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Posts Tagged ‘Oil Sands’

Canada M&A Hits Decade-High as Foreign Owners Flee Oil Sands

Mergers and acquisitions in Canada are set for the strongest start in a decade as foreigners sell their oil sands investments. ConocoPhillips and Royal Dutch Shell Plc are leading the exodus amid a bear market for crude. However, Canadian producers are responding by pumping money into oil deposits in the remote boreal forests, which trail only Saudi Arabia and Venezuela in proved reserves but are more expensive to extract.

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Shell says it will proceed with B.C. energy plans despite political uncertainty

DAN HEALING, THE CANADIAN PRESS 

CALGARY — Royal Dutch Shell will forge ahead with its energy development plans in British Columbia regardless of the uncertainty swirling around the province’s political future, says the company’s Canadian country chair.

Energy investments in B.C. have been cast into doubt after the May 9 provincial election that saw the Liberals win 43 seats and the NDP take 41— a situation that gives the Green party the balance of power with their three seats. read more

Shell Canada budget drops by half a billion dollars after oilsands sale

The Canadian Press Published Tuesday, June 6, 2017 2:22PM EDT

CALGARY – The president of Shell Canada says his capital budget will shrink by about half a billion dollars this year following the sale of most of its oilsands assets in a deal that closed last week.

Michael Crothers says it will be about $1.5 billion this year, down from over $2 billion in 2016, but the Canadian branch remains an important part of Royal Dutch Shell’s global operations.

He said in an interview the company’s sale of oilsands assets to Canadian Natural Resources (TSX:CNQ) means it will now concentrate on its shale oil and gas properties in B.C. and Alberta, along with its refining and chemical businesses near Edmonton and its proposed West Coast LNG project. read more

After oilsands divestments, Shell Canada refocuses on gas, chemicals and renewables

Geoffrey Morgan | June 6, 2017 4:27 PM ET
More from Geoffrey Morgan | @geoffreymorgan

Shell Canada President & Country Chair Michael Crothers during an interview in Calgary, Alberta: Photograph by Todd Korol for National Post

CALGARY – Shell Canada Ltd. will soon announce a project to turn vegetable products into diesel fuel in Alberta, as part of the company’s transition to produce less oil and more energy from natural gas, renewables and chemicals.

This follows Shell’s massive US$7.25-billion divestment of its oilsands assets, announced March 9. The company still plans to build an LNG terminal in British Colombia, but no timeline has been set. read more

Shell Canada statement on oil sands divestment

CALGARY, May 31, 2017 /CNW/ – A statement from Shell Canada President and Country Chair Michael Crothers on the completion of two previously announced agreements that will see Shell sell the majority of its oil sands interests and all of its in-situ interests in Canada:

“Shell has built safe, responsible and competitive oil sands mining and in-situ businesses in Alberta over the past decades thanks to the tireless work and dedication of our staff, contractors and joint venture partners; strong support from local communities, including our indigenous neighbours; and leadership from all levels of government. I am immensely proud of everything we have achieved together and of the legacy we leave to Canadian Natural. read more

Canadian Oil Sands Brace As Oil Majors Dump Shares

By Tsvetana Paraskova – May 30, 2017, 5:00 PM CDT

Royal Dutch Shell and ConocoPhillips struck deals in March to sell Canadian oil assets to two Canada-based producers. In both deals, parts of the consideration for the transactions were shares of the Canadian companies that Shell and ConocoPhillips received.

Although the share transactions are subject to lock-up periods of up to six months following the closing of the deals, Shell and ConocoPhillips are getting ready to sell those shares—possibly months after acquiring them—regulations and agreements permitting. read more

Shell, ConocoPhillips oil sands share selloff risks flooding market

By Nia Williams

CALGARY, Alberta, May 24 (Reuters) – Canadian equity markets risk being swamped with oil sands company shares this year as Royal Dutch Shell and ConocoPhillips prepare to offload C$6.8 billion ($5.1 billion) worth of stakes in two domestic producers, just months after acquiring them.

The two firms acquired shares in Canadian Natural Resources Ltd and Cenovus Energy as part of deals struck earlier this year to sell off oil sands assets.

Sources told Reuters on Tuesday that Shell has decided to sell its C$4.1 billion stake in CNRL while ConocoPhillips has said it is not a long term investor in Cenovus. read more

Shell to sell C$4.1 billion stake in Canadian Natural -sources

Shell to sell C$4.1 billion stake in Canadian Natural -sources

By John Tilak and David French: 23 May 2017

TORONTO/NEW YORK, May 23 (Reuters) – Royal Dutch Shell Plc has decided to offload a roughly C$4.1 billion ($3 billion) stake in Canadian Natural Resources Ltd (CNRL) that it acquired as part of a deal to retreat from Canada’s oil sands earlier this year, people familiar with the situation told Reuters.

Shell has been interviewing investment banks to hire a financial adviser for the share sale, four people said in the past week, declining to be named as the discussions are confidential. read more

Bar, business groups back Cravath on fighting disclosure of Shell documents

By Jan Wolfe

The New York City Bar Association has joined the U.S. Chamber of Commerce in backing law firm Cravath Swaine & Moore in its appeal of an order to turn over documents belonging to client Royal Dutch Shell plc in a possible overseas lawsuit accusing the oil giant of facilitating human rights violations.

The New York City Bar Association filed an amicus brief in support of Cravath on Tuesday in the U.S. 2nd Circuit Court of Appeals, urging the court to reverse a ruling that the law firm produce Shell documents to Esther Kiobel, a Nigerian woman seeking to sue Shell in the Netherlands after she was previously blocked from doing so in the U.S. read more

Shell’s sale of dirty tar sands assets cleans up debt and spruces image

Adam VaughanSaturday 11 March 2017 15.59 GMT

hen Shell sold most of its Canadian tar sands operations last week, the Anglo-Dutch oil company took a modest step towards making good on its promise to be part of the solution on global warming, rather than the problem. But the $7.25bn (£6bn) sale of the majority of its tar sands assets to an independent Canadian oil company is less about the company cleaning up its image than about cleaning up its debt.

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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.” read more

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. read more

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. read more

Shell “knew of climate change danger” since 1991 – Greenpeace response

Published by Greenpeace Southeast Asia: Thursday 2 March 2017

A film in 1991, produced by Shell, shows that the oil giant has long known about the catastrophic risks of climate change.

The film, titled Climate of Concern, was obtained by the Correspondent, a Dutch online journalism platform, and published in The Guardian’s article ‘Shell knew’: oil giant’s 1991 film warned of climate change danger.

In response, Desiree Llanos Dee, Climate Justice Campaigner for Greenpeace Philippines, said:

“Exxon knew. Shell knew. Now we must get to the bottom of what other fossil majors know and what they plan to do to avert catastrophic climate change. Shell’s empty rhetoric on climate is wholly contradicted by the core assumption underlying its business plans – global temperature increases in excess of 3°C and its lobbying against measures to mitigate climate change. read more

In A 1991 Film, Shell Oil Issued A Stark Warning About Climate Change Risks

WASHINGTON — “Action now is seen as the only safe insurance.” 

That was among the many clear warnings that oil giant Shell issued in a film it produced about climate change more than 25 years ago. Many environmentalists, however, argue that the company has largely ignored its own alarm bells.

The 1991 film, “Climate of Concern,” resurfaced Tuesday on the Dutch online news outlet The Correspondent. It’s the latest in an ever-growing body of evidence that suggests the oil industry has long known about the climate risks associated with carbon dioxide emissions — and has actively worked to cover them up. read more

‘Shell knew’: oil giant’s 1991 film warned of climate change danger

Damian Carrington and Jelmer Mommers: Tuesday 28 February 2017 

The oil giant Shell issued a stark warning of the catastrophic risks of climate change more than a quarter of century ago in a prescient 1991 film that has been rediscovered. However, since then the company has invested heavily in highly polluting oil reserves and helped lobby against climate action, leading to accusations that Shell knew the grave risks of global warming but did not act accordingly. But, despite this early and clear-eyed view of the risks of global warming, Shell invested many billions of dollars in highly polluting tar sand operations and on exploration in the Arctic. read more

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. read more

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. read more

Shell reprimanded for federal voting infractions at Fort McMurray mine

Shell reprimanded for federal voting infractions at Fort McMurray mine

Some workers at the Shell Albian Sands site were denied their right to vote on polling day

CBC News Posted: Jan 05, 2017 8:41 AM MT

Shell has been reprimanded by Elections Canada for failing to provide some of its Fort McMurray oilsands workers adequate time off to vote in the 2015 federal election.

The oilsands operator has signed a compliance agreement with Elections Canada, after a federal investigation determined that some workers who requested time off the job to go to the polls were denied.

On polling day, Oct. 19, the company declined employee requests for time off work, meaning some employees at the Shell Albian Sands Mine were denied their right to have three consecutive hours off the job for the purpose of casting a vote. read more

Lament for Royal Dutch Shell

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Kashagan AKA “Cash All Gone”

Forgot the initial cost estimate, probably around $8-10 billion. Now 10+ years too late and ballooned to $50 billionMost normal companies would have gone bust long ago.

Shell inherited some beauties from the boys of the roaring 90s. I hope someone will write a book one day on this era. 

Reserve crisis, Pearl, Sakhalin, Kashagan, Alaska, tarsands, and I must have forgotten a few. Repeated over-promise and under-delivery. All many billions over budget, extreme overruns in startup, loss in AAA status, removal of operational and technical expertise. I find the silence on Prelude ominous. Probably goes the same way as the others. read more

First carbon capture project in oilsands passes one million tonne milestone

screen-shot-2016-09-14-at-18-38-44The company, which developed the $1.35-billion Quest project with the help of $745 million from the Alberta government and $120 million from Ottawa, says the project is operating ahead of schedule and under budget.

“There isn’t a metric that hasn’t finished very strongly in green,” said Zoe Yujnovich, executive vice-president for heavy oil at Shell.

“I don’t think we can say that about many projects.”

The Quest project is designed to capture about a third of the emissions from Shell’s Scotford Upgrader near Fort Saskatchewan, Alta., turn that into a near-liquid, and then pump it over two kilometres underground into porous rock formations. read more

Oil Giants Find There’s Nowhere to Hide From Doomsday Market

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By Joe CarrollJuly 29, 2016 — 1:02 PM BST: Updated on July 30, 2016 — 5:01 AM BST

Exxon Mobil Corp. and Royal Dutch Shell Plc this week reported their lowest quarterly profits since 1999 and 2005, respectively. Chevron Corp.’s third straight loss marked the longest slump in 27 years, and BP Plc lodged its lowest refining margins in six years.

Welcome to year two of a supply overhang so persistent it’s upsetting industry expectations that the market would return to a state of balance between production and demand. It’s left analysts befuddled and investors running to the doorways as the crude market threatened to tip into yet another bear market, dashing hopes that a slump that began in mid 2014 would show signs of abating. read more

Things will get bloody, Nigerian militant group says

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By Daniel J. GraeberMay 31, 2016

ABUJA, Nigeria, May 31 (UPI) — A militant group calling itself the Niger Delta Avengers issued a warning to oil companies working in the region that its campaign is about to get bloody.

The Niger Delta Avengers have launched a steady string of attacks on energy infrastructure in the region, issuing a manifesto earlier this month that warned oil companies the attacks marked only a beginning. The group said it was frustrated by what it saw as a lack of attention to the region paid by Nigerian President Muhammadu Buhari. read more

Shell Canada reopens first oilsands mine shut down by Fort McMurray fires

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By DAN HEALING: The Canadian Press: Tues., May 10, 2016

CALGARY—The first oilsands mine shut down by wildfires in the Fort McMurray region a week ago has been restarted.

Shell Canada said Tuesday that it had resumed production at its Albian Sands mining operations about 95 kilometres north of Fort McMurray after a seven-day closure.

The operations, which include the Muskeg River and Jackpine oilsands mines, have the capacity to produce 255,000 barrels of oil a day, but Shell would say only that they were operating at a reduced rate. read more

Fort McMurray reflections by Ed Crooks of the FT

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By Ed Crooks: May 6, 2016

The thoughts of everyone in the energy industry were with Fort McMurray, the heart of Canada’s oil sands industry, which was devastated by wildfires this week. The town was evacuated, and more than a fifth of the region’s oil production was halted. There was a lot of great reporting from the local and national press. The National Post particularly stood out with features such as this live map of the areas affected by fire. Maclean’s brought the scale of the fires to people outside Alberta using comparisons with other cities in Canada, the US and Britain. NBC News carried some powerful photographs of the disaster. read more

Oil giants should ditch high-cost projects, thinktank says

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Terry Macalister Energy editor: Thursday 5 May 2016

These leading energy companies including Exxon Mobil should ditch high-cost projects in deep water and Canadian tar sands to concentrate on cheaper schemes that make money at low crude prices, says the report, Sense and Sensitivity, by the Carbon Tracker Initiative.

The report follows shareholder resolutions calling on oil companies to undertake “stress tests” on operations in the face of stronger carbon regulation and weakening fossil fuel demand as countries move to lower-carbon economies. read more

Fort McMurray Fire: Shell Turns Oilsands Camp Into Shelter For Evacuees

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CP  |  By The Canadian Press: 05/04/2016 1:02 pm EDT

Screen Shot 2016-04-20 at 13.50.03CALGARY — The wildfire raging through the heart of Canada’s oilsands capital dealt a blow Wednesday to crude perations, with Shell Canada closing a major mining facility north of Fort McMurray, Alta.

The company temporarily shut down production at its Albian Sands mining operations located about 70 kilometres north of the city.

Shell said it made the decision to focus on getting employees and their families out of the region while also freeing up room at its 2,000-person work camp for some of the 80,000 people who were ordered evacuated Tuesday from Fort McMurray. read more

Shell finance chief refuses to rule out further North Sea job losses

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Screen Shot 2016-04-25 at 15.56.32Written by Phil Allan – 04/05/2016 12:34 pm

Shell’s finance chief has refused to rule out further job losses in the North Sea as the oil giant announced its earnings had dropped by $4billion dollars in the first quarter of 2016.

Chief financial officer Simon Henry said the voluntary redundancy packaged announced recently announced as a result of Shell’s acquisition of BG Group, may not be the last to affect the North Sea as the company continues to look at cut costs from its global operation. read more

An oilman’s $7 billion refresher course in the economics of drilling and climate change

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To many analysts, it looked like Odum was pushed into leaving.

Steven Mufson March 11, 2016

Marvin Odum, president of Shell Oil, was attending a meeting of the parent company’s executive committee in Singapore when word trickled in that an exploration well drilled in Alaska’s Chukchi Sea — the crowning step in a multi-year $7 billion quest — was a dry hole.

Maybe not bone dry. In a recent interview, Odum wouldn’t say. But in the oil business glossary, a dry hole is one that can’t pay off commercially, and Shell’s hole definitely qualified. The parent company, Royal Dutch Shell, abruptly dropped any further drilling — a setback for the industry, though a relief for environmentalists.

For years, they had fought a vigorous, litigious and politically intense battle over the Chukchi. Meanwhile Shell, lured by potentially rich rewards, had overcome a couple of embarrassing rig mishaps at sea and patiently navigated the courts and the Obama administration’s permitting process. Now, geology had rendered its verdict. read more

Alaska failure not behind exit – Shell’s outgoing U.S. chief

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Royal Dutch Shell’s (RDSa.L) costly flameout in Alaska last year was “a huge disappointment,” but did not push top North American executive Marvin Odum to exit the company, he said.

Odum made the comments hours after the company announced he would leave next month after 34 years.

“This should not be interpreted as, ‘Alaska didn’t work, so Marvin’s leaving,” Odum, 57, said in an interview.

Instead, he said he decided it was time to move on after heading Shell Oil Co, the Anglo-Dutch company’s U.S arm, since 2008. He later became head of exploration and production operations in the Americas as well. read more

Arctic Was a Bet That Didn’t Pay Off, Departing Shell Chief Says

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Jennifer A Dlouhy: Bloomberg.com: 24 FEB 2016

The departing chief of Royal Dutch Shell Plc’s U.S. division, who presided over its failed quest to find crude in Arctic waters off Alaska, said the effort was still a point of pride because it demonstrated the company’s technical expertise.

Marvin Odum, 57, is leaving the company in a reorganization announced Wednesday. He has been with the company for 34 years and held the post atop its U.S. division, Shell Oil Co., since oil prices were at record highs.

The Arctic was “a big bet,” Odum said in a telephone interview Wednesday.  read more

Shell replaces U.S. chief, splits unconventionals unit

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HOUSTON | BY KRISTEN HAYS AND RON BOUSSO: Wed Feb 24, 2016 3:42pm EST

Royal Dutch Shell’s U.S. head Marvin Odum will step down after the company abandoned a troubled drilling project offshore Alaska, and the global oil company said on Wednesday it will split up its U.S. shale and Canadian oil sands unit.

Stung by a 70 percent slide in crude prices since mid-2014, Shell this month reported its lowest annual income in more than a decade and pledged further cost saving measures.

The Anglo-Dutch company said on Wednesday its shale resources unit would become part of the global upstream business led by Andy Brown, and its Athabasca Oil Sands Project and Scotford Upgrader in Canada would be folded into the global downstream unit, headed by John Abbott. 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

Lorraine Mitchelmore is stepping down as the head of Shell Canada. But she’s not going quietly.

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Screen Shot 2015-11-20 at 08.55.47NOVEMBER 18, 2015 10:20 AM

Extracts

Shell has reduced greenhouse gas emissions by 20 per cent per barrel from its oilsands business in the past five years, through many small efforts, including making more efficient use of its trucks.

Yet that hasn’t stopped Shell from being a target and paying a high price for the anti-oilsands campaign.

Last month it cancelled the 80,000-barrels-a-day Carmon Creek oilsands project in Peace River in mid-construction, taking a $2-billion impairment charge. read more

Shell share price: Canada boss leaves company

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Screen Shot 2015-10-28 at 08.03.29by Veselin ValchevTuesday, 17 Nov 2015, 11:18 GMT

Royal Dutch Shell Plc (LON:RDSA) announced yesterday that the boss of the firm’s Canada division, Lorraine Mitchelmore, is stepping down from the company at the end of 2015, following six years at the helm.

The move comes less than a month after the Anglo-Dutch oil major abandoned its 80,000 barrel per day Carmon Creek thermal oil sands project in Alberta, amid a reshuffle of the firm’s portfolio.

A spokesman for Shell Canada said Mitchelmore’s departure had nothing to do with the decision to shelve Carmon Creek. read more

Are the Oil Sands Going Bust?

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Screen Shot 2015-09-17 at 07.55.40Written by Keith KohlPosted November 12, 2015 at 6:51PM

After backing out of an Arctic drilling program, Shell is taking yet another hit by leaving the Canadian oil-sands in Alberta.

To put it simply: the losses were too great.

There was no way Shell would have been able to stay competitive, so it decided to opt out, taking a $2 billion hit in the process.

As you know, the slump in crude oil prices since the summer of 2014 has caused energy companies to re-think upcoming projects.

Shell’s absence leaves at least 18 future projects on hold. read more

Shell Canada carbon capture likely last to get Alberta subsidies

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Screen Shot 2015-09-17 at 07.55.40CALGARY, ALBERTA | BY MIKE DE SOUZACommodities | Thu Nov 5, 2015 9:01pm GMT

Royal Dutch Shell’s launch on Friday of Canada’s first oil sands project to capture and bury carbon emissions – assisted by generous public subsidies – will likely be the last to get such funding, the Alberta government said this week.

The left-leaning New Democratic government of the energy-rich Western Canadian province, home to the country’s controversial oil sands, said it no longer plans to fund future efforts using the technology. read more

Shell share price: Oil major sells downstream assets

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by Veselin ValchevMonday, 02 Nov 2015

Royal Dutch Shell Plc (LON:RDSA) announced today that it has completed the sale of two assets from its downstream portfolio as part of its strategy to divest lower-margin businesses, as profits wane amid the depressed oil price.

The Hague-based oil major has completed the sale of its Butagaz liquefied petroleum gas (LPG) business in France to DCC Energy for €464 million (£332 million).

The sale follows a binding offer received by Shell in May, in addition to consultation with staff and regulatory approval, the company noted. read more

Shell’s Loss: Oil Prices Aren’t the Only Problem

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There is blood in the water at Royal Dutch Shell

By HELEN THOMAS: Oct. 29, 2015 

There is blood in the water at Royal Dutch Shell. The wound will take some time to heal. The U.K. oil and gas company Thursday posted a huge third-quarter loss, dragged down by impairments of $8.2 billion in its upstream business. Just less than half the charges owed to Shell reducing its view of longer-term oil and gas prices by an unspecified amount. The remainder was write-offs resulting from its decision to cease drilling in the Arctic and call a halt to a Canadian oil sands project. read more

In defence of Shell CEO Ben van Beurden

By a regular contributor

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Only one member of the EC is directly involved in North American activities, Marvin Odum. 

Perhaps worth noting is that investment decisions on the scale of the recent Shell write-offs would have required approval by the entire EC in the Hague long before BvB was around. Few of the EC members who made those decisions are still present. 

It seems strange that so many of the huge projects which have been abandoned are in North America, and serious questions need to be asked about why approval was given by the EC for these huge projects. Only one member of the EC is directly involved in North American activities, Marvin Odum.  read more

Low Oil Prices Take a Toll on Royal Dutch Shell in Quarter

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Screen Shot 2015-10-29 at 08.02.52By STANLEY REED: OCT. 29, 2015

LONDON — Lower petroleum prices took a big toll on Royal Dutch Shell in the third quarter.

The company reported a loss of $7.4 billion, compared with a profit of $4.5 billion in the quarter a year earlier. Adjusted for inventory changes and one-time items — a more closely watched measurement — earnings fell 70 percent to $1.8 billion.

The company took about $7.9 billion in write-offs for its recently halted exploration venture off Alaska, a canceled heavy-oil project in Canada and other operations. read more

Shell halts construction on new Alberta oil sands project

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CALGARY, ALBERTA: Tue Oct 27, 2015

Royal Dutch Shell Plc will not continue construction of its 80,000 barrel per day Carmon Creek thermal oil sands project in northern Alberta because of the lack of infrastructure to move Canadian crude to market, the company said on Tuesday.

Shell said the decision to halt the project was also the result of “current uncertainties” and chief executive Ben van Beurden said the company was having to manage costs in today’s low oil price environment. read more

Shell cancels big Canadian oil sands project

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Posted on October 27, 2015 | By Collin Eaton

HOUSTON – Royal Dutch Shell says it will stop building a large Canadian oil sands project after low crude prices pushed it out of the company’s shortlist of profitable projects.

It’s the second large project Shell has canceled since August, when it ditched a $7 billion effort to drill for oil in the Arctic Ocean north of Alaska. Shell said Tuesday its Carmon Creek project in Alberta, which was expected to pump 80,000 barrels of crude a day, was sanctioned in late 2013 when oil prices were still hovering around $100 a barrel. read more

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Screen Shot 2015-10-26 at 21.23.40Energy giant will take a $2 billion write-down; cites uncertain business environment

“We are making changes to Shell’s portfolio mix by reviewing our longer-term upstream options world-wide, and managing affordability and exposure in the current world of lower oil prices. This is forcing tough choices at Shell,” Ben van Beurden, Royal Dutch Shell’s chief executive, said in a statement.

FULL ARTICLE

Oil Sands Boom Dries Up in Alberta, Taking Thousands of Jobs With it

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Screen Shot 2015-10-13 at 12.37.36By IAN AUSTENOCT. 12, 2015

FORT McMURRAY, Alberta — At a camp for oil workers here, a collection of 16 three-story buildings that once housed 2,000 workers sits empty. A parking lot at a neighboring camp is now dotted with abandoned cars. With oil prices falling precipitously, capital-intensive projects rooted in the heavy crude mined from Alberta’s oil sands are losing money, contributing to the loss of about 35,000 energy industry jobs across the province.

Yet Alberta Highway 63, the major artery connecting Northern Alberta’s oil sands with the rest of the country, still buzzes with traffic. Tractor-trailers hauling loads that resemble rolling petrochemical plants parade past fleets of buses used to shuttle workers. Most vehicles carry “buggy whips” — bright orange pennants attached to tall spring-loaded wands — to help prevent them from being run over by the 1.6-million-pound dump trucks used in the oil sands mines. read more

Here’s How Shell Can Restart Its Tar Sands Projects In Canada

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By: MICHEAL KAUFMAN

Exploring for new oil has now become a difficult task for the oil majors. Oil and gas are now mostly situated in the deep-waters, Canadian tar sands and the Arctic waters where the cost of exploration and production is very high. These high costs coupled with the lower crude oil prices make the task difficult for oil companies.

Crude oil prices last week fell again following claims by Iran to double its production if a nuclear deal was reached. The US benchmark for crude oil, West Texas Intermediate (WTI) which had gone high at $60 per barrel, has plunged again to less than $45 per barrel. read more

Oil Spillage: Nigerian High Court Orders Shell to Pay N30m

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Oil Spillage: S-Court Orders Shell to Pay N30m to Four Communities

The Supreme Court, yesterday, ordered Shell Petroleum Development Company of Nigeria Limited to pay the sum of N30,288,681 to four communities in Delta State.

The apex court found the company culpable for the oil spillage that adversely affected the communities about 32 years ago.

The communities to benefit from the judgment of the court yesterday are Obotobo, Sokebolo, Ofogbene (Ezon Burutu) and Ekeremor Zion (Ezon Asa).

Some leaders of the communities had in 1983, dragged the oil company before a High Court of the then Bendel State. read more

Prices Fall to a Six-Year Low for U.S. Oil

Screen Shot 2015-03-16 at 23.38.17Article by Stanley Reed published 17 March 2015 in the New York edition of the New York Times

Prices Fall to a Six-Year Low for U.S. Oil

Oil prices fell to six-year lows on Monday in the face of concerns that a glut in the United States was outpacing already-brimming storage facilities.

Additionally, the Organization of the Petroleum Exporting Countries published a report suggesting that the cartel remained reluctant to intervene to prop up prices.

The direction of oil prices, which had risen sharply from January lows, has fallen back in recent days. Traders are now focused on the second quarter of the year, when demand for oil is traditionally weak because of the end of winter and scheduled refinery shutdowns for maintenance.

On Monday, the price of West Texas Intermediate crude, the main United States benchmark, fell about 2 percent to about $44 a barrel, a six-year low, while Brent crude, the international benchmark, fell by about 2 percent to about $53 a barrel. read more

Keystone and the Riddle of the Tar Sands

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BY MARK DOWIE 2/25/15 AT 10:49 PM

Late 21st-century graduate students of business studying the growing problem of stranded assets will almost certainly focus on the history of Canada’s Athabasca Oil Sands (a.k.a. the tar sands). The case studies they read will either describe the gradual abandonment of the world’s largest reserve of bituminous crude or they will read about the tar sands’ miraculous last-minute escape from becoming the world’s largest stranded asset.

For either outcome, the turning point they will look back on is just about now. read more

Another nail in the coffin of tar sands

BBC NEWS: Obama vetoes Keystone oil pipeline bill: 24 Feb 2015

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US President Barack Obama has vetoed a bill that would have approved construction of the Keystone XL oil pipeline.

The Republican-led Congress sent the bill to the president on Tuesday.

White House spokesman Josh Earnest said Obama vetoed the bill “without any drama or fanfare or delay”.

The 875-mile (1,400km) pipeline would carry tar sands oil from Alberta, Canada, to the US state of Nebraska where it joins pipes running to Texas.

The project has pitted Republicans and other supporters, who say it will create much needed jobs, against many Democrats and environmentalists, who warn the pipeline will add to carbon emissions and contribute to global warming. read more

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