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Posts on ‘January 30th, 2014’

Oil drilling on US Arctic coast put on ice

Screen Shot 2013-01-11 at 20.09.51 Oil companies’ rush to find reserves off Alaska’s Arctic shores suffered a setback on Thursday after Shell said it would suspend its operations in the region — and possibly withdraw for good. “We will not drill in Alaska in 2014, and we are reviewing our options there,” Shell CEO Ben van Beurden told reporters in London. “The group’s exploration near the North Pole cost billions of dollars and generated reams of negative press – yet not a single drop of oil has been pumped” said Garry White, Chief Investment Correspondent at British brokerage Charles Stanley.

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By Associated Press, Updated: Thursday, January 30, 2:57 PM

AMSTERDAM — Oil companies’ rush to find reserves off Alaska’s Arctic shores suffered a setback on Thursday after Shell said it would suspend its operations in the region — and possibly withdraw for good.Royal Dutch Shell PLC is the main company to have purchased leases for oilfields off Alaska’s Arctic shores, but its attempts to drill have been halting due to technical and legal hurdles.While other companies are still seeking to exploit deep-water Arctic fields nearby in Canada, Shell’s troubles may indicate that the difficulties outweigh the potential economic benefits.“We will not drill in Alaska in 2014, and we are reviewing our options there,” Shell CEO Ben van Beurden told reporters in London.Shell received a negative Federal court decision last week. Environmentalists are still challenging whether the government’s 2008 decision to open the area to exploration was correctly granted in the first place: it is covered by sea ice for much of the year.

Asked whether Thursday’s retreat means the project is finished, Van Beurden said that depends in part on how the ongoing lawsuit proceeds.

Environmental activists cried victory.

“Shell’s Arctic failure is being watched closely by other oil companies, who must now conclude that this region is too remote, too hostile and too iconic to be worth exploring,” Greenpeace International Arctic oil campaigner Charlie Kronick said in a reaction.

Jacqueline Savitz, the U.S. chief of the Oceana conservationist group, said Shell’s retreat shows that offshore drilling in the Arctic is “simply not a good bet from a business perspective.” 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 shelves plan to drill in Alaskan Arctic this summer

Screen Shot 2013-01-31 at 17.38.03“The company has spent huge amounts of time and money on a project that has delivered nothing apart from bad publicity and a reputation for incompetence. The only wise decision at this point is for Mr. Van Beurden to cut his company’s losses and scrap any future plans to drill in the remote Arctic ocean.”

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Anglo Dutch oil giant’s new chief executive slashes exploration and development spending as profits fall 71%

theguardian.com,

Shell has announced plans to slash its exploration and development spending from $46bn (£27.8bn) to $37bn this year and has ditched plans to drill in the Alaskan Arctic this summer.

The cutbacks were unveiled by new chief executive, Ben van Beurden, who said they were part of a range of initiatives to make up for what he described as Shell’s “loss of momentum”.

Van Beurden, who took over from Peter Voser at the turn of the year confirmed that fourth-quarter profits – on a current cost of supply basis – had plunged by 71% to $2.1bn. Annual earnings almost halved to $16.7bn. 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.

Should have bought his fuel somewhere else?

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PHOTO AND CAPTION COURTESY OF THE BBC: Ferrari driver Fernando Alonso stands next to the new F14T car after it stopped during Formula 1 Testing at the Ciruito de Jerez, Spain

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 Puts Its Arctic Plans on Ice

Screen Shot 2014-01-30 at 15.20.51SHELL GETS COLD FEET

Royal Dutch Shell won’t drill in the U.S. Arctic this year.

A combination of a federal appeals court ruling and a need to get a handle on booming costs appear to have been the straws that broke the camel’s back.

FULL ARTICLE SUBJECT TO SUBSCRIPTION

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 profit warning – the shock that wasn’t

Screen Shot 2013-10-01 at 07.56.54In a mix and mingle of rational and strange explanations, while distancing himself as the ‘New Man’ from what happened under previous CEO Peter Voser, the new CEO firstly blamed lower oil and gas prices, which for oil is a strange claim. Shell’s supposedly ‘shocking’ admission its profits will be low for several years – many analysts cite 2017 as the year when the ‘annus horribilis’ will end – cannot be treated as surprising. This was above all a disaster waiting to happen, and it happened.

New CEO Admits

Shell’s new CEO Ben van Beurden has admitted corporate performance in 2013 was not what he expected from the group. Just two weeks after taking over the helm at end-December, he gave what journalists and commentators called ‘a shock profit warning’, saying that full-year profits excluding ‘special items’ could be about 25% below 2012’s performance. For the 4th Quarter of 2013 Shell’s earnings before special items fell by about 50%.

In a mix and mingle of rational and strange explanations, while distancing himself as the ‘New Man’ from what happened under previous CEO Peter Voser, the new CEO firstly blamed lower oil and gas prices, which for oil is a strange claim. He went on to widen his claims by saying that Shell is exposed to “weak industry conditions” in downstream oil, unexpected costs in its drive to become the most natural gas-oriented of the oil majors, higher exploration and infrastructure expenses, higher corporate risks, especially in Iraq, and lower upstream production volumes. 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 Profit Drops 48% as Oil and Gas Production Declines

Shell will need to slash investments and boost cash flow to meet its $130 billion net capital-expenditure target for 2012-2015.

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Jan 30, 2014 7:14 AM GMT

Royal Dutch Shell Plc (RDSA), Europe’s largest oil company, said profit plunged 48 percent on exploration expenses and lower production.

Profit excluding one-time items and inventory changes was $2.9 billion in the fourth quarter, down from $5.6 billion a year earlier. That matches the drop Shell forecast on Jan. 17 because of losses in the Americas, lower refining margins and production disruptions in Nigeria and elsewhere.

“Its Americas growth strategy –- the home for 50 percent of past investment –- woefully underdelivering under the weight of dead capital,” Lucas Herrmann, a London-based analyst at Deutsche Bank AG, said before the earnings report. “Corporate change could release huge value.” 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.

Nigeria: Bonga Oil Spill – FG Fines Shell $11.5 billion

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Shell Nigeria Exploration and Production Company, SNEPCO, was, yesterday, ordered by Nigerian Maritime Administration and Safety Agency, NIMASA, and the National Oil Spill Response and Emergency Agency, NOSREA, to pay a total of $11.5 billion, about N1.84 trillion, as fines and compensation for the 2011 Bonga oil spill incident. “The kind of impunity Shell and its allies have demonstrated so far in the Niger Delta area in the past must stop if the future of the people of Nigeria and the environment are to be protected.”

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Shell Nigeria Exploration and Production Company, SNEPCO, was, yesterday, ordered by Nigerian Maritime Administration and Safety Agency, NIMASA, and the National Oil Spill Response and Emergency Agency, NOSREA, to pay a total of $11.5 billion, about N1.84 trillion, as fines and compensation for the 2011 Bonga oil spill incident.

Speaking at a public hearing organised by the House of Representatives Committee on Environment, Mr. Patrick Akpobolokemi, Director General, NIMASA, said the maritime agency calculated a total of $6.5 billion, about N1.04 trillion, as compensation to be paid to the communities affected by the spill. 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.

Argentina tumbling currency under attack by Shell?

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By Jonathan Gilbert | 01/28/14

Axel Kicillof, the economy minister… claimed a “speculative attack” by Shell, the oil company, had contributed to the peso’s dive.

SOURCE

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 scraps controversial exploration programme in Alaska

Capital spending will fall to $37 billion this year from $46 billion in 2013, Shell said, adding that for the time being it was also scrapping a controversial exploration programme in Alaska.

Shell to cut spending and step up disposals in 2014

Jan 30 (Reuters) – Anglo-Dutch oil company Royal Dutch Shell on Thursday said it would step-up disposals and cut spending as it seeks to win back investors with a new focus on returns, less than two weeks after a shock profit warning.

Shell, the world’s no. 3 investor owned oil company, earlier this month issued a “significant” profit warning for the quarter to the end of December, detailing across-the-board problems just weeks into the tenure of new boss Ben van Beurden. 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.

New Shell CEO Ben van Beurden sets agenda for sharper performance and rigorous capital discipline

The recent Ninth Circuit Court decision against the Department of the Interior raises substantial obstacles to Shell’s plans for drilling in offshore Alaska. As a result, Shell has decided to stop its exploration programme for Alaska in 2014. “This is a disappointing outcome, but the lack of a clear path forward means that I am not prepared to commit further resources for drilling in Alaska in 2014,” van Beurden said. 

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Thursday, January 30, 2014

Speaking to investors today, new Shell CEO Ben van Beurden updated on the company’s priorities: improving Shell’s financial results and achieving better capital efficiency, as well as continuing to strengthen operational performance and project delivery.

Van Beurden, who became the new CEO of Royal Dutch Shell plc (“Shell”) on 1 January 2014, said Shell’s strategy overall is sound. The company has a high quality portfolio and key strengths in technology and project delivery. Shell will continue to invest in new projects that deliver more energy to customers, and create value for shareholders. The strategy is designed to deliver through-cycle growth in cash flow, to drive competitive returns and a growing dividend. 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 Abandons U.S. Arctic

Screen Shot 2013-01-11 at 20.09.51LONDON—Royal Dutch Shell PLC on Thursday said it would abandon drilling in the U.S. Arctic, as it reported a 71% decline in fourth-quarter profit largely because of rising costs and lower oil and gas volumes. 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 4Q earnings fall 74 percent

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Shell’s earnings have dropped by 74 percent in the fourth quarter from the same period a year ago, on a mix of higher exploration costs, lower production, and worse refining margins.

The company, which warned on Jan. 17 weaker figures were coming, also had more one-time gains in 2013. Net profit for the quarter was $1.78 billion (130 billion euros), versus $6.73 billion a year earlier.

The earnings report, the first featuring new Chief Executive Ben van Beurden, noted that production was down 5 percent to 3.25 million barrels per day. Shell said 2 percentage points were due to wells shut in Nigeria for security reasons, Shell said, and the rest due to other maintenance and “asset replacement activities” — old fields fading faster than new projects came online. 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 Arctic plans at risk

Screen Shot 2013-08-29 at 17.22.26Almost every legal option in dealing with the appeals court decision will take time, however, and Shell may be running out of time, for this year at least. The company must begin making commitments soon to contractors and suppliers if it is to get its drill fleet ready to move north in July.

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Shell Arctic plans at risk after 9th Circuit Court tosses EIS

By Tim Bradner, Alaska Journal of Commerce: Published: 2014.01.29 02:32 PM

A Jan. 22 U.S. 9th Circuit Court of Appeals ruling could invalidate a key section of the Environmental Impact Statement on the 2008 Chukchi Sea Outer Continental Lease Sale, throwing a wrench into planning by Shell to return to the Arctic this summer.

The U.S. Interior Department, the defendant in the case, could ask the Ninth Circuit for a hearing before the full court, as the Jan. 22 decision was not unanimous among a three-judge panel. 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.

Iraq and Iran plot oil revolution in challenge to Saudi Arabia

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Iraq’s goal of pumping 9m barrels a day of crude could be a game changer for oil prices and British companies: British oil giants BP and Royal Dutch Shell are also poised to benefit from Iraq’s ambitious production plans. Both companies are already managing two huge oil fields in southern Iraq which are vital if Baghdad is to achieve its goal.

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By Andrew Critchlow: 1:32PM GMT 28 Jan 2014

 Iraq is poised to flood the oil market by tripling its capacity to pump crude by 2020 and is collaborating with Iran on strategy in a move that will challenge Saudi Arabia’s grip on the Organisation of Petroleum Exporting Countries.

“We feel the world needs to be assured of fuel for economic growth,” Hussain al-Shahristani, Deputy Prime Minister for Energy in Iraq told oil industry delegates attending a Chatham House Middle East energy conference. 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.

Tesoro, Shell Oil settle lawsuit from families of killed workers

Screen Shot 2013-10-01 at 07.56.54The attorney representing the families of six of the seven refinery workers killed in an explosion in 2010 said they’ve settled a wrongful death lawsuit against Tesoro and Shell Oil Company. The families claimed the company deliberately ignored dangerous conditions at the Anacortes refinery that led to the blast, killing seven workers. Attorney David Beninger said the lawsuit settled last month for around $39 million and the money was divided among the families.

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by JAKE WHITTENBERG / KING 5 News

NWCN.com: Posted on January 29, 2014 at 9:12 AM 

The attorney representing the families of six of the seven refinery workers killed in an explosion in 2010 said they’ve settled a wrongful death lawsuit against Tesoro and Shell Oil Company.

The families claimed the company deliberately ignored dangerous conditions at the Anacortes refinery that led to the blast, killing seven workers. A contractor who was burned but survived was also included in the suit. 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.

Links to a selection of recent articles relating to Royal Dutch Shell

Links to a selection of recent articles relating to Royal Dutch Shell kindly supplied by a regular contributor

Screen Shot 2013-05-17 at 01.06.41Benchmark in Jeopardy: Oil & Gas Journal-Jan 27, 2014: … by increasing the volatility of an important crude oil price marker. … unveiled investigations into suspicions that representatives of Shell, BP, …

Price-rigging probes jammed by oil industry bid to protect its secrets: Environment & Energy Publishing-Jan 17, 2014: Shell and Vitol, the Switzerland-based multinational oil trader, are pressing the 2nd U.S. Circuit Court of Appeals to reverse a lower court .. 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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