ShellNews.net: Could Shell Run Short of Cash?

Shell is paying out a lot of cash to it’s shareholders in the form of dividends and share buybacks, while at the same time facing huge capital expenditure in respect of Sakhalin, Pearl, Bonga, and other new developments.

In the E&P world, LNG and Deep Water always mean one thing: enormous capital costs.

The developments which Shell must undertake in order to maintain reserves and production volumes require huge up-front capital expenditure.

Can Shell really afford both the largesse with which it is placating it’s shareholders and the investments needed to remain in business?

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