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City awaits details after Shell shock

Screen Shot 2013-10-01 at 07.56.54After the shock update effectively publicised the firm’s headline figures for the final quarter of last year, this week the City will be looking for clues as to whether Shell’s shrinking bottom line is temporary or structural.; …the new boss appears keen to make changes at the notoriously bureaucratic company.

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by DOMINIC JEFF: 26 Jan 2014

OIL major Royal Dutch Shell is expected to reveal huge write-offs this week which investors hope will account for its recent profits warning.

After the shock update effectively publicised the firm’s headline figures for the final quarter of last year, this week the City will be looking for clues as to whether Shell’s shrinking bottom line is temporary or structural.

In its warning, Shell said that profits will almost halve to around $2.9 billion (£1.8bn). With previous market expectations of a $4bn haul, it will be the latest disappointment for shareholders after the firm’s earnings declined dramatically throughout 2013. read more

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Shell pumps £3m into research centre at Heriot-Watt

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6 August 2013

Oil giant Shell is to invest £3 million in a scheme to boost exploration research at Heriot-Watt University in Edinburgh.

The group said the five-year deal to create the Shell Centre for Exploration Geoscience aims to help meet the world’s growing energy demand by combining industry insights with cutting-edge research.

Professor John Underhill, holder of the Shell chair of exploration geoscience, will head up the centre. He said: “The results will help further our understanding of the development, evolution and deformation of sedimentary basins and complement existing strengths within the [university’s] Institute of Petroleum Engineering.” read more

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Gulf of Mexico oil spill still dragging BP down

THE Gulf of Mexico oil spill will continue to cast its shadow over BP’s second-quarter results this week, leaving the door open for Shell to win the latest head-to-head tussle ­between the two rivals.

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by PETER RANSCOMBE

THE Gulf of Mexico oil spill will continue to cast its shadow over BP’s second-quarter results this week, leaving the door open for Shell to win the latest head-to-head tussle ­between the two rivals.

BP is likely to set aside more cash to help pay for the damage caused in 2010, when an explosion on the Deepwater Horizon drilling rig on the Macondo well killed 11 workers and caused the United States’ worst oil spill.

Last week’s pictures of the fire on Walter Oil & Gas’s Hercules rig in the Gulf of Mexico will have brought back memories of the disaster for Louisiana residents. read more

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Rising gas price helps Shell boost fortunes

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By DOMINIC JEFF
Published on 28/04/2013 00:00

HIGHER natural gas prices in the United States should help Shell rebound from its lacklustre performance at the end of last year when it presents first quarter results on Thursday.

Prices have almost doubled since America’s shale gas revolution pushed prices through the floor last year, proving a drag on Shell’s recent results.

The oil major has already promised to increase its quarterly dividend by 5 per cent, confident that last year’s investment in liquefied natural gas projects in the Middle East will start paying off. read more

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Profits at Shell set to anger drivers

Published on Sunday 29 January 2012 00:00

HIGHER annual and quarterly profits from oil heavyweight Royal Dutch Shell are this week expected to ignite the fury of hard-pressed drivers who continue to face near record prices at the petrol pump.

But the figures are likely to spell good news for investors as analysts raise the prospect that Shell, which boasts one of the largest dividends on the FTSE, may recommend an increase in the pay-out.

Although both full-year and quarterly numbers will be released, the City will focus on profits for the last three months of 2011, which are expected to be about 20 per cent higher compared to the same period in 2010. read more

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Shell admits oil leak fix could take weeks

ENERGY giant Shell has made a full apology for its response to the North Sea oil spill and admitted it could take weeks to fix the leak. After days of criticism for keeping details of the spill from its Gannet Alpha platform secret, the oil company conceded it had made mistakes.


17 August 2011

By Jenny Fyall: Environment Correspondent
ENERGY giant Shell has made a full apology for its response to the North Sea oil spill and admitted it could take weeks to fix the leak. After days of criticism for keeping details of the spill from its Gannet Alpha platform secret, the oil company conceded it had made mistakes.
In an interview with The Scotsman, Steve Harris, head of external affairs and communications at Shell Upstream International Europe, confirmed a remaining leak was in a spot so difficult to access, 800ft below the waves, that it could take weeks to stop. He also revealed:

• A first seabird had been seen covered in oil. The breed is not known, but it was spotted flying from the spill area with oil on its wings.

• The pipe that sprung a leak is more than 30 years old and was not spotted by surveys testing the integrity of equipment.

• The size of the spill had grown again to cover 16sq miles. This compares to half a square mile on Monday, and 19 miles by three miles on Sunday. He said this could be because the spill had spread into smaller sections in windy conditions at the weekend, but with yesterday’s calmer weather had joined back together again. read more

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Anger as Shell fails to answer questions about spillage

Shell’s modus operandi – of giving out information only on what appears to be a need-to-know basis – is not good enough. The public needs to know, and has a right to know.


Published Date: 16 August 2011 By Jenny Fyall Environment Correspondent
ENERGY giant Shell is facing mounting criticism over its secrecy about an oil leak in the North Sea, as the spill was revealed to be twice as large as previously thought. Five days after the leak from the Gannet Alpha rig was spotted about 112 miles east of Aberdeen, Shell finally responded to pressure to reveal the volumes of oil involved.

It confirmed 216 tonnes had spread into the sea – the equivalent of 1,300 barrels of oil. The Scottish Government said at the weekend it involved only about 100 tonnes.

However, a raft of questions today remain unanswered, including how the leak started, why Shell has not yet been able to stop the flow of oil, where exactly the spill is in the North Sea, and whether any seabirds or other wildlife are caught up in it.

Politicians and environment groups have increased their calls for Shell to be more open about the leak. Government figures show it is four times the entire quantity of oil discharged into the North Sea in 2009, and by far the largest spill in UK waters for more than a decade. read more

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Shell – ‘risk-free’ North Sea still vital

SHELL'S UK chairman has pledged the oil major's continuing commitment to the North Sea despite his belief that more than half the area's natural reserves have been produced. James Smith told The Scotsman that the fact that there was still a "low risk" in operating in the North Sea compared with some regions of the world also remained a big plus for the major explorers.

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Oil giants face price-fix charges

The Scotsman: Oil giants face price-fix charges

“Shell, which is being investigated in relation to its Dutch operations, said that the firm had been co-operating fully with the investigation, but has yet to be informed of any decision.”

Alastair Reed

Posted Oct 17, 2004

EUROPEAN Union regulators are set to charge two global oil giants and a Dutch road builder with fixing the price of a petroleum product used to pave streets.

Oil giants Exxon Mobil and Royal Dutch/Shell have both been under investigation by the European Commission as part of inquiries stretching back to 2002, along with road builders such as Ballast Nedam NV of the Netherlands. The investigation focused on the market for bitumen, a by-product from the crude oil refining process, which is primarily used in the construction industry for surfacing roads and waterproofing. read more

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Shell fails to impress City with growth plan

The Scotsman: Shell fails to impress City with growth plan

“SHELL yesterday said it would plough $45 billion (£25bn) into the business between 2004 and 2006 to drive organic growth in the wake of the oil reserves overstatement fiasco that prompted big regulatory fines and damaged the group’s City credibility.”

MARTIN FLANAGAN

CITY EDITOR

Thu 23 Sep 2004

SHELL yesterday said it would plough $45 billion (£25bn) into the business between 2004 and 2006 to drive organic growth in the wake of the oil reserves overstatement fiasco that prompted big regulatory fines and damaged the group’s City credibility.

The company also said it planned $10bn (£5.6bn) and $12bn (£6.1bn) of disposals over the period to bolster its balance sheet and give it headroom for possible share buybacks, although the market was disappointed no firmer commitment was made to returning money to shareholders. The shares fell 14.25p, or 3.3 per cent, to 418p. read more

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Wall Street rattled by Fed as Shell fails to please City

The Scotsman: Wall Street rattled by Fed as Shell fails to please City

More questions than answers: “Most investors believe the overstatement of reserves fiasco shows Shell was seriously flawed under the current management structure, and want a single unified board instead.”

MARTIN FLANAGAN
CITY EDITOR

23 Sept 04

THE market’s 3 per cent markdown of Shell’s shares yesterday had little to do with the strategy unveiled in London by the group’s top bods.

It was almost classic textbook stuff in the oil industry at present. Fancy oil prices are making acquisitions difficult to pull off. So instead beef up the capex budget and pour money into organic growth – in Shell’s case $45 billion between 2002 and 2004.

Meanwhile, retire from lots of countries to focus on fewer, more streamlined opportunities – while flogging off vast swathes of the business it does not want anymore. In Shell’s case this runs to $10-$12bn – which is a lot of unwanted fields. read more

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Ex-Shell Chairman Challenges Watchdog over Oil Reserves Scandal

The Scotsman: Ex-Shell Chairman Challenges Watchdog over Oil Reserves Scandal

“The FSA found Shell guilty of market abuse and the Anglo-Dutch company last month agreed to pay £17 million to the FSA. (ShellNews.net)

By Phil Waller, City Staff, PA News

Posted 17 Sept 04

The former chairman of oil group Royal Dutch/Shell today challenged the City watchdog over its findings on the company’s oil reserves scandal.

In a letter to the Financial Services and Markets Tribunal, Sir Philip Watts sought permission to challenge some of the Financial Services Authority’s (FSA) findings on the reserves overstatement, which has led to Shell downgrading its proven reserves by 23%, or 4.47 billion barrels, since January.

The FSA found Shell guilty of market abuse and the Anglo-Dutch company last month agreed to pay £17 million to the FSA. read more

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FSA chief hits right note on investor responsibility

The Scotsman: FSA chief hits right note on investor responsibility

“In the wake of a splurge of recent fines, particularly the record £17 million penalty on Shell for the oil giant’s reserves shortfall and cover-up, there have been those who have argued that it is the culpable directors who should bear the penalty, not the companies and investors.”

SCRUTINEER

MARTIN FLANAGAN

CITY EDITOR

Posted 11 Sep 2004

THE comments of the head of Britain’s financial regulator about who should suffer from financial penalties for corporate wrong-doing – companies and shareholders or the errant directors themselves – is timely.

In the wake of a splurge of recent fines, particularly the record £17 million penalty on Shell for the oil giant’s reserves shortfall and cover-up, there have been those who have argued that it is the culpable directors who should bear the penalty, not the companies and investors. read more

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Scotsman.com: Cairn Energy Powers into FTSE 100

Scotsman.com: Cairn Energy Powers into FTSE 100

“Cairn has seen its shares more than triple since January when it announced the first of 10 finds in India on an oil field purchased from Shell for £4 million in 2002. The company is now valued at more than £2 billion.”

By David Winning, City Staff, PA News

The meteoric rise of oil and gas group Cairn Energy continued today as its place among the UK’s top 100 firms was confirmed.

The Edinburgh-based group joins larger rivals Shell and BP in the FTSE 100 Index at the expense of banking group Bradford & Bingley following a review of membership of the Footsie.

Cairn has seen its shares more than triple since January when it announced the first of 10 finds in India on an oil field purchased from Shell for £4 million in 2002. The company is now valued at more than £2 billion. read more

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Auditors dragged into Shell lawsuit

The Scotsman: Auditors dragged into Shell lawsuit

“role of auditors KPMG and PricewaterhouseCoopers in the scandal that wiped £2.9 billion off Shell’s market capitalisation in one day.”

CATRINA STEWART

30 August 04

AUDITORS might find themselves implicated in the reserves scandal surrounding oil major Shell as lawyers leading US class actions against the company prepare to file an amended complaint.

Bernstein Liebhard & Lifshitz, the Wall-Street law firm leading the class action on behalf of individual investors, said that it was looking at the role of auditors KPMG and PricewaterhouseCoopers in the scandal that wiped £2.9 billion off Shell’s market capitalisation in one day. read more

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Shell knew of error in reserves in 1998

The Scotsman: Shell knew of error in reserves in 1998

“AUDITORS at Royal Dutch/Shell, the British-Dutch energy group, warned the company as early as 1998 that its reserves figures may have been overstated…”

CATRINA STEWART

Posted 30 August 04

AUDITORS at Royal Dutch/Shell, the British-Dutch energy group, warned the company as early as 1998 that its reserves figures may have been overstated, six years before executives admitted mistakes in public and two years earlier than previously reported by its own investigation into the reporting scandal.

Yesterday, US and UK regulators revealed that the oil giant has agreed to pay more than US$150 million (£83.7m) in penalties for providing “false and misleading” information, which led to a downwards revision of its proven reserves by 4.47 billion barrels. read more

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Fresh probe into Shell oil reserves scandal

The Scotsman: Fresh probe into Shell oil reserves scandal

Watchdogs to target ‘those responsible’

JIM STANTON, DEPUTY BUSINESS EDITOR

25 August 04

REGULATORS on both sides of the Atlantic are set to pursue a number of as-yet unnamed individuals that they believe are responsible for the reserves scandal at oil giant Shell.

News of separate investigation came as the embattled company settled fines with British and United States watchdogs over the debacle totalling £84 million.

Wrapping up an initial investigation, British regulator the Financial Services Authority said the Anglo-Dutch group was responsible for “unprecedented misconduct” and was putting out false figures for its proven oil reserves as far back as 1998. read more

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The Scotsman: Oil bonanza for man who took on Shell and won

The Scotsman: Oil bonanza for man who took on Shell and won

JAMES DOW

17 Aug 2004

WHEN Bill Gammell stepped forward to accept the gong for Scottish Entrepreneur of the Year a few weeks ago, he turned to the assembled high-fliers and made a typically self-deprecating remark.

“I am only fortunate to be the leader of the team,” the chief executive said. “Winning this is a terrific recognition for the outstanding people at Cairn Energy.”

As a former Scotland rugby international, he knows plenty about being a team player, but his individual achievements are increasingly being recognised beyond the realm of his peers. read more

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The Scotsman: Total bid for Shell is oil to the City gossip mill

The Scotsman: Total bid for Shell is oil to the City gossip mill

“Desmarest could make an audacious swoop for the Royal Dutch half alone – which itself is smaller than Total – and, therefore, would have voting control over the entire group.”

SCRUTINEER

JOHN BOWKER

SENIOR CITY CORRESPONDENT

Tue 17 Aug 2004

THERE have been some pretty wild takeover rumours in the City this summer, but few appear more outrageous than current whispers that Total might swoop for Shell.

The French company is much smaller than its UK-Dutch rival, with a market cap of £68 billion compared with £94bn. First impressions dictate that Total surely could not raise the cash, much less justify the buy to shareholders.

Another stumbling block is the extraordinary price of oil. The black gold was down slightly yesterday on the referendum success of Venezuelan president Hugo Chavez, but it remains close to Friday’s all-time highs at $46.05 a barrel. read more

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The Scotsman: Shell tight-lipped on claim

The Scotsman: Shell tight-lipped on claim

“TROUBLED Shell was involved in fresh turbulence yesterday as it stonewalled questions”

MARTIN FLANAGAN CITY EDITOR

Fri 16 Jul 2004

TROUBLED Shell was involved in fresh turbulence yesterday as it stonewalled questions about a report alleging that external auditors were warned the oil major was inflating its energy reserves two years before it owned up, early in 2004.

The warnings to affiliates of KPMG International and PricewaterhouseCoopers International were said to be contained in Shell documents reviewed by a newspaper.

However, a Shell spokesman said yesterday: “We will not comment on leaked and unverifiable documents. We have submitted a full report to the regulators. read more

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Shell admits it may have had role in violence

The Scotsman: Shell admits it may have had role in violence

By ALASTAIR REED

12 June 04

SHELL has accepted that its presence in Nigeria could have unintentionally exacerbated violence, poverty, and corruption.

The embattled oil group acknowledged it was “difficult” to operate ethically in the Niger Delta, where conflict has surged periodically since the early 1990s, and admitted that its attempts at community development had been “less than perfect”.

Emmanuel Etomi, Shell’s community development manager in Nigeria, said an independent report by three internationally-known conflict experts had identified “how we sometimes feed conflict by the way we award contracts, gain access to land, and deal with community representatives.” He added that although it was up to government and local communities to take the lead, “as part of an industry inadvertently contributing to the problem we are prepared to help.” read more

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Shell Pledges Future to Conflict-Torn Nigeria

The Scotsman: Shell Pledges Future to Conflict-Torn Nigeria

By David Winning, City Staff, PA News

Posted 11 Jun 2004

Oil giant Shell stressed its commitment to Nigeria today after a report said ethnic violence could force it to withdraw by 2009.

The group said it was ready to overhaul its operating practices in Nigeria, which accounts for 10% of its total production and where 5,000 people have been killed in the past four years.

Experts commissioned by Shell outlined a number of failings by the company in the strife-torn country in an internal report delivered to executives last year. read more

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The Scotsman: Shell

The Scotsman: Shell

 

Posted 30 May 04

 

THE oil industry is still essentially run by geologists, so Shell’s executives will have a ready analogy for the periodic tremors the seismic upheaval of Shell’s 3.9 billion barrel reserves downgrade in January is still throwing out.

 

Last week’s 120 million barrel downgrade, Shell’s fourth this year, barely registered on the market’s Richter scale, however.

 

The cut pushed Shell’s total reduction in proven reserves to a new total of 4.47 billion barrels, and the company was forced to trim earnings between 2001-2003 by $402m. Shell Transport’s shares rose 2%. read more

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The Scotsman: Cook joins Shell’s MD team to free Brinded for E&P role

The Scotsman: Cook joins Shell’s MD team to free Brinded for E&P role

MARTIN FLANAGAN

CITY EDITOR

Wed 19 May 2004

SHELL yesterday announced that the female chief executive of Shell Canada is to take control of the Anglo-Dutch oil giant’s gas and power operations in the latest major boardroom change following a spate of sackings.

The appointment of Linda Cook as a new managing director at Shell, subject to shareholder approval at a meeting on 28 June, is meant to free up Malcolm Brinded, the current boss of gas and power, to focus exclusively on the core exploration and production division.
read more

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The Scotsman: Embattled Shell lifted by 9% rise in profits

The Scotsman: Embattled Shell lifted by 9% rise in profits

29 April 04

THE tide appeared to turn in Shell’s favour today as the troubled oil giant cheered analysts by reporting a nine per cent hike in quarterly profits.

The company, which has seen its reputation battered by a series of oil reserve downgrades, also bowed to investor pressure and restarted its share buyback programme.

Net profits for the first three months of the year rose ahead of market expectations to some £2.4 billion – despite the company recording a decline in oil output.
read more

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