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European Firms Hit Hard By U.S. Sanctions On Iran

Along with Royal Dutch Shell, Total was among the first energy companies to halt crude oil purchases from the Islamic Republic, fearing repercussions if they failed to do so.

By Scott Belinksi – Sep 01, 2018, 10:00 AM CDT

As Iran is turning to the UN’s International Court of Justice to have the US-imposed sanctions against its oil suspended, the EU is preparing for the hit its economies will have to absorb once the full weight of Washington’s punitive measures comes into effect in the fourth quarter of this year. With these latest moves, American intentions are clear: cut off Iranian oil from the market entirely and reduce Tehran’s financial power. As oil prices rise, however, the White House’s policy looks set to hurt more countries than just Iran. Will Europe’s economies take the hit – or will they fight back? read more

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Nigeria: Shell’s Oil Spill Dispute With Nigerian Villagers Back in UK Court

Nigeria: Shell’s Oil Spill Dispute With Nigerian Villagers Back in UK Court

Lawyers for the Bodo community in Ogoniland of Rivers State, which was devastated by two major oil spills in 2008, went to court in London yesterday to fend off what they said was an attempt by Shell to kill off their litigation.

This is coming as crude oil price rose briefly to $80 per barrel yesterday after the United States toughened its stance on Iran and Venezuela, key oil producers and members of the Organisation of Petroleum Exporting Countries (OPEC).

The Bodo oil spills have been the subject of years of legal wrangling. read more

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Shell says fully committed to Iraq gas venture, plans ‘massive’ expansion

DUBAI (Reuters) – Royal Dutch Shell (RDSa.L) is fully committed to its gas joint venture in Iraq, after the energy major exited its oil assets in the OPEC country, and plans to boost its gas output there to 1.4 billion cubic feet (bcf) a day by 2020, a senior executive said.

Iraq’s gas development plans have long focused on Basra Gas Co (BGC), a $17 billion, 25-year project in which Iraq has 51 percent, Shell 44 percent and Japan’s Mitsubishi Corp (8058.T) 5 percent.

The project was designed to aggregate gas from fields in the south including West Qurna 1, operated by Exxon Mobil Corp (XOM.N); Zubair, operated by Italy’s Eni (ENI.MI); and Rumaila, developed by BP (BP.L). read more

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Shell’s Profits Soar From Strong Asian Demand

By Tsvetana Paraskova – Apr 20, 2018, 10:00 PM CDT

Oil major Shell has snapped up over 8 million barrels of June-loading crude oil grades from the Middle East and Russia and has resold some of the cargoes in Asia, taking advantage of the strong Asian demand, Reuters reported on Friday, citing five trading sources.

Wider Brent premium over the Middle Eastern benchmark Dubai this month has made Atlantic crude oil supplies more expensive than the Middle Eastern and Russian supplies, which are priced off the Dubai benchmark. read more

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Shell to sell West Qurna 1 oilfield stake to Japan’s Itochu for $406 million

Reuters Staff: MARCH 23, 2018

(Reuters) – Oil major Royal Dutch Shell on Friday agreed to sell its entire stake in Iraq’s West Qurna 1 oilfield to Japan’s Itochu Corp for $406 million.

The deal comes shortly after the Anglo-Dutch company agreed to exit the Majnoon oilfield, one of the largest fields in OPEC member Iraq, and hand over its operation to state-run Basra Oil Co (BOC) by end-June. 

Shell EP Middle East Holdings B.V. will sell the entire share capital of Shell Iraq B.V. (SIBV), which holds a 19.6 percent stake in the oilfield to a unit of Itochu, the Anglo Dutch company said. read more

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The U.S. is about to be the world’s top crude oil producer. Guess who didn’t see it coming.

Pump jacks at an oil field near Lost Hills, Calif. (David McNew/Getty Images)

Opinion writer March 7 at 7:43 PM

The authoritative International Energy Agency announced on Monday that the United States will overtake Russia and Saudi Arabia as the world’s largest crude oil producer in five years .

To celebrate this once-unimaginable news, how about taking a trip down memory lane? The date is May 5, 2011. Diarmuid O’Connell, then the vice president of business development for Tesla, Elon Musk’s electric-car outfit, is testifying before the House Energy and Commerce Committee. read more

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Houston outlook bright with U.S. shale set to dominate global growth for years

Forecasters at Royal Dutch Shell, the Anglo-Dutch oil major, have predicted that global oil demand could peak within a decade as electric cars and other clean energy technologies gain larger market shares.

March 5, 2018 Updated: March 5, 2018 8:42pm

Houston’s energy industry, which drives the local economy, has much brighter days ahead as global oil demand climbs, shale production booms and U.S. crude grabs larger shares of global markets, according to forecasts, industry officials and analysts.

The United States is already pumping oil at record levels above 10 million barrels a day, surpassing Saudi Arabia, and may take over from Russia as the world’s production leader by the end of 2018. Over the next five years, daily U.S. production is expected to climb 3.5 million barrels, or 35 percent, to more than 13 million barrels, according to a forecast by the International Energy Agency, which monitors the global oil industry. read more

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Oil hits seven-week low on expectations of higher U.S., Iran output

FILE PHOTO: Filled oil drums are seen at Royal Dutch Shell Plc’s lubricants blending plant in the town of Torzhok, north-west of Tver, November 7, 2014. REUTERS/Sergei Karpukhin/File Photo Ayenat MersieEjigu: 8 FEB 2018 NEW YORK (Reuters) – Oil prices fell to their lowest in seven weeks on Thursday amid fears of rising global supplies after Iran announced plans to increase production and U.S. crude output hit record highs.

Brent futures LCOc1 fell 70 cents, or 1.1 percent, to settle at $64.81 a barrel, their lowest close since Dec. 20.

U.S. West Texas Intermediate (WTI) crude CLc1, meanwhile, was down 64 cents, or 1 percent, to settle at $61.15, its lowest close since Jan. 2.

Both benchmarks fell for the fifth straight day, the longest losing streak for Brent since November 2017 and for WTI since April 2017.

Brent futures have lost as much as 15 percent since hitting a four-year high above $71 in late January. read more

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Oil Boom Gives the U.S. a New Edge in Energy and Diplomacy

A pump jack in a Permian Basin oil field in West Texas. The area has been a focus of the shale drilling boom. Credit Spencer Platt/Getty Images North America

HOUSTON — A substantial rise in oil prices in recent months has led to a resurgence in American oil production, enabling the country to challenge the dominance of Saudi Arabia and dampen price pressures at the pump.

The success has come in the face of efforts by Saudi Arabia and its oil allies to undercut the shale drilling spree in the United States. Those strategies backfired and ultimately ended up benefiting the oil industry.

Overcoming three years of slumping prices proved the resiliency of the shale boom. Energy companies and their financial backers were able to weather market turmoil — and the maneuvers of the global oil cartel — by adjusting exploration and extraction techniques. read more

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Big Oil flush with cash again, but no party yet

Ron Bousso: 24 JAN 2018

LONDON (Reuters) – The world’s top oil companies are expected to generate more cash in 2018 than at any other time this decade after three painful years of cuts, but it isn’t party time yet.

The shift in sentiment has been rapid as crude prices have risen by more than 50 percent over the past six months to reach $70 a barrel, a level not seen since the crash year of 2014, thanks to global supply cuts led by OPEC.

Only a year ago, many investors still fretted over the sustainability of the sector’s lavish dividend payouts in a weak energy market. Now the focus on company boards is gradually switching from slashing jobs and investment to boosting shareholders’ returns and growth. read more

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What 2018 May Mean For The Oil & Gas Industry

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The Year We Lost God But Gained OilCoin

Royal Dutch Shell Plc’s CEO Ben Van Beurden was creating a stir of his own by talking about “lower-forever” oil prices. 

: Dec 28, 2017

God didn’t die in 2017, but he did throw his hands up.

Andy Hall, the oil trader blessed with that nickname, caused a stir this summer by closing down his main hedge fund after long arguing for oil prices to rally and reportedly suffering big losses.

Hall didn’t declare oil was dead; indeed, he warned his withdrawal could be a contrarian signal (which turned out to be prescient).

Hall’s capitulation was a warning of a different kind. And while it may be mere coincidence, the appearance of something called OilCoin four months after God bowed out is a fitting coda. read more

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All That New Shale Oil May Not Be Enough as Big Discoveries Drop

Three years after causing an oil-price crash, the shale boom may not be enough to meet rising global demand because the industry has cut back so sharply on higher-risk mega-projects.

Discoveries of new reserves this year were the fewest on record and replaced just 11 percent of what was produced, according to a Dec. 21 report by consultant Rystad Energy. While shale wells are creating a glut now, without more investment in bigger, conventional supply, the world may see output deficits as soon as 2019, according to Canadian producer Suncor Energy Inc. read more

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Oil stable on tighter market, but rising US output looms for 2018

BY HENNING GLOYSTEIN: DECEMBER 15, 2017

* OPEC-led supply cuts, Forties pipeline outage support crude

* But rising U.S. output, driven by shale, weighs on market

SINGAPORE, Dec 15 (Reuters) – Oil markets were stable on Friday as the Forties pipeline outage in the North Sea and the ongoing OPEC-led production cuts supported prices, while rising output from the United States kept crude from rising further.

U.S. West Texas Intermediate (WTI) crude futures were at $57.13 a barrel at 0119 GMT, up 9 cents from their last settlement. read more

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SHELL OIL TRADING INTRIGUE?: ANDREW SMITH IN, MIKE MULLER OUT

Robert Miller: November 18 2017 

Oil prices rose 2.2 per cent yesterday amid expectations that Opec will agree to extend curbs on production at its meeting this month.

Brent crude, the international benchmark, was trading at $62.72 a barrel, reversing four consecutive days of losses.

Separately, it emerged that the world’s most powerful oil trader, Mike Muller, of Royal Dutch Shell, would step down after 29 years with the company.

Mr Muller, known for handling as many as eight million barrels of oil per day, left after the appointment of Andrew Smith as Shell’s new head of supply and trading. He is set to leave at the end of the year. read more

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Shell Gears Up For Peak Gasoline

By Jon LeSage – Nov 07, 2017, 3:00 PM CST

Royal Dutch Shell is hedging its bets over the next two decades with expectations that motor fuel consumption will be diminishing and other markets rising.

Since the oil price plummet it 2014, Shell has transitioned its business model over to refining oil, offering other refined oil products, and producing petrochemicals. The oil giant will produce well beyond gasoline to serve other growing economic sectors, and to offset the role EVs will play by the 2030s. read more

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Oil prices head towards $70 in the wake of Saudi purge

Jillian Ambrose: 

Global oil prices broke above two year highs and could climb higher to hit $70 a barrel in the wake of a shock anti-corruption purge of Saudi royals and senior officials.

Oil prices bounded to highs not seen since July 2015 at over $64 a barrel on Monday following a sweep of arrests targeting ministers, investors and members of the Saudi royal family on corruption charges over the weekend.

The shock crackdown also helped drive shares in Royal Dutch Shell to within a breath of its highest ever share price at £24.89 following the company’s rosy financial results last week. Before the oil price crash in late 2014 the company’s shares traded at a peak of £25.76. read more

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Royal Dutch Shell: The Cash Machine

 Nov. 6, 2017 12:35 PM ET

Summary

  • Royal Dutch Shell has reported nearly 50% increase in profits following improvement in energy prices which fueled a turnaround of its upstream division.
  • In the first three quarters of 2017, Royal Dutch Shell generated $15.42 billion of free cash flows (ex. working cap. changes), surpassing even the industry’s cash flow king Exxon Mobil.
  • Oil prices have climbed to almost $61 a barrel and could stay at this level in the future, which could give a major boost to Shell’s earnings and cash flows.

Royal Dutch Shell (RDS.A, RDS.B) is a well-oiled cash flow machine. In fact, it generates more free cash flows than any other oil majors, and this was evident from the latest quarterly results. The Anglo-Dutch oil giant could get even better in 2018 on the back of improvement in oil prices. The company’s shares will likely move higher while its valuation might also improve.

Latest Earnings

Royal Dutch Shell has recently released blowout quarterly results in which it posted significantly higher profits following a strong performance from its upstream, downstream and integrated gas divisions. The company reported an adjusted net profit (attributable to shareholders on a current cost of supplies (CCS) basis) of $4.1 billion, up 47% from the same quarter last year. That blew past the company-provided analysts’ estimate of $3.6 billion. The profits at the upstream segment ballooned from just $4 million a year earlier to $562 million. The profits at the downstream and integrated gas segments rose 28.4% and 37.7% to $2.67 billion and $1.28 billion respectively. read more

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Shell seeks buyers for Oman field stake – sources

Ron Bousso, Clara Denina: OCTOBER 10, 2017 / 3:55 PM

LONDON (Reuters) – Royal Dutch Shell (RDSa.L) is seeking to sell its 17 percent stake in the Mukhaizna oil field in Oman, which could fetch up to $200 million, banking sources said. 

The sale process is led by investment bank Rothschild, the sources said.

Shell and Rothschild did not respond to requests for comment. 

The Mukhaizna heavy oil field, operated by Occidental Petroleum (OXY.N), reached an average oil production rate of 127,000 barrels of oil equivalent per day in 2016, according to Occidental’s annual report. read more

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Surging Diesel Demand Is Underpinning Crude Oil’s Bull Market

Step aside OPEC, diesel is now driving up oil prices.

With industrial activity surging worldwide, the fuel — known in the industry as ultra-low sulfur diesel or ULSD — is enjoying strong demand, accelerating total oil consumption growth in 2017 well above the 10-year average. 

And just as demand rose faster than expected, diesel supply was hit, prompting a rapid tightening. First in Europe: the Pernis refinery, owned by Royal Dutch Shell Plc and considered one of the region’s diesel machines, suffered a fire in July and shut down for several weeks. And then in the U.S., where hurricane Harvey in late August temporarily knocked out a dozen refineries, disrupting both domestic supplies and distant export markets.

“The oil market is currently driven by four letters: It’s ULSD, not OPEC,” said Olivier Jakob, managing director of consultant Petromatrix GmbH. read more

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Shell CEO van Beurden says oil prices will be around $60 by the end of the decade

  • It would not be “unreasonable” to forecast oil at $60 a barrel at the end of the decade, said Royal Dutch Shell CEO Ben van Beurden
  • Oil supply was more unpredictable than demand, van Beurden added

| : 27 Sept 2017

It’s “not unreasonable” to expect oil prices at $60 a barrel by the end of the decade, Royal Dutch Shell CEO Ben van Beurden told CNBC’s “Managing Asia.”

To be sure, that’s not a large rise from current levels.

Brent crude rose 0.38 percent to trade at $58.66 a barrel in Wednesday Asia trade, after hitting a 26-month high on Tuesday, while U.S. crudewas higher by 0.5 percent at $52.14 at 12:00 p.m. HK/SIN. read more

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Top BP Executive Warns OPEC Needs to Prolong Oil Output Curbs

OPEC and its allies need to extend their crude production cuts beyond March 2018 to rebalance the global oil market, a top executive at BP Plc’s trading arm said.

“Rebalancing is already on the way,” Janet Kong, Eastern Hemisphere Chief Executive Officer of integrated supply and trading at BP, said in an interview in Singapore. But OPEC needs “definitely to cut beyond the first quarter” to bring inventories down and back to historically normal levels, she said.

The view from BP follows a gathering in Vienna by the Organization of Petroleum Exporting Countries and its partners that concluded with no decision on an extension or deepening of supply cuts. Oil has struggled to hold above $50 a barrel in 2017 as investors weighed signs of a whittling worldwide crude glut against concerns the U.S. will boost oil production. read more

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Iran Says OPEC Action on Output Cuts Must Address Libya, Nigeria

OPEC’s commitment to cutting production to clear a global glut is working, but the group needs to address rising output from Libya and Nigeria, Iran’s Oil Minister Bijan Namdar Zanganeh said. 

Compliance with the output cuts is “acceptable,” Zanganeh told reporters in Tehran. The Organization of Petroleum Exporting Countries should focus on “the situation with Libya and Nigeria,” he said, referring to the two countries exempted from capping production due to their internal strife. read more

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Why $55 Brent Is Big News For Shell

: Sept 21, 2017

Summary

  • Checking out high-yielding Royal Dutch Shell plc.
  • Brent bouncing up to over $55/barrel is big news that I think has been under-reported in the financial media.
  • Overview of Shell’s finances and significance of higher Brent prices.

In light of material increases in realized upstream prices and an improving downstream sector, Royal Dutch Shell plc’s (NYSE:RDS.A) (NYSE:RDS.B) financials have shown tremendous improvement this year. The worst of the downturn is behind the oil sector, but keep in mind crude prices remain range-bound. That being said, with Brent (global oil benchmark) back over $55/barrel (high end of the range), things are looking brighter and brighter for Royal Dutch Shell every day. Especially when it comes to fully covering Royal Dutch Shell plc Class A and Class B shares’ lofty 6+% yields. Let’s dig in. read more

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UPDATE 1-Kazakhstan may strike separate deal with OPEC on oil output curbs

Kashagan has been developed by a consortium of China National Petroleum Corp, Exxon Mobil, Eni , Royal Dutch Shell, Total, Inpex and KazMunaiGas.

By Mariya Gordeyeva: SEPTEMBER 7, 2017 / 2:28 PM

ASTANA, Sept 7 (Reuters) – Kazakhstan is aiming for a standalone deal with leading global oil producers on restraining its crude production due to a need to crank up output at its Kashagan field, a Kazakh official said on Thursday. 

The Central Asian nation increased oil and gas condensate output by 9.9 percent in January-July to 49.907 million tonnes, or 1.724 million barrels per day (bpd), exceeding its quota of 1.7 million bpd under a global supply pact. read more

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Exclusive: Shell’s CEO – Oil slide is “biggest blessing”

“There were a few mishaps in BG that really hammered their share price and we saw them coming into this funny situation where the share price came down, but we could only see the value go up so we needed to take a hardened look at it again,” Mr van Beurden said. “And then while we were looking at it the oil price started crashing, which actually opened the window even further.”

Energy editor Rita Brown heads to the Hague to hear exclusively how Shell’s chief executive has viewed the last three years since the oil price crash

Written by

Ben van Beurden’s rise to the top coincided with the oil price riding the crest of a wave.

But for a man who assumed Shell’s chief executive role just months before it all came crashing down, he sums up the last three years as “a blessing”.

“Less than a year into my new role, the oil price started going down and it’s been quite a journey, but if I look back on it I think this is probably the biggest blessing that I’ve had,” he said.

“It has done two things. First of all it provided a tremendous amount of focus on the things that needed doing. I mean, there’s nothing like a crisis to focus on cost efficiency. read more

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Canada’s Oil Industry Doomed If Prices Fall Lower

By Nick Cunningham – Aug 20, 2017, 6:00 PM CDT

Canada’s oil industry has faced a lot of strain lately. The list of oil majors selling off assets and withdrawing from high-cost oil sands is long. ConocoPhillips, Royal Dutch Shell, Marathon Oil, Murphy Oil and Statoil have sold upwards of $25 billion worth of oil sands assets this year. ExxonMobil also wrote down more than 3.5 billion barrels of oil reserves in Canada at the beginning of 2017. The companies viewed Alberta’s bitumen and heavy oil as no longer competitive in a $50 market, and many of them are focusing on other types of production, such as shale. read more

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Shell Loads Oil in Libya for the First Time in Five Years

Royal Dutch Shell Plc, the world’s largest oil trader, is said to have loaded its first crude from Libya in five years over the weekend, adding to evidence of the OPEC nation’s comeback.

The cargo on Saturday is for 600,000 barrels of crude from the Zueitina port, according to two people familiar with the matter who asked not to be identified because the information is private. A Shell spokesperson declined to comment on the shipment, but said the company’s Shell International Trading & Shipping “has a history marketing Libyan crudes. We welcome new business opportunities with Libya’s National Oil Corp.” read more

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Nigeria’s state oil company signs deals with Chevron, Shell

LAGOS, Aug 3 (Reuters) – Nigeria’s state oil company said on Thursday it had signed financing agreements with Chevron and Shell worth at least $780 million to boost crude production and reserves.

The Nigerian National Petroleum Corporation (NNPC) said a joint venture agreement with Chevron Nigeria Limited would see the development of proven and probable reserves of 211 million barrels at the joint Sonam project.

“The project is expected to begin to bear fruits in (the) next three and six months,” NNPC said in a statement, adding it was targeting production of 39,000 barrels per day of liquids and 283 million standard cubic feet of gas per day. read more

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Energy Shares Fall As OPEC Production Seen Picking Up – Energy Roundup

A fire outage at the largest oil refinery in Europe, a Royal Dutch Shell facility in the Netherlands, is ongoing, driving up prices of oil derivatives.

Dow Jones Newswires

Shares of energy producers ticked down as the price of oil foundered around the psychologically significant $50-a-barrel level. Among the data weighing on oil prices was a Reuters survey showing that OPEC production rose to its highest level in seven months last month. BP said it could now turn a profit with oil prices at these levels, saying its could break even with oil as low as $47 a barrel. BP swung to a second-quarter profit even as it absorbed further costs from the 2010 oil spill and as oil futures remained stuck in the $40s. A fire outage at the largest oil refinery in Europe, a Royal Dutch Shell facility in the Netherlands, is ongoing, driving up prices of oil derivatives. read more

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OPEC’s Existential Sucker Punch

Julian Lee: July 30, 2017 3:00 AM EDT

You wait decades for an existential crisis, then two come along at once. At least that’s how it must feel for OPEC’s beleaguered ministers. In the short term the market for their oil is being eroded by rising production outside their control. Looking further ahead, oil demand itself is under threat from the electrification of road transport. OPEC may not yet be dead, but its days are surely numbered.

The most obvious short-term threat to the group comes from the rapid rise in U.S. shale oil, but the risks have expanded to include other areas like Brazil’s prolific sub-salt discoveries and more recent finds further north along the east coast of South America. read more

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Shell gets everything right except producing oil

Andy Critchlow: JULY 27, 2017

LONDON (Reuters Breakingviews) – Royal Dutch Shell is great at producing profit, but less so at producing oil. The Anglo-Dutch energy giant has more than tripled its earnings in the second quarter, helped by the strong performance of its downstream refining business and recovering prices. With its debt falling too, the company is doing the right things for shareholders – except in the crucial area of pumping more fuel.

At first glance, Shell’s financial performance suggests that three years in the doldrums for big oil majors may have come to an end. On Thursday, the company reported an impressive 245 percent year-on-year rebound in clean earnings to $3.6 billion for the three-month period ending in June. Prices, which recovered from a slump last January below $30 per barrel, have helped, but there is more to it. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, shellnews.net and cybergriping.com are all owned by John Donovan

Europe’s Oil Giants Recover From Three-Year Slump

LONDON/PARIS — Europe’s major oil and gas companies have turned a corner after a three-year slump, reporting strong growth in profits as cost cutting paid off and vowing to press on with saving more money amid a fragile recovery in oil prices.

Royal Dutch Shell, France’s Total and Norway’s Statoil reported sharp increases in cash flow from operations in the second quarter as profits beat analyst expectations, meaning they can all comfortably pay dividends and reduce debt. read more

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Iran Looks To Close More Deals But Oil Majors Are Cautious

By Gregory Brew – Jul 18, 2017, 9:30 AM CDT

Iran is on track to reach a major national milestone this year, if the nation’s oil spokesmen are to be believed. On Wednesday deputy oil minister Amir Hossein Zamaninia predicted oil production would reach 4 million bpd by the end of 2017, and certainly exceed that level by the end of the Iranian calendar year (March 2018).

Since international sanctions on its oil and gas industry were lifted in January 2016, Iran has managed to increase production to pre-sanctions levels, reaching 3.8 million in May 2017, the highest level in seven years. But 4 million bpd, long a national goal and symbolic of a full recovery, is now within reach. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, shellnews.net and cybergriping.com are all owned by John Donovan

Oil majors lost $115 billion in market value since April

ExxonMobil, Chevron, Total, Royal Dutch Shell, and British Petroleum are the five biggest players on the index, which includes 85 other majors. Together, they have lost $115 billion in market value since the beginning of April, Bloomberg reports, according to World Oil.

By Zainab Calcuttawala – Jul 04, 2017, 5:00 PM CDT

Operational improvements in shale and non-shale oil drilling, on top of lower expenses for oilfield services and access to pipeline capacity, have driven down the costs of producing the fossil fuel since the 2014 market crash. But the increase in output has forced barrel prices into a deeper bearish market, causing further damage to corporate bottom lines.

This trend is mapped clearly in the MSCI’s World Energy Index, which measures the progress of large and medium sized companies in 23 oil-producing countries on a quarterly basis. ExxonMobil, Chevron, Total, Royal Dutch Shell, and British Petroleum are the five biggest players on the index, which includes 85 other majors. Together, they have lost $115 billion in market value since the beginning of April, Bloomberg reports, according to World Oil. read more

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Iran’s Gas Wealth Lures Total to Take Dose of Political Risk

By Francois De Beaupuy , Golnar Motevalli and Hashem Kalantari
4 July 2017, 00:01 BST

Total SA made a $1 billion bet on natural gas in Iran, swallowing a hefty dose of political risk in the hope of gaining first-mover advantage in the country with the world’s largest reserves.

The deal to develop phase 11 of the giant South Pars field is the first investmentin Iran by an international energy company since sanctions were eased last year. Total expects it to open the way for further involvement in oil, gas and petrochemical projects there, said Chief Executive Officer Patrick Pouyanne. read more

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Oil Snaps Longest Gain in a Month on Signs U.S. Supplies Rose

Oil Snaps Longest Gain in a Month on Signs U.S. Supplies Rose

Oil in New York and London tumbled into a bear market last week on concerns that rising global supply will counter output cuts from the Organization of Petroleum Exporting Countries and its partners. U.S. crude inventories remain stubbornly high, more than 100 million barrels above the five-year seasonal average, according to data from the Energy Information Administration.

“It has become obvious by now that the current OPEC plan is not working, or at least has not been working in the first half of the year,” said Tamas Varga, an analyst at PVM Oil Associates Ltd. in London. “Bears will probably become the more dominant factor again” if the API stockpile figures are repeated by U.S. government data. read more

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Does sub-$50 oil mean Royal Dutch Shell plc’s dividend will be cut?

By  24 Jun 2017, 8:57

At the end of last year, when it looked as if OPEC was making a concerted effort to rein-in oil market oversupply, shares in Royal Dutch Shell(LSE: RDSB) charged to a 52-week high of just under 2,400p. Unfortunately, this rally didn’t last long. By the end of the first quarter, the shares had fallen by nearly 10% and have continued to slide as worries about a new oil glut have continued to grow. The falling oil price has reignited the argument about the sustainability of Shell’s dividend payout. read more

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Global oil price falls to nine-month low as oversupply fears mount

A number of producers – notably Iraq, Saudi Arabia and Russia – have aggressively ramped up output

Oil prices held near multi-month lows on Wednesday as investors discounted evidence of strong compliance by OPEC and non-OPEC oil producers with a deal to cut a global output.

Global benchmark Brent LCOc1 was unchanged at $46.02 barrel at 0651 GMT after falling nearly 2 per cent in the previous session to its lowest settlement since November.

US crude futures CLc1 for August were trading up 4 cents at $43.55, after spending much of the day slightly lower and falling more than 2 per cent on Tuesday to the lowest since September. read more

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Collapsing oil prices could fall into the $30s before the selling stops, analysts say

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Oil prices could slide back into the $30s per barrel before the sell-off ends and prices stabilize, analysts said, bringing pain to both OPEC and its archrival — the U.S. shale industry

West Texas Intermediate oil futures for July were trading around $43 per barrel Tuesday, and Brent futures were just above $45. One catalyst for the decline was a report that Libyan oil production has returned to close to 900,000 barrels a day, its highest level in four years. Growing U.S. production and stubbornly high inventories has been another driver of lower prices. read more

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BP and Shell profits under renewed pressure as oil price hits 2017 low

By HARVEY JONES:

Crude slumped last week after a shock rise in US stockpiles, up 3.3million barrels to 513million, according to the Energy Information Administration (EIA). 

Brent crude slipped to about $48 a barrel, its lowest level since December, and analysts said it could go sharply lower. 

Crude dipped below $27 a barrel in January last year and Chris Beauchamp, chief market analyst at online trading platform IG, said a repeat of those levels is a distinct possibility: “Crude tends to overshoot on both the upside and the downside.” read more

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Nigerian output to surge after dodging OPEC cuts

by Bayo Okoya – Delta Analytics Lagos: 8 June 2017

In a boost to Nigerian oil production, Royal Dutch Shell on Tuesday lifted its force majeure on exports of Forcados crude oil shipments. The force majeure, which allows companies to miss contractual obligations as a result of events out of their control, was imposed on 21 February 2016 following militant attacks.

Nigeria was recovering from attacks which had seen its output drop by over a third in 2016 due to militant attacks, from a peak of 2.2 million barrels per day (bpd). With the Forcados terminal back on track, shipments are set to average around 250,000 barrels a day with output will be set to increase by around 10 per cent, bringing the output of Africa’s largest economy up to around 2 million barrels per day (bpd). read more

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Nigeria’s Forcados Oil Comes Back in Fresh Blow to OPEC Cuts

Royal Dutch Shell Plc lifted restrictions on exports of a key Nigerian crude oil, 472 days after imposing them following militant attacks. The extra flows alone amount to about 20 percent of the supply OPEC has pledged to cut from world markets.

Europe’s biggest oil company ended a force majeure of Forcados crude oil shipments at 4 p.m. London time on Tuesday, a spokesman said. The measure, which allows companies to miss contractual obligations, was imposed on Feb. 21 last year. Shipments this month will average about 250,000 barrels a day, according to a loading program obtained by Bloomberg. read more

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Reuters: Shell testing Nigeria’s Forcados oil pipeline for restart

|By: , SA News Editor

Royal Dutch Shell (RDS.A, RDS.B) is testing Nigeria’s Trans Forcados crude export pipeline for a potential restart, with the Astro Perseus tanker expected to load the first cargo by the weekend, Reuters reports.

Forcados had produced 200K-240K bbl/day before attacks damaged the pipeline in February 2016 and again in October.

A full resumption of Forcados could complicate matters for OPEC, which meets later this month to determine whether to extend production cuts beyond June, or potentially deepen them; Libya and Nigeria were exempt from the original cuts. read more

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Oil hits five-month low amid warnings of commodities rout

Oil prices have fallen sharply along with other commodities as the prospect of slowing growth in the US and China blunts optimism about the global economy. Stocks fell across the Asia Pacific region for the third day running thanks to a 5% drop in the oil price on concerns of a supply glut. Analysts have forecast further losses amid signs that demand will not be strong enough to soak up the excess production.

FULL ARTICLE

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US crude plunges 4.8% to $45.52, posting worst close in more than five months

4 MAY 2017

Oil prices collapsed on Thursday to their lowest since late November as investor worries about the world’s stubbornly persistent glut of crude erased most of the gains that followed last year’s OPEC’s output cut.

The slide worsened after OPEC delegates downplayed the chance that their group and other producing countries would deepen their output cuts when they meet on May 25. They did say current output cuts were likely to be extended.

U.S. West Texas Intermediate (WTI) crude futures ended trading down $2.30, or 4.8 percent, at $45.52 a barrel. Brent crude oil futures were down $2.53, or 5 percent, at $48.26 a barrel by 2:53 p.m. (1853 GMT). read more

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Why I’d Keep Selling Royal Dutch Shell Despite Q1 Profits Bounce

Royston Wild , CONTRIBUTOR: 4 May 2017

Royal Dutch Shell moved away from multi-month lows in Thursday business after announcing a sharp earnings bounceback during the first quarter of the year. The stock was last 1% higher from the midweek close.

Shell — which moved to its cheapest since late November in recent sessions — reported that earnings on a constant cost of supplies (or CCS) basis leapt 315% during January-March, to $3.4bn thanks to a steady recovery in the oil price.

In particular, Shell chief executive Ben van Beurden noted that ‘we saw notable improvements in Upstream and Chemicals, which benefited from improved operational performance and better market conditions.’ read more

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Oil giants on the road to recovery as profits double

BP and Royal Dutch Shell are expected to report a dramatic recovery in first-quarter profits this week, boosted by oil prices rising from their nadir a year earlier.

BP, which updates the stock market tomorrow, is expected to say that its underlying profits more than doubled to $1.26 billion, from $532 million in the first quarter of 2016, according to a consensus of analysts’ forecasts.

Shell, which reports on Thursday, is expected to announce underlying profits of $3.05 billion, up from the $1.55 billion it made in the same period the year before. read more

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This is what’s really behind the America’s sudden oil production boom

This is what’s really behind the America’s sudden oil production boom

Patti Domm

When OPEC points at U.S. oil producers, it’s always the shale drillers they blame for oversupplying the world market.

But while shale is in resurgence, the real source of recent growth has been the offshore drillers in the Gulf of Mexico.

According to Bank of America Merrill Lynch, U.S. oil production growth between September and December was almost entirely the result of offshore wells, which increased production by 220,000 barrels a day in that period.

Offshore projects are much more long-term investments. They are far more costly to develop and take years to get started. “Those projects have an inertia,” said John Kilduff of Again Capital. read more

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OPEC Has To Extend Cuts – Shell Will Benefit Strongly From The Action

Gary Bourgeault: 28 March 2017

One of the best things to happen to the U.S. shale industry was the plunge in the price of oil. It caused creative companies with good management to aggressively pursue ways of slashing costs, while at the same time improving productivity.

A number of the pure plays like EOG Resources (NYSE:EOG) have been able to significantly improve efficiencies, to the point EOG can generate a 30 percent return when oil is at $40 per barrel. Lately, major producer Royal Dutch Shell plc (NYSE:RDS.A) (NYSE:RDS.B) has taken a larger position in shale, and says new wells in its Permian holdings can generate a profit at $20 per barrel. Overall, it can make money when oil is at $40 in the Permian. read more

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