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Posts Tagged ‘Gulf of Mexico’

Workers injured in Shell platform fire in Gulf of Mexico file suit

Shell’s Enchilada platform, sitting atop Garden Banks Block 128 in the Gulf of Mexico off the Louisiana coast, caught fire early Wednesday (Nov. 8), injuring two workers. This map shows the location, outlined in yellow.

The lawsuit claims Shell and the pipeline operator were negligent or grossly negligent, failing to maintain a safe work environment…

Three workers injured in a November fire on Shell’s Enchilada platform in the Gulf of Mexico are suing the oil and gas company in a Texas county court. The suit claims Shell, its Gulf of Mexico subsidiary and a pipeline operator “acted with flagrant and malicious disregard” for the health and safety of the workers leading up to the incident. read more

31 million barrels of oil later, new life for old rig

31 million barrels of oil later, new life for old rig

Royal Dutch Shell’s 36-year-old Cougar oil and gas platform. The bulk of the platform was converted into an artificial reef in November.

After chugging along for 37 hours, the lumbering heavy-lift vessel reached its destination 110 miles off Louisiana. There, the ship’s powerful cranes lowered a massive steel structure, used to support offshore oil platforms, to the floor of the Gulf of Mexico, 200 feet below the surface.

This location, however, will never produce oil. Instead, the 3,000-ton frame, from a retired platform operated by Royal Dutch Shell, will become home to barnacles, mussels, sponges and other aquatic invertebrates and a way station for migratory fish from red snapper to whale sharks seeking food and shelter. read more

Shell Midstream buying pipelines, terminals for $825m

Houston’s Shell Midstream Partners is going on a buying spree, acquiring $825 million worth of pipelines and terminals from its Royal Dutch Shell parent.

Written by

The deals designed to beef up the three-year-old Shell Midstream business give the Houston pipelines firm more ownership in Gulf Coast and Gulf of Mexico pipelines, as well as a slew of terminals from the Houston area to Washington state.

The drop-down acquisitions from the parent Shell and other Shell subsidiaries give Shell Midstream majority ownership of the Mars and Odyssey oil pipelines in the Gulf of Mexico. Shell Midstream already owned 49 percent stakes in the pipelines and the deal ups those stakes to at least 71 percent. read more

Shell Canada says Quest carbon capture and storage project exceeds expectations

17 NOVEMBER 2017

Shell Canada’s Quest Carbon Capture and Storage (CCS) project in the Alberta oil sands has sequestered over two million tonnes of carbon dioxide underground. Quest, situated at Shell’s Scotford facility, hit the two million tonne target in July 2017, some 21 months after becoming operational. The company said the target was originally expected to be reached after two years, and the project was exceeding expectations.

“This project has just been incredibly exciting because not only are we proving that this technology works, but we are demonstrating that Canadians are at the forefront of carbon capture and technology,” said Shell Canada external relations advisor Conal MacMillan.

The CCS project, which is among just a handful throughout the world, captures CO2 emissions from the Shell upgrader in Scotford, a facility which processes crude bitumen from oil sands into a wide range of synthetic crude oils. read more

About 75,000 bpd of Gulf oil output still shut after Shell fire

Bryan Sims: NOVEMBER 15, 2015 HOUSTON (Reuters) – A combined 75,206 barrels per day (bpd) of oil and 215,122 million cubic feet per day of natural gas production are shut-in at four platforms in the wake of a Nov. 8 fire at Royal Dutch Shell’s (RDSa.L) Enchilada platform, according to U.S. government data.

The figures include Shell’s Enchilada, Salsa and Augers platforms in the Gulf of Mexico, as well as Hess Corp’s (HES.N) Baldpate platform and Hess-operated Conger field, according to the U.S. Bureau of Safety and Environmental Enforcement (BSEE).

Shell holds a 37.5 percent share in the Conger field.

Hess temporarily abandoned production at its Baldpate, Conger and Penn State fields, according to the company, adding that production coming through its Garden Banks Gas Pipeline system will be closed until further notice. read more

Shell’s Appomattox production platform

The big picture: The giant of the Gulf

10/12 INDUSTRY REPORT STAFF |

HALFWAY AROUND THE WORLD

In October, Ingleside, Texas, welcomed the hull of Shell’s Appomattox production platform, floating aboard a massive heavy-transport vessel, after its journey from halfway around the world. Construction of the host facility for Shell’s pioneering development will be completed in Ingleside after fabrication of the hull in South Korea. Shown here is the departure from South Korea.

BEHEMOTH ON THE SEA

A deepwater oil and gas development that will become Shell’s largest floating platform in the Gulf of Mexico, the sizeable host will tower 20 stories above the sea, float in 7,400 feet-deep waters (that’s five Empire State Buildings), span approximately three football fields across, and weigh more than the world’s largest naval aircraft carrier (125,000 metric tons). read more

Four Gulf of Mexico oil platforms shut after Enchilada fire: Shell

Reuters Staff: NOVEMBER 14, 2017

LONDON (Reuters) – Royal Dutch Shell said on Tuesday that production at four oil platforms in the Gulf of Mexico has been shut in the wake of a Nov. 8 fire at its Enchilada platform.

“Production is shut in at the Shell-operated Enchilada and Salsa platforms, as well as the associated Hess-operated Conger field,” in which Shell has a 37.5 percent share, it said in a statement.

“In addition, Shell safely shut in all production operations at its Auger platform due to downstream constraints caused by this incident.” read more

Shell to repair damaged portions at Enchilada platform, re-deploy personnel

Reuters Staff: NOVEMBER 13, 2017

(Reuters) – Royal Dutch Shell Plc said it was in the process of developing a plan for repairing the damaged parts at its Enchilada platform and re-deploying personnel following its shutdown after a fire last week.

“On Saturday November 11, an assessment team confirmed isolation of the platform from the 30-inch gas export pipeline and no presence of uncontained hydrocarbons,” a Shell spokesperson said.

The company has no timeline to resume normal operations at the platform, Shell added. read more

Shell standing down emergency response over Gulf fire

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Shell has stood down its emergency response activities over a fire on its Enchilada platform in the Gulf of Mexico.

On Saturday an assessment team confirmed the isolation of the platform from the 30-inch gas export pipeline which was thought to be at the centre of the blaze which broke out last week.

The team also found no presence of ‘uncontained’ hydrocarbons.

The supermajor is in the process of developing a plan for repairing the damaged portions of the asset and re-deploying personnel. read more

Hess Issues Statement on Impact from Incident at Shell Enchilada Platform in Gulf of Mexico

November 13, 2017 07:31 AM Eastern Standard Time

NEW YORK–(BUSINESS WIRE)–Hess Corporation (NYSE: HES) released a statement today about the impact on its operations resulting from a fire at the Shell Enchilada platform in the Gulf of Mexico. Shell advised in a statement on Nov. 12 that a plan for repairing the damaged portions of the asset is being developed. All production coming into the Garden Banks Gas Pipeline system also remains shut in until further notice.

Hess production is shut in at its Baldpate, Conger and Penn State Fields. Production is also shut in at the Shell-operated Llano Field (Hess 50 percent interest). Hess production at these fields is approximately 30 thousand barrels of oil equivalent per day. read more

‘No timeline’ for resuming operations of Shell’s stricken Enchilada rig

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Shell has no timeline for restarting normal operations on a platform which was shut down in the US Gulf of Mexico due to a fire, a news report said.

“Though the structure is visibly sound, crews will continue to determine the integrity of the platform and formulate a plan for damage repair,” the oil major told Reuters.

Shell added there was no oil in the water as a result of the incident.

The fire on the Enchilada facility involved a 30-inch gas export pipeline.

All 46 personnel working at the Enchilada facility were safely evacuated. Two Shell employees were injured. Both have been treated and released from the hospital. 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

Oil Tumbles as Surprise Stockpile Surge Outweighs Platform Woes

  • Shell shuts Enchilada platform in Gulf of Mexico Wednesday
  • U.S. drillers lift crude production to an all-time high: EIA

Crude went on a roller-coaster ride Wednesday as platform closures in the Gulf of Mexico led futures to spike, while the stubborn increase in U.S. supplies pulled prices back down.

Oil closed 0.7 percent lower in New York after alternating between gains and losses in the session. Multiple platforms in the Gulf of Mexico suspended operations after Royal Dutch Shell Plc shut its Enchilada-Salsa platform due to a fire. While the shutdowns caused shortages, the prevailing mood was set by a government report showing crude stockpiles unexpectedly rose last week, overseas demand shrank and U.S. output hit a record-high. read more

Oil platform fire in Gulf of Mexico injures 2

Two people were injured Wednesday morning (Nov. 8) in a fire on a Shell oil platform in the Gulf of Mexico, the company said. The remaining 46 workers were safely evacuated.

A Shell spokesman said the fire happened at 1:30 a.m. Wednesday on its Enchilada platform at Garden Banks 128. Shell said it had identified the source of the fire and was “actively responding to the situation.” read more

Royal Dutch Shell: The Cash Machine

 Nov. 6, 2017 12:35 PM ET

Summary

  • Royal Dutch Shell has reported nearly 50% increase in profits following improvement in energy prices which fueled a turnaround of its upstream division.
  • In the first three quarters of 2017, Royal Dutch Shell generated $15.42 billion of free cash flows (ex. working cap. changes), surpassing even the industry’s cash flow king Exxon Mobil.
  • Oil prices have climbed to almost $61 a barrel and could stay at this level in the future, which could give a major boost to Shell’s earnings and cash flows.

Royal Dutch Shell (RDS.A, RDS.B) is a well-oiled cash flow machine. In fact, it generates more free cash flows than any other oil majors, and this was evident from the latest quarterly results. The Anglo-Dutch oil giant could get even better in 2018 on the back of improvement in oil prices. The company’s shares will likely move higher while its valuation might also improve.

Latest Earnings

Royal Dutch Shell has recently released blowout quarterly results in which it posted significantly higher profits following a strong performance from its upstream, downstream and integrated gas divisions. The company reported an adjusted net profit (attributable to shareholders on a current cost of supplies (CCS) basis) of $4.1 billion, up 47% from the same quarter last year. That blew past the company-provided analysts’ estimate of $3.6 billion. The profits at the upstream segment ballooned from just $4 million a year earlier to $562 million. The profits at the downstream and integrated gas segments rose 28.4% and 37.7% to $2.67 billion and $1.28 billion respectively. 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

Layoffs avoided as Shell to revamp gasoline unit at Convent refinery

CONVENT — Royal Dutch Shell plans to refurbish the gasoline-producing catalytic cracking unit at its Convent oil refinery in St. James Parish next year and not demolish it as previously planned under an effort to link up the oil major’s Gulf Coast operations, a local government official said.

St. James Parish President Timmy Roussel announced Wednesday night that refinery managers told him the fluidized catalytic cracker would be furbished in a forthcoming “major turnaround” so it could be run for another four to five years, avoiding possible layoffs at the 227,600 barrel-per-day refinery. read more

Shell says can pump oil from Brazil’s pre-salt fields below $40/bbl

Wael Sawan, Executive Vice President for Shell’s deepwater division, poses for a picture before an interview for Reuters during an oil conference in Rio de Janeiro, Brazil October 24, 2017. Picture take October 24, 2017. REUTERS/Bruno Kelly

Simon WebbAlexandra Alper: OCTOBER 25, 2017

RIO DE JANEIRO (Reuters) – Royal Dutch Shell will participate in Brazil’s deepwater oilfield auction on Friday and is confident it can pump oil from the fields on offer for less than $40 a barrel, a top Shell executive said.

Brazil will hold its first auction in four years for its pre-salt oilfields on Friday. The eight deepwater blocks on offer hold billions of barrels in reserves, and for the first time, Brazil will allow foreign oil firms to operate the fields in the region. read more

New Gulf of Mexico fields bolster new and existing assets

Sep. 20, 2017 7:05 AM ET: EXTRACTS FROM THE ARTICLE: “Williams’ Long-Term Gulf Of Mexico Upside”

Royal Dutch Shell (NYSE:RDS.A) (NYSE:RDS.B) is developing the Appomattox and the Vicksburg fields with the first stage of development expected to recover 650 million barrels of oil equivalent. That includes 596 million barrels of crude and 396 billion cubic feet of natural gas, with a planned peak production rate of 175,000 BOE/d. Two tie-back opportunities, the Gettysburg and Rydberg fields, could be developed through future development schemes. read more

Shell suspends some ops, reduces staff at eastern Gulf of Mexico assets

SEPTEMBER 8, 2017 / 5:42 PM

(Reuters) – Royal Dutch Shell (RDSa.L) on Friday said it has suspended some of its well operations and reduced staff at its eastern Gulf of Mexico assets as a precautionary measure ahead of Hurricane Irma.

The company said there was currently no impact on production.

Hurricane Irma, one of the most powerful Atlantic storms in a century, menaced Cuba and the Bahamas on Friday as it drove toward Florida after lashing the Caribbean with devastatingly high winds, killing 19 people and leaving catastrophic destruction in its wake. read more

Oil giants donate $23 million for Harvey victims

Extracts from unedited feed from the Press Trust of India wire.

September 4, 2017 | UPDATED 03:55 IST

By Seema Hakhu Kachru

Houston, Sep 4 (PTI) US oil giants have pledged USD 23 million for disaster relief operations to help Gulf Coast residents recover from Hurricane Harvey, one of the most destructive storms in US history that killed at least 50 people.

Harvey has soaked Texas with the heaviest rainfall in US history. Texas officials said more than 185,000 homes were damaged and 9,000 destroyed as 42,000 people remain in shelters amid overflowing rivers and reservoirs. read more

Shell says no major damage to Perdido platform after Harvey

SEPTEMBER 1, 2017 / 7:01 PM

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

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

Reporting by Catherine Ngai; Editing by Chizu Nomiyama

SOURCE

Shell, Exxon say some pollution released as storm hits Texas

Pollutants have been released from refineries operated by Exxon, Shell and other companies as torrential rains damaged storage tanks and other industrial facilities on the Texas Coast.

Shell told state regulators this week that a floating roof over a tank at its oil refinery in Deer Park, Texas, partially sank during the heavy rainfall. The company said 100 pounds of benzene and 100 pounds of toluene were released.

A similar event happened at Exxon Mobil Corp.’s refinery in Baytown, Texas. David Gray, a spokesman for the Environmental Protection Agency, said the company reported the release of 15 pounds of benzene. The EPA classifies benzene as a carcinogen. Toluene, a solvent, is less toxic.

A Shell spokesman did not immediately respond to a request for comment.

“This is an unprecedented storm, and we have taken every effort to minimize emissions and safely shut down equipment,” said Exxon spokeswoman Charlotte Huffaker. She said the Irving, Texas-based company was monitoring emission levels and was committed to complying with environmental laws. read more

Shell staff return to Gulf of Mexico platform after Harvey: sources

AUGUST 30, 2017 / 6:16 PM

LONDON (Reuters) – Royal Dutch Shell (RDSa.L) staff have returned to a major oil and gas platform in the Gulf of Mexico in preparation to restart production one week after its shutdown due to Hurricane Harvey, industry sources said on Wednesday.

A small team was airlifted to the Perdido platform and is currently assessing conditions to understand when production can be resumed, the sources said.

Perdido, operated by Shell, was shut down on Aug. 23 ahead of Hurricane Harvey’s arrival. The hub, the second deepest in the Gulf of Mexico, normally produces around 100,000 barrels per day of oil and gas. read more

Hurricane Harvey Tosses Global Oil Markets Into Chaos

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

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

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

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

Shell halts operations at Deer Park refinery

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

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

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

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

AUGUST 27, 2017

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

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

Reporting by Ernest Scheyder; Editing by Sandra Maler read more

Oil companies evacuate workers as storm takes aim at Texas

AUGUST 24, 2017 / 12:43 AM

HOUSTON (Reuters) – Royal Dutch Shell, Anadarko Petroleum and Exxon Mobil announced they were curbing some oil and gas output on Wednesday at facilities in the Gulf of Mexico ahead of a storm expected to hit the Texas coast later this week.

The U.S. National Hurricane Center (NHC) issued a hurricane watch Wednesday for much of the Texas coast, calling for slow-moving Tropical Depression Harvey to intensify as it nears landfall.

Shell said it was evacuating all personnel from the roughly 100,000 barrel-per-day (bpd) Perdido oil and gas production platform as a precaution. Anadarko said it had shut in production and was evacuating workers from its Boomvang, Gunnison, Lucius and Nansen platforms in the Gulf of Mexico. read more

Oil companies evacuate workers as storm takes aim at Texas

Oil companies evacuate workers as storm takes aim at Texas

AUGUST 23, 2017

HOUSTON (Reuters) – Royal Dutch Shell, Anadarko Petroleum and Exxon Mobil announced they were curbing some oil and gas output on Wednesday at facilities in the Gulf of Mexico ahead of a storm expected to hit the Texas coast later this week.

The U.S. National Hurricane Center (NHC) issued a hurricane watch Wednesday for much of the Texas coast, calling for slow-moving Tropical Depression Harvey to intensify as it nears landfall.

Shell said it was evacuating all personnel from the roughly 100,000 barrel-per-day (bpd) Perdido oil and gas production platform as a precaution. Anadarko said it had shut in production and was evacuating workers from its Boomvang, Gunnison, Lucius and Nansen platforms in the Gulf of Mexico. read more

Oil producers signal offshore return in latest Gulf of Mexico auction

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

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

Liz Hampton: AUGUST 16, 2017

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

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

One Shell Square in New Orleans will become Hancock Whitney Center in 2018

One Shell Square, the 51-story building that occupies an entire block of New Orleans’ Central Business District, has carried the name of the oil company since it first welcomed workers in 1972. That will change next year when Hancock-Whitney moves out of its regional headquarters and rebrands the building.

Some 400 bank employees will move from a 106-year-old building just down St. Charles Avenue to seven floors in the tallest building in Louisiana (697 feet), which will then be called the Hancock Whitney Center. The space became available this year after Shell decided to consolidate some of its office space in the tower, which has housed various segments of its business for nearly five decades. read more

Shell Purchases Deep-Water Production And Storage Vessel

HOUSTON, ­­­­­­­July 11, 2017 /CNW/ — Shell Offshore, Inc. announces today that its affiliate, Shell E and P Offshore Services B.V., will exercise a contractual right to purchase the Turritella floating, production, storage and offloading (FPSO) vessel from SBM Offshore.  The vessel is contracted for the Stones deep-water development in the Gulf of Mexico, which began production last year.  Shell and SBM will work over the next several months to achieve a safe, smooth transition of the vessel operations. read more

ExxonMobil/Shell: Haven’t Heard of Groningen? You Might Want to Read This

One team of analyst contends Exxon’s organic growth could be hurt by problems at its Groningen gas field.

By Ben Levisohn: 

ExxonMobil (XOM) has enough problems with the price of oil dropping, but it may have on in a large Dutch gas field known as Groningen.

Exxon runs the field with Royal Dutch Shell (RDS.A), which is being blamed for an increase in the number of earthquakes in the region. That’s led to caps being imposed on production, and could eventually lead to a shutdown altogether say Raymond James analyst Pavel Molchanov and Muhammed Ghulam. They look ahead to the Groningen endgame: 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

Shell suspends some well operations in U.S. Gulf ahead of storm

Shell on Tuesday said it had suspended some well operations in the U.S. Gulf of Mexico ahead of a potential tropical storm, but that production was currently unaffected.

The company said personnel remain offshore but flights from heliports in central Louisiana have been suspended.

(Reporting by Liz Hampton; Editing by David Gregorio)

SOURCE

Divestment, retooling strategy has paid off, Shell says

Divestment, retooling strategy has paid off, Shell says

By Daniel J. Graeber: May 4, 2017

May 4 (UPI) — A divestment and retooling strategy has paid off considerably with first quarter profits more than doubling on improved oil prices, Royal Dutch Shell said.

Shell joins industry peers like British supermajor BP in declaring a first quarter success. Crude oil prices and market conditions have improved since first quarter 2016, and Shell CEO Ben van Buerden said the debt load was cut in part by a free cash flow of $5.2 billion.

Shell in March announced plans to sell off its entire onshore interests in Gabon to Assala Energy Holdings, part of The Carlyle Group, for $587 million. In the fourth quarter alone, the company unloaded more than $1 billion in assets, in large part from North America. In January, it sold off its interests in a package of assets in the British waters of the North Sea for $3.8 billion. read more

Q&A: Shell cuts costs on major deep-water projects

By Collin Eaton: Business Reporter, Houston Chronicle: May 3, 2017

The recovery in energy prices won’t produce a mad rush into deep-water fields anytime soon, but drillers are still spending billions this year on more cost-efficient projects that can outlast cheap oil, says the executive who leads Shell’s deep-water business.

Over the next two years, Royal Dutch Shell plans to spend up to $14 billion developing new and existing deep-water projects in places like the Gulf of Mexico and Brazil, but it’s trying to keep costs nailed down with myriad initiatives that have, for example, reduced its offshore staff by nearly a third. read more

Stones: A True Ultradeepwater Success Story

Rhonda Duey Executive Editor, E&P Hart Energy Jennifer Presley Senior Editor, Production, E&P Hart Energy

Monday, May 1, 2017

When it comes to the offshore industry, people need to hear a good story once in a while. The segment has been hammered in recent years, particularly since the 2014 downturn. But there are still positives coming out of this difficult sector.

One such case is Shell’s Stones Field, the deepest production facility in the world. “I’m on a number of industry committees, and one of the things that people keep saying is, ‘We really need to hear the Stones story because it’s such a positive story,’” said Curtis Lohr, project manager for Stones. “The industry needs to hear that story and wants to hear that story.” read more

This is what’s really behind the America’s sudden oil production boom

This is what’s really behind the America’s sudden oil production boom

Patti Domm

When OPEC points at U.S. oil producers, it’s always the shale drillers they blame for oversupplying the world market.

But while shale is in resurgence, the real source of recent growth has been the offshore drillers in the Gulf of Mexico.

According to Bank of America Merrill Lynch, U.S. oil production growth between September and December was almost entirely the result of offshore wells, which increased production by 220,000 barrels a day in that period.

Offshore projects are much more long-term investments. They are far more costly to develop and take years to get started. “Those projects have an inertia,” said John Kilduff of Again Capital. read more

Shell leads more active Gulf of Mexico federal oil lease sale

Mar. 22, 2017 6:35 PM ET|By: Carl Surran, SA News Editor

Royal Dutch Shell (RDS.A, RDS.B) led the way in today’s federal offshore lease sale in the Gulf of Mexico, which drew $275M in high bids following years of declining offshore interest that dates back before the downturn in oil and gas prices.

Shell made 20 bids totaling $55.9M, including the single highest apparent bid of $24.1M on Atwater Valley Block 64; Statoil (NYSE:STO) counted 13 apparent high bids totaling $44.5M, and Hess (NYSE:HES) ranked third with 12 apparent high bids totaling $43.9M. read more

Costs tumble as Shell masters ‘budget’ deepwater drilling


  • LYNN COOK, SARAH KENT
  • The Australian
  • 12:00AM March 22, 2017

Royal Dutch Shell is trying to ­reinvent its business with a concept that sounds oxymoronic: budget deepwater drilling.

On the Mars oil platform, a hulking steel behemoth 200km southeast of New Orleans, more than 170 roughnecks and engineers are working to quickly wring more oil out of a massive field — and keep it profitable even if oil sinks to $US15 a barrel.

Shell, the world’s second-largest publicly traded energy company, is making a high-stakes bet that it can take highly efficient technology and processes per­fected onshore and deploy them in deep-sea production. read more

Shell, Phillips 66 buy 6.4 mln bbls of oil from U.S. emergency reserve

Oil companies Shell and Phillips 66 together bought 6.4 million barrels of oil last week from the Strategic Petroleum Reserve (SPR), according to a Department of Energy document released on Tuesday.

Shell bought 6.2 million barrels of oil and Phillips 66 bought 200,000 barrels on Jan. 18, said the department document, seen by Reuters.

The federal government held the sale to fund a revamp of the emergency oil stash, which is stored in salt caverns in Louisiana and Texas along the Gulf Coast. The Department of Energy had said it would sell up to 8 million barrels as part of its modernization program. read more

Ethane Production Is Still Climbing

CASEY JUNKINS: Business/Energy Writer: [email protected]

DILLES BOTTOM — U.S. ethane production is growing so fast that federal officials can barely keep track of it, as last year’s projection of 1.4 million barrels per day by 2017 is now trumped by new prognostications of 1.7 million daily barrels by 2018.

As the new U.S. Energy Information Administration numbers indicate, the need for drillers to disperse this liquid continues to climb, which leads Cal Dooley, president and CEO of the Washington, D.C.-based American Chemistry Council, to believe this creates an environment in which the need for ethane crackers grows. read more

Opec bends the markets

screen-shot-2016-12-03-at-08-16-41By Ed Crooks, December 2, 2016

In 451 CE, the great Roman general Flavius Aetius rallied a motley army of imperial troops and barbarian allies, and halted the advance of Attila’s Huns at the Catalaunian Plains in Gaul, buying the empire some time and temporarily interrupting its long-term decline. This week’s Opec meeting in Vienna had something of the same feel about it.

Opec’s power peaked in the 1970s, and the US shale oil revolution of the past half-decade has threatened to consign the cartel’s influence to history. But by agreeing a deal to cut production on Wednesday, the Opec ministers showed that if they all acted together they could still bend the oil markets to their will, at least for a while. read more

Obama administration bans Arctic offshore oil drilling through 2022. But will Trump reverse it?

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By William Yardley: 18 Nov 2016

The Obama administration said Friday it was banning offshore oil drilling in the Arctic through 2022, a move that prompted widespread praise from conservation groups but raised questions over how long the decision will stand just two months before President-elect Donald Trump takes office.

A new five-year leasing program prohibits any drilling in the Beaufort and Chukchi seas — an environmental battleground in recent years —and also blocks expansion in the Atlantic and Pacific oceans, while allowing some new leasing in the Gulf of Mexico. read more

LIVING IN TRUMPWORLD

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Comment from Bill Campbell on the Energy Voice Article: Shell stresses importance of stable regulatory environment post-Trump victory

Under Trump, with the senate and congress to support him, we can look forward soon to significant deregulation in the US effecting positively onshore fracking, tar sands development, offshore Deepwater in the Gulf and a boost perhaps to Alaska drilling. One assumes the Keystone pipeline will go ahead and perhaps pipelines running from central US to East Coast for new LNG Plants to supply a Europe hedging its bets over Russian gas availability with Europe’s ongoing problems with Putin, sanctions etc. A significant increase in US output, leading to increase in global supply over demand could dampen oil price. Shell seems to have divested assets recently in the US in some of these areas to offset BG takeover costs so uncertain whether Trumpworld will be good or bad for Shell. read more

Royal Dutch Shell Plc Third quarter 2016 summary of unaudited results

THE HAGUE, The Netherlands, Nov. 1, 2016 /PRNewswire:  Dutch Shell plc: 3rd Quarter 2016 Unaudited Results

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  • Royal Dutch Shell’s third quarter 2016 CCS earnings attributable to shareholders were $1.4 billion compared with a loss of $6.1 billion for the same quarter a year ago. 
  • Third quarter 2016 CCS earnings attributable to shareholders excluding identified items were $2.8 billion compared with $2.4 billion for the third quarter 2015, an increase of 18%. 
  • Compared with the third quarter 2015, CCS earnings attributable to shareholders excluding identified items benefited from increased production volumes mainly from BG assets, lower operating expenses more than offsetting the increase related to the consolidation of BG, and lower well write-offs. This was partly offset by the decline in oil, gas and LNG prices, and increased depreciation mainly resulting from the BG acquisition, and weaker refining industry conditions.
  • Third quarter 2016 basic CCS earnings per share excluding identified items decreased by 8% versus the third quarter 2015.
  • Cash flow from operating activities for the third quarter 2016 was $8.5 billion, which included favourable working capital movements of $0.7 billion.
  • Total dividends distributed to shareholders in the quarter were $3.8 billion, of which $1.1 billion were settled by issuing 44.1 million A shares under the Scrip Dividend Programme.
  • Gearing at the end of the third quarter 2016 was 29.2% versus 12.7% at the end of the third quarter 2015. This increase mainly reflects the impact of the acquisition of BG.
  • A third quarter 2016 dividend has been announced of $0.47 per ordinary share and $0.94 per American Depositary Share (“ADS”).

Royal Dutch Shell Chief Executive Officer Ben van Beurden commented:

“Shell delivered better results this quarter, reflecting strong operational and cost performance. But lower oil prices continue to be a significant challenge across the business, and the outlook remains uncertain.

Our investment plans and portfolio actions are focused firmly on reshaping Shell into a world-class investment case at all points in the oil-price cycle, through stronger returns and improved free cash flow per share. We are making good progress towards this aim in spite of current challenging market conditions. read more

Royal Dutch Shell – Additional Divestments In Order To Sustain The Dividend

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Oct. 21, 2016 10:17 AM ET

Summary

  • Shell is announcing further divestments, this time selling part of its shale operations in Canada.
  • These moves do little to address the giant debt load, although they allow for cash flow neutrality this year.
  • Asset sales, resulting in smaller operations, combined with shareholder dilution hurt the long term potential as management stubbornly tries to preserve the dividend.

Royal Dutch Shell (RDS.A) announced another round of divestments in order to keep leverage under control, even as oil prices have rebounded a bit in recent times. These modest divestments are countercyclical and hurt production quite a bit in relation to the proceeds. At best cash outflows come to a standstill this year following these moves, although they result in a smaller business going forward, while investors see dilution of the shareholder base in order to sustain the unsustainable dividend. read more

Opec’s unclear resolve

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Opec’s unclear resolve

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By Ed Crooks, September 30, 2016

After two years of inaction as a strategy, Opec this week decided to do… something. Exactly what it will end up doing has yet to be determined.

When Opec ministers met at a beach resort in Algiers, they agreed a statement setting a target for their oil production that is roughly 250,000-750,000 barrels per day lower than the cartel’s current output. The big missing piece from the deal, though, was how the cartel’s members would share out the cuts needed to reach that target. A “high-level committee” of representatives from member states, supported by the Opec secretariat, will work on recommendations for individual countries’ cuts, which could be confirmed at the next ministerial meeting, in Vienna on November 30. read more

Shell’s Growth Priority Over The Next Five Years — Deepwater

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Trefis Team SEP 29, 2016 @ 08:42 AM

With the ever-growing energy needs worldwide, the conventional sources of energy are likely to exhaust soon. Having explored the majority of the onshore reserves, oil and gas producers around the globe are now moving to offshore reserves, that are primarily formations in deep waters, containing thick layers of oil and gas in permeable rock. Consequently, Deepwater drilling, often used to categorize drilling in water depths of greater than around 400 meters, has become an attractive alternative to onshore drilling. In line with this growing trend, Royal Dutch Shell (NYSE:RDS.A) has categorized Deepwater as one of its growth priorities for the next five years. (Also Read: Shell’s Growth Priority Over The Next Five Years – Chemicals) In this note, we discuss the growth potential of the deepwater market, Shell’s positioning in this market, and its strategy going forward. read more

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