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Shell says oil sector needs to invest trillions even within climate limits

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By REUTERS: PUBLISHED: 12:47, 24 May 2016

THE HAGUE, May 24 (Reuters) – The oil and gas industry will need to invest up to $1 trillion per year even within the limits of the U.N.-backed goal of curbing global warming to 2 degrees, Royal Dutch Shell’s chief executive said on Tuesday.

“If collectively we find a way to stay within the 2 degree (Celsius limit), we will still need significant investment in oil and gas. I am not talking about a few millions, I am talking about up to a trillion dollars every year that industry has to invest just to stay within 2 degrees in oil and gas,” Ben van Beurden said at the company’s annual shareholder meeting in The Hague. read more

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Nigeria beefs up security after oil installation attacks

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By AFPPUBLISHED: 21 May 2016

President Muhammadu Buhari has ordered security to be stepped up in Nigeria’s oil-producing south, after a spate of attacks blamed on local militants that he said threatened the economy.

Buhari on Friday met senior executives of the Anglo-Dutch oil group Shell, whose Nigerian subsidiary has been targeted in recent months by a group calling itself the Niger Delta Avengers.

The group wants a fairer share of oil revenue for local people and wants a government amnesty programme that brought similar unrest to an end in 2009 to be continued. read more

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Shell shuts down three offices and asks the 1,600 staff involved to move or consider voluntary redundancy

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Oil giant warned last year that merger with BG would hit workers hard 

Staff in Reading and Manchester have option move to London head office 

Plans to put all London and South East operations into central London 

Screen Shot 2016-04-25 at 15.56.32By MARK SHAPLAND FOR THIS IS MONEY25 April 2016

Oil giant Shell is pushing ahead with plans to cut jobs and close three offices following its billion dollar takeover of rival BG Group earlier this year.

The cost-cutting drive will trigger the closure of the former BG Group headquarters in Reading and company offices in Aberdeen and Manchester.

The 1,600 staff employed at the sites who do not want to relocate will be offered voluntary redundancy.  

The firm warned last year that the impact of its mega-merger with BG Group would hit workers hard.  read more

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Is this the city car of the future? Shell reveals bizarre bug eyed vehicle with a flip up front

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Screen Shot 2016-04-23 at 07.27.30Shell’s city concept car uses a third less energy compared to the average car, as it gets 107 miles per gallon and is only 1.5m high, 2.5m long and 1.3m wide – making parking in the city a breeze. One unique feature to this futuristic car is that there are now doors that open out, in order for riders to get inside they have to pull the top up and climb in

By STACY LIBERATORE FOR DAILYMAIL.COM: 23 April 2016

In about 50 years, three-quarters of the world is expected to live in cities, while the number of cars on the road will double.

While most manufacturers are developing electric solutions, unsurprisingly Shell has designed a vehicle that they say ‘is intended to inspire thinking about maximizing personal mobility, while minimizing energy use’.

Shell’s city concept car uses a third less energy compared to the average, as it gets 107 miles per gallon and is only 1.5m high, 2.5m long and 1.3m wide – making parking in the city a breeze. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Botched Doha deal undermines OPEC credibility, oil prices tumble

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By REUTERSPUBLISHED: 18 April 2016

By Henning Gloystein

SINGAPORE, April 18 (Reuters) – Oil prices tumbled on Monday after a meeting by major exporters in Qatar collapsed without an agreement to freeze output, leaving the credibility of the OPEC producer cartel in tatters and the world awash with unwanted fuel.

Tensions between Saudi Arabia and Iran were blamed for the failure, which revived industry fears that major government-controlled producers will increase their battle for market share by offering ever-steeper discounts. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Shell and Scottish Power guilty of energy fraud and market manipulation in the US

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By Alex Brummer For Daily Mail, In San Francisco

Shell and Iberdrola-owned Scottish Power have been found guilty of fraud and market manipulation which led to power blackouts in the San Francisco bay area.

The finding by a Federal Energy Regulation Commission (FERC) judge alleges that Shell and Iberdrola made £809million of illegal profits which may now have to be repaid to the citizens of California.

Evidence presented during the hearings says that energy traders at Shell and Iberdrola used similar tactics to the collapsed energy firm Enron to drive up the prices which Californian residents had to pay on their long-term contracts.

As a result Shell received £548million in excessive profits and Iberdrola £261million. At the time Scottish Power, which has previously won Money Mail’s Wooden Spoon Award for poor customer service, was a quoted UK company and owner of PPM Energy in California.

It was heavy losses in the US which weakened the Scottish firm and led to it being sold to the Spanish power giant Iberdrola in 2007. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Shell dragged into Nigeria oil corruption probe

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“We can confirm that representatives of the Dutch Financial Intelligence and Investigation Service (FIOD) and the Dutch Public Prosecutor recently visited Shell at its headquarters in The Hague,” a spokesman said.

“The visit was related to OPL 245, an offshore block in Nigeria that was the subject of a series of long-standing disputes with the Federal Government of Nigeria. Shell is cooperating with the authorities and is looking into the allegations, which it takes seriously.” read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Shell plans North Sea sell-off as falling crude price makes many of its sites less profitable

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By CITY & FINANCE REPORTER FOR THE DAILY MAIL: PUBLISHED: 27 March 2016

Shell has hired advisers to sell some of its North Sea oil operations as the falling price of crude makes sites less profitable.

Bank of America Merrill Lynch, Lazard and Morgan Stanley have held talks with a number of suitors, including Neptune Oil and Gas, the investment firm set up by former Centrica boss Sam Laidlaw.

The oil industry has been scaling back investments in the North Sea because of the tumbling price of crude. Shell has said it would make disposals worth £21billion. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Worst of oil rout ‘is over’, say analysts (as Shell begins £20bn asset sale)

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By CITY & FINANCE REPORTER FOR THE DAILY MAIL: 12 MARCH 2016

Oil analysts say the price of a barrel may have bottomed out – just as Shell started a £20billion assets sale.

The International Energy Agency said a slowdown in oil production could mean the worst of the rout in oil prices is over. In January prices plummeted to 12-year lows, falling below $27-per-barrel.

But in recent weeks there has been a modest recovery, with oil rising to $40 per barrel, and the IEA said this could be the light at the end of the tunnel. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Shell faces fresh Nigeria pollution claims in London

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By FP: PUBLISHED: 3:55, 2 March 2016

Oil giant Royal Dutch Shell came under renewed scrutiny on Wednesday over its environmental record in Nigeria after lawyers brought fresh claims of damage caused by spills to a London court.

British legal firm Leigh Day has filed two cases at the High Court in a bid to force the Anglo-Dutch energy major to clean up damage caused in the communities of Ogale and Bille in the Niger Delta, Nigeria’s main oil-producing region, and provide compensation.

In Bille, the lawyers hope to prove that Shell is liable for failing to protect its pipelines from damage caused by third parties, which, they said, could mark a “significant expansion” in the firm’s liability. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Shell’s credit rating cut from AA to AA- following £36bn takeover of gas giant BG Group

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By RUPERT STEINER FOR THE DAILY MAIL19 February 2016

Royal Dutch Shell has seen its credit rating slashed following its £36billion takeover of gas giant BG Group.

The credit score of the FTSE 100 oil company – a barometer of its financial strength – was lowered by Fitch from AA to AA-.

Ratings agency Fitch said its outlook on Shell was ‘negative’ in a sign a further cut could follow.

Shell used some of its cash reserves to fund the takeover of BG. Following the completion of the mega-deal on Monday, Shell plans to sell £20billion of assets in the next three years.

However, Fitch warned it downgraded its view on the company because Shell (down 26.5p to 1560.5p) had ‘materially missed the targeted level’ of sell-offs so far.  read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

It’s goodbye to BG group: Gas giant shuts its doors and ceases to exist after Shell takeover

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It was the end of an era for staff at Thames Valley Park HQ in Reading yesterday as gas giant BG Group ceased to exist

By Monday, BG will be part of Anglo-Dutch giant Royal Dutch Shell after a £35billion takeover.

The new group is now the world’s biggest trader of liquefied natural gas.

BG Group came into being in 1997 when it was demerged from British Gas.

BG employed 5,000 people from 70 countries. 

During its existence it said that its geologists and geophysicists had helped find 17 giant hydrocarbon discoveries – each with recoverable resources of more than 500million barrels of oil equivalent or 3 trillion cubic feet of gas. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Pension funds at risk as BP and Shell’s near £10bn profits slump sparks dividend payouts fears

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By JON REES FOR THE MAIL ON SUNDAY31 January 2016

Britain’s biggest oil groups will this week report a near £10billion slump in profits as the calamitous effect of the low oil price takes its toll on the blue chip giants.

Both BP and Shell are expected to see their full-year profits for 2015 slashed by about 40 per cent leading to fears that they will struggle to maintain their dividend payouts to shareholders.

BP is predicted to report profit for the year of $6.8billion (£4.8billion) down from $12.1billion previously, while Shell is set to report profit down to $10.7billion (£7.5billion) from $19billion. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Final approval for Shell mega-merger as BG Group shareholders vote in favour of the £36bn deal

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By LAURA CHESTERS FOR THE DAILY MAIL: 29 JAN 2016

One of the largest takeovers in history finally got the go-ahead yesterday after BG Group shareholders followed those at Royal Dutch Shell in approving the £36billion deal.

At a meeting in London, 99.53 per cent of BG shareholders voted in favour, a day after 83 per cent of Shell investors approved the deal that was first announced last April.

Shell chief executive Ben van Beurden said: ‘BG adds attractive deep water and integrated gas positions and will act as a catalyst for accelerating the reshaping of our business.  read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Shell gets green light for merger with BG Group to create world’s biggest liquefied gas trader

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By LAURA CHESTERS FOR DAILY MAIL: 28 JAN 2016

Royal Dutch Shell’s mega-merger with gas giant BG Group looked set to be approved yesterday, creating the world’s biggest liquefied gas trader and boosting bankers’ bonuses.

The £35billion deal got the go-ahead from Shell investors yesterday with 83 per cent of those voting backing the deal.

Today BG group will announce the result of its shareholder vote. For the deal to go ahead more than 75 per cent must approve it.

The completion of the deal – expected next month – will see a windfall of £106million of fees for various advisors on the deal including £76million to be shared by top investment banks including Bank of America Merrill Lynch, Goldman Sachs and Rothschild. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Oil price falls again as Shell shareholders prepare to vote on mega-merger with BG Group

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The price tumbled as much as 3 per cent during trading yesterday when it emerged Iraq had produced a record high of oil and may even raise output further.

The news comes as the market is already braced for more supply from Iran after sanctions were lifted. 

Tankers have begun to leave Iran’s ports and it agreed its first deal with a European company last week with Greece’s refinery Hellenic Petroleum. 

Some analysts expect Iran to increase production to between 3million and 4million barrels a day. Iraq’s fields produced more than 4.1million barrels a day. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

BG investors should approve the Shell takeover even as the oil price languishes

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By Joanne Hart for The Mail on Sunday: 24 JAN 2016

It is crunch time for investors in BG Group. Last April, it unveiled a recommended £47billion takeover by Royal Dutch Shell. This week, more than nine months later, both firms are asking shareholders to approve the deal.

It has been an eventful gestation period. The oil price has virtually halved and Shell shares have moved in tandem, sliding from 2208p to 1388p.

The slump is important because the Shell offer is a mix of cash and stock – 383p in cash and 0.4454 Shell B shares for every BG share. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Hedge funds bet that shares in Shell and Sainsbury’s will fall further as both firms suffer disastrous starts to 2016

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By City & Finance Reporter for the Daily Mail: 22 JAN 2016

Hedge funds are taking bets that shares in Royal Dutch Shell and Sainsbury’s will fall further.

Shell, which is down nearly 15 per cent so far this year and is hoping to buy gas giant BG Group in a £36billion deal next month, has around 5 per cent of its shares out on loan.

Investors are ‘shorting’ its shares – borrowing shares and selling them with a view to buying them back at a lower price in future.

According to financial research firm Markit, £2.6billion of short positions have been registered in Shell, which means short interest now stands at a record high for the energy firm. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Shell reveals that profits have nearly halved but receives major backing for its deal with BG Group

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Screen Shot 2016-01-21 at 11.26.34By LAURA CHESTERS FOR THE DAILY MAIL: 21 JAN 2016

Royal Dutch Shell revealed quarterly profits had nearly halved yesterday but received major backing for its deal with BG Group.

Shell said its fourth-quarter profit will be down by around 40 per cent to between £1.1bn and £1.3bn and its full- year earnings could drop to as low as £7.3bn for 2015 – well below the near £16bn it reported in 2014.

As markets plunged across the globe Shell’s shares plummeted 5.5 per cent or 74.5p to 1294.95p yesterday and BG’s fell nearly 3 per cent or 42.3p to 897p. Despite the chaos and the collapse in the oil price, Shell’s chief executive Ben van Beurden is proceeding with the proposed takeover. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Shell dividend could be under threat over audacious takeover of gas specialist BG Group

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By LAURA CHESTERS FOR THE DAILY MAIL: 16 JAN 2016

The last time Royal Dutch Shell cut its dividend was in 1945 when the Netherlands had just endured the ‘Hunger winter’ under Nazi occupation before the end of the Second World War.

Now investors are worrying their treasured dividend could be under threat again.

Shell is embarking on an audacious takeover of gas specialist BG Group. The £36bn deal will go to a shareholder vote at the end of the month. However, with the oil price at a 12-year low, many are warning the deal does not make sense.

And worse still, some are fearful that if it does go ahead it will mean Shell won’t be able to afford to keep paying its healthy dividend.

Shell pays the best dividend in the FTSE 100 and yields around 7.2 per cent on the current promised $1.88-a-share dividend. As Steve Clayton, head of equities research at broker Hargreaves Lansdown, explains: ‘Half of Holland would keel over in apoplectic horror if Shell ever cut the payout.’

A handful of institutional investors have already pronounced their views on the deal. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

A £36bn deal of a lifetime: Shell boss vows to protect dividends as he defends merger with BG Group 

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Screen Shot 2016-01-14 at 23.40.15By ALEX BRUMMER FOR THE DAILY MAIL: 15 JAN 2016

The stone-faced Shell building overlooking the Thames at dawn is the grand dame of the London skyline predating the towers of Canary Wharf and the London Eye.

It is from here, in a relatively modest, plainly decorated 24th floor office, with almost no personal touches, that Ben van Beurden, a Shell man for 33 years, is engaged in the boldest move of his career.

‘I’ll be very honest with you,’ he confesses to the Mail in his first major interview since the transforming bid for BG International, formerly the exploration arm of British Gas, was unveiled last April.  read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Shell’s key shareholder advisory group gives support for BG Group bid as oil giant predicts oil price will double

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By EMILY DAVIES FOR DAILY MAIL: 11 January 2016

Shell’s mega bid for rival BG Group has received crucial backing in the US as the oil giant’s boss predicts the price of oil could double.

Glass Lewis, which gives guidance to US investors, has said it supports the £36billion offer that Royal Dutch Shell made in April last year.

Shell chief executive Ben van Beurden has shunned suggestions the deal is unwise due to sinking oil prices, currently around $33 per barrel, and has predicted prices will double.

He said: ‘The oil prices we are seeing today are not sustainable and are going to settle at higher levels over the next few decades than the low $60s that we require to make this deal a good deal.’ read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Shell upbeat on BG buyout even as oil price falls as shareholder advisory group Glass Lewis is said to be in favour of the deal

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But some investors are concerned over the plunging oil price and late last week Standard Life Investments said it would be voting against the deal.

By JON REES, FINANCIAL MAIL ON SUNDAY: 10 JAN 2016

Shell’s £36billion offer for rival BG Group has received a boost after shareholder advisory group Glass Lewis is understood to have come out in favour ahead of the investors’ vote later this month.

Glass Lewis is the leading adviser for US shareholders and nearly a third of Shell’s investors and a quarter of BG’s are US-based. The deal has also won the backing of the other leading shareholder advisory group ISS last week.  read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Royal Dutch Shell receives backing from influential shareholder group for £36bn BG deal

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By City & Finance Reporter for the Daily Mail: 8 JAN 2016

An influential shareholder group is expected to support oil giant Royal Dutch Shell’s £36billion bid for gas specialist BG Group.

Shell needs more than 50 per cent of its investors and 75 per cent of BG’s to give the thumbs up for the deal to go ahead, but the collapse in the price of oil – down more than 70 per cent since summer 2014 – has made the deal difficult.

Shareholders are due to cast their vote on January 27 and 28. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

ALEX BRUMMER: Oil pressure surges at Shell as it determinedly presses ahead with its bid for BG Group

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By ALEX BRUMMER FOR THE DAILY MAIL: 7 JAN 2016

The price of Brent crude oil continues its relentless slide on global markets and is now at its lowest level for 12-years, and there is no reason at all to think that it has hit rock bottom.

This has serious implications for Shell as it determinedly presses ahead with its bid for BG Group, formerly the exploration arm of the ‘old’ British Gas.

With each fall in the oil price the value of Shell shares, down 2 per cent in latest trading, takes a hit and the shape of the offer for BG changes. When Shell set out to buy BG in April the oil price was $67-a-barrel and it is now near enough half that. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Shell’s finance chief tries to persuade investors into £36bn BG merger deal despite oil prices plunge

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By LAURA CHESTERS FOR THE DAILY MAIL: 5 JAN 2016

Royal Dutch Shell’s finance boss Simon Henry has just returned from the ski slopes. The first week back after New Year is usually slow as people readjust to the office.

But for Henry and chief executive Ben van Beurden there is no time to waste. The pair are straight into endless rounds of shareholder meetings.

They are trying to convince investors to agree to Anglo-Dutch giant Shell swallowing BG Group in a £36billion deal.

The deadline is the two big shareholder meetings set for January 27 and 28 when investors vote, and it needs 50 per cent of its shareholders to approve the mega-deal.  read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Shell warns that oil could hit $20 a barrel – but defends £36bn takeover of BG as a long-term deal over 15-year period

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By LAURA CHESTERS FOR THE DAILY MAIL: 5 JAN 2016

The finance boss of Shell has warned the price of oil could fall to $20 a barrel within weeks but has defended its £36billion takeover of BG Group as a long-term deal.

Simon Henry said Goldman Sachs’ prediction that Brent crude oil could fall to $20 a barrel ‘may actually happen in the next few weeks’ but argued the mega-deal is sound on a long-term basis over a 15-year period.

Oil fluctuated around $37 a barrel yesterday after traders acknowledged the panic in the Chinese stock markets and the growing dispute between Saudi Arabia and Iran, the biggest rivals in the Opec oil cartel. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

ALEX BRUMMER: Shell-BG deal no longer makes economic or industrial sense and should be rejected by long term investors

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ALEX BRUMMER FOR THE DAILY MAIL26 December 2015 

Unlike the Kraft Cadbury takeover in 2010-11, which stretched over the Christmas holiday, the Shell bid for BG is unlikely to have families choking on their ‘Fruit & Nut’ bars.

Indeed, many people won’t even have a clue as to what BG Group – once the exploration arm of British Gas – actually does.

The only time the confusingly named group attracted public attention in recent times was when in late 2014 its board, out of touch with the public mood, proposed to hand new chief executive Helge Lund a £25million pay packet. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

£106m fees bonanza from Shell’s £36bn takeover of BG Group

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David Cumming, head of equities at Standard Life Investments, has criticised the deal and urged Shell chief executive Ben van Beurden to pay the £500million break fee to scrap it or renegotiate terms. 

By LAURA CHESTERS FOR THE DAILY MAIL: Wed 23 Dec 2015

Investment bankers and advisers will cash in on a multi-million-pound fee bonanza from Royal Dutch Shell’s £36billion takeover of BG Group.

Documents published yesterday revealed that £106millio in fees will be shared by advisors including Bank of America Merrill Lynch, Goldman Sachs and Rothschild.

The deal split the City after tumbling oil prices raised concerns it was too expensive and could affect Shell’s ability to pay a dividend. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Shell’s £40bn takeover of BG Group edges closer despite tumbling oil price and shareholder discontent

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By CITY & FINANCE REPORTER FOR THE DAILY MAILPUBLISHED: 21:55, 21 December 2015

Tumbling oil prices and shareholder discontent have not prevented Royal Dutch Shell’s £40billion takeover of BG Group entering the final stages.

The deal could complete in February after BG applied to the High Court to hold the shareholder meetings to vote on it in the new year.

The tie-up has been unpopular with some investors and experts who argue it does not make sense when the oil price is so low. 

The price of Brent crude plummeted to an 11-year low yesterday as excess supply continued to flood the market. 

Oil production is running close to record highs and Brent futures fell by as much as 2 per cent to a low of just above $36 a barrel, their weakest since July 2004. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Oil majors BP and Royal Dutch Shell spring a leak after Middle East oil cartel Opec fails to slash production

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By PHILIP WALLER FOR THE DAILY MAIL

PUBLISHED: 21:50, 4 December 2015

Oil majors sprang a leak but airlines flew higher after Middle East oil cartel Opec failed to slash production.

Shares in BP fell 8.85p to 359.7p and Royal Dutch Shell surrendered 29.5p to 1599.5p as the oil-producing club opted to keep pumping near-record volumes of crude.

The price of a barrel of Brent crude was 0.8 per cent down at $43.49 and the cost of US light crude dropped nearly 2 per cent to around $40 amid fears of a continued supply glut. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Questor delivers a damning verdict of the proposed Shell BG merger

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An Opec meeting on December 5 could send oil price even lower and sound the ‘death knell’ for the deal.

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‘If oil prices remain at these deeply depressed levels, then it could bring nothing but disaster. The famous Shell dividend could be cut, investors will be diluted and the shares would become a riskier prospect,’ writes John Ficenec in the Sunday Telegraph

He argues that while the deal makes sense on paper – as it bolsters Shell’s prospects in the dash for gas – the success rests on one factor ‘price’. 

The price here is not right, says Questor, and there is a risk that Shell is overpaying at £47 billion. 

Shell will fund the deal with 30 per cent cash and 70 per cent new Shell shares – that means selling some $30 billion (£19 billion) of assets during the three years from 2016 and a £25 billion share buy-back from 2017 to reverse dilution effects.  read more

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Shell’s boss fights to keep BG deal alive as he attempts to calm jittery investors

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By LAURA CHESTERS FOR DAILY MAIL: 3 November 2015

Royal Dutch Shell chief executive Ben van Beurden is the oil industry’s equivalent of a swan – below his calm demeanour he is furiously paddling to keep his planned £40billion mega-deal afloat.

Shell is buying rival BG Group and, to get the deal away and for it to make sense as the oil price plummets, van Beurden has taken the knife to Shell’s costs and projects.

Investors have been getting jittery as the price of oil has halved since summer 2014 and has stubbornly remained below $60 a barrel since the takeover was announced in April. Brent Crude continues to fluctuate but experts predict the price will stay ‘lower for longer’ than may have been expected.

However, van Beurden, who took on the top job last January and has a lot riding personally on the deal, promises it will still work with an oil price in the mid-$60s a barrel. Yesterday he insisted: ‘Although oil prices have fallen in 2015, the valuation case for the BG acquisition still looks compelling today for both sets of shareholders.’ read more

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Britain’s oil giants to post worst set of earnings since rout in price of crude began last year

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By LAURA CHESTERS FOR THE DAILY MAIL: 25 October 2015

Britain’s oil giants will this week post their worst set of earnings since the rout in the price of crude began last year.

Investors will also be looking for any update on Royal Dutch Shell’s £55bn takeover of rival BG Group amid fears Shell is overpaying.

Shell, BG and BP will all post third-quarter earnings this week with the City expecting an average of a 60 per cent collapse in profits, according to experts at Morgan Stanley, suggesting the industry is facing its worse downturn in a decade. read more

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Shell may post loss after taking £2.7bn Arctic exploration hit

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Screen Shot 2015-10-03 at 14.26.20Shell chief executive Ben van Beurden told The Mail on Sunday just two weeks ago that he was committed to the Arctic

By Jon Rees For The Mail On Sunday: 4 Oct 2015

Shell is set to reveal that quitting the Arctic cost it up to $4.1billion (£2.7billion) in its third-quarter results when it unveils them later this month – in a move that could push the oil giant into reporting a loss.

The firm took investors and its environmental opponents by surprise when it announced last week that it would end its drilling programme in the Chukchi Sea, 150 miles off the north-west coast of Alaska.

It said it had found indications of oil and gas but not enough to justify further exploration. read more

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Shell pulls plug on Arctic drilling campaign

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Screen Shot 2015-09-01 at 23.33.36By ETAIN LAVELLE FOR THE DAILY MAILPUBLISHED: 22:22, 28 September 2015

To the delight of eco-warriors worldwide, Shell pulled the plug on its Arctic drilling campaign, taking a £2.7billion hit on the controversial venture that was persistently undermined by the prolonged oil price weakness and fierce opposition from ecological activists.

Although an exploratory well showed indications of oil and gas in Alaska’s Chukchi Sea, Shell blamed high costs associated with the project as well as the ‘challenging and unpredictable’ regulatory environment as it shelved its drilling plans for the foreseeable future. read more

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Why we MUST drill for oil in the Arctic: Shell boss’s message to climate change campaigners and governments

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By JON REES, FINANCIAL MAIL ON SUNDAY: 20 Sept 2015

Some green campaigners seem to believe Shell boss Ben van Beurden would be happy dunking polar bears in thick, black crude oil if it helped make the planet even hotter.

But van Beurden, the 57-year-old engineer who has run Royal Dutch Shell for nearly two years and has given the company the green light to drill in Arctic waters, believes his view of the world’s future is considerably more honest than that of many environmentalists.

‘The amount of energy we consume is going to double in the first half of the century so we will have to supply twice as much as we do today as an industry. Most renewables produce electricity, and electricity is just 20 per cent of the energy mix. Where is the other 80 per cent going to come from?’ says the Dutchman. read more

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Emma Thompson broke a legal injunction at Shell Centre

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  • The actress broke a legal injunction aimed at stopping Greenpeace activists from crossing a line drawn around the South Bank building 
  • She stuck a giant paw print on the offices with the names of opponents of drilling in the Arctic
  • Shell has been given permission by the US government to drill for oil and gas in Arctic waters off Alaska 
  • Greenpeace a giant model polar bear and placed it outside Shell’s HQ
  • The envoronmentalists aim to keep it there for 27 days, which will mark the end of the window for drilling in the Arctic

By ANTHONY JOSEPH FOR MAILONLINE: 2 September 2015

Emma Thompson and a roaring giant model polar bear led the protests against Shell’s plans to drill in the Arctic outside its London headquarters.

The actress broke a legal injunction, aimed at stopping Greenpeace activists from crossing a line drawn around the South Bank building, to stick a giant paw print on the offices with the names of opponents of drilling in the Arctic.

The paw carries thousands of names which make up some of the seven million people worldwide, including 600,000 signatures from the UK, who have pledged support to save the Arctic from drilling for oil and gas. read more

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Charlotte Church joins the campaign trail once again as she performs a requiem in musical protest over Arctic drilling

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By REBECCA DAVISON FOR MAILONLINE: 26 August 2015

Singer Charlotte Church joined a protest rally outside the Shell headquarters in London on Wednesday in protest over Arctic drilling on behalf of Greenpeace. 

The 29-year-old took to the streets to lead a performance of Requiem for Arctic Ice as well as The Bitter Earth outside the building, writing ‘Save The Arctic’ across her hands in pen. 

According to Greenpeace, the campaign was part of the charity’s month-long run of Titanic-themed orchestral protests. read more

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Hillary Clinton scuppers Shell’s plan to drill for oil in the Arctic

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Screen Shot 2015-08-13 at 11.35.25By CITY & FINANCE REPORTER FOR THE DAILY MAIL

PUBLISHED: 19 August 2015

Royal Dutch Shell’s Arctic ambitions have sparked a political row in the US after presidential candidate Hillary Clinton opposed its plans.

President Obama’s administration gave Shell the final green light to drill for oil and gas in the Arctic this week – which will see it resume drilling in the area for the first time since 2012 when it suffered a series of setbacks and pulled out. 

Clinton said drilling in the area is ‘not worth the risk’. read more

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BG Group Profits Crash By 65%

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Screen Shot 2015-08-01 at 20.50.48By LAURA CHESTERS FOR DAILY MAIL

The oil price rout found new victims on both sides of the Atlantic yesterday as BG Group and Chevron revealed profits had tanked.

BG, which is in the process of being sold to Royal Dutch Shell, reported a 65 per cent fall in second quarter profit to £275.5million, while Chevron’s fell 90 per cent.

The oil price has crashed by around 50 per cent since last summer as the shale oil boom in the US, which turned it into the world’s largest fuel exporter, pushed global production higher. read more

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British energy giants set to axe costs in a bid to cope with falling gas and oil prices

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By LAURA CHESTERS FOR THE DAILY MAIL26 July 2015

The falling price of oil and gas continues to take its toll on energy firms as British Gas-owner Centrica, BP and Royal Dutch Shell are set to reveal increased cost cutting to cope.

The weak oil price has led to £130billion worth of oil and gas projects to be shelved globally, according to consultancy Wood Mackenzie.

In the UK this week Centrica chief executive Iain Conn is expected to reveal the details of a comprehensive strategic review that has been under way since he joined in January. read more

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Shell embarks on controversial Arctic exploration programme as part of £4.5bn quest for oil

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By LAURA CHESTERS FOR THE DAILY MAIL: 3 July 2015

Shell has kicked off its controversial Arctic exploration programme as part of a £4.5billion search for oil under the region’s freezing, pristine seas.

After being forced to embarrassingly abandon its plans in 2012 and pulling out after finding gas in the 1990s, Shell’s convoy of 30 boats and associated craft set sail from Alaska’s Dutch Harbor. The plan is to drill two wells this summer – as soon as the ice clears.

But if its initial wells do not strike oil, Shell could pull out of the programme and walk away. By the end of the summer it will have spent £4.5billion on the programme and will have to spend another £700million in next year’s search. read more

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BP has finally settled Deepwater Horizon Case

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Shares in oil giant BP climb on news it has finally settled long-running US court case over Deepwater Horizon explosion and oil spill

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Dudley dismissed market talk of a takeover of BP and said BP is ‘neither prey nor predator’. A clause in the settlement with the US means that if BP were sold to another company the fine would be payable immediately – putting off any potential suitor.

By LAURA CHESTERS FOR THE DAILY MAIL: 2 July 2015

Shares in oil giant BP climbed nearly 5 per cent following a relief rally on news it had finally settled its long-running US court case over the Deepwater Horizon explosion and oil spill that killed 11 workers five years ago.

A record £12bn fine will settle all US federal, state and local claims for the Gulf of Mexico disaster, with payments spread over 18 years – working out at £700m a year.

BP’s shares are down a third since the explosion at the Macondo oil field in the Gulf of Mexico in April 2010. Concerns about the ongoing liability of the spill and the falling oil price since last year weighed on the shares. read more

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What’s at stake: The debate over Arctic drilling

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ANCHORAGE, Alaska (AP) — Royal Dutch Shell is planning to park two massive Arctic oil drilling rigs in Seattle’s waterfront before they head north — but the petrochemical giant will first have to get around protesters in kayaks and others who want to thwart the new frontier in oil exploration and spark a national debate about fossil fuels and climate change.

Here’s a look at the debate over Shell’s plans to drill in the Arctic:

WHAT’S AT STAKE?

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The U.S. Geological Survey estimates Arctic offshore reserves at 26 billion barrels of recoverable oil and 130 trillion cubic feet of natural gas. read more

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Shareholder rebels give BG Group a shock over boss Helge Lund’s £31m pay deal

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Shareholder rebels give BG Group a shock over boss Helge Lund’s £31m pay deal

By LAURA CHESTERS FOR THE DAILY MAIL

PUBLISHED: 00:20, 6 May 2015 | UPDATED: 00:20, 6 May 2015

BG Group faced a rebellion against boss Helge Lund’s massive pay deal after nearly one in five shareholders at the oil and gas giant’s annual meeting refused to back its remuneration report.

Chief executive Lund, who joined the company on February 9 from Norway’s oil giant Statoil, could be in line for a pay and perks package of £25-£31million if he meets every condition of his bonuses and long term share awards.

The group’s AGM, held at Reading’s Hilton Hotel yesterday, also revealed more than 15 per cent did not back the re-election of Sir John Hood as chairman of its remuneration committee. read more

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Royal Dutch Shell profits slump as oil price slide puts energy giant on back foot ahead of mega-merger with BG

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Earnings dropped steeply from $7.33billion last year to $3.25billion

Company hopes oil prices will rise to $90 a barrel by 2018 

By MARK SHAPLAND FOR THIS IS MONEY: 30 April 2015

Oil giant Royal Dutch Shell has reported a near 60 per cent slump in first quarter profits after it was hit by the fall in oil and gas prices.

Earnings dropped steeply from $7.33billion ($4.6billion) last year to $3.25billion – though the figure was better than City forecasts of about $2.5billion. 

The price of a barrel of Brent crude has fallen by half since last year after peaking at about $115 a barrel in the summer of 2014.

The company, which earlier this month announced a £55billion agreed offer for UK-based BG Group, said it expects oil prices to rise to $90 a barrel by 2018 – justifying the 50 per cent premium it bid to buy its rival.   read more

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UK government could step in to stop a BP takeover as rumours swirl off possible US interest in wake of Shell deal for BG Group

UK government could step in to stop a BP takeover as rumours swirl off possible US interest in wake of Shell deal for BG Group

By LAURA CHESTERS FOR THE DAILY MAIL: 27 APRIL 2015

The British government could step in to protect oil giant BP from any potential takeover amid rumours US groups ExxonMobil and Chevron could be interested in the firm.

BP became the target of takeover rumours following Royal Dutch Shell’s £47billion move to buy blue chip rival BG Group earlier this month.

The deal sparked speculation that a wave of other takeover deals would come for the sector following the tumbling oil price – which is down around 50 per cent since last summer – and the weak share prices of oil companies. read more

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Royal Dutch Shell’s £47bn swoop on BG Group faces potential stumble over asset ownership

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By LAURA CHESTERS FOR THE DAILY MAIL

Screen Shot 2015-04-08 at 08.12.04Royal Dutch Shell’s swoop on BG Group will face a series of hurdles including competition fears and questions over the ownership of some of its newly acquired assets.

The £47billion acquisition of BG will make Shell the largest foreign oil company in Brazil – but there are concerns about its assets in the South American nation.

One of Shell’s main reasons to pounce on BG was its large holdings in Brazil. But many of the assets there are owned through joint ventures, which gives the partners first refusal to buy BG’s share in the projects if it is taken over. read more

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Shell expected to slash jobs and spending

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By LAURA CHESTERS FOR THE DAILY MAIL

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Royal Dutch Shell is planning a £20bn sell-off of assets to create a leaner oil giant after its £47bn swoop for rival BG Group.

Shell has snapped up BG to expand its liquefied natural gas business and Brazilian deepwater wells but the deal also creates a sprawling £200bn behemoth that will need to be cut down to size.

Shell’s chief executive Ben van Beurden said he ‘will reshape the combined portfolio’ to create a ‘more focused company in a volatile oil price world’.

The Anglo-Dutch giant is expected to slash jobs and spending and confirmed the deal will enable £670m of operational savings, £1bn of exploration savings and a total cut in spending to less than £27bn. But fears it has paid too much for its rival spooked investors and it shed £4.6bn in value as shares slumped almost 9 per cent to close down 189p at 2019.5p. read more

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