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Posts on ‘October 18th, 2013’

Shell train wreck in sight?

Screen Shot 2013-07-15 at 07.03.50TIME TO PUT ON THE HARD HATS?

Overall, Shell’s strategy now seems to involve stopping capex and unloading assets in something resembling a fire sale – perhaps to cover the losses in the US, perhaps because it sees a need to fight off a hostile takeover, or perhaps because of the potential liabilities if it is found to have been manipulating the oil price.

ARTICLE BY A SHELL RELATED SOURCE

John

The issue of the licence to operate the Corrib plant should be no more than a formality, but it seems that the EU has become involved in the matter. Giving approval to operate the plant prior to the environmental impact assessment is not very clever, as it implies that the EIA is a formality. On its own, this would be less significant but taken with the warning from the Norwegian government that Shell is in danger of being removed from their list of approved investments, the recent refusal by the UK government to agree to the planning approvals for Shell Centre, and the cancellation of the Chinese project suggests that something more serious is going on.
 
Of course it may be the potential liabilities associated with the EU price fixing investigation (and the EU has shown repeatedly that it is not beholden to Shell in the same way as the UK and Dutch governments) and it may also be the scale of the US shale gas and Arctic losses. The costs of these losses will fall partly on shareholders, but also to a large extent on the Dutch and UK  governments in the form of reduced tax receipts.
 
Shell (Voser) has admitted that its investments in unconventionals are not performing and will be sold – although Shell have acknowledged “impairments” of about $2bn this would represent less than 10% of the amount invested: it should be fairly obvious to anyone that after Voser’s comments a much larger loss should be anticipated. Added to the $5bn spent in Alaska, the losses are comparable in magnitude to BP’s losses on Macondo… The difference seems to be that the stock market (but presumably not sovereign wealth funds) does not realise that there is a train wreck coming, or is deluded by Shell’s maintenance of its share price by its continuous stock repurchases. Shell may actually have been operating at a loss for the past couple of years as a result of the Odum/Lawrence US projects.
 
Total has made no secret of its desire to break free from its franco-centric roots, and has announced that it will be moving some of its operations from Paris to London. Total also complained to the EU about the oil price issue, initiating the current investigation. Could a merger be on the horizon? Perhaps headquartered in London? There is space available! Normally any merger of this nature would involve disposal of some assets, and perhaps Corrib is now on the block along with the Nigerian assets – Chevron might also be interested, but with their ongoing problems in Ecuador and their own disposals in Nigeria, it should not be a surprise that they would not want to take on Shell’s Niger Delta assets.
 
Overall, Shell’s strategy now seems to involve stopping capex and unloading assets in something resembling a fire sale – perhaps to cover the losses in the US, perhaps because it sees a need to fight off a hostile takeover, or perhaps because of the potential liabilities if it is found to have been manipulating the oil price.
 
All of this is summed up quite well in the series of articles from the Daily Telegraph, together with your links at the end of the article. What a mess…. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

EPA confirms Shell can still use original Corrib emissions licence

The Environmental Protection Agency has confirmed that Shell E&P Ireland can fall back on the original emissions licence for the Corrib gas refinery, following this week’s quashing of a modified version of the permit in the Commercial Court.

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A section of the Corrib gas line at Aughoose, Co Mayo. Photograph: Dara Mac Dónaill

Lorna Siggins: Friday, October 18, 2013

The Environmental Protection Agency has confirmed that Shell E&P Ireland can fall back on the original emissions licence for the Corrib gas refinery, following this week’s quashing of a modified version of the permit in the Commercial Court.

The original licence was secured in late 2007 before new legislation on environmental impact assessments (EIA) was introduced, and expires in late 2014. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Setback for the Shell Corrib gas pipeline

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Another setback for the Shell Corrib gas pipeline

Mayo Advertiser, October 18, 2013.

The Commercial Court on Tuesday granted an order quashing a revised licence which was issued for the Shell gas terminal in north Mayo.

The refinery site at Ballinaboy was granted a revised licence by the Environmental Protection Agency last June to construct a gas terminal, however it is now accepted that that there were defects in relation to how an environmental impact assessment (EIA) concerning the terminal development was carried out.

The EPA conceded in court that Martin Harrington, Doohoma, Ballina, was entitled to that order due to defects in the how the EIA concerning the terminal development was carried out. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

At least 40 in Canadian Shale gas protest

Screen Shot 2013-10-18 at 10.15.40At least 40 people were arrested after a protest at a shale gas development in the Canadian province of New Brunswick turned violent, say police, BBC News reported. A shot was fired, petrol bombs were tossed and police cars torched at the blockade near the town of Rexton. The Royal Canadian Mounted Police said arrests were made for firearms violations, threats and intimidation.

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October 18, 2013 – 09:33 AMT

PanARMENIAN.Net – At least 40 people were arrested after a protest at a shale gas development in the Canadian province of New Brunswick turned violent, say police, BBC News reported.

A shot was fired, petrol bombs were tossed and police cars torched at the blockade near the town of Rexton.

The Royal Canadian Mounted Police said arrests were made for firearms violations, threats and intimidation.

Protesters have blockaded a staging area where an energy firm stores its equipment since 30 September. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

U.S. ‘over-fracked and over-drilled,’ Shell technology official says: Hype ‘dangerous’

The United States’ oil and gas industry has “over-fracked and overdrilled”, according to Matthias Bichsel, projects and technology director at Royal Dutch Shell Plc.

Screen Shot 2013-10-18 at 10.02.38 By Yadullah Hussain, Financial Post October 17, 2013 11:00 PMThe United States’ oil and gas industry has “over-fracked and overdrilled”, according to Matthias Bichsel, projects and technology director at Royal Dutch Shell Plc.

“The reservoirs don’t need that many wells. The reservoirs don’t need that many stages of fracks, because not all the pieces of the rocks are as good,” Mr. Bichsel said in a telephone interview from Vancouver last week, where he was speaking at a company event.

The United States is on course to become the world’s largest oil supplier, according to PIRA Energy Group, a New York-based energy consultancy.

“The U.S. shale liquids growth of 3.2 million barrels per day over the last four years has been nearly unparalleled in the history of world oil; only Saudi Arabia in 1970-74 raised its production faster,” PIRA said in a statement. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Floating was only Browse option: Voser

Royal Dutch Shell chief executive Peter Voser has pushed back against criticism by West Australian premier Colin Barnett over plans to develop the Browse gasfields using floating LNG technology instead of building the project onshore...

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Royal Dutch Shell chief executive Peter Voser has pushed back against criticism by West Australian premier Colin Barnett over plans to develop the Browse gasfields using floating LNG technology instead of building the project onshore, according to The Australian.

Mr Barnett has been vocal in criticising Shell and Woodside Petroleum Ltd for planning to construct the project offshore as the onshore option would result in more investment and jobs for the state.

However, Mr Voser, in his first public comments on the spat, said the onshore option was never financially viable, leaving developers with little choice but to pursue the floating option if the project was to be constructed at all. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Shell to Sea tender for oil and gas review

Screen Shot 2013-09-24 at 18.48.35“Corporations like Shell focus on what they call stakeholder buy-in, in layman’s terms this means cultivating relationships with key civil servants, political hacks, and PR teams persuading them to keep government policy tilted in favour of the industry – and not the citizen.”

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Mayo Advertiser, October 18, 2013.

Shell to Sea has submitted a tender application to the Department of Energy in response to Minister Pat Rabbitte’s call for expert advice to review the generous oil and gas terms that are currently on offer to oil and gas companies.

The Shell to Sea tender undertakes to “initiate the most thorough, far-reaching inquiry yet into the fiscal regime governing resource extraction in Ireland, taking all voices into consideration and evaluating all available data”. Shell to Sea stated that it would build on the work that had been published in its in-depth 44 page report entitled Liquid Assets, in which the 69 publicly known prospects and discoveries were analysed. This report showed that energy companies estimate the potential fields could contain 21 billion barrels of oil equivalent. Shell to Sea’s tender bid is free of charge as it feels that “assisting Ireland in getting an adequate return from its own oil and gas is payment enough”. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Peter Voser: cheap shale gas is a myth

Screen Shot 2013-03-23 at 09.15.15Shale gas will not change energy pricing structures across the world, according to the chief executive of Shell

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Emily Gosden

By , in Geoje, South Korea: 8:30PM BST 16 Oct 2013

It is a “myth” that exports of cheap shale gas from America will cut gas prices in Europe and Asia, Peter Voser, chief executive of Royal Dutch Shell has warned.

America is sitting on a glut of shale gas that has seen prices plummet to as little as a third of UK prices. It is now in the process of developing export terminals where the gas will be cooled for shipping abroad as liquefied natural gas (LNG).

UK politicians have hailed the prospect of Britain importing cheap gas from the US as one solution to help consumers struggling with rising energy bills as domestic gas production dwindles. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.
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