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US shale to help power Shell’s multi-billion dollar chemicals drive

Jillian Ambrose: 

Royal Dutch Shell will begin construction of a new $10bn petrochemicals site in the gas-rich Marcellus shale basin in the US within the next ten weeks as part of a radical growth plan for its petrochemicals business.

The oil major told investors that global demand for petrochemicals – which are used to manufacture the raw materials used to make plastics, paints and textiles – is set to grow by around 50pc by the end of the decade, making it a key area for the company’s growth. 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

Gazprom and Shell confirm their interest in implementation of Baltic LNG project

2017 October 5 15:37

Gazprom and Shell have confirmed their interest in implementation of the Baltic LNG project, IAA PortNews correspondent cites Aleksandr Medvedev, Deputy Chairman of the Board, Gazprom, and Maarten Wetselaar, Integrated Gas and New Energies Director, Shell, as saying at the 7th St. Petersburg International Gas Forum (SPIGF-2017).

“Baltic LNG project will develop and we are participating in it financially”, said Maarten Wetselaar.

According to Shell, global LNG demand is 265 mln t per year and its growth prospects are good, particularly due to the markets of China, India and other Asian countries. read more

Shell takes venture fund into ‘explosive’ Chinese market

AMSTERDAM (Reuters) – Royal Dutch Shell is opening the first Chinese office of its venture capital fund and recruiting three local investment staff there to tap a market where it sees “explosive” growth, the head of the business told Reuters on Thursday.

Shell Technology Ventures (STV), internally known as “Stevie”, is the oil major’s vehicle through which it seeks to stay on top of technological changes in the energy market that could threaten its business, and provide new areas for growth. 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

Will Shell’s Gas Gamble Pay Off?

By Cyril Widdershoven – Sep 16, 2017, 6:00 PM CDT

Supermajor Royal Dutch Shell has decided to divest its Iraqi oil assets in a move to focus on its future in natural gas.

The industry giant is seemingly breaking from its oil heritage to head full speed into the “Golden Age of Gas.” Shell’s decision to leave Iraq’s upstream oil assets is not without risk, however, as the market for natural gas is even more oversupplied than it is for crude oil.

Reuters reported the move first, based on a letter from the Iraqi ministry of oil, followed by a confirmation from Shell. The Dutch heavyweight indicated to the press that its oil asset divestment in Iraq is in line with its strategy to focus more on natural gas and downstream activities. read more

Shell Targets Alternative Fuel Stations

By Tsvetana Paraskova – Sep 12, 2017, 12:30 PM CDT

Shell—one of the oil majors that is increasingly betting on natural gas and low-carbon fuels—is targeting 20 percent of its global fuel station sales to come from electric vehicles recharging and low-carbon fuels by 2025, John Abbott, Downstream Director at Shell, told Reuters in an interview published on Tuesday.

While Shell plans to expand fuel stations in China, India, and Mexico—where it sees growth in this market over the next decade—it would continue to focus on meeting demand for cars running on fuels alternative to gasoline and diesel, Abbott said. read more

Shell eyes Asia, aims to expand vehicle recharging at fuel stations

SEPTEMBER 12, 2017

* Shell is world’s biggest fuel station operator

* Pilot projects to recharge cars in Europe, California

* Company sees fossil fuel growth in China, India, Mexico

* Focus on downstream earnings as crude price falls 

By Ron Bousso and Dmitry Zhdannikov

LONDON, Sept 12 (Reuters) – Royal Dutch Shell aims to expand marketing operations in Asia and wants 20 percent of sales from its fuel stations worldwide to come from recharging electric vehicles and low carbon fuels by 2025, as the world shifts away from crude.

The Anglo-Dutch firm, with 43,000 fuel stations in 80 countries, aims to expand in China and India, as well as Mexico, where it sees fossil fuel growth in the next decade, John Abbott, the head of refining, trading and marketing, told Reuters. read more

Shell’s defence of big oil is too hopeful

September 11, 2017, 11:40:00 AM EDT By Reuters

By Andy Critchlow

LONDON, Sept 11 (Reuters Breakingviews) – Royal Dutch Shell, looking deeply into its crystal ball, sees a future that’s still heavily dependent on oil. The Anglo-Dutch giant expects crude will continue to play a major role in global energy supply for decades, even in its less oil-friendly scenario. That optimism goes someway to justifying the billions of dollars it continues to invest in exploiting new reserves and expanding its fuel network. But it’s also a view that may place too much faith in the combustion engine – and China staying with its current strategy. read more

UPDATE 1-Kazakhstan may strike separate deal with OPEC on oil output curbs

Kashagan has been developed by a consortium of China National Petroleum Corp, Exxon Mobil, Eni , Royal Dutch Shell, Total, Inpex and KazMunaiGas.

By Mariya Gordeyeva: SEPTEMBER 7, 2017 / 2:28 PM

ASTANA, Sept 7 (Reuters) – Kazakhstan is aiming for a standalone deal with leading global oil producers on restraining its crude production due to a need to crank up output at its Kashagan field, a Kazakh official said on Thursday. 

The Central Asian nation increased oil and gas condensate output by 9.9 percent in January-July to 49.907 million tonnes, or 1.724 million barrels per day (bpd), exceeding its quota of 1.7 million bpd under a global supply pact. 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

Shell CEO Ben Van Beurden says his next car will be an electric Mercedes S500e


Jul 28 2017 at 9:03 AM

When the boss of Europe’s biggest listed oil company says his next car will be electric, it says a lot about the future of fossil fuels.

Royal Dutch Shell responded to the worst oil-price crash in a generation with its $US54 billion ($68 billion) takeover of BG Group, betting that demand for natural gas will rise as the world shifts to cleaner-burning fuels. Now chief executive officer Ben Van Beurden says the next thing he’ll buy is a car that doesn’t depend on either oil or gas to run. read more

Shell shifts focus to chemicals, refining: Financieele Dagblad

Anglo-Dutch energy giant Royal Dutch/Shell is shifting its focus toward downstream operations like refining and chemicals and away from traditional upstream activities like exploring for oil and gas, the Financieele Dagblad said on Wednesday.

This shift is likely to become even clearer when the company publishes its second quarter figures on Thursday, the paper said.

Shell’s investment in exploration slumped to $157m in the first quarter of 2017 from an annual quarterly average of between $500m to $600m in recent years, the paper points out.  This is partly due to the group’s recent acquisition of the BG Group which has large deep-sea reserves off the coast of Brazil. read more

Chinese appetite for LNG increasing

By Daniel J. Graeber: July 24, 2017

July 24 (UPI) — The Chinese appetite for liquefied natural gas increased more than 30 percent from last year, according to the latest government data.

The Chinese General Administration of Customs reported LNG imports to China increased dramatically as the country looks to rely less on coal for its energy needs. First half demand was up 38.3 percent from last year.

“The growth rate is higher than the 21.2 percent increase registered in the same period last year, partly encouraged by the lowering policy barriers for LNG from the United States to enter the Chinese market,” the official Xinhua News Agency reported. 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

Energy transition chatter should go beyond Western viewpoints, says Shell CEO

Don’t be tone deaf to energy transition concerns of emerging economies, Ben van Beurden tells the World Petroleum Congress.

By in Istanbul, Turkey: July 11, 2017 08:02 BST

Discussions over the global energy mix and the transition to a low carbon global economy should not only focus on Western perspectives, according to Royal Dutch Shell’s chief executive officer Ben van Beurden.

Speaking at the 22nd World Petroleum Congress in Istanbul, Turkey, van Beurden said “too often” energy transition is considered from the perspective of the European or the North American end-user.

“And it is true, that these areas of the world have a historical responsibility for the greenhouse gases in our atmosphere which translates into a responsibility to act today. read more

Shell No.9 in Top 100 greenhouse gas emitters since 1988

Jon Yeomans: 

The Chinese coal industry and stock market debutant Saudi Aramco have been named as the world’s biggest emitters of carbon dioxide.

As new data claims to have identified the top 100 emitters of greenhouse gases over the last three decades, a leading NGO has warned that natural  resources companies need to transform their business models to adapt to a low-carbon future.

Just 100 firms are responsible for 71pc of carbon dioxide gases released into the atmosphere since 1988, the year that climate change was first recognised as an international problem, according a report by the Carbon Disclosure Project (CDP). read more

It’s a world of worry for oil companies

By Ryan Maye Handy: 8 July 2017

India hopes to sell only electric vehicles by 2030. China is offering incentives to buy electric cars and investing heavily in renewable technologies. Volvo will scrap the pure internal combustion engine in favor of hybrids and electric cars.

And on Thursday, France announced it plans to ban the sale of diesel and gasoline-fueled cars by 2040.

The world’s major oil companies might disagree when global demand for petroleum will peak, but the news of the past seven months suggests that they should be worried, if they aren’t already. Nations, states and private companies are demanding cleaner energy, leaving the world’s oil producers to face a reckoning that many haven’t yet accepted. read more

Qatar signals LNG price war for market share in Asia

U.S. and European oil majors such as Royal Dutch Shell and Chevron have invested huge sums over the last decade – often more than they have spent on oil – in an attempt to dominate the LNG market, especially through mega-projects in Australia such as Chevron’s Gorgon or Shell’s Prelude.

By Henning Gloystein and Mark Tay | SINGAPORE

Qatar’s plan to boost liquefied natural gas (LNG) output by 30 percent is the opening shot in a price war for customers in Asia pitting the Gulf state against competitors from the United States, Russia and Australia.

Qatar, facing regional isolation in a diplomatic dispute with its Gulf neighbors, took energy markets by surprise on Tuesday when it said it would raise its LNG production to 100 million tonnes per year – equivalent to a third of current global supplies – within the next five to seven years. read more

China pumps cash into African floating LNG projects in strategic push

The $12.6 billion Prelude project, which is due to start operating off Australia in 2018, is typical of those conceived during the era of high energy prices.

By Oleg Vukmanovic and Colin Leopold | LONDON

China plans to pour almost $7 billion into floating liquefied natural gas (FLNG) projects in Africa, betting on a largely untested technology in the hope that energy markets will recover by the time they start production in the early 2020s.

Western banks are wary due to the depressed state of the shipping and gas markets, as well as the technical difficulties of pumping gas extracted from below the ocean floor, chilling it into liquid form on a floating platform and transferring it into tankers for export. read more

India’s LNG-led gas market may grow over 6 times by 2030: Royal Dutch Shell

Shine Jacob  |  New Delhi  June 22, 2017 Last Updated at 15:47 IST

Global oil major says that India may see at least six times growth in by 2030 from the current levels. It adds that liquefied natural gas (LNG) may be the largest contributor to it. The prediction comes at a time when India is trying to increase the share of gas in the overall energy mix to over 15 per cent by 2030. read more

Shell claims low-carbon edge

On Monday, reports surfaced that some of Shell’s money circulating in Nigeria was used for payoffs.

April 12 (UPI) — One of the largest oil companies in the world, Royal Dutch Shell said Wednesday it was focused on a low-carbon strategy that was geared toward long-term growth.

Shell highlighted its movement through a changing energy landscape in a sustainability report on activities last year. Chief Executive Officer Ben van Buerden said in the report that lower crude oil prices and a global community coordinated around the U.N.-backed Paris climate agreement meant changes were necessary for the oil and gas business. read more

Shell’s QGC to sell gas to Orica, Engie as trims LNG exports

Shell’s QGC to sell gas to Orica, Engie as trims LNG exports

Shell has signed two new deals to supply gas to east coast buyers in response to mounting pressure on the Queensland LNG exporters not to let industrial customers on the east coast go short.

The short-term agreements to supply gas to Orica and power producer Engie mean that Shell’s LNG venture in Gladstone will trim LNG exports to make more available for local users, said the oil major’s new Australia chair, Zoe Yujnovich.

However Shell wouldn’t disclose its revised forecasts for LNG exports from its $25 billion Queensland Curtis venture which typically ships about eight cargoes a month from its 8.5 million tonnes a year Curtis Island plant. read more

Shell defies doubters by predicting boom for liquefied natural gas

The Telegraph: Shell defies doubters by predicting boom for liquefied natural gas

Jillian Ambrose20 FEBRUARY 2017 

Royal Dutch Shell has brushed off concern that the burgeoning market for liquefied natural gas is already oversupplied, after paying £36.5bn to buy market leader BG Group.

Shell’s first outlook report for LNG since the tie-up has predicted a market boom as demand from countries including China and India which will outpace the string of new project start-ups.

The market for LNG imports has already grown considerably in recent years but market commentators have raised fears that an explosion of new projects might flood the market. A deluge of LNG could push down prices just as Shell works to pay down the heavy cost of the tie-up. read more

Shell says new LNG buyers want shorter, smaller contracts

Shell says new LNG buyers want shorter, smaller contracts

By Reuters20 February 2017

LONDON, Feb 20 (Reuters) – Royal Dutch Shell, the world’s biggest liquefied natural gas (LNG) trader following its takeover of BG Group last year, said new LNG customers that will drive demand are looking for shorter and smaller contracts.

Shell expects much of new LNG demand to come from countries that want to replace declining domestic gas production — which has already happened in Egypt and Pakistan — and those countries that are looking at LNG to complement pipeline and domestically produced gas, like China or Morocco. read more

Opec outflanked

By Ed Crooks of the Finacial Times: January 13, 2017

In the 1930s many newspapers carried impressively detailed diagrams showing France’s defences along the German border, described by Popular Mechanix and Inventions magazine as the “world’s greatest underground fortifications”. By the end of May 1940, Hitler had demonstrated that while the Maginot Line might indeed be an engineering marvel, it was also irrelevant, as his panzer divisions swept past it through Belgium and into France. Last year’s agreement between leading oil-producing countries to curb their output had something of the same feel about it this week. read more

Trump energised

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By Ed Crooks, November 11, 2016

“Between a battle lost and a battle won, the distance is immense and there stand empires,” said Napoleon. The same is true of elections.

Donald Trump may have come slightly behind Hillary Clinton in the popular vote for the presidency, but his convincing victory in the electoral college will give him the ability to reshape the energy industry in the US and around the world.

His hand will be strengthened by Republican control of Congress. Parts of Mr Trump’s agenda will face resistance in Congress, but his energy policy is unlikely to be one of those areas. His support for oil, gas and coal, his commitment to deregulation and his rejection of climate policy are all well aligned with mainstream Republican thinking. read more

Big Oil Slowly Adapts to a Warming World

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By CLIFFORD KRAUSSNOV. 3, 2016

In a warming world, Big Oil doesn’t look quite so big anymore.

A global glut of oil and natural gas has sent prices tumbling over the last two years, and profits are evaporating. Improving auto fuel efficiency standards threaten to depress oil consumption eventually, and fleets of electric vehicles are gradually emerging in China and a few other important markets.

Perhaps most troubling for oil companies over the long term is the goal — agreed to last December by virtually every country in the world at a climate conference in Paris — of staving off a rise in average global temperatures of more than 2 degrees Celsius above preindustrial levels. read more

The best historians Shell could buy

screen-shot-2016-10-24-at-14-26-11EBOOK BY JOHN DONOVAN: SIR HENRI DETERDING AND THE NAZI HISTORY OF ROYAL DUTCH SHELL

Chapter 1: The best historians Shell could buy

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Shell commissioned a group of eminent “independent” historians (above) mostly Dutch, to author a history of Royal Dutch Shell to mark the Group’s centenary in 2007.  The introduction in Volume 1 pledged independent research and “a proper and even-handed assessment of Deterding.” Something went amiss because the “history,” as published in regard to his dealings with Hitler, is simply untrue.

On 24 May 2015, a light-hearted story in the Prufrock column of The Sunday Times posed the question: “ARE corporate histories the new harbingers of doom?”  It cited the release of corporate histories of two multinational banks that proved embarrassing to the banks due to unforeseen developments. read more

Shell Says While Gas Is the Future, It Won’t Be Traded Like Oil

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At the moment, there is a global glut of natural gas…

Screen Shot 2016-08-29 at 22.18.50By Kelly Gilblom and Rakteem Katakey: August 30, 2016

Natural gas is rapidly becoming one of the most traded global commodities, but that doesn’t mean it will have a global price, according to Royal Dutch Shell Plc.

While the fuel can be transported anywhere on liquefied natural gas carriers, it will probably remain regionally priced for the time being, with some contracts continuing to track oil, said Roger Bounds, senior vice president for global gas at Shell. Prices will depend on location, regulation and infrastructure, as some countries replace coal in electricity generation to cut carbon emissions. read more

The Future of Big Oil? At Shell, It’s Not Oil

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Screen Shot 2016-07-20 at 07.42.44The energy giant is shifting to gas as the industry adapts to climate change.

By Matthew CampbellRakteem Katakey and James Paton: 20 July 2016

At Australia’s Curtis Island, you can see Big Oil morphing into Big Gas. Just off the continent’s rugged northeastern coast lies a 667-acre liquefied natural gas (LNG) terminal owned by Royal Dutch Shell, an engineering feat of staggering complexity. Gas from more than 2,500 wells travels hundreds of miles by pipeline to the island, where it’s chilled and pumped into 10-story-high tanks before being loaded onto massive ships. “We’re more a gas company than an oil company,” says Ben van Beurden, Shell’s chief executive officer. “If you have to place bets, which we have to, I’d rather place them there.” read more

Bad news for fossil fuels

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By Ed Crooks: June 10. 2016

Two of the most widely respected energy analysts – BP’s economics team and the International Energy Agency – published reports this week, and both brought bad news for fossil fuel producers. They differed, however, in the focus of their gloomy perspectives. For BP, publishing its 65th annual Statistical Review of World Energy, it was coal that came off worst. As Spencer Dale, BP’s chief economist, put it in his presentation, “2015 was undoubtedly an annus horribilis for coal”. The shift to natural gas for power generation in the US gathered pace, and there was a second consecutive year of declining consumption in China. read more

Shell sidesteps electric bandwagon with petrol-powered concept car

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BEIJING | BY JAKE SPRING: Fri Apr 22, 2016

Royal Dutch Shell PLC (RDSa.L) unveiled a high-efficiency petrol-burning concept car in China on Friday, to show the world’s biggest electric vehicle (EV) market that there is a lot of mileage left in conventional internal combustion engines.

Shell, one of the largest producers of automotive fuel, said it could take decades before EVs help arrest a rise in exhaust emissions, and that its concept car – which it has no intention of mass producing – demonstrates what can be done now. read more

CNOOC and Shell take final investment decision to expand petrochemical complex in China

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TUESDAY, MARCH 22, 2016

China National Offshore Oil Corporation (CNOOC) and Shell Nanhai B.V. today announce the final investment decision to expand CNOOC and Shell Petrochemical Company’s (CSPC) existing 50:50 joint venture (JV) in Huizhou, Guangdong Province, China. This decision follows the announcement of a Heads of Agreement in December 2015 between the two partners. Subject to regulatory approvals, CNOOC and Shell have agreed that CSPC should take over CNOOC’s ongoing project to build additional chemical facilities next to CSPC’s petrochemical complex. read more

Shell’s credit rating cut from AA to AA- following £36bn takeover of gas giant BG Group

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By RUPERT STEINER FOR THE DAILY MAIL19 February 2016

Royal Dutch Shell has seen its credit rating slashed following its £36billion takeover of gas giant BG Group.

The credit score of the FTSE 100 oil company – a barometer of its financial strength – was lowered by Fitch from AA to AA-.

Ratings agency Fitch said its outlook on Shell was ‘negative’ in a sign a further cut could follow.

Shell used some of its cash reserves to fund the takeover of BG. Following the completion of the mega-deal on Monday, Shell plans to sell £20billion of assets in the next three years.

However, Fitch warned it downgraded its view on the company because Shell (down 26.5p to 1560.5p) had ‘materially missed the targeted level’ of sell-offs so far.  read more

Oil Prices Slide Again as Oversupply Fears Persist

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By TIMOTHY PUKO and GEORGI KANTCHEV: Feb. 8, 2016 

Oil prices dropped back below $30 Monday amid continuing fears about the global oversupply of crude. A Sunday meeting between Saudi Arabia and Venezuela ended without any plans for production cuts, damaging hopes that the world’s major exporters will cooperate on output cuts. Data from Barclays also suggested softer demand from the world’s largest consumers, the U.S. and China. read more

Oil market spiral threatens to prick global debt bubble, warns BIS

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By Ambrose Evans-Pritchard6:33PM GMT 05 Feb 2016

The global oil industry is caught in a self-feeding downward spiral as falling prices cause producers to boost output even further in a scramble to service $3 trillion of dollar debt, the world’s top watchdog has warned.

The Bank for International Settlements fears that a perverse dynamic is at work where energy companies in Brazil, Russia, China and parts of the US shale belt are increasing production in defiance of normal market logic, leading to a bad “feedback-loop” that is sucking the whole sector into a destructive vortex. read more

Oilmageddon

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Katy Barnato: 5 FEB 2016

The global economy seems trapped in a “death spiral” that could lead to further weakness in oil prices, recession and a serious equity bear market, Citi strategists have warned.

Some analysts — including those at Citi — have turned bearish on the world economy this year, following an equity rout in January and weaker economic data out of China and the U.S.

“The world appears to be trapped in a circular reference death spiral,” Citi strategists led by Jonathan Stubbs said in a report on Thursday. read more

Shell Executives Try to Seal Deal for BG

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Screen Shot 2015-12-23 at 09.03.45By SELINA WILLIAMS: Jan. 7, 2016 3:08 p.m. ET

The cash and shares deal, valued at around $51 billion, is important to both companies. If approved, the merger will give the Anglo-Dutch oil giant a dominant position in the growing liquefied natural-gas market as well as stakes in highly prized oil fields offshore Brazil. BG investors will receive a chunky premium for selling up if the deal goes through.

But the deal has been roiled by further declines in oil prices in recent weeks and turmoil in China’s stock market that has pulled down global equities. Investors are also still worried that Shell is paying too much for BG, which it proposed to buy when crude prices were about $55 a barrel in April—about 40% more than they are now. read more

Will Royal Dutch Shell Plc’s Dividend Be Slashed In 2016?

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By Alan Oscroft – Thursday, 24 December, 2015

When the oil price slumped, the saving grace for BP and Royal Dutch Shell (LSE: RDSB) was dividends – both had the ability to keep paying dividends from other sources should earnings fall for a few years.

Royal Dutch Shell shares have fallen by 42% since their recent peak in May 2014, but that’s been offset to some extent by a 5.7% dividend yield last year and there’s a massive 7.7% expected for 2015. It’s still not a great overall performance, but compared to the way some smaller non-dividend oil stocks have fared, it’s almost heavenly. read more

Shell’s £40bn takeover of BG Group edges closer despite tumbling oil price and shareholder discontent

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By CITY & FINANCE REPORTER FOR THE DAILY MAILPUBLISHED: 21:55, 21 December 2015

Tumbling oil prices and shareholder discontent have not prevented Royal Dutch Shell’s £40billion takeover of BG Group entering the final stages.

The deal could complete in February after BG applied to the High Court to hold the shareholder meetings to vote on it in the new year.

The tie-up has been unpopular with some investors and experts who argue it does not make sense when the oil price is so low. 

The price of Brent crude plummeted to an 11-year low yesterday as excess supply continued to flood the market. 

Oil production is running close to record highs and Brent futures fell by as much as 2 per cent to a low of just above $36 a barrel, their weakest since July 2004. read more

This Oil Giant Is Going to Slash Thousands of Jobs

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Royal Dutch Shell expects to slash thousands more jobs to save costs if its takeover of BG Group goes through as planned early next year following a final green light from China.

The acquisition, which was announced on April 8 and is biggest in the sector in a decade, has been cleared by China’s Ministry of Commerce, Shell said on Monday, after earlier approvals from Australia, Brazil, and the European Union.

Shell RDS.A -1.32% and BG LON: BG will now send a merger prospectus to shareholders and hold special general meetings for votes on the deal. If approved, it will face a court hearing 10 days later and could be completed by early February. read more

Shell Has Underperformed, But It Could Be The Only Oil Major That Emerges Bigger From The Downturn

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Screen Shot 2015-11-20 at 08.55.47…the company’s profits plummeted 70% from last year to $1.77 billion…

Sarfaraz A. Khan: Sunday, Dec 6, 2015

Summary

  • The oil major Royal Dutch Shell is closing in on its biggest-ever merger with the UK based oil and gas producer BG Group.
  • Shell has been the worst performing stock in its peer group and now offers an above average yield of 7.8%.
  • But Shell is generating enough cash from operations and asset sales to cover its spending.
  • More importantly, Shell could be the only oil major that emerges even bigger from the downturn.

The oil major Royal Dutch Shell (NYSE:RDS.A) (NYSE:RDS.B) is closing in on its biggest ever merger with the UK based oil and gas producer BG Group (OTCQX:BRGYY). On Wednesday, the Anglo-Dutch oil producer revealed that it has received a green signal from Australia’s Foreign Investment Review Board following an approval from the country’s anti-trust regulator received last month. The BG Group is one of the major players in Australia’s rising LNG sector where the company has invested more than $20 billion on developing the Queensland Curtis LNG plant. read more

Gas Wars Down Under Finally Come To An End: Shell-BG Group Tie-Up Gets Green Light

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Royal Dutch Shell CEO Ben Van Beurden addresses a keynote speech during the World Gas Conference in Paris on June 2, 2015. Photo Credit:  ERIC PIERMONT/AFP/Getty Images)

Tim Daiss, CONTRIBUTOR: DEC 4, 2015

The proposed $70 billion Shell-BG Group mega deal, one of the largest energy deals in a decade, is now a reality, at least in Australia.

On Thursday, the Australian Foreign Investment Review Board (FIRB) gave the green light to the energy tie-up. The deal has already received regulatory approval in the US, EU and Brazil, while regulatory approval from Chinese authorities is still pending, but expected to be granted. The FIRB approval comes just two weeks after the Australian Competition and Consumer Commission (ACCC), the country’s competition regulator, approved the deal. read more

Shell seeks $7 bln credit facility ahead of BG deal -sources

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LONDON | BY RON BOUSSO: Bonds | Thu Dec 3, 2015

Dec 3 Royal Dutch Shell is seeking to secure a $7 billion credit facility in north America as back-up for its $70 billion acquisition of BG Group, sources said on Thursday.

U.S. bank JP Morgan Chase is arranging the facility, which will involve up to 20 banks and institutional investors, according to sources close to the matter.

The facility will be used as a “back-up” for funds already raised to finance the deal, according to one source. read more

Shell wins final Australian approval for BG Group takeover

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By Ashley Armstrong: 03 Dec 2015

Shell’s £55bn takeover of BG has been cleared by Australia’s Foreign Investment Review Board, handing the deal its penultimate approval from global regulators.

The green light from FIRB for the deal comes after Australia’s competition authorities also approved the deal last month, and follows success with regulators in the US, EU and Brazil.

There has been mounting scrutiny of the rationale for pressing ahead with the takeover while oil prices remain so supressed. read more

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Markets | Thu Dec 3, 2015 1:11am EST

  • Deal still needs approval from China
  • Shell says deal on track to be completed in early 2016
  • Australia imposes condition to prevent tax disputes 

By Sonali Paul

MELBOURNE, Dec 3 Royal Dutch Shell on Thursday won approval from Australia’s Foreign Investment Review Board for the company’s proposed $70 billion takeover of BG Group Plc, leaving China as the last regulatory hurdle to the deal.

The approval included an unusual condition designed to prevent disputes with the Australian Taxation Office (ATO) with the merged group, amid Australia’s push to clamp down on profit shifting and tax avoidance by multinationals. read more

Biggest Oil Deal’s Risk Narrows to Record as Shell Pushes Ahead

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By Rakteem Katakey: 30 November 2015

  • BG’s shares are at smallest discount to Shell’s offer price

  • Takeover received Australia antitrust approval this month

BG Group Plc’s discount to Royal Dutch Shell Plc’s takeover offer is the narrowest since the transaction was announced in April as the likelihood increases that the biggest oil deal of the decade will go through.

BG shares were 7.8 percent lower Monday than the price implied by Shell’s offer to buy the company, about half the discount reached in August. Shell has received approvals for three of the five preconditions to the acquisition, including one this month from Australia’s antitrust authority, meaning the window for some investors to cash in on the discount is starting to close, according to William Hares, a London-based oil analyst with Bloomberg Intelligence.  read more

Shell-BG deal to win green light

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Questions have been raised about the growing gulf between the price of BG shares and Shell’s cash and stock offer, while some market sources have argued that the low oil price could force Shell to renegotiate the deal and reduce its bid.

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Regulators in China and Australia likely to support move to create Britain’s biggest company

Chinese and Australian regulators are expected to give their blessing to Shell’s £55bn mega takeover of BG before Christmas, leaving the future of the deal resting squarely in shareholders’ hands.

The tie-up, which will create Britain’s biggest public company, has been under mounting scrutiny in recent weeks as the City questions whether Shell can justify pushing ahead, with oil prices remaining so suppressed.

However, the takeover will advance a major step towards completion in the coming weeks with the two sides anticipating clearance from China’s Mofcom regulator after the deal was passed into the final phase of its review process. read more

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