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Shell writes down value of its U.S. shale gas and liquids-rich assets by $2.5 billion

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Extracts from an article by Arjun Sreekumar published on 19 March 2014 by The Motley Fool under the headline: “2 Key Areas Where Royal Dutch Shell plc Needs to Improve”

To accomplish its goal of boosting cash flow and returns, Shell has identified two key business units as prime targets for restructuring over the next few years. The first business unit to be reorganized is Shell’s upstream Americas segment, where more than $24 billion in spending on North American shale oil and gas assets over the past few years has failed to generate sufficient returns. The unit swung to a $900 million loss last year, as Shell was forced to write down the value of its shale gas and liquids-rich assets by about $2.5 billion. To remedy the situation, Shell plans to reduce upstream Americas spending by 20% this year and also plans to cut the unit’s staff by 30% from around 1,800 to 1,400.

FULL ARTICLE

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