By John Donovan
The US and EU are ready to impose new sanctions on Russia arising from events in Ukraine. See extract from a fuelfix.com article published under the headline: “Sanctions threaten Putin’s oil deals with Exxon Mobil, Shell”
Other vulnerable international operators include Royal Dutch Shell, the world’s second-largest energy company by market value. Multiple investments by The Hague-based company in Russia include ventures to use advanced reservoir-management techniques to revive and increase crude output from Soviet-era fields and to explore some of the nation’s vast, untapped shale formations. “We are continuing to review the latest sanctions to assess the potential impacts on our business, and engaging with the respective authorities to gain further clarity,” Kayla Macke, a Shell spokeswoman, said in an e-mail. “We are taking action to ensure we comply with all applicable sanctions or related measures. We’re keeping the situation under close review.”
A Russian news organisation, rt.com, has published an article covering the same story, under the headline: “US, EU to ban Exxon, BP and Shell from oil exploration in Russia – report”
The EU and the US are going to ban energy giants like Exxon Mobil, BP and Shell from searching for crude oil in Russia’s Arctic, deep seas and shale formations, three American officials anonymously told Bloomberg. According to one official who spoke to Bloomberg, the new round of sanctions may target Arctic exploration prospects, as the new ban – if implemented – will further impact sharing “sensitive technologies” and services with Russia. Such exports must be authorized by member states if the products are destined for deep-water oil exploration projects in Russia.
A BloombergBusinessweek article by Eduard Gismatullin points out that the liquefied-gas-for-transport market is growing faster in China than in North America. The company is examining opportunities to develop the business in China, which already has more than 100,000 vehicles running on LNG, said John Abbott, Shell’s head of refining.
Next, an informative interview: Shell CEO talks investors, safety and renewable energy in Rigzone interview
Royal Dutch Shell CEO Ben van Beurden has only spent a few months on the job, but he sees opportunity for the company to spend its money wiser, be more proactive about safety measures and play a bigger role in developing renewable energy sources, according to an interview published by Rigzone.
Bloomberg News reports that Bob Dudley of BP and Ben van Beurden of Royal Dutch Shell have issued statements wading into the Scottish Independence debate on the side of maintaining the existing UK.
The Telegraph also makes reference to the same development:
BP formally came out against Scottish independence and Bob Dudley, its chief executive, backed warnings by Sir Ian Wood, the oil industry’s most eminent businessman, that Alex Salmond’s economic case for separation relies on highly inflated estimates for North Sea tax revenue. Ben van Beurden, Shell’s chief executive, also backed the assessment published by Sir Ian, who warned that Scottish voters were using their hearts rather than their heads in the independence debate and urged them to re-examine the economic case.
Extract from a related article
Royal Dutch Shell also has in its payroll approximately 12,000 people from the area. The European oil major is already beleaguered by a falling bottom line and has been hiving off its North American and international assets.