Of War

Shell pivots to electricity. The FT reports on the strategic shift underway at Royal Dutch Shell, which is moving to sell electricity to industrial consumers. The move highlights the potential for an oil major to adapt to a rapidly changing energy landscape. Beginning next year, Shell will sell electricity in the UK, but the company has said it would like to expand to the U.S. In the past, oil companies have declined to enter the electricity business, but with long-term oil demand uncertain, oil producers can hedge their bets by getting into electricity.

By Tom Kool – Aug 15, 2017, 3:00 PM CDT

Oil prices remain in a game of tug of war as conflicting news sends both the bears and the bulls to the sidelines.

• In 2015, the U.S. spent the least on energy in over a decade, largely due to the collapse of oil prices.

• In real terms, the U.S. spent $1.27 trillion on energy in 2015, down 20 percent from a year earlier.

• In inflation-adjusted terms, as well as in terms of percentage of GDP, the expenditures were the lowest since 2004. read more

Big Oil Follows Silicon Valley Into Backing Green Energy Firms

Oil majors quietly investing into new technology start-ups

‘Disruptive power’ from small companies prompts Shell to move

Major oil companies are joining Silicon Valley in backing energy-technology start-ups, a signal that that those with the deepest pockets in the industry are casting around for a new strategy.

From Royal Dutch Shell Plc to Total SA and Exxon Mobil Corp., the biggest investor-owned oil companies are dribbling money into ventures probing the edge of energy technologies. The investments go beyond wind and solar power into projects that improve electricity grids and brew new fuels from renewable resources. 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

Protesters storm Shell crude flow station in Niger Delta

Tife Owolabi: AUGUST 11, 2017 / 11:13 AM

AKUKU-TORU, Nigeria (Reuters) – Hundreds of Nigerian protesters stormed a crude oil flow station owned by Shell in the restive Niger Delta on Friday demanding jobs and infrastructure development, a Reuters witness said.

The protesters complained they were not benefiting from oil production in their area, a common refrain in the impoverished swampland that produces most of Nigeria’s oil. They also demanded an end to oil pollution in the area. read more

Oil Poised for Weekly Loss Amid Weaker Demand Outlook

IEA sees OPEC’s commitment to clearing global glut fading Agency reduced demand estimates for this year and 2018

Royal Dutch Shell Plc has restarted four units at its Pernis refinery and more will be brought online in the coming days, according to an environmental regulator.

Oil slipped, heading for the biggest weekly loss in a month, as the outlook for demand dimmed amid an already shaky market.

Futures dropped 0.8 percent in New York Friday, poised for a weekly decline of 2.8 percent. The International Energy Agency reduced demand estimates for OPEC crude this year and in 2018, and said there are doubts about the group’s commitment to cutting production, according to its monthly report released Friday. Even a pledge by Saudi Arabia and Iraq to strengthen their commitment to the curbs and maintain balance in world crude markets isn’t helping to prop up prices. read more

Shell Is Said to Aim for Full Restart of Pernis by End of August

Royal Dutch Shell Plc is aiming to return its Pernis refinery in Rotterdam to full operations by the end of this month, according to a local resident who was briefed on the matter by the company.

The company held a meeting for about 200 local residents late Wednesday, giving a first indication of when Europe’s largest refinery would resume normal operations after a fire in late July halted both crude units. The company said earlier this week that the first supporting units had been brought back online, without elaborating on the resumption of operations. read more

Is Shell’s Lower Oil Forever Really So Unrealistic?

“Royal Dutch Shell PLC’s chief executive drew a collective gasp with his “lower forever” comment as one recent story put it.”  Funny, in 2012 when I said at an OPEC conference that the price was likely to return to the $50-60 range, it was not even taken seriously enough for gasps:  the moderator actually thought I was joking, and an oil company CEO replied, ‘Well, you hate to call someone an idiot’ apparently unaware I’ve been called much, much worse. read more

Rise of electric cars challenges the world’s thirst for oil

Rise of electric cars challenges the world’s thirst for oil

Proposed bans on petrol and diesel vehicles bring further pressure to bear on Big Oil

by: , Energy Editor: 8 Aug 2017

Ben van Beurden, chief executive of Royal Dutch Shell, made no attempt to disguise the challenge facing “Big Oil”. Companies must become more discriminating about which oilfields to develop, he said, with only the most low-cost and productive likely to remain competitive. “We have to have projects that are resilient in a world where demand has peaked and will be declining,” he said. “When will this happen? We do not know. But will it happen? We are certain.” FULL FT ARTICLE read more

Nigeria’s state oil company signs deals with Chevron, Shell

LAGOS, Aug 3 (Reuters) – Nigeria’s state oil company said on Thursday it had signed financing agreements with Chevron and Shell worth at least $780 million to boost crude production and reserves.

The Nigerian National Petroleum Corporation (NNPC) said a joint venture agreement with Chevron Nigeria Limited would see the development of proven and probable reserves of 211 million barrels at the joint Sonam project.

“The project is expected to begin to bear fruits in (the) next three and six months,” NNPC said in a statement, adding it was targeting production of 39,000 barrels per day of liquids and 283 million standard cubic feet of gas per day. read more

The Secret Behind Better Oil Major Earnings

By Gregory Brew – Aug 02, 2017, 6:00 PM CDT

After several years of austerity and belt-tightening, the major international oil companies posted substantial profits in Q2 of 2017. The five largest private oil companies together generated more than $30 billion in profit, an indication that most have successfully adapted to the current bout of low prices, while a few have publicly indicated their belief that prices will hover around $50 for the foreseeable future.

What this means is that the “mega projects” that dominated many companies’ balance sheets for the last decade will become increasingly rare, as the majors pivot towards short-term, low-risk ventures with a faster turnaround. A closer look at each company shows how individual firms have adapted in distinct ways to this new era. read more

Who needs oil at $100? Majors making cash at $50: Goldman

BloombergUpdated: Aug 03, 2017, 08.55 AM IST

Integrated giants like BP and Royal Dutch Shell have adapted to lower prices by cutting costs and improving operations, analysts at the bank including Michele Della Vigna said in a research note on Wednesday.

European majors made more cash during the first half of this year, when Brent averaged $52 a barrel, than they did in the first half of 2014 when prices were $109. Back then, high oil prices had caused executives to overreach on projects, leading to delays, cost overruns and in inefficiency, Goldman said. read more

Shale drillers show few signs of slowing as profits expand

Shale drillers show few signs of slowing as profits expand

The optimism from the U.S. shale fields followed quarterly reports last week that showed major international producers including Exxon Mobil Corp. and Royal Dutch Shell Plc are also learning to make money at $50 a barrel…

Alex Nussbaum and Joe Carroll, Bloomberg: Published 6:46 am, Wednesday, August 2, 2017

The shale surge that’s tied down global oil prices shows no signs of abating, as four of the biggest U.S. drillers said they’re not backing away from lofty production targets for 2017.

In second-quarter earnings reports, EOG Resources Inc., Devon Energy Corp., Newfield Exploration Co. and Diamondback Energy Inc. all outlined goals on Tuesday that would help push U.S. output toward a record 10 million barrels a day next year. Even Pioneer Natural Resources Co., which trimmed the top end of its forecast due to delays in the Permian shale basin, still expects to increase oil and natural gas volumes by 16 percent at year’s end. read more

Energy Shares Fall As OPEC Production Seen Picking Up – Energy Roundup

A fire outage at the largest oil refinery in Europe, a Royal Dutch Shell facility in the Netherlands, is ongoing, driving up prices of oil derivatives.

Dow Jones Newswires

Shares of energy producers ticked down as the price of oil foundered around the psychologically significant $50-a-barrel level. Among the data weighing on oil prices was a Reuters survey showing that OPEC production rose to its highest level in seven months last month. BP said it could now turn a profit with oil prices at these levels, saying its could break even with oil as low as $47 a barrel. BP swung to a second-quarter profit even as it absorbed further costs from the 2010 oil spill and as oil futures remained stuck in the $40s. A fire outage at the largest oil refinery in Europe, a Royal Dutch Shell facility in the Netherlands, is ongoing, driving up prices of oil derivatives. read more

Oil Companies at Last See Path to Profits After Painful Spell

ABERDEEN, Scotland — This port city built of granite on the North Sea has taken a battering in recent years. Plunging oil prices hit the petroleum industry, which dominates the economy. Tens of thousands of jobs were slashed. Projects worth billions of dollars were sent back to the drawing board.

Oil executives here now speak with a relief similar to survivors of a fierce storm.

“I feel good about the North Sea, to tell you the truth,” Mark J. Thomas, North Sea regional president for the oil giant BP, said in an interview at the company’s offices near Aberdeen’s airport. “It is remarkably different than where we were even just a few years ago.” read more

Royal Dutch Shell Gearing Up To Stay ‘Fit For The Forties’

By Aisha Rahman: Jul. 31, 2017 6:49 PM ET

Summary

Q2 2017 saw better YoY profits. However, the same cannot be said for QoQ results, due to lower oil prices in Q2.

There were notable improvements in the cash flow position, and I expect this trend to continue on for the rest of the year.

As the company gears up to stay “resilient to market changes,” it is seeking to control its cost lines and step into the renewable energy business.

I had written an earnings preview on Royal Dutch Shell (NYSE:RDS.A) (NYSE:RDS.B) a few days before the company posted its Q2 results for the year. I decided to do a spin-off article to that in response to their earnings announcement for the quarter, and talk about the tone the company has set for the rest of the year. read more

BP and Shell face huge challenge from switch to electric cars

Petrol pumps will become a thing of the past as charging points replace them: WEEGEE (ARTHUR FELLIG)/INTERNATIONAL CENTER OF PHOTOGRAPHY/GETTY IMAGES

Emily Gosden, Energy Editor: 31 July 2017

Oil investors are getting worried. Electric cars have accelerated on to the front pages. Sales are surging, carmakers are unveiling plans for all-electric models and this week Britain vowed to ban sales of petrol and diesel cars by 2040.

Yet if Big Oil believes that death is about to pull up in a Tesla, it’s doing a good job of hiding it. On Thursday, Ben van Beurden, the boss of Royal Dutch Shell, welcomed Britain’s plans and declared that his next car would be electric. And earlier in the year Spencer Dale, BP’s chief economist, bluntly described the arrival of electric vehicles on the oil majors’ lawn as “not a game-changer”, adding that not even “enormous” growth in sales of such vehicles would make a big dent in global oil demand. read more

OPEC’s Existential Sucker Punch

Julian Lee: July 30, 2017 3:00 AM EDT

You wait decades for an existential crisis, then two come along at once. At least that’s how it must feel for OPEC’s beleaguered ministers. In the short term the market for their oil is being eroded by rising production outside their control. Looking further ahead, oil demand itself is under threat from the electrification of road transport. OPEC may not yet be dead, but its days are surely numbered.

The most obvious short-term threat to the group comes from the rapid rise in U.S. shale oil, but the risks have expanded to include other areas like Brazil’s prolific sub-salt discoveries and more recent finds further north along the east coast of South America. read more

Cheap oil forcing a rethink, says Royal Dutch Shell

  • The Wall Street Journal

Royal Dutch Shell has presented a pessimistic vision for the future of oil, even as the company reported success in generating cash during a prolonged energy downturn.

Shell has cut costs and said it was preparing for a world in which crude prices might never regain precrash levels and petroleum demand declined.

Shell chief executive Ben van Beurden said the company had a mindset that oil prices would remain “lower forever” .

“We have to have projects that are resilient in a world where oil has peaked,” Mr van Beurden told reporters on a conference call discussing the company’s second-quarter financial results. “When it will happen we don’t know, but that it will happen we are certain.” 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

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