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Posts from ‘April, 2011’

Karoo group files charge over fracking ad

Complaint over a Shell advert which tries to allay public fears about its fracking exploration technique

CHANTELLE BENJAMIN: Published: 2011/04/29 06:40:25 AM

A GROUP of Karoo residents has accused oil company Royal Dutch Shell of being “untruthful and misleading” and has lodged a complaint over an advert which tries to allay public fears about its fracking exploration technique .

The complaint by specialist energy attorneys Havemann Inc on behalf of Treasure the Karoo Action Group is over an advert in the Sunday Times and the Cape Times this month headed “Dialogue on the Karoo”, which they allege aims to mislead readers.

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Shell scared away by British tax?

April 29, 2011

LONDON, April 29 (UPI) — Royal Dutch Shell suggested it might pull out of developments in the North Sea because of a tax increase imposed by the British government, a director said.

British Chancellor of the Exchequer George Osborne imposed a duty on oil and gas producers in an effort to take advantage of massive oil profits reported by international energy companies.

Oil and gas developers posted record first quarter profits as energy prices soar in response to global economic recovery, a weak U.S. dollar and unrest in some of the Middle East’s largest oil-producing nations.

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Shell make £4.1bn…and axe North Sea fields

SHELL is slashing investment in the North Sea over a Budget Day tax hike – despite making £1.9million an hour.

The giant yesterday revealed the rise meant it was now “uneconomic” to develop smaller UK oil and gas fields.

Shell’s quarterly profits were up forty per cent and totalled £4.1billion.

Chief finance officer Simon Henry said the group would only invest in two new projects. Other work has gone. He said: “The irony is we were just beginning to look at what opportunities there were in the North Sea again. We hadn’t worked up the projects yet and that work now stops.”

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Shell may have to sell North Sea assets after tax raid

Published Date: 29 April 2011 By Martin Flanagan City editor
ROYAL Dutch Shell warned yesterday that it may have to sell some assets in the North Sea and reduce investment in the region because of the Chancellor’s tax raid and higher industry decommissioning costs in the Budget. Simon Henry, chief financial officer, revealed that the changes could cost the group $1 billion (£600m) in extra charges, a similar sum to that facing rival BP.

He said that Shell had taken a $60 million hit in the first quarter of this year on the extra tax levy on North Sea production and would face a further $150m impact over the rest of 2011. There will be another $400m charge in 2012.

In addition, reduced tax breaks for decommissioning rigs was likely to lead to another charge of up to $500m.

“It’s a fact of the business we are in. Not just governments but suppliers look for a share of higher revenues,” Henry said.

He added that big Shell interests in the North Sea, such as the Clair and Schiehallion fields to the west of Shetland that are operated by BP, were unlikely to be affected by the tax raid.

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Shell chief condemns tax hike as profits surge 30%

mark williamson

29 Apr 2011

THE chief financial officer of Royal Dutch Shell has warned , the surprise hike in tax on North Sea profits will hit investment in the area, after the company unveiled a 30% leap in profits on the back of surging oil prices.

Simon Henry said the hike, announced by George Osborne’s had already impacted on planning. and it may result in the company investing much less in future than it would have done.

His criticism comes in the wake of similar warnings from other big firms.

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BP should look to Anglo-Dutch rival Shell to help refine the way forward

One of the most striking features of the oil industry in recent times has been the divergent fortunes of Royal Dutch Shell and BP.

BP has well-publicised problems that explain its recent under-performance, such as uncertainty over its future in Russia and the shock of last year’s Deepwater Horizon drilling rig explosion in the Gulf of Mexico’s Macondo area, which left 11 workers dead. Photo: REUTERS
Damian Reece By Damian Reece, Head of Business: 29n April 2011

The past two years has seen Shell outperform the All-Share index by 7pc, while BP has under-performed by 58pc.

Results on Thursday from Shell once again underlined the companies’ differences, such as profitability and prospects, which are driving investor sentiment.

BP has well-publicised problems that explain its recent under-performance, such as uncertainty over its future in Russia and the shock of last year’s Deepwater Horizon drilling rig explosion in the Gulf of Mexico’s Macondo area, which left 11 workers dead.

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Slick Shell leaves BP in slipstream

Shell remains interested in a merger – if the terms and conditions are right…

Oil battle: The Gulf of Mexico crisis has proved disastrous for BP’s shares, while Shell’s have soared

By Hugo Duncan
Last updated at 10:42 PM on 28th April 2011

In the battle of the UK super majors, the first leg of 2011 belongs to Shell by a considerable margin, said Richard Hunter, head of UK equities at Hargreaves Lansdown stockbrokers, yesterday.

It is easy to see why. While BP is plagued by the toxic legacy of the Gulf of Mexico oil spill and troubles in Russia, Royal Dutch Shell powers on.

Shell put its beleaguered arch-rival firmly in the shade yesterday with a 41 per cent rise in first quarter profits to £4.1billion. Just 24 hours earlier, BP revealed that its profits for the period dropped 2 per cent to £3.3billion. And that is not all.

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Shell Should Resist Dividend Siren Calls

APRIL 29, 2011


Royal Dutch Shell‘s bump in the road has sure flattened out.

The oil company’s first-quarter earnings were up 53% on a disappointing last quarter of 2010, thanks to high oil prices and improved liquefied-natural-gas sales in Asia and Europe. Stronger cash flow may have some investors pressing for higher dividends. Shell should resist, for now.

Like BP, which reported on Wednesday, Shell has been shedding unwanted assets, leading to output shortfalls. Its production fell 3% year on year. But, also like BP, Shell’s results were boosted by higher downstream profits, which doubled year on year thanks to sharply wider refining margins.

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Worst case Arctic spill could reach 58M gallons

DAN JOLING, Associated Press: Published 04:10 p.m., Wednesday, April 27, 2011

ANCHORAGE, Alaska (AP) — The federal agency overseeing offshore drilling in Alaska says a worst-case scenario for a blowout in the Chukchi Sea lease area could put more than 58 million gallons of oil into Arctic waters.

That’s far more than the major leaseholder in the Chukchi, Shell Oil, says it could handle under its response plan.

A memo prepared by the Bureau of Ocean Energy Management, Regulation and Enforcement says a blowout worst-case scenario could discharge nearly 2.6 million gallons per day initially.

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Shell 1Q Adjusted Profit Soars 30% To $6.29B On Higher Oil Price

APRIL 28, 2011 3:15 A.M. ET


LONDON (Dow Jones)–Royal Dutch Shell PLC (RDSB.LN) Thursday posted a consensus-beating 30% rise in adjusted profit for the first quarter, as high oil prices, upstream production growth and continued cost-cutting all combined to good effect.

“We continue to make good progress in implementing our strategy, improving near-term performance, delivering a new wave of production growth, and maturing the next generation of growth options for shareholders,” said Chief Executive Peter Voser.

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Shell First-Quarter Profit Rises on Higher Crude Oil Prices

By Brian Swint – Apr 28, 2011 8:50 AM GMT+0100

Royal Dutch Shell Plc (RDSA), Europe’s biggest oil company, said profit rose 30 percent in the first quarter as crude prices gained and refining earnings doubled.

Excluding one-time items and inventory changes, Shell earned $6.3 billion compared with $4.8 billion a year earlier. Analysts expected $6.2 billion, according to the mean of nine estimates in a Bloomberg survey. Production slipped 3 percent to 3.5 million barrels of oil equivalent a day and was in line with last year’s output once asset sales are excluded.

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US not ready for debate on exporting shale gas: Shell official

Washington (Platts)–26Apr2011/533 pm EDT/2133 GMT

Shell’s president for US operations on Tuesday called talk of exporting shale gas premature, at least politically.

“We’re still waking up to the fact that we have this enormous energy resource in our backyard,” Marvin Odum said at the US Energy Information Administration’s conference in Washington. “It completely changed the way we look at energy as a country.”

“I think we finish that realization process and then have the political debate about whether exporting some of that energy is something we allow to happen or not.”

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