Sep. 29, 2015
Summary
* The Burger J well test results were a dud, no major reserves found.
* Shell puts Arctic drilling on hold indefinitely, which further reduces future capex.
* Dividend yield tops the 8% mark.
Royal Dutch Shell (RDS.A / RDS.B) was always upbeat about the prospects of drilling in the Arctic, targeting resources that could be 10 times greater than the sum of oil and gas produced so far in the North Sea. Somewhat puzzling, the Anglo-Dutch multinational pressed on with its plans even though rivals Exxon Mobil (NYSE:XOM), BP (NYSE:BP), Chevron (NYSE:CVX) and ConocoPhilips (NYSE:COP) had all suspended activity in the area.
Despite big concerns from environmentalists and shareholders, and earlier misadventures in the region, the company argued it was just too big a prize to avoid the Arctic.