Analysts estimate that BP, which is also the UK's biggest listed company, and Shell need an oil price of between $60-$65 barrel to be able to pay for their dividends and their multi-billion dollar capital spending programmes from cash flow. And given the difficulty these large integrated oil companies face in replacing production and maintaining reserves, they are more likely to cut the dividend than skimp on exploration. Last year, for example, Shell's reserve replacement ratio was 97 per cent, the seventh time in the past nine years that the company has failed to replace the volume of oil it produced.
July 11th, 2009:
How weakness for Shell or BP could tip the Footsie scales
This website and sisters royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website,
johndonovan.website, and shellnews.net,
are owned by John Donovan. There is also a Wikipedia segment.
Political turmoil turns Iran’s energy sector towards Beijing
European oil majors such as Total, Royal Dutch Shell, Repsol and Statoil have delayed plans to develop parts of South Pars, the world's biggest gas field, because of US sanctions, leading Iran to turn more frequently to China.
Does a Senior Obama Official Have Unseemly Ties to Notorious Human-Rights Abuser Chevron?
Other award recipients included Shell Oil (which just paid $15.5 million to settle a lawsuit over its alleged involvement in the killing of Nigerian playwright Ken Saro-Wiwa and eight other activists), Marathon Oil and Anglo Coal of South Africa. In giving Chevron the award, the GBC said Chevron "has long been a leader in the fight for global health." But those who have monitored the company's record for years beg to differ.
BP and Shell slide after disappointing Chevron update
Posted by Nick Fletcher Friday 10 July 2009 08.56 BST guardian.co.uk
Oil shares are leading the market lower after negative comments overnight by Chevron, the second largest oil company in the US.
The company warned that its second quarter downstream profits would be significantly lower than the previous three months, due to a sharp decline in refining margins. Higher costs and weaker demand are doing the damage, said the company.
The news hit sentiment across the sector, with BP down 5.75p at 459.5p and Royal Dutch Shell A shares 19p lower at £14.33.
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