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Posts Tagged ‘BP’

Exxon, Shell, BP to Join Group to Cut Emissions From Natural Gas

By Sarah Kent

Exxon Mobil Corp. plans to join with other big energy companies in an effort to reduce pollution from natural gas production, according to people familiar with the matter. 

The new grouping will also include Royal Dutch Shell PLC and BP PLC, according to the people. While Shell and BP have joined forces with other global players in the past in similar industrywide collaborations on environmental issues, Exxon has more typically stayed on the sidelines. read more

Tory ministers lobbied Brazil on behalf of Shell and BP, Government accidentally reveals

Greg Hands used a meeting with a Brazilian minister to pass on oil companies’ concerns: Rex Features

Brazilian government later gave major drilling licenses to the two companies

Liam Fox’s Department for International Trade successfully lobbied the Brazilian government over environmental regulations on behalf of three major oil companies, an official document has revealed.

Greg Hands, the international trade minister, reportedly made representations on behalf of BP, Shell and Premier Oil during a trip to Brazil in March.

He asked the Brazilian government to help British companies secure deals to drill in the pre-salt region of Brazilian waters, according to a British diplomatic cable obtained by Greenpeace. read more

Analysis: Oil giants unlikely to share coal’s fate, for now

Ron Bousso, Simon Jessop, Susanna Twidale: NOVEMBER 17, 2017

The move by the $1 trillion fund, the world’s largest, rattled stock markets, exposing what is seen as one of the biggest threats to companies such as Royal Dutch Shell, Exxon Mobil and BP as the world shifts towards renewable energy such as wind and solar.

But in the meantime, expectations of growing global demand for oil and gas for decades to come mean reliance on these companies is likely to continue.

And although the Norwegian initiative will encourage those seeking to hasten the move to a low-carbon economy, the degree to which other investors can follow the fund’s example, at least in the short term, is less clear.

The European oil and gas index fell on Friday to its lowest since late September, extending declines following the Norwegian fund’s announcement. read more

Norway Idea to Exit Oil Stocks Is ‘Shot Heard Around the World’

Norway’s proposal to sell off $35 billion in oil and natural gas stocks brings sudden and unparalleled heft to a once-grassroots movement to enlist investors in the fight against climate change.

The Nordic nation’s $1 trillion sovereign wealth fund said Thursday that it’s considering unloading its shares of Exxon Mobil Corp., Royal Dutch Shell Plc and other oil giants to diversify its holdings and guard against drops in crude prices. European oil stocks fell.

Norges Bank Investment Management would not be the first institutional investor to back away from fossil fuels. But until now, most have been state pension funds, universities and other smaller players that have limited their divestments to coal, tar sands or some of the other dirtiest fossil fuels. Norway’s fund is the world’s largest equity investor, controlling about 1.5 percent of global stocks. If it follows through on its proposal, it would be the first to abandon the sector altogether. read more

Big Oil is under pressure, unloved and on sale. 

  • Norway wants to dump its stakes in oil and gas companies
  • Proposal adds to doubts over industry’s long-term outlook

Big Oil is under pressure, unloved and on sale.

Energy giants from Exxon Mobil Corp. to Royal Dutch Shell Plc are struggling back to their feet after a three-year oil slump, while also fighting to prove they can survive for decades to come amid an accelerating shift to clean energy. So getting dumped by the world’s biggest investment fund wouldn’t be welcome news.

Norway’s $1 trillion sovereign wealth fund said on Thursday that it wants to sell about $35 billion of shares in oil and gas companies to make the nation “less vulnerable” to a drop in crude prices. Global energy giants favored by long-term investors including Italy’s Eni SpA, PetroChina Ltd. and Russia’s Gazprom PJSC account for more than $20 billion of that total. read more

World’s Biggest Wealth Fund Wants Out of Oil and Gas

The $1 trillion fund that Norway has amassed pumping oil and gas over the past two decades wants out of petroleum stocks.  

Norway, which relies on oil and gas for about a fifth of economic output, would be less vulnerable to declining crude prices without its fund investing in the industry, the central bank said Thursday. The divestment would mark the second major step in scrubbing the world’s biggest wealth fund of climate risk, after it sold most of its coal stocks.

“Our perspective here is to spread the risks for the state’s wealth,” Egil Matsen, the deputy central bank governor overseeing the fund, said in an interview in Oslo. “We can do that better by not adding oil-price risk.” read more

Norway shakes oil world by dumping investments

Norway is western Europe’s biggest oil producer and its giant sovereign wealth fund wants to reduce its exposure to oil which hit shares in BP and Royal Dutch Shell. Oil platforms in the Cromarty Firth, ScotlandANDREW MILLIGAN/PA

Norway’s giant sovereign wealth fund has unveiled plans to dump its entire holding in oil and gas companies in a $37 billion sell-off that was welcomed by campaign groups but put downward pressure on share prices. The $1 trillion fund, which manages the assets of the oil-rich nation, signalled its intent to prune its exposure to companies including BP and Royal Dutch Shell in a move aimed at making it less vulnerable to a permanent drop in the price of crude. SOURCE read more

Q3 round-up: BP ready to ‘flex’, Shell a good bet to reach divestment target

Written by

Oil majors BP and Shell are closing in on realising key objectives for production and fundraising, an analyst has said.

Speaking after the dust settled on the latest round of quarterly results updates, Iain Armstrong of Brewin Dolphin said Shell should have no problem reaching its divestment target of £23billion for 2016-18.

Shell chief financial officer Jessica Uhl said £15billion worth of asset sales could be chalked up to the divestment programme, which was put in place to help balance the books following the merger with BG Group. read more

As Oil Prices Rise, Global Majors Eyeing Mexico’s Deep Waters

By Adam Williams: 9 November 2017, 21:27 GMT: Updated on 10 November 2017, 05:01 GMT

As the price of oil rises, an international rush is on for Mexico’s untapped deep-water riches.

The who’s who of the oil world — led by Exxon Mobil Corp and Royal Dutch Shell Plc, the world’s two biggest drillers by market value — are lining up to bid in the country’s Jan. 31 deep-water auction. And the interest is international in scope, drawing Chevron Corp. from the U.S., the U.K.’s BP Plc, Norway’s Statoil ASA, France’s Total SA, Australia’s BHP Billiton Ltd, Russia’s Lukoil PJSC and China’s Cnooc Ltd, among others. read more

Peak oil? Majors aren’t buying into the threat from renewables

Ernest Scheyder, Ron Bousso: NOVEMBER 8, 2017 HOUSTON/LONDON (Reuters) – Two decades ago, BP set out to transcend oil, adopting a sunburst logo to convey its plans to pour $8 billion over a decade into renewable technologies, even promising to power its gas stations with the sun.

That transformation – marketed as “Beyond Petroleum” – led to manufacturing solar panels in Australia, Spain and the United States and erecting wind farms in the United States and the Netherlands.

Today, BP (BP.L) might be more aptly branded “Back to Petroleum” after exiting or scaling back its renewable energy investments. Lower-cost Chinese components upended its solar panel business, which the firm shed in 2011. A year later, BP tried to sell its U.S. wind power business but couldn’t get a buyer. read more

Shell expands marine LNG bunkering network with U.S.-based LNG barge

HOUSTON, Nov. 7, 2017 /PRNewswire/ — Shell Trading (US) Company announced today it has finalized a long-term charter agreement with Q-LNG Transport, LLC for an LNG bunker barge with the capacity to carry 4,000 cubic meters of LNG fuel.  As the first of its kind to be based in the United States, the ocean-going LNG bunker barge will supply LNG to marine customers along the southern East Coast of the U.S. and support growing cruise line demand for LNG marine fuel.

“This investment in LNG as a marine fuel for the US will provide the shipping industry with a fuel that helps meet tougher emissions regulations from 2020,” said Maarten Wetselaar, Integrated Gas and New Energies Director at Shell. “Our commitment in the Americas builds on Shell’s existing LNG bunkering activities in Singapore and Europe, as well as recently announced plans in the Middle East and gives us the ability to deliver LNG as a marine fuel to customers around the world.” read more

BP joins Shell in helping Mexico execute oil hedge: sources

Dmitry Zhdannikov: NOVEMBER 7, 2017 LONDON (Reuters) – BP (BP.L) helped Mexico execute its 2018 oil hedge, the biggest in the industry, becoming the second major after Shell to participate in the highly coveted program and challenging the traditional role of banks in the operation.

Three industry sources said BP has become a participant of the 2018 program on which Mexico spent some $1.26 billion to hedge its 2018 oil exports against oil price falls as part of government’s efforts to stabilize its budget.

BP declined to comment.

BP joins rival Royal Dutch Shell (RDSa.L), which made a first foray last year to become the first major to challenge years of dominance of big Wall Street banks in the program.

Shell declined to comment.

Banks such as Goldman Sachs (GS.N), Citi (C.N) and JPMorgan (JPM.N) have dominated Mexico’s program for years but their role has diminished with tighter regulations on bank commodity trading, including a near total ban on proprietary trading. read more

Shell Swallows BG Group Whole Hog, Rolls Up Cash Flow

Ray Merola: Nov. 6, 2017

Summary

  • Shell is enjoying a remarkably successful corporate resurgence.
  • Legacy BG Group opex and capex has been absorbed entirely without a loss of combined hydrocarbon volumes.
  • Cash is king.
  • Debt is trending down.  The dividend is well-covered.  Returns are solid, and improving.
  • I remain constructive on RDS stock.

I’ve been pounding my fist on the table for Royal Dutch Shell (RDS.A) (RDS.B) for a couple of years now. It’s been that one, “fat pitch” worth waiting upon; these don’t come along very often. Since the end of 2015, ADR shares offered investors ~54% total return, or an 80% gain since the stock bottomed in January 2016.

The 3Q report included the hallmarks of recent previous quarters: linked-quarter revenue growth, continued strong cash flow, improving return-on-capital, reduced gearing, steady production, and ample dividend coverage. Details are found here. read more

BP, Shell lead plan for blockchain-based energy trading platform

REUTERS STAFF: NOVEMBER 6, 2017

(Reuters) – A consortium including energy companies BP and Royal Dutch Shell will develop a blockchain-based digital platform for energy commodities trading expected to start by end-2018, the group said on Monday.

Other members of the consortium include Norwegian oil firm Statoil, trading houses Gunvor, Koch Supply & Trading, and Mercuria, and banks ABN Amro, ING and Societe Generale.

Blockchain technology, which first emerged as the architecture underpinning cryptocurrency bitcoin, uses a shared database that updates itself in real-time and can process and settle transactions in minutes using computer algorithms, with no need for third-party verification. read more

Queen of the Netherlands —Nigeria’s nightmare

Letter from Ayoka Lawani published by The Nation on 6 Nov 2017

SIR: Recently Queen Maxima of the Netherlands visited Nigeria. While there, according to reports, she spoke vigorously about the merits of mobile money. What she came to do on behalf of the UN is not the topic here.

It is who she is that should be the business of all Nigerians. She is married to King Wilhem Alexander of the Netherlands whose mother, former Queen Beartrix  ( who abdicated for Alexander in 2013) is the single largest shareholder of the Shell Company. This makes Queen Maxima a major owner of Shell. read more

BP, Shell, Statoil join commodity trading digital venture

Written by

The venture, which also includes commodity traders and banks, will be managed and operated as an independent entity.

The venture partners are BP, Shell and Statoil, trading houses Gunvor, Koch Supply & Trading, and Mercuria, and banks ABN Amro, ING and Societe Generale.

They intend to create a secure, platform to manage physical energy transactions from trade entry to final settlement. read more

Shell beats profit forecasts, targets lower 2017 spending

Ron Bousso

LONDON (Reuters) – Royal Dutch Shell (RDSa.L) reported an 18 percent rise in third-quarter profit on Tuesday, lowering next year’s capital spending to the bottom of the expected range as it grapples with persistently low oil prices and weak refining margins.

The Anglo-Dutch oil major, whose acquisition of BG Group transformed it into the world’s top liquefied natural gas producer, has been under pressure from shareholders to cut annual spending to ensure it can maintain its dividend given the slow recovery in the oil prices LCOc1. read more

Shell completes $4.4 billion in sales a day before earnings report

Dutch supermajor trying to dump $30 billion in assets in order to shape the company “into a world class investment.”

By Daniel J. Graeber  |  Nov. 1, 2017 at 6:17 AM

Nov. 1 (UPI) — Royal Dutch Shell said Wednesday it made further progress in a major divestment plan by completing the sale of assets in Gabon and in the North Sea.

For $628 million, Shell said it completed the sale of its entire Gabonese oil and gas interests to a company controlled by The Carlyle Group. The transaction includes the sale of all of Shell’s onshore oil and gas interests, which includes nine total fields, and the associated infrastructure, including pipelines and export terminals. read more

Threat to pensions if BP and Shell find themselves extinct


Stop crude focus on oil profits

The Guardian: Article by Sean Farrell: Sunday 29 October 2017

At the start of last year, Britain’s big oil companies, Shell and BP, appeared to be in crisis. A slump in the price of Brent crude – from more than $110 a barrel in 2014 to less than $30 in January 2016 – sent profits tumbling and appeared to threaten dividends. After painful cost cuts and a partial recovery in the oil price to near $60, the pressure has eased and both are expected to report solid first-half results this week.

BP goes first, on Tuesday, with Shell, the stronger of the two, on Thursday. The commotion over the oil slump diverted some attention from their commitments to low-carbon energy. To much fanfare, both companies’ boards supported resolutions at their 2015 annual meetings that required clearer reporting of emissions, business risks and efforts to develop green energy sources. read more

Shell, BP, Exxon big winners in historic Brazil oil auction

Oct. 27, 2017 5:45 PM ET|About: BP p.l.c. (BP)|By: , SA News Editor

  • Brazil auctioned off six of eight exploration blocks in today’s historic opening of its coveted pre-salt offshore oil region to foreign operators, exceeding the government’s expectations with commitments for 6.15B reais ($1.88B) in signing bonuses.
  • Royal Dutch Shell (RDS.A, RDS.B) was especially active, winning stakes in half the blocks awarded and bolstering its position as the largest foreign operator in Brazil’s offshore oil sector, second only to state-run Petrobras (NYSE:PBR); Shell believes it can pump oil from the pre-salt fields at below $40/bbl.
  • BP took two blocks, including the Peroba block, which is estimated to contain 5.3B barrels of oil; it won as part of a consortium that included PBR and a Chinese group.
  • Exxon Mobil (NYSE:XOM) grabbed the Norte de Carcará block – which holds an estimated 2.2B barrels of oil, in a consortium with Statoil (NYSE:STO), which says it also sold a stake in a nearby block to XOM for $1.3B.
  • Brazil Pres. Temer says the auction will generate investments of more than 100B reais ($30B) in the country by the winning oil companies.
  • read more

    Profits Jump at Exxon, Chevron, Total

    World’s biggest Western energy companies are on track to post highest annual profits since oil market crashed three years ago

    By Bradley Olson and Sarah Kent

    Big oil is back in the black.

    The world’s biggest Western energy companies are on track to post the highest annual profits since the oil market crashed three years ago and forced them to restructure for a prolonged era of low prices. FULL ARTICLE

    Shell and BP connected pension funds ‘at risk’ from companies’ failure to adapt

    A shareholder campaign group has said pension funds who have invested in BP and Shell are exposed due to the oil majors’ inaction on the low-carbon transition.

    Written by

    In its latest report, ShareAction, a non-profit organisation, said the companies’ business models look increasingly vulnerable to the threats posed by low-cost renewables and climate change policy.

    The group said the oil majors had done little to mitigate these threats and lamented their lack of investment in low-carbon (BP, 1.3% of capital expenditure to Shell’s 3% of annual capex).

    ShareAction said investors should “escalate” engagement with senior management, pressing them to set out their positions on climate legislation and their plans for “reducing total lifecycle emissions”. read more

    Big Oil’s $1 billion fund backs new cement, engine technologies

    OCTOBER 27, 2017

    LONDON (Reuters) – A $1 billion fund created by top energy companies to curb climate change will back technologies being developed by U.S. cement maker Solidia Technologies and engine maker Achates Power, it said on Friday.

    The Oil and Gas Climate Initiative (OGCI) was set up last year and includes Saudi Aramco and Royal Dutch Shell.

    Solidia Technologies will receive funding for making cement with carbon dioxide instead of water, potentially lowering emissions by 70 percent and water use by 80 percent, the OGCI said. read more

    Brazil vs. Mexico: Latin America’s fight for Big Oil’s money

    “Both are attractive. Both have real potential,” said Wael Sawan, Shell’s executive vice president for deepwater. “We have as a company, I think as an industry, scarce capital resources to be able to make the investments that the particular projects in deep water require.”

    OCTOBER 27, 2017

    After two waves of resource nationalism that left few openings in Latin America for energy giants such as Exxon Mobil Corp (XOM.N), Royal Dutch Shell Plc (RDSa.L) and Total (TOTF.PA), the tables are turning.

    Governments throughout the continent are enacting reforms and changing contract terms to lure oil firms that have slashed spending as they adapt to lower crude prices. Global policy changes to address climate change have given an added sense of urgency to governments in the region and worldwide that are sitting on oil and gas reserves. They want to pump it before it becomes less valuable. read more

    BP and Shell planning for catastrophic 5°C global warming despite publicly backing Paris Climate Agreement

    Neither company sets targets to reduce emissions and BP’s total investment in renewable and clean technologies has actually shrunk since 2005, the report said Getty Images

    Companies are trying to ‘have their oil and eat it’ by committing to 2°C in public while planning for much higher temerpature rises, says shareholder campaign group, ShareAction

    Oil giants Shell and BP are planning for global temperatures to rise as much as 5°C by the middle of the century. The level is more than double the upper limit committed to by most countries in the world under the Paris Climate Agreement, which both companies publicly support.

    The discrepancy demonstrates that the companies are keeping shareholders in the dark about the risks posed to their businesses by climate change, according to two new reports published by investment campaign group Share Action. Many climate scientists say that a temperature rise of 5°C would be catastrophic for the planet. read more

    Amid Low Prices, Oil Giants Gush About Breaking Even

    By Sarah Kent Dow Jones Newswires

    The world’s biggest oil companies have a suddenly popular measure for success: breaking even.

    Once obscure and little noted, the break-even number has become an obsession for investors in oil giants such as Exxon Mobil Corp., BP PLC and Chevron Corp. as crude prices stay mired between $50 and $60 a barrel. At its simplest, the metric represents the oil price that a company needs to generate enough cash so it can cover its capital spending and dividend payouts. read more

    BP, Shell Put Oil Ahead of Earth, ESG Group Warns Investors

    Oil giants focus excessively on fossil fuel production, a green advocacy group concluded, and urged investors to demand clear plans for controlling climate change.

    Joe McGrath: October 25, 2017

    Performance targets of energy companies Royal Dutch Shell and BP remain too heavily biased towards hydrocarbon production, a report has warned.

    ShareAction — a U.K. charity that promotes environment, social, and governance-oriented investing — looked at BP and Shell’s greenhouse emissions management policies, asset portfolio resilience, corporate key performance indicators, executive incentive structures, and influences on public policy. The group concluded that the oil giants prioritize the production of fossil fuels, which could incentivize management behavior “misaligned” with shareholder interest, as defined by ShareAction. read more

    Gas producers pumping up demand

    • The Wall Street Journal

    After spending hundreds of billions of dollars to transform themselves into global natural gas giants, some of the world’s biggest energy companies face a new challenge: generating more demand as supplies threaten to balloon and prices languish.

    Companies including Royal Dutch Shell, Total and Cheniere Energy are trying to establish new markets for liquefied natural gas, a super-chilled version of the fuel that can be shipped around the world. Producers are promoting the use of LNG for industrial trucking and shipping. Companies also say they are considering building the power plants and infrastructure necessary to provide gas and electricity in developing markets such as South Africa and Vietnam. read more

    Slowing Demand Growth to Push Big Oil From Cars to Chemicals

    Global oil demand growth will slow to a crawl and gasoline use will peak within the next decade, prompting the world’s biggest energy companies to accelerate the shift to natural gas and chemicals, according to consultant Wood Mackenzie Ltd.

    Major crude producers will have to adapt to significant changes in the coming years, but their businesses can grow. Oil consumption will keep expanding until at least 2035 as the petrochemical industry, which provides the building blocks to manufacture everything from plastics to pesticides, makes up for the contraction in some transport fuels, Wood Mackenzie said in a report on Monday. read more

    Oil Majors Face Lawsuits on Climate Change Issues

    October 06, 2017, 04:44:00 PM EDT By Zacks Equity Research

    Two major Californian cities – San Francisco and Oakland – have filed lawsuits against five oil and energy super majors in late September. The cities have taken legal action against Chevron Corp., ConocoPhillips, Royal Dutch Shell plc, ExxonMobil Corp. and BP p.l.c.

    The companies have been accused of causing an adverse impact on the climate, resulting in global warming. The plaintiffs hold these fossil fuel companies accountable for rising sea levels, changing landscapes, higher global temperatures and increased risk of storms and droughts. 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

    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

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