Posts from ‘July, 2009’
The TimesJuly 31, 2009
Shell axes thousands of white-collar jobs
Robin Pagnamenta and David Robertson
Royal Dutch Shell accelerated its cost-cutting campaign yesterday, warning of further substantial job reductions as the oil giant feels the effects of the biggest slump in global demand for crude since 1980.
By Sam Fleming
Last updated at 10:30 PM on 30th July 2009
Royal Dutch Shell will axe thousands more jobs as it grapples with the deepest downturn in oil demand for almost three decades.
The oil giant’s new chief executive Peter Voser struck a resoundingly grim tone as he unveiled a 70 per cent crash in secondquarter profits to £1.4billion.
He will hack capital spending by 10 per cent and push through ‘substantial’ cuts to the firm’s 102,000-strong workforce.
Gloomy outlook: Shell has seen its profits plunge and plans more redundancies
By Jonathan Guthrie
Published: July 30 2009 21:27 | Last updated: July 30 2009 21:27
The scallop, a generally sedentary mollusc, is given to moments of panic when it flaps around like the wind-up false teeth sold in joke shops. A similar spasm is agitating managers at Royal Dutch Shell, which has the shellfish as its emblem. Incoming chief executive Peter Voser told an analysts meeting on Thursday: We have too many people doing business with each other and not with the outside world. One-fifth of senior executives have already gone.
By Ed Crooks, Energy Editor
Published: July 30 2009 09:05 | Last updated: July 30 2009 21:32
All the senior managers at Royal Dutch Shell have been made to re-apply for their positions and 150 of them have lost their jobs, the company revealed on Friday as it warned of substantial further job cuts spreading across the group.
(Also read related article… “Shell not a hoodlum organisation says its Company Secretary, Michiel Brandjes”)
Shell Brent Bravo fatalities – why a criminal investigation is in progress
By Bill Campbell, former HSE Group Auditor, Shell International
On the 3rd of September 1999 an Audit was carried out on the Brent Bravo installation. Subsequently a further 6 audits were completed on other North Sea installations operated at that time by Shell Expro, a subsidiary of Shell UK Ltd.
The results of these combined audits was presented to Shell management on 22nd October 1999 and the opinion of the audit was that there were serious deficiencies in the management of health and safety offshore.
Two prominent Shell to Sea campaigners have been jailed today for four months each.
Maura Harrington and Niall Harnett have both been sentenced to four months in prison in connection with their continuing resistance to Shell in north Mayo.
Maura Harrington is expected to arrive at Mountjoy Womens Prison on the North Circular Road Dublin, at 6PM this evening. Demonstrators are expected to gather at the prison gates at this time.
In 2008, Harrington resorted to a hunger strike as part of the ongoing battle against Shell’s plans.
Comments posted on our Shell Blog this morning by two regular contributors in reaction to the 2nd Quarter 2009 results announced by Royal Dutch Shell Plc at 7am today. Guest1 is a senior Shell insider. Paddy Briggs is a highly esteemed former Shell executive.
on Jul 30th, 2009 at 8:05 am
Just read: We are in the middle of a programme to build 1 million barrels of oil equivalent per day (boe) of additional Upstream capacity. But Brinded has been in the middle of building extra production capacity since many years. So why would we now believe Shell? If Voser has any sense he fires Brinded asap. And all the sycophants around him. Thereafter he may hear the truth and bad news occasionally .
By Joshua Chaffin in Barendrecht
Published: July 30 2009 03:00 | Last updated: July 30 2009 03:00
The new store at the Barendrecht shopping centre looks much like the neighbouring clothing shops and fast food chains, but it is much more exotic. Almost 2km below the shopping centre lies a nearly spent natural gas reservoir that Shell and the Dutch government were planning to pump full of carbon dioxide from a nearby refinery to test the technology.
Barendrecht residents cite concerns, from the dangers of living and working above tonnes of noxious gas to more banal worries about property prices. They have managed to delay Shell’s plans. They are braced for a tougher fight as the federal government prepares a final ruling on the project before the year-end.
Thu Jul 30, 2009 2:26am EDT
LONDON (Reuters) – Royal Dutch Shell Plc (RDSa.L) posted a 70 percent fall in net profit in the second quarter compared with the same period of 2008, as oil prices and refining margins tumbled.
The world’s second-largest non government-controlled oil company by market value said on Thursday second-quarter current cost of supply (CCS) net income, which strips out unrealized gains or losses related to changes in the value of fuel inventories, was $2.34 billion.
(UKPA) 16 minutes ago
Royal Dutch Shell has announced a 70% slide in profits to 2.3 billion US dollars (£1.4 billion) in the period between April and June.
The Anglo-Dutch firm achieved profits of £22 billion last year, but, in line with BP on Tuesday, it said the weaker global economy had impacted its performance in the second quarter.
New chief executive Peter Voser said: “Energy demand is weak.”
“There is excess capacity in the market, and industry costs remain high.”
From a Shell Press Release
Key features of Royal Dutch Shell Plc SECOND quarter 2009
Royal Dutch Shell Chief Executive Officer Peter Voser commented:
Our second quarter results were affected by the weak global economy. This weakness is creating a difficult environment both in Upstream and Downstream.
Energy demand is weak. There is excess capacity in the market, and industry costs remain high.
Conditions are likely to remain challenging for some time, and we are not banking on a quick recovery. Shell is adapting to this new situation, and we must do more. We are sharpening our focus on delivery and affordability.
By John Donovan
We have sued Shell repeatedly in the High Court for the theft of our Intellectual Property. It is doubtful if anyone can match our experience in dealing with this ruthless serial poacher of others parties ideas.
We are not alone in being cheated by Shell. Other similar litigation is currently underway against this unprincipled predator.
The following is an extract from a response email I sent yesterday to Michiel Brandjes, Company Secretary and General Counsel Corporate, Royal Dutch Shell Plc:
(Wall Street Journal image of Alfred Donovan, the 92 year old co-owner of the website royaldutchshellplc.com.)
We have assembled by far the worlds largest online library of Shell related news articles, confidential Shell documents and Shell internal email correspondence leaked to us by insider sources. Our readers appetite for Shell news and insider information is fed by a network of Shell insider sources around the globe. Emails from senior executives including Peter Voser have been supplied to us on the day they were sent. As our regular visitors are aware, a leaked email from David Greer, Deputy CEO of Sakhalin Energy Investment Company, brought about his “resignation”. We have even published the top secret minutes of meetings held by its most senior executives.
Oil major plans further jobs cull
Oil giant Royal Dutch Shell is planning a fresh wave of job cuts under new chief executive Peter Voser’s group-wide overhaul, it has emerged.
Shell’s first tranche of cuts is set to draw to a close this week and it is expected to be followed soon by an announcement over a new set of job losses.
The firm rejected reports that between 500 and 600 of its global management are to go in the next phase of the restructuring.
A spokeswoman for the firm declined to comment on the numbers and it is believed Shell has yet to set targets for the upcoming cuts.
Heres the story. You are a Swiss accountant with a proven record of ruthlessness and synthetic business acumen. You are comfortable with numbers thats what you do but you know little about the minutiae of the oil business. How can you be you are not an oil man you are a dollars man. By guile, good fortune and the Peter Principle you find yourself at the helm of one of the worlds biggest oil and gas companies. You know that you will struggle with the difficult things like creating an organisation that finds, develops, transports, refines and markets hydrocarbons. You know nothing at all about the oil and gas chain from exploration to consumption. Youve never really worked in it other than seeing spreadsheets which show you how much it costs. But you are now in charge. So what you do is retreat to the familiar world of numbers. That world where there is certainty where something that costs $100m is only supportable if an adequate ROACE is assured. And where, even though future earnings are always, by definition, unpredictable you find a way of getting bogus certainty where there is none. By appointing more accountants and listening to them.
By John Donovan
The following information was posted on to our Shell Blog this morning by guest1, an extremely well-informed senior Shell insider whose real identity is known to us.
Voser cutting 600 top jobs. Nothing new, we could read that quite a while ago on the Donovan site. But what does this really mean? The head honchos are now expected to all combine two jobs. This is a nice recipe to get them overworked and overtired while the official explanation is better coordination. But they will be so exhausted that they cannot challenge projects that hit their desks for approval and so must rely on completed staff work by the underlings. The last few years this system has been tried and failed.
By John Donovan
On 30 January we broke the news of Shell’s decision to make “tough choices” in reaction to the collapse in oil prices. Shell confirmed to Reuters that the Shell internal emails from CEO Jeroen van der Veer and Executive Director Malcolm Brinded we published were authentic. Quotes from the emails were featured in the Reuters article: Shell gets tough on costs as oil prices bite
Notability, the warning by Brinded of “touch choices” did not extend to him giving up his fat cat retention bonus.
Monday, 27th July 2009
OIL giant Royal Dutch Shell is set to announce a set of job cuts this week, as new chief executive Peter Voser continues his wave of intense restructuring at the company. But reports that the number of job losses would be as high as 600 were yesterday dismissed. Voser is expected to give details of his restructuring plans at the companys interim results on Thursday. Earlier this year, Voser kicked off his leadership with a bang, when he axed almost half of the executive directors on the groups board. This led to the most senior woman executive, Linda Cook, leaving.
The Times// <![CDATA[ //
July 27, 2009
Shell cuts up to 600 top jobs in Voser’s overhaul
Robin Pagnamenta, Energy Editor
Royal Dutch Shell is poised to announce a fresh wave of cuts in senior jobs this week as Peter Voser, the new chief executive, intensifies an aggressive restructuring drive within Europes largest company.
The Anglo-Dutch oil company will reveal alongside its interim results on Thursday that up to a quarter of its senior management between 500 and 600 people globally will lose their jobs in the coming weeks. The cuts represent the climax of a huge shake-up under way in Shell, of which Mr Voser, who is Swiss, took full control from Jeroen van der Veer this month. The redundancies will mark one of the most far-reaching management overhauls in a successful multinational group undertaken by an incoming chief executive.
‘Grim reading’ likely at BP and Shell
BP and Shell, the oil giants, will this week release results that analysts expect to make “grim reading” because of lower global demand for oil.
By Rowena Mason
Published: 10:08PM BST 26 Jul 2009
Shell, which recently became the world’s biggest company by market capitalisation, has been hit by falling output in the Nigerian delta, where rebels have attacked its facilities. The company could announce a cull of up to 600 senior management roles globally.
Analyst consensus forecasts show that BP is expected to make $2.78bn (£1.69bn) in adjusted operating profit, edging ahead of Shell’s estimated $2.4bn profit.
Both companies are under pressure from falling demand for oil, but Shell is more exposed to the slumping price of natural gas. Richard Griffiths, an analyst at Evolution Securities, said: “Everyone knows it is going to be grim reading, so we will be looking at the outlook. Rising oil prices combined with a declining cost base means earnings momentum should start to turn in a postive direction.”
00:00 EDT Saturday, July 25, 2009
OTTAWA — GLOBAL ENERGY REPORTER,
Earlier this month, Royal Dutch Shell PLC announced it is conducting a strategic review of some of its global refining operations, including its 130,000-barrel-a-day refinery in Montreal. Options for the 75-year-old plant include continuing its operation, selling it or closing it and transforming the property into a terminal to receive imported petroleum products.
The Sunday Times
UK oil giants profits plunge $10bn
July 26, 2009
Posting on Shell Blog by “Outsider”
As one senior Shell employee put it, “95% of the people at Shell are honest, ethical and extremely competent. Unfortunately the other 5% are in top management positions”
(Michiel Brandjes, Royal Dutch Shell Plc Company Secretary and General Counsel Corporate)
Operating a website – royaldutchshellplc.com – using the dotcom domain name of the world’s largest company Royal Dutch Shell Plc., has resulted in a truly bizarre relationship with the company.
Shell’s current tactics are to express indignation in response to our outspoken criticism and decline to confirm the authenticity of leaked Shell internal documents and communications in the hope that the news media will then not risk publishing related articles. This approach has not worked because the credibility of our Shell insider information is such, that leading news organizations, including The Wall Street Journal, Reuters, and the Financial Times, have all published articles without receiving confirmation from Shell of related facts.