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Posts Tagged ‘Oil Prices’

Oil is going down but Royal Dutch Shell plc is on the up

Harvey Jones | Thursday, 23rd March, 2017

Brent crude is now only a splash above $50. West Texas Intermediate has dripped to around $48. Predictions that oil would hit $60 or $70 on last year’s OPEC and non-OPEC production cuts have been shown to be desperately optimistic, and oil looks a tough play right now.

Straight to Shell

The share price of Anglo-Dutch major Royal Dutch Shell (LSE: RDSB) flew upwards in the wake of the OPEC deal, hitting a 52-week high of 2,390p in early December. After management’s campaign of cost-cutting, non-core disposals and capex slashing, analysts reckoned it could break even at around $55-60, which would help to sustain its proud record of never having cut its dividend since the war.

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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.

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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.

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Would you bet on a rapid rise in the oil price?

By Holly Black for the Daily Mail: PUBLISHED: 21:51, 17 March 2017 

Oil stocks took a knock this week as the price of the black stuff slipped to its lowest level since November.

Despite an agreement to cut production by 1.2m barrels a day by the oil cartel Opec being widely adhered to, supply is still outpacing demand.

Now some experts are concerned the deal could be derailed by a surge in the US, where a 55 per cent year-on-year jump in active rigs has driven production levels to record highs. 

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BP Rallies on Possibilities of a Takeover by ExxonMobil

Zacks: March 14, 2017

Shares of BP plc BP rallied after a London-based newspaper claimed that ExxonMobil Corporation XOM is looking to place a takeover bid for the British energy group.

A bid for BP cannot be ignored as these rumors about ExxonMobil’s interest have been doing the rounds for years. However, analysts believe that such a deal is unlikely as it does not seem to be a strategic fit.

The merger would create a company too big and complex to be managed. The weak oil price environment has resulted in just one big deal – Royal Dutch Shell plc’s RDS.A $54 billion purchase of BG Group Plc in 2016. Other key oil players in the industry have embarked on smaller acquisitions as they intend to preserve cash and maintain their balance sheets. Though oil prices have increased from the 12-year lows of last year, companies are still uncertain if the recovery is sustainable.

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Shell updates Brent oil trading terms to add Troll to benchmark

Royal Dutch Shell (RDSa.L) has updated the terms which govern Brent oil trade to allow for the addition of a fifth crude oil grade into the basket used to assess the global oil benchmark.

Oil pricing agency S&P Global Platts (SPGI.N) plans to add Norway’s Troll crude to the four already used to assess Brent from January 2018. This will join Brent, Forties, Oseberg and Ekofisk, or BFOE as they are known.

With effect from Friday, Shell updated its “SUKO 90” terms and conditions on its website to add Troll to the existing four crudes, and so bring them into line with the plans of Platts.

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Despite sanctions relief, Shell still cool on Iranian oil buys

By Dmitry Zhdannikov | LONDON

Royal Dutch Shell has bought only three cargoes of Iranian oil since sanctions were eased a year ago, a small fraction of what it used to buy and an indication of the legal difficulties and high prices that still hamper the trade.

The Anglo-Dutch firm did not give a reason for the drop in purchases, which were disclosed in its annual report, and the company declined to comment further.

But oil trading sources say Iranian oil is often too expensive and in any case remaining sanctions make dealing with the Islamic Republic a legal minefield.

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Shell sells out of the oilsands. Was it climate or costs?

By Tracy Johnson, CBC News Posted: Mar 09, 2017 4:17 PM ET

Royal Dutch Shell’s deal to sell most of its stake in Alberta’s oilsands was in the works for more than a year, says the company’s chief executive Ben van Beurden.

“We said we would high-grade the portfolio,” he said at the CERAWeek energy conference in Houston.

“We would get out of positions where we do not have the scale or the capability, or that did not fit us in the longer run strategically. And the oilsands is one of them.”

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Shell CEO’s plan for a smaller carbon footprint

Patti Domm: 9 March 2017

Royal Dutch Shell‘s announcement of the sale of $7.25 billion in Canadian oil sands assets Thursday is an important step to turning itself into a company of the future — with a broader mix of energy assets and a smaller carbon footprint.

Shell CEO Ben van Beurden said the company is committed to reshaping itself and believes that renewables and new energy will play a bigger role. The company is retaining just 10 percent of its Canadian sands assets.

“We are right in the middle of transforming the company into the company of the future,” he said at the CERAWeek conference in Houston, sponsored by IHS Markit.

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Shell cuts debt with US$7.25 billion sale of Canada oil sands

9 March 2017

TORONTO (BLOOMBERG) – Royal Dutch Shell will sell almost all its production assets in Canada’s oil sands in a US$7.25 billion (S$10.24 billion) deal that cuts debt and reduces involvement in one of the most environmentally damaging forms of fossil-fuel extraction.

The company will sell all of its oil-sands interests apart from a 10 per cent stake in the Athabasca Oil Sands mining project, The Hague-based Shell said on Thursday (March 9). It will also continue as operator of the Scotford upgrader and Quest carbon capture and storage project.

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Shell Shuns New Oil-Sands Projects as Low Prices Force Cost Control

by Rakteem Katakey: 27 February 2017, 14:52 GMT

Royal Dutch Shell Plc is unlikely to take on new oil-sands projects as it maintains a grip on costs after crude’s crash forced competitors to write down Canadian reserves.

While Shell’s existing oil-sands operations generate strong cash flows, the expense of developing new projects discourages additional investments, Chief Executive Officer Ben Van Beurden said in an interview.

Oil sands, the reserves of heavy crude found primarily in northern Alberta, lured investors in the past decade as oil’s surge above $100 a barrel made the difficult extraction process economic. But they’ve fallen out of favor following the subsequent market collapse as companies dump expensive projects amid fears that competition from low-cost crude could strand costlier assets.

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Shell Shakes Up Oil Trading World With Brash Brent Buying Sprees

Laura Hurst and Javier Blas: 20 February 2017

The giant tankers anchored along the Scottish coast in the Firth of Forth weren’t going anywhere. They were just providing floating storage because there was no demand for their cargo, North Sea crude oil.

But the flickering computer screens in the world’s trading rooms told a different story. Prices through the month of April were jumping, showing someone was buying, stunning traders and leaving some with heavy losses. That wasn’t the only bizarre gyration last year in the market for Brent, whose price determines the cost of just about every petroleum-based product, from jet fuel to plastic spoons. Such unusual moves damaged confidence so much that some traders retreated from the market.

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Alberta power company buys half-built Shell oil sands power plant

February 17, 2017

CALGARY, Alberta (Reuters) – Kineticor, a small privately held power producer, has partnered with one of Canada’s largest pension funds to buy a half-finished oil sands power plant in northern Alberta that was part of an abandoned Royal Dutch Shell (RDSa.L) project, the company said on Friday.

Alberta-based Kineticor said it had closed the acquisition of the partially constructed 690 megawatt cogeneration plant near Peace River that was part of Shell’s 80,000 barrel per day Carmon Creek project.

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Can BP plc and Royal Dutch Shell plc survive the coming oil price crash?

By The Motley Fool  Feb 15, 2017

Last year’s surprise OPEC and non-OPEC oil production cuts were supposed to herald a new area of higher energy prices, but it hasn’t really happened. Oil bulls who predicted oil could hit $60 or $70 a barrel will have been disappointed, with the price stalling around $55. If the price can’t rise now, when will it rise? Or could it even crash?

Oil slip

Any further slippage would spell bad news for FTSE 100 giants (LSE: BP) and Royal Dutch Shell(LSE: RDSB). They are banking on a higher oil price to keep the cash flowing, and ensure their dividends are sustainable in the longer run.

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Why I believe Royal Dutch Shell plc’s dividend looks safe despite falling profits

The Motley Fool: Why I believe Royal Dutch Shell plc’s dividend looks safe despite falling profits

Rupert Hargreaves | Monday, 13 February 2017

For much of the past three years, investors have continually questioned the sustainability of the Royal Dutch Shell (LSE: RDSB) dividend payout as the price of oil has languished. 

Indeed, as the price of oil has fallen to its lowest level in over a decade, Shell has been paying out more than it can realistically afford to investors, filling the gap between income and spending with debt. For example, during 2015 the company paid a total dividend of $9.4bn to investors even though free cash flow after capital expenditure was only $4bn. Last year, including capital spending and the dividend, the company spent $10bn more than cash generated from operations.

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Shell’s Brent plans to spark North Sea jobs boost

The Telegraph: Shell’s Brent plans to spark North Sea jobs boost

Jillian Ambrose

Royal Dutch Shell is to recommit itself to the North Sea as it prepares to dismantle the colossal oil rigs in the historic Brent oilfield, heralding hopes of hundreds of decommissioning jobs.

The oil major will today submit its decommissioning plans to the Department for Business, Energy and Industrial Strategy – including a controversial plan to leave the base of the four giant structures in the sea bed – ending a decade-long project on how to safely retire the ageing field.

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OPEC Output Cuts End Big Oil’s Trading Bonanza

The oil-trading boom that cushioned the profits of Royal Dutch Shell Plc and BP Plc through the price slump of 2015 and early 2016 is over.

BP said on Tuesday it made a “small” loss trading oil in the fourth quarter, while Shell last week said trading profits “flattened” in late 2016. The fall off in trading contributed to worse-than-expected fourth-quarter profits at Europe’s largest oil and gas producers.

Although better known for their oilfields, refineries and gas stations, Shell and BP are the world’s top energy traders, handling about 20 percent of global oil demand between them and dwarfing independent trading houses such as Vitol Group BV, Trafigura Group and Glencore Plc.

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Shell To Sell Another $5B In Assets, Misses Profit Expectations

By Tsvetana Paraskova – Feb 02, 2017, 3:03 PM CST

Royal Dutch Shell (NYSE:RDS.A) is making “significant progress” on selling another US$5 billion worth of assets, chief financial officer Simon Henry said on Thursday after the oil supermajor reported 2016 profits below analyst expectations.

Shell’s current cost of supplies (CCS) – a key measure comparable with net income – came in at US$1.8 billion, excluding identified items, compared with US$1.6 billion for the fourth quarter 2015, the company said today. Full-year 2016 CCS earnings attributable to shareholders excluding identified items dropped to US$7.2 billion from US$11.4 billion in 2015.

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Royal Dutch Shell is changing, CEO says

By Daniel J. Graeber: Feb. 2, 2017

(UPI) — Royal Dutch Shell continues to focus on an aggressive divestment strategy after cutting $15 billion from its books last year, its CEO said Thursday.

“We are gaining momentum on divestments, with some $15 billion completed in 2016, announced, or in progress, and we are on track to complete our overall $30 billion divestment program as planned,” CEO Ben van Beurden said in a statement.

The Dutch supermajor, trimmed down after a merger last year with British energy company BG Group, reported an 8 percent decline in profit last year for one of its weakest performances in more than a decade.

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Shell posts earnings of $3.5 billion in 2016; an 8% slide from $3.8 billion in 2015

Silvia Amaro | @Silvia_Amaro: 2 Feb 2017

Oil major Royal Dutch Shell posted fourth-quarter earnings of $1.0 billion, compared with $1.8 billion for the same quarter a year ago.

Ben van Beurden, chief executive officer of Royal Dutch Shell, said that such earnings figures do not “look good” for investors but he is “very pleased” with the performance for the full year as the company completed its merger with gas utility BG. Shares were 1.5 percent higher in early trade on Thursday.

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Royal Dutch Shell’s key earnings fall 44%

The results will disappoint investors who hoped for a stronger show of momentum on the back of higher oil prices and continues the choppy performance by Shell since its $50bn takeover of BG Group completed last year.

FULL FT ARTICLE

Shell boss Ben van Beurden delivered worse than expected full year results

Jillian Ambrose2 FEBRUARY 2017 • 8:55AM

Royal Dutch Shell has dashed investor hopes for a resurgence in profits after reporting disappointing earnings from its exploration and production business.

Europe’s largest oil company was expected to announce full-year profits double those of last year, but instead they fell 8pc to $3.8bn (£2.99bn),  their lowest level in over a decade.

The results came in well below City forecasts. Analysts had been expecting the company to make $8.17bn on a current cost of supplies (CCS) basis, a standard measure of profit in the industry.

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Shell, BP results preview: Look past top line figures to find positive story, analyst says

Written by Mark Lammey – 30/01/2017 7:48 am

Investors monitoring the fourth quarter results of Shell and BP must look beyond the top line figures to get a good reading of the firms’ vital signs.

Iain Armstrong, divisional director at Brewin Dolphin, said the fourth quarter was notoriously hard to predict as oil and gas deliveries tended to be down.

Mr Armstrong said the two majors’ headline figures could be disappointing, unless strong demand from China gives them a boost.

He also said Shell should be in a position to sell more of its North Sea assets, thanks to improved oil prices and the BG Group acquisition showing signs of fruition.

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Shell is expected to report huge annual profit gains as oil prices recover

Recovering oil prices mean Shell will bag a huge profit compared with last year’s (Source: Getty)

Courtney Goldsmith: 29 Jan 2017

Royal Dutch Shell’s annual profits are expected shoot up following last year’s dramatic 80 per cent decline as oil prices continue to inch up.

The oil giant is forecasted to post a profit of $8.17bn (£6.51bn), more than double its profit of $3.8bn the previous year, the Telegraph reported.

The Anglo-Dutch business is also expected to announce the latest development in its drive to ditch $30bn worth of assets following its £35bn takeover of BG Group. Shell is predicted to report the $3bn sale of its North Sea oil and gas assets – almost half of its total assets worth $7bn in the North Sea – to a private-equity-backed explorer.

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Shell bounces back as oil price enjoys a slick resurgence

Shell bounces back as oil price enjoys a slick resurgence

Jillian Ambrose28 JANUARY 2017 • 7:00PM

Royal Dutch Shell is poised to lead a comeback this week as it reveals annual profits have more than doubled on the back of the recovering oil price.

The Anglo-Dutch oil giant is expected to post bumper profits of $8.17bn (£6.91bn), a huge jump on the $3.8bn it reported at the depths of the market downturn.

Alongside the profit boom, Shell is expected to announce the $3bn sale of its North Sea oil and gas assets to a private-equity-backed explorer.

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29 MORE reasons to sell BP plc and Royal Dutch Shell plc

By The Motley Fool  Jan 26, 2017

Those hoping that OPEC’s decision to finally curtail production at November’s Doha summit would go some way to balancing the oil market would no doubt have gasped at the latest US rig count data on Friday.

According to drill checkers Baker Hughes, the number of oil rigs up and running in the States rose by 29 during the seven days to January 20, taking the total to 551.

This was the largest one-week jump since April 2013 and means that the rig count has risen during 10 of the last 11 weeks. Meanwhile, the number of US rigs in operation now stands at a 14-month peak.

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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.

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Royal Dutch Shell: A Lot Of Debt

Brandon Dempster: Jan 19, 2017

Royal Dutch Shell (RDS.A, RDS.B) has a sizeable debt wall ahead of them. With nearly $20 billion in debt due over the next five years, this company is going to have to be firing on all cylinders in order to not just meet these principal repayments, but to generate enough cash flow to fund the sizeable dividend, boost capital expenditure per the company’s Q3 2016 guidance, and still remain in positive free cash flow territory. It’s important that investors take a tough look at the debt due this year and understand the company’s current liquidity position.

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Nova Scotia offshore oil and gas ‘doesn’t look good’ after Shell seals 2 wells

By Michael Tutton, The Canadian Press Posted: Jan 18, 2017 5:12 PM

Shell’s decision to seal two exploration wells off Nova Scotia has set back the province’s dream of offshore riches, but analysts say it’s early days in what may prove to be a complex geological hunt.

Wade Locke, a resource economist at Memorial University says Shell’s confirmation this week it’s abandoning the Monterey Jack well, along with news its Cheshire deepwater well did not have commercial quantities of oil, are not confidence boosters.

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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.

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Shell Pipeline Fire Threatens to Deepen Nigerian Oil Output Drop

by Elisha Bala-Gbogbo and Paul Burkhardt

5 January 2017, 14:21 GMT

Royal Dutch Shell Plc shut the Trans Niger oil pipeline after a fire, threatening to worsen a drop in Nigerian output due to unplanned disruptions.

The line can transport about 180,000 barrels a day to the Bonny Export Terminal in the Niger Delta was halted Tuesday due to a blaze at Kpor in Ogoniland, Precious Okolobo, a company spokesman in Lagos, said Thursday by phone. Shell declined to comment on the impact on production.

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Royal Dutch Shell Better Positioned as Oil-Producing Countries Begin to Reduce Output

January 04, 2017, 10:32:39 AM EDT By MT Newswires

Royal Dutch Shell (RDS.A, RDS.B) is in a better position as members of the Organization of the Petroleum Exporting Countries and other producers begin curbing production in a bid to boost prices, RBC researchers said in a note to clients on Wednesday.

“We believe the recent OPEC/non-OPEC supply deals have put the oil market on much firmer footing, which removes some of our tail-risk concerns for Shell,” the analysts said. “Looking ahead, we see the potential for strongly improving cash flow generation, while in the near term, we believe net debt should begin falling from its peak.”

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Oil Major Shell Plans To Shrink As Oil Rebounds

By Nick Cunningham – Jan 03, 2017, 3:07 PM CST

Oil prices are rising and the industry is poised for a rebound, with U.S. shale spending set to soar in 2017. But for Royal Dutch Shell, this year will be much more mundane as years of high spending and ballooning deficits force the Anglo-Dutch oil major to retrench.

Even as the New Year promises to bring a sharp improvement in the finances of oil companies across the world, including Shell, not everyone will approach the rebound in the oil market in the same way. Smaller U.S. shale companies, with assets concentrated in some highly profitable areas such as the Permian, are planning to sharply increase spending and drilling. But the oil majors are less nimble, having assets diversified upstream and downstream, spread out across the globe. They were able to weather the oil price downturn better than their smaller peers, but they respond much more slowly to fluctuations in the oil market. That stability is a feature for many investors looking to avoid volatility, but it also means that 2017 may not bring much excitement from the majors.

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Shell Seeks to Streamline in 2017

…saddled with a mountain of debt…

By SARAH KENT: Jan. 3, 2017 7:00 a.m. ET

LONDON— Royal Dutch Shell PLC has a goal for 2017: Slimming down. The British-Dutch oil-and-gas giant bulked up in February with the roughly $50 billion acquisition of BG Group PLC, giving Shell a dominant position in liquefied natural gas and some of the world’s most prized offshore oil fields in Brazil. It also saddled the company with a mountain of debt—$78 billion at the end of the third quarter—that is higher than peers such as Exxon Mobil Corp.

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Sell Shell?

Royston Wild | Monday, 2nd January, 2017

Sell Shell?

It comes as little surprise that Royal Dutch Shell (LSE: RDSB) has rocketed during the fourth quarter, the stock reaching 13-month peaks just last week on the back of the successful OPEC production accord. Shell gained 18% in total during October-December.

The Doha deal has been heralded as a game-changer in addressing the supply/demand imbalance washing over the oil market. And with no little reason. After all, OPEC is responsible for around 40% of global crude output.

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Royal Dutch Shell plc Good Times Underway

Having brought about production at exceptionally low costs with cash operating costs around $15 per barrel throughout the year, Royal Dutch Shell plc (ADR) (NYSE:RDS.A) is expected to post a commendable  cash flow growth in the long cycle. With West Texas Intermediate and Brent crude currently above $50 per barrel, the Anglo Dutch company is likely to benefit. As per the estimates of market watchdogs, the oil and gas major is expected to grow its cash flow position to $25 billion in four years given that oil prices reach $60 per barrel.

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Malabu $1.1 billion Scandal: You must prosecute Shell, Eni too, indicted Etete tells Nigerian govt

Samuel Ogundipe: December 29, 2016

Dan Etete, a former Minister of Petroleum caught at the heart of the $1.1 billion Malabu Oil scandal, has accused the Nigerian government of leaving out Shell and Agip in the criminal charges it filed last week.

Mr. Etete said the government erred in pursuing the case against him and others while conspicuously sparing Shell, Total and Agip/Eni even though the three firms “were parties to all the agreements” reached in the OPL 245 oil deal, THISDAY reported on Wednesday, citing a text message exchange it had with Mr. Etete.

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Royal Dutch Shell: Prepare For Strong Upside

Dec. 29, 2016 3:08 AM ET

Summary

  • Royal Dutch Shell will report strong growth in the cash flow in the long run as it brings online low-cost production with cash operating costs of just $15/barrel.
  • In a $60 oil price environment, Shell’s free cash flow is expected to grow to $25 billion in 2020 as compared to $12 billion at a price of $90/barrel earlier.
  • Due to the growth in the free cash flow and low capital expenses as more projects come online, Shell’s operating cash flow will grow to $50 billion in 2020.
  • At an operating cash flow of $50 billion and a price to cash flow ratio of 15, Shell’s market capitalization is set to triple in the coming four years.

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Royal Dutch Shell plc and BP Pay Higher Dividends: Here’s Why?

Britain’s decision to exit the European Union came as a shock for many. During the initial phase of Britain’s exit, the pound depreciated tremendously and questions were raised regarding how companies would operate. But now, a few months later, it seems that stakeholders of a few companies greatly benefitted from the move. 

336×280- intext

As mentioned above, the Brexit decision led to a significant decline of the pound against the dollar. Oil and gas companies such as the likes of Royal Dutch Shell plc. (ADR) (NYSE:RDS.A) and BP plc. (ADR) (NYSE:BP) decided to capitalize on the decline by giving out lucrative bonuses to their shareholders. 

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No Harm to Royal Dutch Shell plc (ADR) (RDS.A) Dividends

Published By: Myrna Salomon on December 27, 2016 09:41 am EST

For income savvy investors, a dividend yield of 6.95%, one of the highest in industry is certainly attractive. Having said this, Royal Dutch Shell plc (ADR) (NYSE: RDS.A) not only has such a lucrative yield, but also has history of sustaining it for the longest time.

The payout ratio is also appreciable, with company paying out dividend but retaining one third of its profits for future growth. On average, its reserves have increased by 3% on annual basis. This goes on to reflect that investors’ wealth is also increasing over time, along with company’s ability to grow consistently.

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‘’EVs, Solar Could Push Oil Down To $10 By 2025’’

By Charles Kennedy – Dec 20, 2016, 4:38 PM CST

That prediction comes from Engie SA’s innovation chief, Thierry Lepercq, who says that oil demand will be hit on multiple fronts. He lays out five tsunamis: solar power, battery storage, electric vehicles, “smart” buildings, and cheap hydrogen. “Even if oil demand continues to climb until 2025, its price could drop to $10 if markets anticipate a significant fall in demand,” Lepercq told Bloomberg in an interview. Solar, battery storage, electrical and hydrogen vehicles, and connected devices are in a ‘J’ curve,” he added. “Hydrogen is the missing link in a 100 percent renewable-energy system, but technological bricks already exist.”

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Shell and BP’s UK dividend payments surge on weaker pound

Andrew Ward, Energy Editor

Royal Dutch Shell and BP have delivered a Christmas bonus worth almost £500m to UK shareholders because of the depreciation of the pound against the dollar since the vote to leave the EU.

Both UK oil majors have made quarterly payouts this month that were a fifth higher than a year ago due to their practice of setting dividends in dollars and paying them in sterling.

FULL FT ARTICLE

After Alaska flop, Shell’s search for oil moves closer to home

By Ron Bousso | LONDON

In the waters off Malaysia, Royal Dutch Shell (RDSa.L) is finding gas quickly and cheaply to replenish depleting fields where only a few years ago geologists had lost hope of discovering any new reserves.

The Anglo-Dutch group is combining the latest technology with the wisdom of industry veterans to unlock new oil and gas deposits where it already operates, usually within 20 km (12 miles) of existing platforms.

The result has been a string of finds which, while modest in size, can generate cash rapidly to suit an era of drastically reduced exploration budgets across the energy industry.

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Oil stocks surge, BP and Shell both climb on back of OPEC pact

Written by Reporter – 12/12/2016 1:20 pm

Oil stocks topped the FTSE 100 on Monday after non-Opec producers agreed to curb production to help buoy floundering crude prices.

The UK’s blue chip index was down 0.1% at around 6946.53 points, but Royal Dutch Shell’s ’B’ shares rose 3% and BP jumped 2.4%.

Away from the top tier, Tullow Oil soared 9.6% and Premier Oil surged 9.9%.

Sterling was flat against the dollar at 1.256, but down 0.3% against the euro at 1.187.

Brent crude prices climbed more than 5% to around 57.03 US dollars per barrel (£45.33) in early trading, marking its highest level since July 2015.

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The Nigerian King and a very brazen bid to squeeze millions out of Shell over pollution

By Rachel Millard For The Daily Mail7 December 2016 

Residents of the communities in south-east Nigeria remember clearly the day oil giant Shell first arrived in the 1950s.

Children could hear the rumble of the trucks from a distance, so they’d wave at the drivers as they passed.

It still happened when King Emere Godwin Bebe Okpabi, community leader of the Ogale community in Ogoniland, was growing up in the 1960s.

The region, largely marshland and swamps, was poor but the British firm, with its modern technology and skilled engineers, seemed to represent a new era of prosperity. 

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Oil prices shed early gains amid doubts over OPEC output cut

By Jane Chung and Keith Wallis | SEOUL/SINGAPORE

Oil prices erased early gains to trade almost flat in Asian session on Thursday on mixed U.S. crude stocks data and doubts over OPEC’s implementation of an output cut, although a weaker dollar aided sentiment.

International Brent crude futures were trading up 2 cents at $53.02 a barrel at 0807 GMT. Prices fell to $52.81 a barrel earlier in the session.

U.S. benchmark West Texas Intermediate crude was up 3 cents at $49.80 a barrel after dropping to $49.61 earlier.

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OPEC, U.S. begin ‘cat and mouse’ oil game as producers pounce on hedges

By Amanda Cooper and Catherine Ngai | LONDON/NEW YORK

As far as one of the world’s biggest commodities traders, Glencore’s chief Ivan Glasenberg, is concerned, the oil market will be at the mercy of “a cat and mouse game” between OPEC and its U.S. shale rivals in the coming year.

A 16 percent price rally over the past week has delivered U.S. frackers a golden opportunity to hedge – or sell forward – their production for 2017 and beyond, to shore up their coffers against possible future price falls.

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Shell Makes Cuts to Boost Returns

Allen Good7 December, 2016

With the BG acquisition in the books, Shell (RDSB) is embarking on the necessary steps to compete in a world of $60 a barrel oil.

Like the rest of the integrated group, Shell is working to reduce its cost base, which has become bloated during the past five years, by reducing headcount and improving its supply chain.

The integration of BG is integral to Shell’s efforts, as it holds the potential for $4.5 billion of cost-reduction synergies. Furthermore, the addition of BG’s low-cost production reduces Shell’s per-barrel operating cost, which ranked among the highest in its peer group. In total, Shell aims to reduce operating cost by 20% from 2014 levels by the end of 2016, with further reductions possible in later years.

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screen-shot-2016-12-05-at-16-34-00 By The Motley Fool  Dec 5, 2016

Today I’m looking at the critical reasons to sell out of Royal Dutch Shell (LSE: RDSB).

A drop in the ocean

The oil sector’s major players breathed a huge sigh of relief last week after OPEC — responsible for four-tenths of the world’s oil supply — confounded the expectations of many and agreed to cut its output.

Saudi Arabia brokered a deal that will see production fall by 1.2m barrels per day, to 32.5m barrels beginning in January. The news prompted Brent oil to top the $55 per barrel marker for the first time since the summer of 2016.

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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.

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