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Hints Shell is searching for life after oil

The management team wants the company to focus on long-term returns, which means investing in different types of projects.

Tyler Crowe: (TMFDirtyBird):Aug 17, 2017 Like so many other integrated oil and gas companies, Royal Dutch Shell‘s (NYSE:RDS-A) (NYSE:RDS-B) goal of the past several years was to preserve capital by any means possible in the short term without giving up too much of the future. Based on the company’s most recent earnings report, it has done a pretty good job of achieving that first goal. The second part? That is all up to what Shell’s management does from here.There were several hints on the company’s most recent conference call that suggest Shell has developed a new playbook that looks very different than its prior one. Here are quotes from that conference call that show Shell’s possible future.

Making the grade

Shell has been trying to pull off an elaborate corporate shift over the past couple of years. It wanted to absorb and integrate BG Group into Shell, unload about $30 billion in assets from the combined company to lower total debt levels, reduce operating costs and capital spending, and get back to generating enough cash to cover capital expenditures and dividends. To make this transformation even more challenging, it was trying to do it in a low oil price environment.

Based on the company’s most recent performance, it looks like management has pulled it off. Here’s CEO Ben van Beurden taking stock of the situation. read more

Can Western oil giants break the Gulf impasse?

HIROFUMI MATSUO, Nikkei senior staff writer

TOKYO — One after another, the top executives of Western oil majors have been stepping into the great Persian Gulf rift.

It has been more than two months since Saudi Arabia and other Arab states severed diplomatic ties with Qatar, and there are no signs of a thaw. But soon after the decision was made, a oil bosses began heading to Doha, the Qatari capital.

On June 14, just nine days after Qatar’s neighbors closed off their airspace and closed the sole land border, Royal Dutch Shell CEO Ben van Beurden met with Qatari Emir Sheikh Tamim bin Hamad al-Thani. Exxon Mobil CEO Darren Woods followed on June 24. Total CEO Patrick Pouyanne took his turn on July 11. 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

Shell and Exxon punished by Dutch ad authority for fossil fuel claim

The television ad stated that natural gas was “the cleanest of all fossil fuels.”

This is the second time in 2017 that Dutch advertising authorities have sought to punish the oil and gas industry with Statoil reprimanded for claiming gas to be “clean energy” and “low emissions fuel” in June.

The Dutch Advertising Code Authority stated that the term “cleanest fossil fuel” was not in line with the MRC (the Dutch advertising code).

Friends of the Earth Europe co-filed the complaint.

Paul de Clerk of Friends of the Earth Europe, said: “This clear ruling by the advertisement standards board is of great importance. Time after time we see how oil and gas companies are misleading citizens and politicians. read more

Shell Retail and the future of energy services

Essential Retail sits down with David Bunch, global VP of Shell Retail to learn how the mobility services provider is innovating its traditional petrol forecourt model using technology.

Published: 09:32:05 on the 16th Aug 2017: Author: Caroline Baldwin

In recent years, the food retailers have had to adapt to changing consumer habits of convenience shopping. And Shell is no different, seriously stepping up its game to improve its ‘food for later’ offering, to ensure petrol stations are no longer known for their wilting bunches of flowers and rows of Ginsters pasties. read more

The Oil Price Tug Of War

Shell pivots to electricity. The FT reports on the strategic shift underway at Royal Dutch Shell, which is moving to sell electricity to industrial consumers. The move highlights the potential for an oil major to adapt to a rapidly changing energy landscape. Beginning next year, Shell will sell electricity in the UK, but the company has said it would like to expand to the U.S. In the past, oil companies have declined to enter the electricity business, but with long-term oil demand uncertain, oil producers can hedge their bets by getting into electricity.

By Tom Kool – Aug 15, 2017, 3:00 PM CDT

Oil prices remain in a game of tug of war as conflicting news sends both the bears and the bulls to the sidelines.

• In 2015, the U.S. spent the least on energy in over a decade, largely due to the collapse of oil prices.

• In real terms, the U.S. spent $1.27 trillion on energy in 2015, down 20 percent from a year earlier.

• In inflation-adjusted terms, as well as in terms of percentage of GDP, the expenditures were the lowest since 2004. read more

Exxon, Shell Censured for Claiming Natural Gas Is ‘Cleanest’ Fossil Fuel

By Farron Cousins: 15 August 2017

For many years, a standard talking point from the fossil fuel industry and those who speak on the industry’s behalf has been that natural gas is a cleaner alternative to conventional energy sources like coal and oil. This talking point is at least partially responsible for many people—including former President Barack Obama and his Secretary of Energy Ernest Moniz—believing that natural gas can act as a “bridge fuel” in the eventual shift from coal and oil to renewable sources of energy. read more

Big Oil Follows Silicon Valley Into Backing Green Energy Firms

Oil majors quietly investing into new technology start-ups

‘Disruptive power’ from small companies prompts Shell to move

Major oil companies are joining Silicon Valley in backing energy-technology start-ups, a signal that that those with the deepest pockets in the industry are casting around for a new strategy.

From Royal Dutch Shell Plc to Total SA and Exxon Mobil Corp., the biggest investor-owned oil companies are dribbling money into ventures probing the edge of energy technologies. The investments go beyond wind and solar power into projects that improve electricity grids and brew new fuels from renewable resources. read more

Shell and Exxon face censure over claim gas was ‘cleanest fossil fuel’

The Dutch advertising watchdog will on Tuesday censure Shell and Exxon for claiming that natural gas was “the cleanest of all fossil fuels” in an advert earlier this year. It will be the second time this summer that the Netherlands advertising standards board has ruled against the fossil fuels industry… FULL ARTICLE 

Shell paid $31 billion to Nigerian govt between 2002-2016 – Official

August 14, 2017

Shell Petroleum Development Company (SPDC) remitted 29.8 billion dollars to the federation account and 1.2 billion dollars to Niger Delta Development Commission (NDDC) between 2002 and 2016, Igo Weli, General Manager, External Relations, made the disclosure on Monday.

Mr. Weli spoke in Port Harcourt while reacting to the shut-down of SPDC flow station and gas plant in Belema community by angry youth.

The youth accused the company of neglecting them and marginalising their community. read more

Shell Prepares For A Different Energy Reality

: 14 August 2017

Summary

  • This summer has seen the governments of several of the world’s major economies propose to eliminate internal combustion engine vehicles over the next 10-30 years.
  • At the same time, Royal Dutch Shell announced several major clean energy investments over the summer in anticipation of a drop-off in petroleum demand.
  • This article looks at how Shell’s clean energy investments fit into its energy profile forecasts compared to its peers.

This summer has been filled with the sort of headlines that can give strategic planners in the petroleum & gas sector heartburn. One-upping Germany’s earlier non-binding pledge to ban new internal combustion engine [ICE] vehicles by 2030, the government of France’s new centrist president Emmanuel Macron announced in early July that the country will end sales of ICE vehicles by 2040. This move, which is part of that country’s efforts to comply with its greenhouse gas emission reduction target under 2015’s Paris Climate Agreement, would eliminate gasoline- and diesel-only engines and is aimed at reducing the country’s air pollution as it is at mitigating climate change. Britain intends to do the same by 2050. Even China and India, which have long been posited as important future sources of petroleum demand, are moving to electrify their vehicle fleets: China recently announced that it wants 25% of the country’s vehicles to be “alternative fuel” by 2025, while India is drafting plans to electrify all of its vehicles by 2030. read more

Australia’s $180 bln LNG megaproject boom enters final stretch

Australia’s $180 bln LNG megaproject boom enters final stretch

* Shell, Inpex race to tap gas in adjacent fields

* Ichthys LNG targets first output by March 2018

* Prelude FLNG seen starting between April and July

* Australia on course to 88 mln T/yr LNG export capacity

By Sonali Paul

MELBOURNE, Aug 14 (Reuters) – The last massive component of Australia’s $180 billion liquefied natural gas construction boom arrived on Monday, stepping up a race between Anglo-Dutch giant Shell and Japan’s Inpex to start chilling gas for export in 2018.

Company reputations are at stake, as well as first access to overlapping gas fields and Australia leapfrogging Qatar as the world’s largest exporter of LNG.

The Ichthys Venturer, a floating production, storage and offloading facility, travelled 5,600 km (3,500 miles) from a South Korean shipyard and will be moored 220 km off Western Australia to handle condensate from the Ichthys field. read more

Shell’s strategic move into electricity

by: Nick Butler: 14 August 2017

The move starts small with a business in the UK that will start trading early next year. Shell will supply the business operations as a first step and it will then expand. But Britain is not the limit — Shell recently announced its intention of making similar sales in the US. Given its reach, Shell could sign contracts to supply all the power needed by the UK’s National Health Service or with the public sector as a whole…

FULL FT ARTICLE  (Free Registration) read more

Protestors occupy Shell plant in Nigeria

Although Shell was forced to quit oil production in the area in 1993, the company still runs a network of pipelines criss-crossing the area

Hundreds of protesters have occupied a Nigerian oil facility owned by Anglo-Dutch oil giant Shell, demanding that a local company take over its operations, a community leader said Saturday.

“We want Shell to hand over the operations of the flow station to Belema Oil Company because it appreciates our challenges and needs,” community leader Godson Egbelekro told AFP.

Protesters from the Kula and Belema community in Nigeria’s restive southern Rivers state said the community has suffered through decades of poverty and neglect. read more

Nigeria: Belema Communities Occupy Shell Facilities Over ‘Neglect’

Nigeria: Belema Communities Occupy Shell Facilities Over ‘Neglect’

Port Harcourt — Despite the presence of heavily armed soldiers, hundreds of Belema, Ofion-ama and Kula indigenes comprising traditional rulers, women, men and youths have continued to occupy Shell Flow Station located at Belema, Ofionama in Akuku-Torlu Local Government Area of Rivers State.

Shell External Relations General Manager, Igo Weli confirmed that indigenes of Belema had taken over its flow Station at Belema.

Daily Trust checks yesterday revealed that the indigenes of various communities that make up Belema had continued to barricade the flow station with palm leaf and fetish objects. They shut down a major oil facility operated in the area by Shell Petroleum Development Company. read more

Niger Delta Communities In Rivers State Shut Down Shell’s Oil Flow-Station

Niger Delta Communities In Rivers State Shut Down Shell’s Oil Flow-Station

Members of the Belema and Offoin-Ama communities in Rivers State this morning shut down operations by oil giant, Shell, at the Belema flow-station known as OML 25. The flow-station is located within the communities’ land in Kula Kingdom in Akuku Toru local government area of the state.

BY SAHARA REPORTERS, NEW YORK: AUG 12, 2017

Members of the Belema and Offoin-Ama communities in Rivers State this morning shut down operations by oil giant, Shell, at the Belema flow-station known as OML 25. The flow-station is located within the communities’ land in Kula Kingdom in Akuku Toru local government area of the state.

Some 1500 women, youths, and chiefs from the two communities marched down to the flow-station to protest what they described as Shell’s “obnoxious acts” and the underdevelopment of their communities. Raising a familiar complaint by inhabitants of the impoverished swamplands that produce most of Nigeria’s oil, the protesters said they had received no benefits from the region’s oil wealth. They demanded an end to the oil pollution that has ruined much of their land. read more

Equis Is Said to Seek Binding Bids for $4 Billion Power Assets

Equis Energy, the Singapore-based developer of power projects, has asked for binding bids for its $4 billion renewable energy business by late September, people with knowledge of the matter said.

A consortium led by I Squared Capital is among suitors chosen to proceed in the bidding for the portfolio of Asia Pacific assets, according to the people. The infrastructure investment firm is partnering with Thai utility Electricity Generating Pcl and Japanese trading house Mitsubishi Corp., the people said, asking not to be identified because the information is private. read more

Massive Shell platform starts its journey to Texas

The hull of a massive deep-water platform owned by Royal Dutch Shell recently left South Korean shipyards as it set off for Texas. The hull will be attached to the topsides of the platform before its installation in the Gulf of Mexico.

Massive Shell platform starts its journey to Texas

The massive four-column hull of a deep-water oil platform began sailing from South Korea to Texas this week, starting a monthslong voyage that will bring Shell closer to finishing a multibillion-dollar Gulf of Mexico project. read more

Protesters storm Shell crude flow station in Niger Delta

Tife Owolabi: AUGUST 11, 2017 / 11:13 AM

AKUKU-TORU, Nigeria (Reuters) – Hundreds of Nigerian protesters stormed a crude oil flow station owned by Shell in the restive Niger Delta on Friday demanding jobs and infrastructure development, a Reuters witness said.

The protesters complained they were not benefiting from oil production in their area, a common refrain in the impoverished swampland that produces most of Nigeria’s oil. They also demanded an end to oil pollution in the area. read more

Royal Dutch Shell: If I Could Buy Just One Energy Stock

I’ve advocated CEO Ben van Beurden is the real deal. He’s a no-nonsense Dutchman with an eye for business simplification and efficiency; precisely what Shell needed.

: Aug. 11, 2017 9:55 AM ET

Summary

  • In 2017, most energy stocks have under performed.
  • Amidst the castaways, there’s a Super Major gem hiding in plain sight.
  • It’s a turnaround story wrapped in a 6.7% dividend yield.

Of all the companies I follow, one 2Q 2017 earnings release stood out. The company blew out Street estimates. Management continued to fulfill promises to investors. Remarkably, the stock resides in 2017’s most downtrodden neighborhood: Energy.

The company is Royal Dutch Shell (RDS.A) (RDS.B).

For those that follow my work here on Seeking Alpha, I’ve been constructive on RDS shares for a long time. I’ve advocated CEO Ben van Beurden is the real deal. He’s a no-nonsense Dutchman with an eye for business simplification and efficiency; precisely what Shell needed. In 2014, Mr. van Beurden was elevated to the CEO role after an outstanding run at Shell Chemical. read more

Oil Poised for Weekly Loss Amid Weaker Demand Outlook

IEA sees OPEC’s commitment to clearing global glut fading Agency reduced demand estimates for this year and 2018

Royal Dutch Shell Plc has restarted four units at its Pernis refinery and more will be brought online in the coming days, according to an environmental regulator.

Oil slipped, heading for the biggest weekly loss in a month, as the outlook for demand dimmed amid an already shaky market.

Futures dropped 0.8 percent in New York Friday, poised for a weekly decline of 2.8 percent. The International Energy Agency reduced demand estimates for OPEC crude this year and in 2018, and said there are doubts about the group’s commitment to cutting production, according to its monthly report released Friday. Even a pledge by Saudi Arabia and Iraq to strengthen their commitment to the curbs and maintain balance in world crude markets isn’t helping to prop up prices. 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

Brazil’s Cosan sees better ethanol returns as prices improve

AUGUST 10, 2017 / 5:02 PM

By Marcelo Teixeira

SAO PAULO, Aug 10 (Reuters) – Cosan SA Indústria e Comércio expects ethanol sales to yield better returns than sugar across some Brazilian states, a factor that may prompt one of the country’s largest energy and infrastructure companies to fine-tune its current output mix.

Raízen Energia, a 50-50 joint venture between Cosan and Royal Dutch Shell Plc that is the world’s No. 1 sugar producer, could adjust the amount of sugar and ethanol it produces if price conditions for the biofuel improves, Cosan’s investor relations head Paula Kovarsky said on a conference call on Thursday.

Raízen earmarked 57 percent of cane to sugar production in the second quarter, higher than the 55 percent it did a year ago. Simultaneously, Raízen has reduced sugar hedging on an annual basis on hopes of a mid-term recovery in international prices, she added. read more

Shell launches pilot to test methane detection technology

Shell launches pilot to test methane detection technology

Image: Pilot testing new methane detection technology at Shell shale gas site. (Photo credit: Shell/Ian Jackson) (CNW Group/Shell Canada Limited).

EBR Staff Writer: Published 10 August 2017

Royal Dutch Shell has launched a methane detector pilot aimed at enabling early detection and repair of methane leaks to ultimately cut down on emissions during the production of natural gas.

The launch was done at a shale gas site of Shell in Canada near Rocky Mountain House in Alberta province.

Shell says that the pilot test is part of the Methane Detectors Challenge, a wider multi-stakeholder initiative which involves the Environmental Defense Fund (EDF), oil and gas firms, US government agencies and technology developers. The objective of the challenge is to assess next generation methane detection technologies. read more

Exxon Knew, Shell Knew, They All Knew

08/09/2017 07:17 am ET

In 2015, the Union of Concerned Scientists published its landmark exposé“The Climate Deception Dossiers,” which show that not only Exxon, but also Shell, BP, ConocoPhillips, Chevron and coal giant Peabody Energy were aware of the climate change reality since the 70s. Even so, through special interest groups, they invested tens of millions “to sow doubt and promote contrarian arguments they knew to be wrong.”

The fuel that powers this planetary sabotage is called greed. The fossil fuel industry worldwide has accumulated stratospheric levels of wealth over the decades. Moreover, according to a report just published by World Development, in 2015, fossil fuels received a staggering $5.3 trillion in subsidies around the world. This includes not only taxpayer money but also the costs of deaths caused by pollution and these fuels’ contribution to the climate crisis. read more

Shell Is Said to Aim for Full Restart of Pernis by End of August

Royal Dutch Shell Plc is aiming to return its Pernis refinery in Rotterdam to full operations by the end of this month, according to a local resident who was briefed on the matter by the company.

The company held a meeting for about 200 local residents late Wednesday, giving a first indication of when Europe’s largest refinery would resume normal operations after a fire in late July halted both crude units. The company said earlier this week that the first supporting units had been brought back online, without elaborating on the resumption of operations. read more

Is Shell’s Lower Oil Forever Really So Unrealistic?

“Royal Dutch Shell PLC’s chief executive drew a collective gasp with his “lower forever” comment as one recent story put it.”  Funny, in 2012 when I said at an OPEC conference that the price was likely to return to the $50-60 range, it was not even taken seriously enough for gasps:  the moderator actually thought I was joking, and an oil company CEO replied, ‘Well, you hate to call someone an idiot’ apparently unaware I’ve been called much, much worse. read more

Shell restarting Europe’s biggest oil refinery

Written by

European diesel prices slumped as traders anticipated more fuel supply.

Shell is trying to restart a crude distillation unit at the Pernis refinery in Rotterdam.

A Shell spokesperson said: “Shell Pernis shut down most of its units on July 30 due to a power outage.

We are currently restarting a number of units as part of the phased restart of the full complex. Complete restart will take place in a structured and controlled way. Flaring and noise will be part of recommissioning. We will do our utmost to minimize impact for residents. read more

Europe’s Biggest Oil Refinery Plans to Restart Key Unit

By Bill Lehane: 8 August 2017, 13:21 BST

  • Shell to try Pernis crude-unit restart, person familiar says

  • Diesel prices slump as traders anticipate increased supply

Royal Dutch Shell Plc will attempt on Friday to restart one of two crude units at Europe’s biggest oil refinery that were halted by a fire late last month, a person with knowledge of the matter said. European diesel prices slumped as traders anticipated more fuel supply.

Shell will try to restart a crude distillation unit at the Pernis refinery in Rotterdam, the person said, asking not to be identified because the matter isn’t public. A spokesman for the company declined to comment. Diesel futures extended their decline by as much as 0.9 percent in less than an hour after the planned restart became known, and were trading at $480 a metric ton at 12:27 p.m. in London, ICE Futures Europe data showed. read more

Shell considers upgrade at Germany’s largest refinery

|By: , SA News Editor:

Royal Dutch Shell (RDS.A, RDS.B) says it is considering expanding capacity at its 140K bbl/day refinery at Wesseling, Germany, which together with the former Godorf refinery near Cologne-Godorf form its 325K bbl/day integrated Rheinland refinery, the largest in Germany.

Shell says an expansion would be part of a series of measures aimed enabling production of fuels that will conform to the International Maritime Organization’s more stringent maximum permitted sulfur levels for marine fuels taking effect in 2020.

The company has not disclosed a time frame for when it might make a decision about the possible expansion.

SOURCE

Electric cars threaten Brunei plan for oil bonanza

Electric cars threaten Brunei plan for oil bonanza

by: : 8 Aug 2017

Mohammad Yasmin Umar, energy minister, told the FT that Brunei’s energy production could rise… by 2035 to as high as 800,000.  But he acknowledged this aim could be jeopardised by the world oil price depression — and by possible longer-term trends such as the electric car’s “takeover” from combustion-powered vehicles in rich countries. Brunei Shell Petroleum Company… did not respond to a request for comment on the minister’s remarks. FULL FT ARTICLE read more

Rise of electric cars challenges the world’s thirst for oil

Rise of electric cars challenges the world’s thirst for oil

Proposed bans on petrol and diesel vehicles bring further pressure to bear on Big Oil

by: , Energy Editor: 8 Aug 2017

Ben van Beurden, chief executive of Royal Dutch Shell, made no attempt to disguise the challenge facing “Big Oil”. Companies must become more discriminating about which oilfields to develop, he said, with only the most low-cost and productive likely to remain competitive. “We have to have projects that are resilient in a world where demand has peaked and will be declining,” he said. “When will this happen? We do not know. But will it happen? We are certain.” FULL FT ARTICLE read more

Kazakhstan: US sanctions will not affect oil projects

Kazakhstan: US sanctions will not affect oil projects

by: : 8 Aug 2017

New US sanctions against Russia will not affect multi-billion dollar oil projects in Kazakhstan backed by Chevron, ExxonMobil and other western energy majors, the country’s economy minister has said. Italy’s Eni, France’s Total, Exxon and Royal Dutch Shell all hold stakes in Kashagan, another Kazakh oil field. The decision to expand sanctions… was taken to primarily target Gazprom’s under-construction Nord Stream 2 gas pipeline to Germany… partially funded by… Shell… FULL FT ARTICLE read more

Shell Reports Fire, Unit Shutdown at Norco, La., Facility

December 19th, 2013, Norco Louisiana, A flare from the Shell Refinery illuminates the sky. 

Dow Jones Newswires

Royal Dutch Shell Plc said Monday that a fire over the weekend at its Norco refining and chemicals facility in Louisiana has forced it to shut down a unit.

“There is no timetable for the restart of the unit,” Shell said in an emailed statement, without identifying the specific unit. “Operations are stable. For reasons of commercial confidentiality, we do not provide details about the operational status of individual units or information on supply.” read more

Oil major set to launch electricity supplier in Britain

Anglo-Dutch group applies for licence to supply power in UK

by Tsveta Zikolova 

Monday, 07 Aug 2017, 12:57 BSTRoyal Dutch Shell (LON:RDSA) is to launch an electricity supplier in Britain, The Times has revealed. The move is part of the group’s strategic push into the electricity sector as it adapts to rising global demand for clean energy.

Shell’s share price has advanced today, having added about 0.8 percent in mid-morning trade, and outperforming the benchmark FTSE 100 index which is up about 0.2 percent. The Anglo-Dutch group’s shares have added more than 15 percent to their value over the past year, but have given up a little over two percent in the year-to-date. read more

Shell challenges power giants

Royal Dutch Shell is making a strategic push into the electricity sector and expects to be supplying power to industrial customers next year: ANDREW MILLIGAN/PA

Oil company to supply electricity to British businesses

Royal Dutch Shell is to launch as an electricity supplier in Britain, challenging some of Europe’s biggest utilities. The oil major has applied for a licence to supply power to businesses across Britain and plans to start signing up industrial customers now to provide them with electricity early next year. Shell also will establish a significant business at a stroke by taking over power supply to all 600 sites that it owns in the UK, comprising about 550 petrol stations as well as its offices, terminals and oil and gas platforms. FULL ARTICLE read more

Shell and BP’s commitment to North Sea oil ‘rock solid’

Shell and BP’s commitment to North Sea oil ‘rock solid’

Majors’ cost reductions have narrowed gap in competitiveness with other parts of world

Ben van Beurden, chief executive of Shell, has signalled that he too is once again viewing the North Sea as an investment opportunity, despite selling more than half of the group’s UK production to Chrysaor, a small UK company backed by US private equity funds, for up to $3.8bn in January. Last month, Mr van Beurden identified the Penguins field in the northern North Sea as among a handful of projects around the world that Shell would consider giving the green light to in the next 18 months. FULL FT ARTICLE

In Good Company: Coal miner’s son Jeremy Bentham of Shell comes clean

Ravi Velloor:Associate Editor: 6 Aug 2017

Top Shell executive talks about the challenges ahead in pursuit of climate-friendly power solutions

There’s a boyishness that springs to life when Jeremy Bentham talks of his die-hard support for Everton Football Club.

It’s a throwback to his early days as the son, grandson and great-grandson of coal miners from Blackpool in north-west England and the time, in 1966, when Everton came back from two goals down to win 3-2 against Sheffield Wednesday in the last 20 minutes of the FA Cup final.

The 100,000-strong stadium crowd included Paul McCartney and John Lennon of The Beatles. England would go on to win the World Cup that year, helped by heroic performances by Alan Ball, the youngest in that squad. Later that year, Ball would transfer from Blackpool to Everton and the Liverpudlian club would gain the lifelong loyalty of the future chief executive of Shell Hydrogen and the current head of Royal Dutch Shell’s Global Business Scenarios team. read more

OIL PRODUCTION: Ogoni people protest against resumption of Shell

OIL PRODUCTION: Ogoni people protest against resumption of Shell

By Davies Iheamnachor: ON AUGUST 5, 20174:25 AM

Hundreds of youths, elders, and women of Ogoni ethnic group, yesterday, protested against the resumption of oil exploration activities in their area by the Shell Petroleum Development Company, SPDC, and Nigeria Petroleum Development Company NPDC.

This came a few days to the expiration of a seven-day ultimatum issued by the Movement for the Survival of Ogoni People, MOSOB, to shun it’s planned return to Ogoniland. The protesters, who gathered at Kpobie Junction in Gokana Local Government Area, marched with placards bearing anti-Shell inscriptions. read more

Anxiety as MOSOP, others protest Shell’s resumption of oil production in Ogoniland

Anxiety as MOSOP, others protest Shell’s resumption of oil production in Ogoniland

On:

Thousands of Ogoni people, from the four Local Government Areas of Khana, Gokana, Tai and Eleme, yesterday defied the heavy rain to massively protest the return of the Shell Petroleum Development Company of Nigeria Limited (SPDC) to resume crude oil production and laying of pipelines, after the Anglo/Dutch oil giant was sent packing from Ogoniland over 24 years ago.

The protesters, comprising elderly men, women and youths, who were armed with placards, bearing various inscriptions, drumming and singing anti-Shell songs, were led by the President of the Movement for the Survival of the Ogoni People (MOSOP), Chief Legborsi Saro Pyagbara. read more

Gunvor offers E.Guinea funding help in bid for LNG

Gunvor offers E.Guinea funding help in bid for LNG

By Oleg Vukmanovic and Wendell Roelf

LONDON/CAPE TOWN, Aug 4 (Reuters) – Gunvor has offered to help Equatorial Guinea with financing as the Swiss commodity trader looks to edge out rivals bidding for supply from Africa’s first deepwater floating liquefied natural gas (FLNG) plant.

Gunvor, Vitol and Royal Dutch Shell have been shortlisted for an LNG off-take deal from the $2 billion Fortuna project with a decision expected this month.

Industry sources say Gunvor is looking to help state-run Sonagas finance a 30 percent stake in the project in return for selecting it to export gas from it. read more

Shell mulls German refinery upgrade to meet 2020 IMO sulphur rules

Shell mulls German refinery upgrade to meet 2020 IMO sulphur rules

AUGUST 4, 2017 / 3:22 PM

LONDON (Reuters) – Royal Dutch Shell is considering expanding the capacity of one of its German refineries to make oil products that meet an upcoming cap on the sulphur content of fuels used in shipping.

In the past few days, Rheinland refinery representatives met local officials and environmental groups to present preliminary plans for an investment at the plant’s 140,000-barrels-per-day Wesseling site, Shell said on the refinery’s website.

Shell is considering “a modernization of the residue processing unit at Rheinland refinery and to enhance the desulphurization plant there”, Shell told Reuters in an emailed statement. read more

Shell outlines projects on track for FIDs

Friday, Aug 04, 2017

European upstream projects in the UK and Italy are among the eight Royal Dutch Shell proposals scheduled for a final investment decision (FID) before 2018.

Shell is considering a redevelopment of the Penguins cluster in the northern North Sea. This would see the installation of a new FPSO to replace the current 65-km tie-back of Penguins’ five deposits to the ageing Brent Charlie platform.

Charlie is the only one of four Brent platforms that is still producing oil, and Penguins requires a new outlet for processing once the field is finally decommissioned. read more

Shell Set To Play A Major Role In The Global Gas Market

Zoltan Ban: Aug. 3, 2017 6:55 PM ET

Summary

– Shell profits down compared with the previous quarter, which is in part a reflection of the lower oil prices.

– While the shorter-term results were affected by the falling oil price, the long term strategy of becoming a leading and dominant player in LNG remains intact.

– Global energy trends continue to suggest that LNG is a good long-term bet, given economic as well as environmental considerations.

While Shell (RDS.A) did report a second quarter net operating profit of $1.55 billion compared with $3.5 billion in the previous quarter, it should be noted that when looking at the different sectors, it is the downstream segment which has been helping it stay above water this year. The upstream segment seems to be struggling within the context of the current oil & gas price environment, same as we can expect the global oil & gas industry to do overall. read more

Nigeria’s state oil company signs deals with Chevron, Shell

LAGOS, Aug 3 (Reuters) – Nigeria’s state oil company said on Thursday it had signed financing agreements with Chevron and Shell worth at least $780 million to boost crude production and reserves.

The Nigerian National Petroleum Corporation (NNPC) said a joint venture agreement with Chevron Nigeria Limited would see the development of proven and probable reserves of 211 million barrels at the joint Sonam project.

“The project is expected to begin to bear fruits in (the) next three and six months,” NNPC said in a statement, adding it was targeting production of 39,000 barrels per day of liquids and 283 million standard cubic feet of gas per day. read more

Russian pipeline projects likely to go ahead despite sanctions, analysts say

Aug. 3, 2017 11:49 AM ET|By: , SA News Editor

New U.S. sanctions will make it harder and more expensive for Russia to build the Nord Stream 2 and TurkStream gas export pipelines to Europe, but analysts say the two Gazprom-led (OTCPK:OGZPY) projects are unlikely to be stopped.

But the sanctions bill, which had the overwhelming support of the U.S. Congress before it was signed by Pres. Trump, throws into doubt the €4.75B pledged by European companies including Royal Dutch Shell (RDS.A, RDS.B), Engie (OTCPK:ENGIY) and OMV (OTCPK:OMVJF) to help fund Nord Stream 2 and could threaten other projects. read more

Warning of US sanctions ‘disaster’ for Russia energy projects

By: Henry Foy in Moscow and Andrew Ward in London

International energy investments in Russia will suffer from new US sanctions imposed on Moscow, executives have warned… A senior executive at a western oil group with a large presence in Russia told the Financial Times that the new sanctions “could be a disaster” given its current business in the country. Mr van Beurden said Shell had authorisation from Dutch authorities to press ahead with financing of Nord Stream 2, but was waiting to see how the US situation “evolves.” read more

Shell shuts Pernis plant until mid August after fire and leak

August 2, 2017

The massive Shell refinery in Rotterdam’s port area will remain closed until mid August at least after last weekend’s huge fire, the company has told news agency AFP.

The Pernis refinery is capable of processing 400,000 barrels of petroleum products a day and is said to be the biggest refinery in Europe. There are 60 factories on the site.

The fire broke out on Saturday evening and was brought under control on Sunday. However, Pernis was hit by a second incident on Monday, in which there was a hydrogen fluoride leak. Both incidents are now being investigated. read more

The Secret Behind Better Oil Major Earnings

By Gregory Brew – Aug 02, 2017, 6:00 PM CDT

After several years of austerity and belt-tightening, the major international oil companies posted substantial profits in Q2 of 2017. The five largest private oil companies together generated more than $30 billion in profit, an indication that most have successfully adapted to the current bout of low prices, while a few have publicly indicated their belief that prices will hover around $50 for the foreseeable future.

What this means is that the “mega projects” that dominated many companies’ balance sheets for the last decade will become increasingly rare, as the majors pivot towards short-term, low-risk ventures with a faster turnaround. A closer look at each company shows how individual firms have adapted in distinct ways to this new era. read more

Who needs oil at $100? Majors making cash at $50: Goldman

BloombergUpdated: Aug 03, 2017, 08.55 AM IST

Integrated giants like BP and Royal Dutch Shell have adapted to lower prices by cutting costs and improving operations, analysts at the bank including Michele Della Vigna said in a research note on Wednesday.

European majors made more cash during the first half of this year, when Brent averaged $52 a barrel, than they did in the first half of 2014 when prices were $109. Back then, high oil prices had caused executives to overreach on projects, leading to delays, cost overruns and in inefficiency, Goldman said. read more

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