Royal Dutch Shell Group .com Rotating Header Image

Posts Tagged ‘BP’

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

Statoil Vies for a Stake in Abu Dhabi’s Offshore Oil

Statoil ASA is among producers involved in discussions with the Abu Dhabi National Oil Co. about joining offshore production in the emirate, according to a Norwegian diplomatic dispatch.

“All the major oil companies, including Statoil, are positioning themselves for a cooperation with Adnoc in the offshore segment,” Norway’s embassy in Abu Dhabi wrote in a message to the Foreign Ministry in Oslo dated Aug. 17, which was obtained by Bloomberg through a freedom-of-information request. read more

San Francisco sues Big Oil for billions over climate change claiming they knew the dangers for decades

‘Instead of owning up to it, they copied a page from the Big Tobacco playbook,’ says San Francisco’s city attorney

The Golden Gate Bridge across San Francisco Bay

The US cities of San Francisco and Oakland are suing five of the world’s largest oil companies for the coasts of walls and other defences against rising sea levels, saying the industry made vast profits from fossil fuels while knowing they were causing “an existential threat to humankind”.

Drawing a direct comparison to the tobacco industry’s sale of cigarettes despite knowledge of the health risks, the city attorneys announced they had filed separate lawsuits against BP, Royal Dutch Shell, Exxon Mobil, Chevron and ConocoPhillips. read more

SF, Oakland sue top five oil and gas companies over climate change

San Francisco and Oakland on Wednesday announced lawsuits against five major oil and gas companies. (Courtesy photo)

The lawsuits against Chevron, ConocoPhillips, Exxon Mobil, BP and Royal Dutch Shell claim the companies have known for decades that global warming and sea level rise were accelerated by the investor-owned producers of fossil fuels, but the companies still continued to “aggressively produce, market and sell vast quantities of fossil fuels for a global market”

By on September 20, 2017 10:59 am

The cities of San Francisco and Oakland have filed separate lawsuits against five major oil and gas companies for allegedly contributing to the costs of climate change and sea level rise by producing massive amounts of fossil fuels, city leaders announced Wednesday.

The lawsuits against Chevron, ConocoPhillips, Exxon Mobil, BP and Royal Dutch Shell claim the companies have known for decades that global warming and sea level rise were accelerated by the investor-owned producers of fossil fuels, but the companies still continued to “aggressively produce, market and sell vast quantities of fossil fuels for a global market,” according to a news release from the San Francisco City Attorney’s Office. read more

Energy: North Sea emerges as global oil hot spot

  • The Wall Street Journal
  • read more

    Shell to Expand Presence in Asia and Alternative Fuel Market

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

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

    Expanding Asia Operations

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

    Big Oil Becomes Greener With Cuts to Greenhouse Gas Pollution

    It’s no secret that oil majors are among the biggest corporate emitters of pollution. What may be surprising is that they’re reducing their greenhouse-gas footprints every year, actively participating in a trend that’s swept up most corporate behemoths.

    Sixty-two of the world’s 100 largest companies consistently cut their emissions on an annual basis between 2010 and 2015, with an overall 12 percent decline during that period, according to a report from Bloomberg New Energy Finance released ahead of its conference in London on Monday. read more

    Oil Majors Cut Greenhouse Gas Pollution

    By Foster Wong: 18 September 2017

    Big Oil had started fighting climate change before President Donald Trump took office read more

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

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

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

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

    The North Sea Oil Recovery Is Dead In The Water

    By Nick Cunningham – Sep 07, 2017, 6:00 PM CDT

    The oil majors issued a vote of confidence for the North Sea in recent days, citing precipitous declines in the cost of production, which they say will revive the region’s oil and gas production.

    At an oil industry conference in the North Sea’s oil capital, Aberdeen, the chief executives of BP and Royal Dutch Shell both offered bullish assessments for the turnaround underway off the coast of Scotland. BP’s Bob Dudley said the North Sea is “back to growth,” according to the FT. read more

    BP, Shell tie future to North Sea despite broad retreat

    * BP, Shell plan around 10 exploration wells

    * Both companies have sold many North Sea assets

    * Shell aims to keep production stable into 2030

    * BP to double North Sea production by 2020

    By Ron Bousso 

    ABERDEEN, Scotland, Sept 6 (Reuters) – Two of the most veteran oil and gas producers in the UK North Sea, Royal Dutch Shell and BP, still tie their future to the ageing offshore basin despite a broad retreat in recent years.

    Both companies plan to explore this year for new resources in the North Sea, one of the oldest deepwater hubs faced with harsh weather conditions, executives told Reuters.

    The two oil giants have sold billions worth of North Sea fields, many of them nearing the end of their life, in recent years. But still they see golden opportunities there as new technologies open up resources that can be profitable with oil trading at around $50 a barrel and in some cases lower. read more

    The North Sea must ‘earn its right to grow’, says Shell boss

    Jillian Ambrose: 

    The North Sea still has the support of supermajors BP and Royal Dutch Shell but the basin will need to earn its right to grow within a rapidly changing energy landscape, oil bosses have warned.

    Oil industry heavyweights have converged on Aberdeen this week for a conference focused on the future of the North Sea as oil majors shift their portfolios towards low cost oil, petroleum products, gas and even renewables.

    Ben Van Beurden, Shell’s chief executive, said the Anglo-Dutch group is still committed to the basin after its $3bn sell-off to private equity backed Chrysaor, but added that the North Sea needs to “earn its right to grow” amid “challenging times” for the oil and gas sector. 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

    Pensions Deficits: Royal Dutch Shell alone has a shortfall of £73bn

    Sixteen companies also reported a deficit of more than £10bn, while Royal Dutch Shell alone has a shortfall of £73bn.

    3 SEPTEMBER 2017 • 7:53AM

    Dividends at some of Britain’s largest companies – many of them likely to be a staple of your portfolio – could be at risk from ballooning pension deficits.

    Huge final salary pension obligations have the potential to limit your investment returns, with tighter regulation and negative publicity surrounding the demise of BHS, the defunct retailer once owned by Sir Philip Green, already taking their toll.

    Analysis by Telegraph Money shows that, of the 10 companies paying the highest dividends in Britain, seven have a pension deficit of more than £10bn, prompting concerns for the sustainability of payments to shareholders. Many of us will be investing in these companies through company pension schemes and other savings plans. 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

    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

    Total overtakes Shell in North Sea where appetite for assets remains high

    AUGUST 22, 2017 / 2:13 PM

    LONDON (Reuters) – French oil major Total (TOTF.PA) has overtaken rival Royal Dutch Shell (RDSa.L) to become the second-largest producer in the North Sea with its acquisition of Maersk’s (MAERSKb.CO) Norwegian and UK producing assets.

    The $7.45 billion deal by Total was welcomed by the market, with analysts saying it helped the French company rebalance its portfolio by adding assets in developed countries after going for projects in riskier places such as Iran and Russia. 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

    Exxon Knew, Shell Knew, They All Knew

    08/09/2017 07:17 am ET

    In 2015, the Union of Concerned Scientists published its landmark exposé“The Climate Deception Dossiers,” which show that not only Exxon, but also Shell, BP, ConocoPhillips, Chevron and coal giant Peabody Energy were aware of the climate change reality since the 70s. Even so, through special interest groups, they invested tens of millions “to sow doubt and promote contrarian arguments they knew to be wrong.”

    The fuel that powers this planetary sabotage is called greed. The fossil fuel industry worldwide has accumulated stratospheric levels of wealth over the decades. Moreover, according to a report just published by World Development, in 2015, fossil fuels received a staggering $5.3 trillion in subsidies around the world. This includes not only taxpayer money but also the costs of deaths caused by pollution and these fuels’ contribution to the climate crisis. read more

    Shell and BP’s commitment to North Sea oil ‘rock solid’

    Shell and BP’s commitment to North Sea oil ‘rock solid’

    Majors’ cost reductions have narrowed gap in competitiveness with other parts of world

    Ben van Beurden, chief executive of Shell, has signalled that he too is once again viewing the North Sea as an investment opportunity, despite selling more than half of the group’s UK production to Chrysaor, a small UK company backed by US private equity funds, for up to $3.8bn in January. Last month, Mr van Beurden identified the Penguins field in the northern North Sea as among a handful of projects around the world that Shell would consider giving the green light to in the next 18 months. FULL FT ARTICLE

    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

    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

    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

    The electric jolt that roused Big Oil

    Jillian Ambrose: 

    Identifying a tipping point is not always easy. But when one of the world’s most powerful oil bosses says he is in the market for an electric car, there can be little doubt.

    Ben van Beurden, the Royal Dutch Shell boss, last week delivered the clearest indication yet that the burgeoning electric vehicle industry is already hastening the decline of global oil demand. “When that will be is not certain. But that it will happen, we are certain,” he told investors. read more

    EU warns U.S. it may respond swiftly to counter new sanctions on Russia

    A list prepared by the EU executive, seen by Reuters, shows eight projects including those involving oil majors Anglo-Dutch Shell, BP and Italy’s Eni that risk falling foul of the U.S. measures. EU officials warn the U.S. measures would also hit plans for the LNG plant on the Gulf of Finland in which Shell is partnering with Gazprom.

    Alissa de Carbonnel: 26 July 2017

    BRUSSELS (Reuters) – The European Union warned on Wednesday that it was ready to act within days to counter proposed new U.S. sanctions on Russia, saying they would harm the bloc’s energy security.

    Sanctions legislation overwhelmingly approved by the U.S. House of Representatives on Tuesday has angered EU officials: they see it as breaking transatlantic unity in the West’s response to Moscow’s annexation of Crimea from Ukraine in 2014 and its support for separatists in eastern Ukraine. read more

    After false dawn, Big Oil to double down on cost cuts

    LONDON (Reuters) – After a brief respite at the start of the year, the world’s top oil and gas companies are set to double down on cost cutting as a recovery in crude prices after a three-year slump falters.

    Corporate hopes were raised by a deal between members of the Organization of Petroleum Exporting Countries and other non-OPEC producers to cut production, which lifted oil prices above $58 a barrel in January, after they had slid to as low as $27 in 2016.

    But Brent crude prices have since slipped back below $50 and banks have lowered price forecasts, amid surging output from the United States and other nations not bound by the global oil pact. read more

    This could be the next big strategy for suing over climate change

    July 20 at 1:13 PM

    Two California coastal counties and one beach-side city touched off a possible new legal front in the climate change battle this week, suing dozens of major oil, coal, and other fossil fuel companies for the damages they say they will incur due to rising seas.

    The three cases, which target firms such as Chevron, ExxonMobil, BP and Royal Dutch Shell, assert that the fossil fuel producers are collectively responsible for about 20 percent of global carbon dioxide emissions between 1965 and 2015. They claim that industry “knew or should have known” decades ago about the threat of climate change, and want companies to pay the costs of communities forced to adapt to rising seas. read more

    Who Stands To Gain The Most From Oil’s Rise In Price?

    : 20 July 2017

    Summary

    *Five of the largest oil sector firms all move directly with the price of oil, but at varying degrees.

    *ConocoPhillips has historically moved at an almost dollar per dollar ratio to oil.

    *Shell and BP are far less sensitive to the change in oil prices as their American counterparts.

    *BP has a quarter of the sensitivity to the price of oil as ConocoPhillips does.

    By Eric Mason

    As oil approaches its consensus floor for price per barrel, the next move can only be upwards. To take advantage of this pending uptick, which of the major oil sector firms offers the best growth relative to the price of oil? This article will help shine some light on which stock is the best pick for gains. read more

    Investors Squeezing Oil & Gas Developers To Cut Methane

    Investors Squeezing Oil & Gas Developers To Cut Methane

    , I write about the global energy business.: July 20, 2017: Opinions expressed by Forbes Contributors are their own.

    Oil and gas developers may soon be feeling the effects of a one-two punch — an adverse court ruling dealing with their methane emissions and now an investor-led initiative pushing them to be more transparent.

    Natural gas, of course, has become the fuel of choice — a fuel that markets itself as far less pollutive than coal. But methane is its main component, which is 84 times more potent than CO2, although its lifespan is 20 years compared to 100. Indeed, methane makes up about 25% of the global warming today. read more

    Iran Looks To Close More Deals But Oil Majors Are Cautious

    By Gregory Brew – Jul 18, 2017, 9:30 AM CDT

    Iran is on track to reach a major national milestone this year, if the nation’s oil spokesmen are to be believed. On Wednesday deputy oil minister Amir Hossein Zamaninia predicted oil production would reach 4 million bpd by the end of 2017, and certainly exceed that level by the end of the Iranian calendar year (March 2018).

    Since international sanctions on its oil and gas industry were lifted in January 2016, Iran has managed to increase production to pre-sanctions levels, reaching 3.8 million in May 2017, the highest level in seven years. But 4 million bpd, long a national goal and symbolic of a full recovery, is now within reach. read more

    Kazakhstan and Eurasia new oil consortium in a multi-billion Caspian project

    LONDON (TCA) — In a move presented as glorious and spectacular, oil companies from Russia (Rosneft), China (CNPC), Kazakhstan (Kazmunaygas), Azerbaijan (SOCAR) and Italy (Eni) have teamed up to form a consortium for the exploration and exploitation of what is expected to be a new “giant” located in the very heart of the northern Caspian tectonic structure. The project, if successful and market demand to remain unchanged, should prolong the position of Kazakhstan as a global-scale oil supplier from 2040 till 2080. The Kazakhs are committed to contribute in the order of a billion greenbacks each year from now to the project. No overall picture of the total price tag has been presented so far. read more

    Royal Dutch Shell: Talking The Talk, But Walking The Walk?

    : July 12, 2017

    Summary

    • CEO Ben van Beurden reinforces Shell’s readiness to play its part in achieving Paris agreement targets, but execution on this goal unclear.
    • Shell to acquire Texas company MP2 Energy, which has renewable energy and demand response focus.
    • Shell endorses Task Force on Climate-related Financial Disclosures report.

    There is massive change happening in the transition from fossil fuels to renewable energy in the power and transport industries. While the major oil and gas companies have acknowledged the change, apart from Total (NYSE:TOT) there is little indication that other oil companies Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX) or BP (NYSE:BP) have concrete plans to change quickly. Here I consider whether Royal Dutch Shell (NYSE:RDS.A)(NYSE:RDS.B) is getting serious about the change.

    All of the oil and gas majors are under pressure, but Shell is particularly challenged as its debt has blown out due the acquisition of BG Group for $50 billion. A key part of the next steps involves debt reduction through divestment. The BG investment could prove problematic as the world is awash with new LNG projects coming on stream. For the last 3 quarters it could pay its high dividend (6.9%) from free cash flow, but this was in an environment where the Brent price was $54/barrel. This can’t continue if the oil price stays where it is now. So it is a pretty challenging time for Shell. read more

    Oil majors face downgrades if crude prices don’t pick up: S&P

    JULY 12, 2017

    LONDON (Reuters) – Big oil firms would face increased credit rating downgrade pressures if crude prices stayed below $50 a barrel on average until the end of 2018 and they did not compensate by cutting costs, S&P Global said on Wednesday.

    S&P currently has downgrade warnings – or negative outlooks in rating agency parlance – on ExxonMobil XOM.n, Chevron Corp (CVX.N) and Total (TOTF.PA), while the other so-called ‘majors’ include Royal Dutch Shell (RDSa.L) and BP (BP.L). read more

    Oil Majors Face Ratings Cuts Amid Weak Recovery, S&P Global Says

    Exxon Mobil Corp., Chevron Corp. and other oil majors could see their credit ratings slashed again if they fail to cut costs and reduce their growing debt loads in the next year, according to an S&P Global Ratings report.

    The world’s largest drillers failed to take advantage of high prices during the boom years before 2014 to repay debt, according to the report published on Tuesday. Instead they embarked on costly investments in new projects and dividends, leaving them unprepared for the painful downturn that ensued. read more

    Oil majors among top contributors to greenhouse emissions, report says

    by

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

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

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

    Could Shell cut its dividend for the first time since World War II?

    Tom Howard: 15:15 10 Jul 2017

    Shell to cut divi for first time since 1930s?

    Oil giant Royal Dutch Shell PLC (LON:RDSB) was the first to grab my attention because of its famous divi.

    It hasn’t cut its dividend since at least the 1930 but low oil prices, and possibly expectations of a dividend cut, have weighed on the share price in recent months, and it currently has a yield of 7%.

    That’s enough to (just) bring it into the bottom of the screen, which would suggest that a cut could be on the cards.

    It’s a suggestion that has been mooted by analysts at Citigroup, who recently said that the whole oil industry is “surely going to have to address the high cost of dividends”, with BP PLC (LON:BP.) and Shell having “the biggest questions (to) answer”. read more

    Oil majors lost $115 billion in market value since April

    ExxonMobil, Chevron, Total, Royal Dutch Shell, and British Petroleum are the five biggest players on the index, which includes 85 other majors. Together, they have lost $115 billion in market value since the beginning of April, Bloomberg reports, according to World Oil.

    By Zainab Calcuttawala – Jul 04, 2017, 5:00 PM CDT

    Operational improvements in shale and non-shale oil drilling, on top of lower expenses for oilfield services and access to pipeline capacity, have driven down the costs of producing the fossil fuel since the 2014 market crash. But the increase in output has forced barrel prices into a deeper bearish market, causing further damage to corporate bottom lines.

    This trend is mapped clearly in the MSCI’s World Energy Index, which measures the progress of large and medium sized companies in 23 oil-producing countries on a quarterly basis. ExxonMobil, Chevron, Total, Royal Dutch Shell, and British Petroleum are the five biggest players on the index, which includes 85 other majors. Together, they have lost $115 billion in market value since the beginning of April, Bloomberg reports, according to World Oil. read more

    Total Plows Into Iran, Leaving Shell, BP on Sidelines

    By Benoit Faucon and Sarah Kent

    The $1 billion pledged Monday by French oil giant Total SA in an Iranian gas field is a breakthrough for the resource-rich country, but it is unlikely to unleash the flood of foreign energy-industry investment that Tehran is seeking.

    Total executives signed a contract Monday to press ahead with developing the country’s massive South Pars gas field, in which it holds a 50% operating stake. The contract is the first Iranian exploration and production project awarded to a major European company in 10 years, after a deal with global powers last year ended Western sanctions on Tehran over its nuclear program. read more

    Crude Slump Wipes $113 Billion From Oil Drillers

    By Rakteem Katakey: 30 June 2017

    Oil companies have spent three years slashing spending and firing workers to protect profits, only to find their hard work blown away as prices entered another bear market. The MSCI World Energy Sector Index is heading for a second consecutive quarter of declines, mirroring the drop in crude. The 90 companies that make up the index, including giants like Exxon Mobil Corp. and Royal Dutch Shell Plc, have together lost $115 billion in market value since the start of April, according to data compiled by Bloomberg. read more

    Big Oil’s Costly Love Affair With the British Pensioner

    Crude’s fall raises new questions about huge payouts.

    By Chris Bryant: 29 June 2017

    Europe’s big oil companies have spent the past couple of years slashing costs because lower crude prices mean there’s less cash to balance the books. Despite those strains, most have left shareholder payouts untouched.

    Now, with oil prices falling back into a bear market, the dividend yields of several European integrated oil stocks have widened again. Levels like these usually indicate a dividend cut is on the cards: 

    That’s still probably not the case though. British income investors (and many pensioners) depend on Royal Dutch Shell Plc and BP Plc, which together account for more than 10 percent of FTSE 100 dividends, notes Macquarie. Shell’s alone cost an eye-watering $15 billion. Their boards’ credibility would suffer if they suddenly reversed course. Fortunately for management, there is a get-around but it looks like an expensive fudge. read more

    Hackers Hit 75% of Drillers as Sketchy Monitoring Is Blamed

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

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

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

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

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

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

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

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

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

    Oliver Milman: Tuesday 20 June 2017

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

    Polluted-Water Case Against BP and Shell Revived

    ADAM KLASFELD: 

    MANHATTAN (CN) — No longer protected by its deals with California prosecutors, BP and Shell must face another lawsuit alleging that its underground storage tanks continue to pollute Orange County’s groundwater with a toxic gasoline additive.

    The British and Dutch oil giants were named among the dozens of fossil-fuel companies in hundreds of lawsuits over the chemical methyl tertiary butyl ether (MTBE).

    Used to raise the oxygen level in gasoline, MTBE is banned by more than half of the states in the nation. The Environmental Protection Agency has flagged it as a possible human carcinogen at high doses. read more

    BP and Shell profits under renewed pressure as oil price hits 2017 low

    By HARVEY JONES:

    Crude slumped last week after a shock rise in US stockpiles, up 3.3million barrels to 513million, according to the Energy Information Administration (EIA). 

    Brent crude slipped to about $48 a barrel, its lowest level since December, and analysts said it could go sharply lower. 

    Crude dipped below $27 a barrel in January last year and Chris Beauchamp, chief market analyst at online trading platform IG, said a repeat of those levels is a distinct possibility: “Crude tends to overshoot on both the upside and the downside.” read more

    Energy Cos. Dodge Oil Price Manipulation Suits

    Energy Cos. Dodge Oil Price Manipulation Suits

    Law360, New York (June 8, 2017, 6:44 PM EDT) — A New York federal judge on Thursday nixed multidistrict litigation complaints by derivatives traders and landowners alleging a slew of energy companies manipulated the price of North Sea Brent crude oil and Brent crude futures, saying they haven’t sufficiently linked the activity to any alleged economic harm they suffered. U.S. District Judge Andrew L. Carter said that the antitrust claims against affiliates of BP PLC and Royal Dutch Shell PLC, as well as other energy firms, can’t be sustained because the traders and owners of U.S…. read more

    Shell buys Chevron’s Trinidad and Tobago subsidiary for $250M

    |By: , SA News Editor

    Royal Dutch Shell (RDS.A, RDS.B) agrees to acquire Chevron’s (CVX -0.4%) subsidiary in Trinidad and Tobago for $250M.

    The deal includes CVX’s Trinidad and Tobago’s interest in the 10T cf Loran Manatee cross-border gas field shared with neighboring Venezuela; CVX retains its interest in the block on the Venezuela side of the border.

    Shell has been expanding its holdings in Trinidad and Tobago since its purchase of BG Group and is seeking to rival BP as the biggest player in the area. read more

    %d bloggers like this: