Posts from ‘January, 2009’

Shell and Exxon Mobil Corp. are preparing to keep their U.S. plants running in a walkout, using managers and other non-union employees to keep sites operating

Shell hopes there might be new opportunities in countries such as Iran because US president Barack Obama’s election is pursuing a less hard line with the country than George Bush. “Iran has some of the largest reserves of gas in the world,” said van der Veer.

SHELL E&P Ireland has initiated a new €5 million investment fund over three years in north Mayo as part of its commitment to the Corrib gas project. The Royal National Lifeboat Institution (RNLI) and Belmullet GAA are to be recipients of the first tranche of funding of €400,000 in total.

Further north lies Corrib, Co Mayo, which has an estimated value of anywhere between EUR6billion to EUR50billion. The field – which has been the scene of much controversy – is being developed by Shell, Marathon and Statoil.

On 19 January disturbing rumours over the Motiva Plant expansion in Port Arthur Texas were brought to our attention. Motiva Enterprises LLC is jointly owned by Saudi Refining and Shell.

Brinded said Shell had a “dreadful start” to this year after 10 contractors and one third party were killed in three incidents…

Exxon Mobil’s strong financial position has fueled speculation that it might bid to acquire another sizable company. “They don’t need a line of credit,” Gheit said. “Exxon can theoretically acquire any of its rivals with 35 percent premium, and they can boost earnings per share, cash flow per share and stock valuation because of their ability to squeeze out costs.”

Oil industry officials and air safety experts said Shell’s decision is one of the rare instances when a major user or operator has temporarily halted flights of such a large number of the popular, 12-person choppers. The Sikorsky spokesman said Shell continues to use the models in other parts of the world.

Shell’s decision to double its capex in recent years was largely forced on it to counter falling production and reserves which were the result of earlier underinvestment.

Shell gets tough on costs as oil prices bite

 Tom Bergin

Royal Dutch Shell has intensified its cost-cutting efforts in response to the collapse in oil prices and also plans to step up efforts to improve what it said was a “mixed” safety record.

Shell’s head of Exploration and Production Malcolm Brinded told employees in an email seen by Reuters that staff had to make “tough choices.”

“We simply need much higher sustainable savings this year and I ask for real actions from all of you …. Shed contractor staff, challenge requirements, eliminate consultancy work, reduce travel massively, cut overheads everywhere,” he said.

The E&P boss pleaded for fewer meetings and “75 percent fewer slides.”

Brinded is seeking to simplify Shell’s operations, which have a reputation for bureaucracy, and increase standardisation across the company — a key strategy of Tony Hayward since his appointment as CEO of rival BP .

“We are still too slow in maturing our hydrocarbon resources and advancing projects,” Brinded said.

Brinded said Shell was not complacent about its 2008 performance, despite reporting a record profit for a European company of $31.4 billion (21.7 billion pounds).

“Overall 2008 performance was good, with record earnings and strong operational results, but a disappointing Total Shareholder Return.”

Shell’s shares have fallen around 10 percent in the past year, compared to an almost 30 percent fall for the DJ Stoxx European oil and gas sector index and a more than 30 percent drop in the FTSE 100 index .

Chief Executive Jeroen van der Veer said the company was intensifying its efforts on safety.

“Work is well advanced on Group-wide Life-Saving Rules that focus on situations where the risk of death or injury is the highest. We will introduce them to all employees and contractors in the first half of the year,” he said in a separate email to staff.

A Shell spokesman confirmed the emails were genuine.

Twenty-eight fatalities were recorded in 2008, Brinded said. “Our safety performance was mixed.”

Brinded said Shell had a “dreadful start” to this year after 10 contractors and one third party were killed in three incidents.

“The many fatalities were again a tragic reminder of the risks of our business,” he said.

Copies of the emails are available at www.royaldutchshellplc.com

(Editing by Jon Loades-Carter)

INTERNATIONAL HERALD TRIBUNE ARTICLE

(royaldutchshellplc.com headline by John Donovan)