Royal Dutch Shell Group .com Rotating Header Image

Posts under ‘Oil Prices’

BP, Shell execs report surprise production boost from mature wells

|About: BP p.l.c. (BP)|By: , SA News Editor

  • BP CEO Bob Dudley has spent 38 years in the oil business, and he says has never seen anything like what happened with the company’s mature oil fields last year – their production increased.
  • Results across the industry were not as spectacular as BP’s but still impressive, executives and officials at the CERAWeek conference said this week; the International Energy Agency reported production from mature fields fell 5.7% last year, the smallest decline in at least a decade.
  • The findings are a surprise because the oil industry cut spending dramatically during the three-year downturn, but the need to stretch each dollar spent is exactly why major oil firms are getting more from those fields, says Wael Sawan, executive VP for deepwater at Royal Dutch Shell (RDS.A, RDS.B), which also reported improved results at its legacy wells.
  • “Companies are focusing on the basics, so there was a massive re-focus on existing wells,” Sawan tells Bloomberg. “It’s the cheapest and most profitable barrel that companies can access.”
  • read more and its sister websites, and are all owned by John Donovan

    Shell’s U.S. shale output plans prioritize oil over natgas

    Ron Bousso. Ernest Scheyder: 8 March 2018

    HOUSTON (Reuters) – Royal Dutch Shell Plc (RDSa.L) is focused on increasing its U.S. shale operation’s oil production while slowing investment in lower-margin natural gas, an executive said on Thursday.

    The Anglo-Dutch company aims to boost its overall shale production by 200,000 barrels of oil equivalent per day (boe/d) to 500,000 boe/d between 2017 and 2020, mostly in the United States with some production in Argentina.

    Although the shale business has yet to generate a profit, it is expected to do so next year, Greg Guidry, who heads Shell’s shale operations, told Reuters on the sidelines of the CERAWeek energy conference in Houston.

    Shell, like Exxon Mobil Corp (XOM.N) and Chevron Corp (CVX.N), aims to make shale production a driver of growth in the next decade. But today most of its output is natural gas, where profit margins are lower.

    As a result, around 85 percent of Shell’s shale budget for at least the next two years will go toward new oil resources, particularly in the Permian oilfield of West Texas and Canada’s Duvernay Basin, Guidry said. read more and its sister websites, and are all owned by John Donovan

    The U.S. is about to be the world’s top crude oil producer. Guess who didn’t see it coming.

    Pump jacks at an oil field near Lost Hills, Calif. (David McNew/Getty Images)

    Opinion writer March 7 at 7:43 PM

    The authoritative International Energy Agency announced on Monday that the United States will overtake Russia and Saudi Arabia as the world’s largest crude oil producer in five years .

    To celebrate this once-unimaginable news, how about taking a trip down memory lane? The date is May 5, 2011. Diarmuid O’Connell, then the vice president of business development for Tesla, Elon Musk’s electric-car outfit, is testifying before the House Energy and Commerce Committee. read more and its sister websites, and are all owned by John Donovan

    Fossil fuel groups risk wasting $1.6tn on projects

    — Energy Editor

    Royal Dutch Shell set a new target last November to reduce the net carbon footprint of its energy products by about half by 2050. The Anglo-Dutch group has committed to spend up to $2bn a year on renewables and other cleaner sources of energy and other European oil and gas groups are making similar moves. Andrew Brown, Shell’s director of exploration and production, told a conference in London last month… FULL FT ARTICLE and its sister websites, and are all owned by John Donovan

    Houston outlook bright with U.S. shale set to dominate global growth for years

    Forecasters at Royal Dutch Shell, the Anglo-Dutch oil major, have predicted that global oil demand could peak within a decade as electric cars and other clean energy technologies gain larger market shares.

    March 5, 2018 Updated: March 5, 2018 8:42pm

    Houston’s energy industry, which drives the local economy, has much brighter days ahead as global oil demand climbs, shale production booms and U.S. crude grabs larger shares of global markets, according to forecasts, industry officials and analysts.

    The United States is already pumping oil at record levels above 10 million barrels a day, surpassing Saudi Arabia, and may take over from Russia as the world’s production leader by the end of 2018. Over the next five years, daily U.S. production is expected to climb 3.5 million barrels, or 35 percent, to more than 13 million barrels, according to a forecast by the International Energy Agency, which monitors the global oil industry. read more and its sister websites, and are all owned by John Donovan

    Shell To Shut Louisiana Refinery Gasoline Unit For Overhaul In June

    By Tsvetana Paraskova – Feb 23, 2018, 6:00 PM CST

    Royal Dutch Shell plans to shut for a planned overhaul the 92,000-bpd gasoline producing unit at its refinery at Convent, Louisiana, for some six weeks starting in June, Reuters reported on Friday, quoting sources familiar with the refinery’s plans.

    The gasoline-producing fluid catalytic cracking unit (FCCU) at the 227,586-bpd Convent refinery, as well as the alkylation unit with 16,500 bpd capacity, are planned to be shut for an overhaul this summer, after Shell scrapped plans in November last year to permanently close the gasoline-producing unit at Convent. read more and its sister websites, and are all owned by John Donovan

    In the deepwater versus shale oil contest, Shell backs both

    Ron Bousso, Dmitry Zhdannikov: FEBRUARY 20,2018 LONDON (Reuters) – Royal Dutch Shell (RDSa.L) will expand deepwater output and turn a profit from its shale production in coming years as both together will help the oil major cope with a world of low crude prices, the head of its oil and gas production said on Tuesday.

    Shell’s deepwater production in Brazil, Nigeria, the Gulf of Mexico is much bigger and more profitable, but the firm sees the nimble, fast-returns U.S. onshore shale as an engine for growth.

    “We can see strong (shale) production growth, strong cash surpluses that gives us a balance in our portfolio where you can ramp investment up and down, you can moderate that, very unlike deepwater which is quite chunky,” Andy Brown told Reuters in an interview on the sidelines of the IP Week conference. read more and its sister websites, and are all owned by John Donovan

    Hail shale, but deepwater oil fights back

    Ron Bousso: 14 FEB 2018

    LONDON (Reuters) – Penguins, Royal Dutch Shell’s (RDSa.L) latest oil and gas development in a remote corner of the British North Sea, epitomizes the new doctrine for deepwater projects — keep it cheap and simple.

    Shunned during the oil price crash of 2014-2016, deepwater projects are being embraced again, a challenge to the surge in onshore U.S. shale output.

    Penguins, the first new major deepwater project this year, will rejuvenate the 44-year-old field by drilling 8 new wells 165 meters (541 feet) underwater and connecting them to a new production vessel. read more and its sister websites, and are all owned by John Donovan

    Big Oil takes stage for post-austerity beauty contest

    Ron Bousso: 12 FEB 2018

    LONDON (Reuters) – With years of austerity in their rear-view mirrors, the world’s biggest oil companies are locked in a beauty contest to lure investors with promises of growth and greater rewards.

    Royal Dutch Shell and Total are emerging as frontrunners after a three-year slump thanks to strong growth projections but Exxon Mobil, the biggest publicly traded oil company, has largely disappointed with a weaker outlook.

    Major oil companies slashed spending and cut costs after oil prices collapsed in 2014 and can now generate as much cash with crude at $50-$55 a barrel as they did when the price was around $100 earlier in the decade. read more and its sister websites, and are all owned by John Donovan

    Shell Commits to Expanding Gas Stations as Some Rivals Retreat

    Istvan Kapitany, head of Shell’s global retail business

    By Kevin Orland: 9 February 2018

    (Bloomberg) — While many oil producers are stepping back from their retail operations, Royal Dutch Shell Plc is doubling down.

    Shell, which has about 44,000 filling stations around the world, opened its first one in Mexico last year, the start of $1 billion in investments over the next decade. Shell also is ramping up spending in China, India, Indonesia and Russia, Istvan Kapitany, head of Shell’s global retail business, said in an interview in Calgary. read more and its sister websites, and are all owned by John Donovan

    Canadian shale boom triggers quakes in Alberta town as frackers rush to drill new wells

    Communities like Fox Creek, Alberta, are feeling the economic benefits of the shale boom, along with fracking-linked earthquakes. 

    Drilling has been so intense near Fox Creek, Alberta that it’s been linked to a series of earthquakes.Brennan Linsley/AP Photo

    Bloomberg News: Robert Tuttle: February 9, 2018: 12:59 PM EST

    In the Western Alberta town of Fox Creek, roughnecks shuffle through hotel lobbies, freight trucks choke slushy streets and, every once in a while, tremors shake the earth.

    Welcome to Canada’s biggest shale boom. Chevron Corp., Royal Dutch Shell Plc, Encana Corp., Murphy Oil Corp. and XTO Energy Inc. are among those flocking to Fox Creek to stake their claim in the oil-rich Duvernay shale formation. 

    Here, the prize is condensate, an ultra-light oil that’s perfect for diluting the heavy tar-sands crude for which Alberta is known. More locally produced diluent would be a plus for Canadian companies that now depend on the U.S. — and for communities like Fox Creek that are feeling the economic benefits along with fracking-linked earthquakes. More of both may be in the offing as drillers flock in Chevron’s wake into the Duvernay region. read more and its sister websites, and are all owned by John Donovan

    North Sea Forties oil pipeline ramps up slowly after latest outage – sources

    Royal Dutch Shell’s Shearwater platform was closed as of Thursday morning and expected to restart later in the day, a company spokesman said.

    Reuters Staff: 8 FEB 2018

    * Buzzard oilfield restarts, pumping below full rate-source

    * Forties has temporary flow restriction-sources

    * North Sea “becoming more like Libya”, says trader (Adds details on fields restarting, flow restriction, quotes)

    By Alex Lawler and Amanda Cooper

    LONDON, Feb 8 (Reuters) – Oil and natural gas flows along Britain’s biggest and most important oil pipeline, Forties, were ramping up slowly on Thursday as the system restarts after its second unplanned outage in two months, industry sources said. read more and its sister websites, and are all owned by John Donovan

    Shell can still grow in ‘rejuvenated’ North Sea, CEO says

    Shell’s boss said yesterday that the North Sea is showing signs of “rejuvenation” and can provide the oil major with more room to grow.

    Written by

    Doubts about Shell’s commitment to the UK were raised last year when it agreed to sell a package of assets to Chrysaor.

    But last month the Anglo-Dutch energy giant announced its decision to invest in redeveloping the Penguins area, 150miles north-east of Shetland.

    The project will involve the construction of Shell’s first new manned installation in the northern North Sea in almost 30 years.

    Chief executive Ben van Beurden said yesterday that the Penguins decision was “important” for Shell. read more and its sister websites, and are all owned by John Donovan

    Shell pledges share buyback despite worry over cashflow

    Royal Dutch Shell has sought to reassure investors that it will soon be able to press ahead with a promised $25 billion share buyback, after doubts over its cashflow overshadowed a surge in full-year profits.

    Ben van Beurden, chief executive of the Anglo-Dutch oil group, said that he was “obsessed” with starting share buybacks as soon as possible and was confident that it could afford them, despite reporting weaker-than-expected cash generation that sent its shares down 2.5 per cent yesterday. read more and its sister websites, and are all owned by John Donovan

    Shell Profit Triples but Cash Flow Disappoints

    LONDON—Royal Dutch Shell PLC more than tripled its profit in 2017 on a rebound in oil prices, but its closely watched cash-flow figures fell short of expectations, alarming investors. The British-Dutch oil giant said Thursday its 2017 profit on a current cost-of-supplies basis… was $12.1 billion, up from $3.5 billion in 2016. Its earnings for the fourth quarter jumped to $3.1 billion from $1 billion a year earlier. FULL ARTICLE  read more and its sister websites, and are all owned by John Donovan

    Shell profits double despite $2bn US tax charge

    Profits at Royal Dutch Shell more than doubled in the fourth quarter of last year, despite the group taking a $2bn charge related to President Donald Trump’s US tax reforms. The recovery in oil prices coupled with steep cost cuts after a three-year downturn are fuelling a resurgence in cash flow and profitability at Shell and the world’s other largest oil and gas groups. FULL FT ARTICLE and its sister websites, and are all owned by John Donovan

    Shell annual profits up 242% to £8.5bn as oil prices rise

    Royal Dutch Shell has reported a surge in annual profits to £8.5bn – a leap of 242% on the previous year.

    The Anglo-Dutch oil major credited the performance on a recovery in oil and gas prices during a “year of transformation” within the business.

    Underlying earnings – which reflect day-to-day operations and strip out one-off costs – more than doubled to £11.2bn and were aided by a £3bn contribution during the final three months of the year.

    The company said: “Full-year earnings benefited mainly from higher realised oil, gas and liquefied natural gas (LNG) prices, improved refining performance and higher production from new fields, which offset the impact of field declines and divestments.” read more and its sister websites, and are all owned by John Donovan

    Shell ‘transformation’ doubles profits as oil recovery takes hold

    Jillian Ambrose

    Royal Dutch Shell has doubled its profits following the oil major’s worst financial year in over a decade as the oil market recovery takes hold.

    The Anglo-Dutch oil giant said the “transformation” following its 2016 mega-merger with BG Group and $30bn portfolio overhaul has reopened flows of cash back into the business as oil prices soared to over $65 a barrel last year, from under $30 a barrel at its lowest point in early 2016.

    Shell’s earnings on a ‘current cost of supply’ (CCS) basis, which is a standard oil industry measure, more than doubled from the previous year to reach $15.8bn (£11bn) for 2017. read more and its sister websites, and are all owned by John Donovan

    Shell poised to dethrone Exxon in oil titans’ cash clash

    Ron Bousso: 1 FEB 2018 LONDON (Reuters) – Royal Dutch Shell could usurp its largest rival Exxon Mobil as the energy sector’s biggest cash generator after higher oil and gas prices combined with an improved performance lifted its 2017 revenue.Chief Executive Ben van Beurden has made no secret of his desire to challenge the dominance of the world’s largest listed oil company after its $54 billion purchase of BG Group in 2016 catapulted Shell into second place in terms of production.

    The Anglo-Dutch company on Thursday reported a more than doubling of profit in 2017 to $16 billion, the highest since the start of the 2014 downturn as the effect of years of costs cuts and the integration of BG Group filtered through.

    “We enter 2018 with continued discipline and confidence, committed to the delivery of strong returns and cash,” van Beurden said in a statement.

    Shell’s shares were 1.1 percent lower at 0842 GMT, compared with a slightly positive open for the FTSE 100 index. read more and its sister websites, and are all owned by John Donovan

    Shell Makes as Much Money at $60 a Barrel as When It Was $100

    The oil-price rally worked both ways for Royal Dutch Shell Plc as improved exploration and production lifted profit to a three-year high while refining and trading fell short of expectations as margins shrank.

    Crude’s surge raised adjusted profit at Europe’s largest energy company to $4.3 billion last quarter, the highest since 2014. While the bottom line was better than expected — and Shell is making as much money with oil at $60 a barrel as when it was $100 — cash flow was the weakest since 2016. read more and its sister websites, and are all owned by John Donovan

    Shell ahead in Mexico oil auction, wins five blocks

    Adriana Barrera, Marianna Parraga JANUARY 31, 2018 / 3:31 PM

    MEXICO CITY (Reuters) – Royal Dutch Shell (RDSa.L) won five of the first eight oil and gas blocks awarded in Mexico’s prized deep waters in the Gulf of Mexico, making the early running in the country’s biggest auction since the energy sector was opened to international oil firms.

    The stakes are high for Mexican President Enrique Pena Nieto and his ruling party, which is keen to showcase the results of the liberalization ahead of a presidential election in July. read more and its sister websites, and are all owned by John Donovan

    Why Canada is the next frontier for shale oil

    FILE PHOTO: Four rigs drill at the Super Pad in Seven Generations Energy’s Kakwa River Project in northwest Alberta, Canada in a photo provided January 19, 2018. Seven Generations Energy Ltd/Handout via REUTERS

    Nia Williams: 29 JAN 2018

    CALGARY, Alberta (Reuters) – The revolution in U.S. shale oil has battered Canada’s energy industry in recent years, ending two decades of rapid expansion and job creation in the nation’s vast oil sands.

    Now Canada is looking to its own shale fields to repair the economic damage.

    Canadian producers and global oil majors are increasingly exploring the Duvernay and Montney formations, which they say could rival the most prolific U.S. shale fields.

    Canada is the first country outside the United States to see large-scale development of shale resources, which already account for 8 percent of total Canadian oil output. China, Russia and Argentina also have ample shale reserves but have yet to overcome the obstacles to full commercial development. read more and its sister websites, and are all owned by John Donovan

    Oil Boom Gives the U.S. a New Edge in Energy and Diplomacy

    A pump jack in a Permian Basin oil field in West Texas. The area has been a focus of the shale drilling boom. Credit Spencer Platt/Getty Images North America

    HOUSTON — A substantial rise in oil prices in recent months has led to a resurgence in American oil production, enabling the country to challenge the dominance of Saudi Arabia and dampen price pressures at the pump.

    The success has come in the face of efforts by Saudi Arabia and its oil allies to undercut the shale drilling spree in the United States. Those strategies backfired and ultimately ended up benefiting the oil industry.

    Overcoming three years of slumping prices proved the resiliency of the shale boom. Energy companies and their financial backers were able to weather market turmoil — and the maneuvers of the global oil cartel — by adjusting exploration and extraction techniques. read more and its sister websites, and are all owned by John Donovan

    Shell earnings expected to hit £11bn after oil prices recover

    Jillian Ambrose: 

    Royal Dutch Shell is set to unveil its highest earnings since the oil market collapse this week, just one year after the oil major’s lowest profits in more than a decade.

    The Anglo-Dutch oil group’s efforts to overhaul its portfolio during the depths of the oil market rout are expected to be turbo-charged by the recovery in oil prices to over $65 a barrel last year, from under $30 a barrel at their lowest point in early 2016.

    Analysts predict the group’s earnings on a “current cost of supply” basis will be more than $15.7bn (£11bn) for 2017 from just $3.5bn (£2.5bn) the year before. The final quarter of last year is expected to generate higher earnings than the whole of 2016 at $4.2bn (£3bn), according to analyst consensus forecasts. read more and its sister websites, and are all owned by John Donovan

    The top five oil and gas trends for 2018

    COLE LATIMER: JANUARY 28 2018 – 4:23PM

    This year will be the year of the oil and gas revival, as prices lift performance and major projects come online.

    While Australia is increasing its focus on securing domestic gas supply, it is taking a greater role globally and evolving the industry.

    Wood Mackenzie Australasia oil and gas leader Saul Kavonic has outlined the five trends that will mark LNG growth in 2018.

    Australia leads LNG

    Australia has been ramping up its LNG projects for a number of years, and 2018 will see it finally take the world’s number one spot from Qatar. read more and its sister websites, and are all owned by John Donovan

    Shell tipped to double profits as oil price recovers

    Shell has maintained or increased its dividend every year since the end of the Second World War.

    PERRY GOURLEY Published: 23:54 Saturday 27 January 2018

    The sustained recovery seen in oil prices is this week expected to see Royal Dutch Shell deliver a doubling in annual profits.

    The energy giant, which this month approved its first significant development in the North Sea in more than six years, is predicted to report adjusted earnings of $15.7 billion (£11bn) for 2017, from $7.2bn a year earlier.

    The improvement comes as Brent crude has hit $71 a barrel for the first time in more than three years, boosted by supply curbs from oil cartel Opec, a record run of declines in US crude inventories and a weaker US dollar. read more and its sister websites, and are all owned by John Donovan

    Shell sees profits soar

    January 28 2018, 12:01am

    Royal Dutch Shell is forecast to have doubled its annual profits thanks to a resurgent oil price.

    Brent crude has soared by 55% since June to more than $70 a barrel last week — a level not seen since the 2014 crash.

    The surge is expected to have lifted Shell’s earnings from $7.2bn to $15.7bn last year, according to a consensus of analysts’ forecasts published ahead of this week’s results.

    The Anglo-Dutch giant has been cutting costs and reducing debt levels after its 2015 takeover of smaller FTSE 100 rival BG. Last year it sold a large chunk of its North Sea oil fields to private equity-backed Chrysaor for as much as £3bn. read more and its sister websites, and are all owned by John Donovan

    With corruption investigations widening, oil companies with ties to Houston face reckoning

    Big names in Houston’s energy world, like KBR, Shell and SBM Offshore, were suddenly having to explain how they came to win drilling rights and contracts worth billions of dollars in countries like Nigeria, Angola and Brazil. That money was then to be passed to Malabu Oil and Gas, a company controlled by the former Nigerian oil minister and convicted money launderer Dan Etete. For years, Shell said it was unaware of what happened to the money, but emails obtained by Global Witness indicated that the company knew the money was going to Malabu. read more and its sister websites, and are all owned by John Donovan

    Oil Companies to Reopen Their Checkbooks as Brent Surpasses $70

    After more than three years of belt-tightening, a resurgence in crude prices has fueled oil-company optimism, and a readiness to reopen the checkbook.

    More than two-thirds of 813 senior oil executives expect increased capital spending in 2018, double last year’s percentage, according to a survey by Norwegian consultants DNV GL. About a third say research and development budgets will rise, and the same number predict hiring will expand.

    Underlying those projections is a recovery in Brent crude to $70 a barrel, a level not seen since 2014 and more than double the price two years ago. That’s emboldened major producers to roll back some of the self-help measures they introduced during the downturn. Royal Dutch Shell Plc stopped offering dividends in stock last quarter, while BP Plc has started share buybacks. read more and its sister websites, and are all owned by John Donovan

    Big Oil flush with cash again, but no party yet

    Ron Bousso: 24 JAN 2018

    LONDON (Reuters) – The world’s top oil companies are expected to generate more cash in 2018 than at any other time this decade after three painful years of cuts, but it isn’t party time yet.

    The shift in sentiment has been rapid as crude prices have risen by more than 50 percent over the past six months to reach $70 a barrel, a level not seen since the crash year of 2014, thanks to global supply cuts led by OPEC.

    Only a year ago, many investors still fretted over the sustainability of the sector’s lavish dividend payouts in a weak energy market. Now the focus on company boards is gradually switching from slashing jobs and investment to boosting shareholders’ returns and growth. read more and its sister websites, and are all owned by John Donovan

    Inside Oil Giant Shell’s Race to Remake Itself For a Low-Price World

    “I am tasked,” says the oil major’s top futurist about the existential challenge ahead, “with making sure that shell isn’t a dodo.”-Jeremy Bentham, Shell scenarios leader Jeffrey Ball By JEFFREY BALL 6:30 AM EST

    Last March, Royal Dutch Shell said it was selling most of its stake in Canada’s oil sands, a vast project that has extracted millions of barrels of sticky, gooey hydrocarbons from the ground in a process that resembles mining more than drilling. The oil and gas giant announced that it was unloading its oil-sands assets, for $7.25 billion, so that it could double down on businesses “where we have global scale and a competitive advantage.”

    Left unsaid was a deeper reason for the divestiture. Months of deliberations behind closed doors at Shell headquarters in The Hague, Netherlands, had led the top brass at the world’s largest non-state-owned oil company by sales to conclude that the energy industry was changing fundamentally—in a way that could turn the profitable oil-sands operation into a liability. read more and its sister websites, and are all owned by John Donovan

    Big Oil Plans Tenfold Expansion of Cost-Cut Collaboration

    The world’s largest energy companies plan to significantly widen a two-year effort to standardize the kit they use to pump oil and gas, hoping they can deliver significant cost savings, said people familiar with the matter.

    The discussions, scheduled on Wednesday for a closed-door meeting at the World Economic Forum in Davos, are the latest sign companies are seeking to tighten their belts permanently even as oil prices recover. Bespoke equipment designed on a project-by-project basis was common during the decade-long boom in crude prices, but looks less affordable after the industry’s worst downturn in a generation. read more and its sister websites, and are all owned by John Donovan

    U.S. oil industry set to break record, upend global trade

    Liz Hampton: 16 JAN 2018

    HOUSTON (Reuters) – Surging shale production is poised to push U.S. oil output to more than 10 million barrels per day – toppling a record set in 1970 and crossing a threshold few could have imagined even a decade ago.

    And this new record, expected within days, likely won’t last long. The U.S. government forecasts that the nation’s production will climb to 11 million barrels a day by late 2019, a level that would rival Russia, the world’s top producer. read more and its sister websites, and are all owned by John Donovan

    Quest for new oil discoveries still on back burner

    Ron Bousso: January 4, 2018

    LONDON (Reuters) – Despite the strongest start for oil prices in four years, the world’s top oil companies are hesitating to accelerate the search for new resources as a determination to retain capital discipline trumps the hope of making bonanza discoveries.

    Exxon Mobil, Royal Dutch Shell, Total and their peers are set to cut spending on oil and gas exploration for a fifth year in a row in 2018, according to consultancy Wood Mackenzie (WoodMac), despite a growing urgency to replenish reserves after years of reining back investment. read more and its sister websites, and are all owned by John Donovan

    What 2018 May Mean For The Oil & Gas Industry

    , and its sister websites, and are all owned by John Donovan

    United States Awash in Oil

    December 31 at 5:09 PM U.S. crude oil production is flirting with record highs heading into the new year, thanks to the technological nimbleness of shale oil drillers .

    The current abundance has erased memories of 1973 gas lines, which raised pump prices dramatically, traumatizing the United States and reordering its economy. In the decades since, presidents and politicians have made pronouncements calling for U.S. energy independence.

    President Jimmy Carter in a televised speech compared the energy crisis of 1977 to “the moral equivalent of war.”

    “It’s a total turnaround from where we were in the ’70s,” said Frank Verrastro, senior vice president at the Center for Strategic and International Studies. read more and its sister websites, and are all owned by John Donovan

    Ineos sees Forties oil flows back to normal around new year

    Reporting by Dmitry Zhdannikov and Julia Payne; Editing by Elaine Hardcastle and Mark Potter: December 28, 2017

    LONDON (Reuters) – Britain’s biggest and most important oil and gas pipeline Forties should resume normal flows around the new year, slightly earlier than previously flagged, its operator Ineos said on Thursday.

    Ineos had previously expected the pipeline, which suffered a rare unplanned shutdown because of a crack, to resume normal operations in early January.

    The closure since Dec. 11 of the pipeline, which normally pumps about 450,000 barrels per day, and supply disruptions in Libya have helped push oil prices above $67 a barrel, their highest since mid-2015. [O/R] read more and its sister websites, and are all owned by John Donovan

    All That New Shale Oil May Not Be Enough as Big Discoveries Drop

    Three years after causing an oil-price crash, the shale boom may not be enough to meet rising global demand because the industry has cut back so sharply on higher-risk mega-projects.

    Discoveries of new reserves this year were the fewest on record and replaced just 11 percent of what was produced, according to a Dec. 21 report by consultant Rystad Energy. While shale wells are creating a glut now, without more investment in bigger, conventional supply, the world may see output deficits as soon as 2019, according to Canadian producer Suncor Energy Inc. read more and its sister websites, and are all owned by John Donovan

    Oil workers sue Shell over Gulf of Mexico platform fire


    HOUSTON (Reuters) – Three offshore oil workers filed a lawsuit against units of Royal Dutch Shell and Enbridge, seeking $1 million in damages for injuries they allegedly received during a Nov. 8 fire on a U.S. Gulf of Mexico production platform.

    The suit, filed in Galveston County court in Texas on Dec. 5, claims safety lapses on Shell’s Enchilada platform caused severe injuries to the three. The complaint seeks more than $1 million in damages from Shell International Exploration and Production, Shell Offshore, and Garden Banks Gas Pipeline Co, a unit of Enbridge, which owns a gas pipeline connected to the platform. read more and its sister websites, and are all owned by John Donovan

    Production Halted At 2 North Sea Platforms After Main Pipeline Shutdown

    Fun Trading: 18 Dec 2017


    • Shell announced that production from the Shearwater and Nelson platforms in the central North Sea had been suspended due to Forties pipeline shutdown.
    • Forties pipeline is a vital artery of the North Sea production. Production loss is estimated at about 400K Boep/d which is significant and may boost oil prices for weeks.
    • This situation could be considered as a net positive for Shell and other oil majors.

    Investment Thesis:

    Royal Dutch Shell (RDS.A) (RDS.B), BP P.l.c (BP), and Exxon Mobil (XOM) are the most reliable long-term oil companies and should be part of your main oil portfolio. However, this special status comes with the shareholders’ obligation to follow tightly what is going on with the company on the day-to-day news which may eventually change the future outlook — in this case with a potential production cut. This is exactly what I intend to discuss today. read more and its sister websites, and are all owned by John Donovan

    Oil stable on tighter market, but rising US output looms for 2018


    * OPEC-led supply cuts, Forties pipeline outage support crude

    * But rising U.S. output, driven by shale, weighs on market

    SINGAPORE, Dec 15 (Reuters) – Oil markets were stable on Friday as the Forties pipeline outage in the North Sea and the ongoing OPEC-led production cuts supported prices, while rising output from the United States kept crude from rising further.

    U.S. West Texas Intermediate (WTI) crude futures were at $57.13 a barrel at 0119 GMT, up 9 cents from their last settlement. read more and its sister websites, and are all owned by John Donovan

    Goldman Says Big Oil Is Poised for Its Best Year in Decades

    Big Oil’s slump is over and industry domination beckons, according to Goldman Sachs Group Inc.

    In 2018, companies from Royal Dutch Shell Plc to Exxon Mobil Corp. will find themselves with a surplus of cash to fund dividends, ruling the world of deep water mega-projects and even coming out ahead in tax negotiations with oil-reliant governments around the globe, according to Michele Della Vigna, Goldman’s head of energy-industry research.

    The industry’s success in cutting costs, paired with a low oil price that keeps smaller competitors out of the biggest projects, has created an environment where only major players can compete, Vigna said. That should bolster earnings and return the industry giants to a position of dominance not seen in 20 years. read more and its sister websites, and are all owned by John Donovan

    A decisive step to a cleaner energy future

    Chief Executive Officer at Shell

    It’s time for Shell to accelerate its efforts in the transition to a lower-carbon world. This is how I plan to drive change through the company.

    How will a future CEO of Shell judge what I have just announced? Will they look back to the end of 2017 and consider it a turning point? In 20 years? 30 years? If things move as I expect, they probably will.

    By then, I believe Shell will be at least as profitable and successful as today but it will be a very different company.

    We will still have plenty of oil and gas in our energy mix but other areas of the business, which are small today, will have grown. read more and its sister websites, and are all owned by John Donovan

    Shell: ‘No plans’ to sell North Sea assets

    Shell has told BBC Scotland it has no more plans to sell assets

    Oil giant Shell will not sell off any more North Sea assets.

    A senior figure at the company has told BBC Scotland he has no plans to sell resources despite the chancellor announcing measures to make the process easier.

    Shell has just completed the sale of a package of assets to the company Chrysaor for $3.8bn.

    It included stakes in the Buzzard, Beryl, Elgin-Franklin and Schiehallion fields.

    Director of Shell’s Upstream Commercial business, Steve Phimister, said he would now invest in what remains. read more and its sister websites, and are all owned by John Donovan

    Royal Dutch Shell’s Deepwater Strength

    Dividend Stream: Nov. 30, 2017


    • Royal Dutch Shell held its annual analyst day earlier this week.
    • Management expects to generate at least $25 billion in excess cash flow by 2019.
    • Despite rising share prices, Shell can still be picked up here.
    • This idea was discussed in more depth with members of my private investing community, Streaming Income.

    The recovery in oil and gas is in full swing. While benchmark crude oil prices have gone up across the board, Brent is now $63 per barrel, the catalyst for this recovery comes more in the fact that oil producers have done such a good job in bringing costs down.

    Nowhere is that more starkly noticeable than in offshore, deepwater drilling, where dayrates for state-of-the-art rigs have gone from as high as $700,000 three years ago to just $250,000 or so. As onshore rig counts creep higher, cost inflation is once again becoming a fact of life in select onshore shale plays. With deepwater drilling, however, there are still many rigs ‘stacked’ in harbors across the world just waiting to come out and get activated, thereby keeping development and operational costs down. read more and its sister websites, and are all owned by John Donovan

    Investors’ fortunes transformed as Shell restores cash dividend

    Royal Dutch Shell investors reaped the rewards of its “transformation” yesterday when it said that it would resume paying its entire $16 billion annual dividend in cash and would press ahead with at least $25 billion of share buybacks by 2020.

    Europe’s biggest listed energy company has been saving cash over the past two and a half years by paying about a quarter of its dividend in the form of new shares, part of a strategy to help it to cope with the longest sustained downturn in oil prices for a generation. read more and its sister websites, and are all owned by John Donovan

    Shell, to Cut Carbon Output, Will Be Less of an Oil Company

    By Nov. 28, 2017

    Bowing to pressure from shareholders and the Paris international climate accord, Royal Dutch Shell pledged on Tuesday to increase its investment in renewable fuels and to cut its carbon emissions in half by 2050.

    Shell and other big oil companies have moved only sporadically over the last decade toward greater production of wind and solar energy. Now there are signs of a commitment to take climate change more seriously.

    In comments to investors, Ben van Beurden, Shell’s chief executive, said that from 2018 to 2020, the company’s new-energies division would spend up to $2 billion a year on renewable energy sources like wind, solar and hydrogen power and on electric-car charging stations. read more and its sister websites, and are all owned by John Donovan

    Shell signals an end to the oil downturn with return of all-cash payouts

    Jillian Ambrose: 

    Royal Dutch Shell has signalled the end of the three-year oil market downturn by restarting its all-cash shareholder payouts as its cash flow begins to boom.

    The oil major began paying out dividends in the form of shares in 2015, in the wake of the oil price crash and its $50bn takeover of BG Group.

    But chief executive Ben van Beurden said the Anglo-Dutch group was now confident that it could call an end its scrip dividend as its cost-cutting and divestment programme pays off. read more and its sister websites, and are all owned by John Donovan

    Shell signals return to pure cash dividend, focus on renewables

    FILE PHOTO: Ben van Beurden, chief executive officer of Royal Dutch Shell, speaks during a news conference in Rio de Janeiro, Brazil, February 15, 2016. REUTERS/Sergio Moraes /File Photo

    Ron Bousso: NOVEMBER 18, 2017

    LONDON (Reuters) – Royal Dutch Shell (RDSa.L) will return to paying pure cash dividends and step up its investment in cleaner energy as it turns a corner after more than two years of cost cuts and disposals prompted by weak oil prices.

    Shell Chief Executive Officer Ben van Beurden sought to strike a balance between reassuring investors it can increase returns in its core fossil fuel business during an “era of volatility” in oil prices while preparing to step up investments in renewables. read more and its sister websites, and are all owned by John Donovan

    Shell Updates Company Strategy and Financial Outlook

    NEWS PROVIDED BY: Royal Dutch Shell plc

    THE HAGUE, Netherlands, November 28, 2017 /PRNewswire/ —

    • Scrip dividend programme to be cancelled with effect from the fourth quarter 2017 dividend
    • Annual organic free cash flow outlook increased to $25 to $30 billionby 2020, at $60 per barrel (real terms 2016)
    • Company sets ambition to reduce the net carbon footprint of its energy products in step with societys drive to align with the Paris Agreement goals

    Royal Dutch Shell plc (Shell) (NYSE: RDS.A) (NYSE: RDS.B) Chief Executive Officer, Ben van Beurden, today updated investors on the company’s strategy, setting out plans to grow returns and free cash flow, and outlining its ambition to reduce the net carbon footprint of its energy products.

    “Our next steps as we re-shape Shell into a world-class investment aim to ensure that our company can continue to thrive, not just in the short and medium term but for many decades to come,” said van Beurden. “These steps build on the foundations of Shell’s strong operational and financial performance, and my confidence in our strategy and our ability to deliver on the promises we make.” read more and its sister websites, and are all owned by John Donovan
    %d bloggers like this: