News and information on Royal Dutch Shell Plc.
Perhaps worth noting is that investment decisions on the scale of the recent Shell write-offs would have required approval by the entire EC in the Hague long before BvB was around. Few of the EC members who made those decisions are still present.
It seems strange that so many of the huge projects which have been abandoned are in North America, and serious questions need to be asked about why approval was given by the EC for these huge projects. Only one member of the EC is directly involved in North American activities, Marvin Odum.
WASHINGTON — Shell is walking away from oil exploration in Arctic waters north of Alaska, but it isn’t ready to close the door completely.
Disappointing results from a critical test well at the company’s Burger prospect in the Chukchi Sea, combined with the high costs of developing the region and an “unpredictable regulatory environment” have prompted Royal Dutch Shell “to cease further exploration activity offshore Alaska for the foreseeable future,” CEO Ben van Beurden told reporters Thursday.
Royal Dutch Shell’s share price tumbled this morning after it revealed a third quarter loss of $7.4bn (£4.8bn) as the company gets to grips with the falling oil price.
The Anglo-Dutch oil giant posted its dramatic loss on the back of nearly $8bn-worth of exceptional items. Adjusted net income fell to $1.77bn, missing expectations that had put the figure at $2.92bn.
Shell posted a CCS earnings loss of $6.12bn, 216 per cent lower than the same time last year.
Cash flow from operating activities for the third quarter 2015 was $11.2bn, down from $12.8bn for the same quarter last year. Meanwhile gearing has increased to 12.7 per cent, up from 11.7 per cent at the same point in 2014.
LONDON — Lower petroleum prices took a big toll on Royal Dutch Shell in the third quarter.
The company reported a loss of $7.4 billion, compared with a profit of $4.5 billion in the quarter a year earlier. Adjusted for inventory changes and one-time items — a more closely watched measurement — earnings fell 70 percent to $1.8 billion.
The company took about $7.9 billion in write-offs for its recently halted exploration venture off Alaska, a canceled heavy-oil project in Canada and other operations.
Business News | Thu Oct 29, 2015 7:18am GMT
Royal Dutch Shell (RDSa.L) on Thursday reported a sharp drop in third-quarter profits on the back of low oil prices and a hefty $8.2 billion (5.4 billion pounds) charge which included write-offs in Alaska and Canada.
Shell’s current cost of supplies (CCS) earnings excluding identified items, the company’s definition of net income, fell to $1.8 billion from $5.85 billion a year earlier and from $3.835 billion in the previous quarter.
Royal Dutch Shell Plc reported its biggest net loss in at least a decade as it wrote down the value of assets and lowered its oil-price expectations.
The company, which is buying BG Group Plc in the industry’s largest deal this year, reported a third-quarter net loss of $7.42 billion, compared with a profit of $4.46 billion a year earlier. It took charges totaling $7.89 billion following its withdrawal from Alaskan offshore exploration and a Canadian oil-sands project.
Profit adjusted for one-time items and inventory changes dropped 70 percent to $1.8 billion, The Hague-based Shell said Thursday in a statement. That missed the $2.92 billion average estimate of 17 analysts surveyed by Bloomberg.
David Marino: 27 October 2015
Royal Dutch Shell Plc made its second major strategic change in two months, announcing it will take a $2 billion charge to exit an oil-sands project in Alberta.
Shell is stopping construction on the 80,000 barrel-a-day Carmon Creek facility, the company said in a statement on its website Tuesday. The charge will be recorded in third-quarter earnings, which are due to be released Thursday.
The cancellation comes a month after Shell said it would stop drilling in the Arctic, where it spent $7 billion searching for oil. Shell is among several companies pulling back spending as oil prices linger below $50 a barrel, less than half of their 2014 high.
Royal Dutch Shell Plc (LON:RDSA) carries hefty baggage and even if oil prices were to recover back to $100 per barrel, it would not solve all the firm’s problems, argued senior Morningstar analyst Stephen Simko.
Big bets on shale “destroyed huge amounts of capital” and the company has few growth assets, Simko said.
The notable exception is the potential addition of BG Group’s Brazilian operations, should the proposed merger complete successfully. BG’s interests in the Santos Basin are estimated to hold more than three billion barrels of recoverable oil resources and are projected to break even at only $30-35 per barrel.
By LAURA CHESTERS FOR THE DAILY MAIL: 25 October 2015
Britain’s oil giants will this week post their worst set of earnings since the rout in the price of crude began last year.
Investors will also be looking for any update on Royal Dutch Shell’s £55bn takeover of rival BG Group amid fears Shell is overpaying.
Shell, BG and BP will all post third-quarter earnings this week with the City expecting an average of a 60 per cent collapse in profits, according to experts at Morgan Stanley, suggesting the industry is facing its worse downturn in a decade.
Photo Credit: www.alamy.com: Dark days: The price of a barrel of Brent crude has plunged from more than $100 a barrel in the summer of last year to $48 a barrel today
By JON REES, FINANCIAL MAIL ON SUNDAY: 24 October 2015
BP and Shell will this week report billions of pounds wiped off their profits as the effect of the low oil price coupled with expensive exploration failures hammer two of Britain’s biggest companies.
The City expects BP, under chief executive Bob Dudley, to report an underlying profit fall of 60 per cent to £800 million on Tuesday when it unveils results for the three months to the end of September, compared with a profit of £2 billion for the same period last year.
On Thursday, Royal Dutch Shell Plc (LON:RDSA) is expected to post a 55 percent drop in quarterly earnings to £2.65 billion for the three months ended September 30, analysts’ consensus holds.
The slump due to the significantly lower oil price year-on-year will be exacerbated by Shell’s withdrawal from its costly Alaskan adventure. While not specifying the extent of the expected impact, the company noted last month that its Arctic position is worth about $3 billion (£1.97 billion), while it also has about $1.1 billion in “future contractual commitments”. To date, Shell has spent about $7 billion towards furthering its Arctic ambitions.
20 October 2015
The Canada-Nova Scotia Offshore Petroleum Board has authorized a Shell Canada Ltd. drilling plan in the Shelburne Basin that allows the company between 12 and 13 days to contain subsea blowouts, but one environmental group is concerned the capping stack won’t be housed here.
The timeframe is an improvement over the original 21-day plan, but still falls short of the U.S. requirement of 24 hours for drilling in the waters off Alaska. Shell Canada would also have to deploy a second capping stack as a contingency plan.
The US Interior Department announced on Friday that it will cancel the auction of 2016 and 2017 natural gas and offshore oil leases in the Arctic Ocean. The auction was scheduled under the Department’s current five-year Chukchi Sea leasing program for 2012–2017. The division cited low crude oil prices and lack of interest from oil companies as the main reason behind its decision.
This news comes a few weeks after Royal Dutch Shell plc (ADR) (NYSE:RDS.A) withdrew its Arctic drilling plan. The oil giant had spent $7 billion for the Arctic campaign. It said last month that it has dropped its exploration and production (E&P) activities in the Burger prospect of the Chukchi Sea, as it found few traces of oil and natural gas in the region. The company was not satisfied with the drilling results; it had initially expected huge amount of oil traces in the Ocean. Shell has dropped all future plans of Arctic drilling for the foreseeable future.
WASHINGTON — The Obama administration is canceling its plans to sell oil drilling rights in the Arctic Sea through 2017, a remarkable turnaround since expanding drilling by approving new drilling permits for Shell Oil earlier this year.
But Royal Dutch Shell’s decision last month to suspend its oil exploration in offshore Alaskan waters — citing disappointing results from a well in the Chukchi Sea — prompted the Interior Department to cancel further oil leases.
“In light of Shell’s announcement, the amount of acreage already under lease and current market conditions, it does not make sense to prepare for lease sales in the Arctic in the next year and a half,” said Secretary of the Interior Sally Jewell.
The U.S. Interior Department effectively halted drilling off Alaska’s coast for the remainder of President Barack Obama’s term by canceling two sales of Arctic oil and gas leases.
The decision comes less than a month after Royal Dutch Shell Plc said it would indefinitely cease exploration in the region as the company didn’t find sufficient quantities of oil or gas in a Chukchi Sea drilling zone.
“In light of Shell’s announcement, the amount of acreage already under lease and current market conditions, it does not make sense to prepare for lease sales in the Arctic in the next year and a half,” Interior Secretary Sally Jewell said in a statement on Friday.
The US government has announced new curbs on oil and gas exploration in Arctic waters off Alaska’s northern coast.
It comes after oil giant Royal Dutch Shell last month stopped its Arctic activity citing “disappointing” tests.
The US interior department said it was cancelling two potential Arctic offshore lease sales and would not extend current leases.
The announcement has been welcomed by environmentalists.
Miyoko Sakashita, of the Center for Biological Diversity, said the decision was “great for the Arctic and its polar bears”.
HOUSTON — The Obama administration shut the door Friday on drilling in Alaska’s Arctic Ocean over the next two years, canceling auctions for drilling rights in the Chukchi and Beaufort seas.
The decision by the Interior Department was not surprising because it came less than a month after Shell Oil canceled the most advanced exploration project in the region because of disappointing results from a test well and high costs at a time when oil prices are extremely low.
Still, the announcement is symbolically important as the administration steps back from its cautious support of drilling in the Arctic.
WASHINGTON: Fri Oct 16, 2015
The U.S. Interior Department on Friday said it would cancel two potential Arctic offshore lease sales after Royal Dutch Shell PLC (RDSa.L) said that it was not interested in those leases.
“In light of Shell’s announcement, the amount of acreage already under lease and current market conditions, it does not make sense to prepare for lease sales in the Arctic in the next year and a half,” Interior Secretary Sally Jewell said in a statement.
Shell said last month it was giving up its Arctic search for oil after failing to find enough crude oil.
Two drill vessels officially left Arctic waters after Royal Dutch Shell announced that the company would cease exploration in the Chuckchi and Beaufort seas. After a $7 billion investment and a standoff with kayaktivists, Shell cited a “disappointing exploration outcome,” meaning there’s oil in the Arctic, but not enough where they drilled to justify the cost. It’s a classic industry gamble called wildcatting: oil companies invest in an unexplored area hoping to strike black gold in the hidden reservoirs thousands of feet below the surface.
A new report finds that the largest oil companies are set to cut spending on exploration by at least half, potentially leading to very few new oil discoveries in the years ahead.
The report from investment bank Tudor, Pickering, Hold & Co., and reported by Fuel Fix, estimates that exploration budgets among the oil majors will drop to $25 billion in 2016, down from $50 billion from just a few years ago. Obviously, low oil prices are taking their toll, forcing deep spending cuts in a desperate attempt to shore up profitability. But the cuts have large implications for the energy sector, increasing the chances that some large oil fields remain undeveloped for years.
ANCHORAGE, Alaska (AP) — Two drill vessels employed by Royal Dutch Shell PLC off Alaska’s northwest coast have safely departed Arctic waters for the Pacific Northwest.
The 572-foot Noble Discoverer, owned by Noble Drilling U.S. LLC, reached Dutch Harbor in the Aleutian Islands on Sunday afternoon. After a Coast Guard inspection, the vessel departed Monday for the Port of Everett in Washington state, Shell spokesman Curtis Smith said.
The Polar Pioneer, owned by Transocean Ltd., reached Dutch Harbor on Monday afternoon. Two tug boats accompanying the semi-submersible drilling vessel, the Ocean Wind and Ocean Wave vessel, planned to refuel and change crews. The Polar Pioneer will be towed to Port Angeles, Washington.
BY ANTONIA JUHASZ / OCTOBER 13, 2015
Earlier this month, Shell’s tumultuous Arctic drilling campaign came to an abrupt and costly end. In a written statement, the company announced the cessation of its offshore Alaska activities “for the foreseeable future”—at a loss of billions of dollars. This both stunned and thrilled critics, many of whom worried that the seven-year effort to stop Shell was dead in July, when the Obama administration approved the company’s permits to drill.
Laurel Andrews: October 12, 2015
Two weeks after announcing the end of its Arctic offshore oil exploration program, Royal Dutch Shell’s Noble Discoverer drillship left Dutch Harbor Monday afternoon, the last planned stop in Alaska as it heads to the Pacific Northwest.
The company’s second drilling rig that had arrived in Alaska this summer, the Transocean Polar Pioneer, is close behind.
The Noble Discoverer arrived in Dutch Harbor Sunday, said Shell Alaska spokesperson Megan Baldino. During the stop, both rigs had a crew change and resupply of fuel and groceries.
Expanding the search for oil is necessary to pay for the damage caused by climate change, the Governor of Alaska has told the BBC.
The state is suffering significant climate impacts from rising seas forcing the relocation of remote villages.
Governor Bill Walker says that coping with these changes is hugely expensive.
He wants to “urgently” drill in the protected lands of the Arctic National Wilderness Refuge to fund them.
Alaska has been severely hit by the dramatic drop in the price of oil over the past two years.
Environmental organizations celebrated when Royal Dutch Shell announced it was halting oil and gas explorations in Alaska’s Chukchi Sea “for the foreseeable future.” Activists heralded the move as an unprecedented victory for their campaign to stop drilling: They managed to shut down a fossil fuels project, they claimed.
However, the oil giant is adamant that environmental groups played no role in its decision to leave the Arctic. A spokesperson confirmed to DW that the company withdrew for economic and legislative reasons, stating that the Burger J well didn’t contain enough oil to develop a viable commercial project.
Shell’s decision to end its program to drill for oil in Arctic waters off Alaska is being cheered by one international organization.
Shell’s drilling in the Chukchi Sea threatened Russia’s Wrangel Island Reserve, an ecologically rich site that is the only designated World Heritage site in the Arctic, said the United Nations Educational, Scientific and Cultural Organization, also known as UNESCO.
“This Arctic jewel, and the wealth of wildlife it supports, were threatened by Shell’s Chukchi Sea operations,” UNESCO said in a statement released Wednesday.
By Jennifer A. Dlouhy, Hearst Washington Bureau: Oct 8, 2015
WASHINGTON — Environmentalists who battled Arctic oil drilling by paddling kayaks, dangling from bridges and climbing onto rigs at sea have claimed a high-profile success against Shell and aim to funnel the resulting enthusiasm into other fights against fossil fuels.
Shell is abandoning its long crusade to find crude in the waters north of Alaska after disappointing results at a critical test well in the Chukchi Sea. While the company cited financial reasons for the pullout, the move nonetheless represents a tangible victory for environmental activists.
If the oil price stays low, Shell’s van Beurden may have to eat his words Photo: AFP
By Andrew Critchlow, Commodities editor: 06 Oct 2015
Royal Dutch Shell has reassured investors that it will maintain its dividends regardless of a prolonged slump in oil prices below $50 per barrel.
Chief executive Ben van Beurden, speaking at the Oil and Money conference in London, said: “Shell is pulling out all the stops to safeguard our dividends and buy-back programme, and to keep our investment programme steady for the future.”
WASHINGTON — Shell’s dreams of an Arctic oil bonanza were dashed with disappointing results from a critical exploratory well this summer, but they were in full force seven years ago, when the company aggressively outbid competitors to nab drilling rights in the Chukchi Sea.
Reeling from a scandal involving overstated reserves and desperate to replenish its portfolio, Royal Dutch Shell spent $2.1 billion buying up those Chukchi Sea leases, vastly outspending the competitors who plunked down just $800 million combined in the same government auction.
Royal Dutch Shell Plc expanded oil production off Nigeria’s coast by starting the third phase of its Bonga field.
That phase has a peak production capacity of about 50,000 barrels of oil equivalent, Shell said Monday in an e-mailed statement. The floating production and storage facility serving Bonga’s third phase has a capacity of more than 200,000 barrels of oil and 150 million standard cubic feet of natural gas a day.
Shell has a 55 percent stake in Bonga and operates what it says were the first deposits to be developed in Nigeria’s deep waters in 2005. Exxon Mobil Corp. holds 20 percent, while units of Total SA and Agip, a subsidiary of Italy’s Eni SpA, each own 12.5 percent.
When Royal Dutch Shell announced that it had lost its big-money bet in the Chukchi Sea and would end its entire program in the offshore U.S. Arctic, the hyperbole and finger-pointing began in earnest.
Rep. Don Young accused President Obama and Interior Secretary Sally Jewell of deliberately sabotaging Alaska’s economy. “I’m sure somewhere Sally Jewell and President Obama are smiling and celebrating Shell’s decision to cease operations off the coast of Alaska,” Young said in a statement issued just after Shell’s announcement.
Shell is set to reveal that quitting the Arctic cost it up to $4.1billion (£2.7billion) in its third-quarter results when it unveils them later this month – in a move that could push the oil giant into reporting a loss.
The firm took investors and its environmental opponents by surprise when it announced last week that it would end its drilling programme in the Chukchi Sea, 150 miles off the north-west coast of Alaska.
It said it had found indications of oil and gas but not enough to justify further exploration.
By Scott L. Montgomery OCTOBER 1, 2015
The company’s departure is certainly a pause in a new era of Arctic exploration, but it’s not the end.
After seven years of preparation and several billion dollars spent, Shell has decided to abandon its exploration program in the U.S. Arctic “for the foreseeable future.” This follows barely two months’ drilling in the Chukchi Sea at the company’s Burger J well, located 150 miles northwest of Barrow, Alaska. Evaluation of all data revealed “indications” of oil and gas but not enough to justify further activity in today’s low price environment.
To the Editor:
Re “Shell Pulls Plug on Exploration in Alaska Arctic” (front page, Sept. 29):
While the news that Shell has decided to pull out of its controversial Arctic oil exploration effort is cause for celebration for many environmentalists, I am hesitant to pop open the Champagne quite yet.
I find it hard to celebrate knowing that Shell’s withdrawal is the result of an oversaturated oil market fattened on shale oil from the Bakken formation and an OPEC overproduction of 1 million barrels above the cartel’s target output. Shell’s Arctic exit is a business decision in response to low oil prices due to a slowing economy and a glut of supply, both temporary conditions that do nothing to preclude a return to Arctic exploration once these conditions expire.
ANALYSIS: By The Business presenter Ticky Fullerton: 2 Oct 2015
Rarely have energy companies faced greater challenges, and global giant Shell has moved to tackle some of them head on.
Of all weeks to be in London to catch up with global Shell chief executive Ben van Beurden, this was it.
On Monday, the oil and gas giant gritted its teeth and pulled out of one of the most ambitious, expensive and controversial exploration forays on the planet – Alaska.
A project that could have delivered tens of billions of dollars instead delivered a dry well and, on Sunday, van Beurden and his team called it quits.
OIL companies have a proud history of digging holes in inaccessible places and producing gushers of money. But in the Chukchi Sea, in the Alaskan Arctic, Shell has poured $7 billion into a single 6,800-foot exploratory well, making it possibly the most expensive hole yet drilled, only to admit this week that it had not found enough oil and gas to make further exploration worthwhile.
That was a big climbdown for a company that had spent seven years since acquiring the Chukchi licenses in 2008 in a highly public, drawn-out battle to drill in the Arctic. The decision boiled down to costs, financial and reputational. Most big oil firms face similar pressures. Some will take a lesson from Shell and put their Arctic plans on hold, though Eni, a big Italian oil firm, is vowing to press ahead with its efforts to drill in the Norwegian Arctic.
By Charlotte Krol, and PA, video source YouTube / Greenpeace: 29 Sep 2015
Actress Emma Thompson has joined activists outside the headquarters of Shell to celebrate news that the oil giant is pulling out of drilling in the Arctic.
Greenpeace has been protesting against the company’s attempts to explore for fossil fuels off the coast of Alaska, including parking a double-decker bus-sized polar bear puppet outside the company’s London HQ for the last month.
The company said it would cease exploration in the region for the foreseeable future after failing to find sufficient signs of oil and gas to make further exploration worthwhile, blaming high costs and a “challenging and unpredictable regulatory environment”.
Sep. 29, 2015
Royal Dutch Shell (RDS.A / RDS.B) was always upbeat about the prospects of drilling in the Arctic, targeting resources that could be 10 times greater than the sum of oil and gas produced so far in the North Sea. Somewhat puzzling, the Anglo-Dutch multinational pressed on with its plans even though rivals Exxon Mobil (NYSE:XOM), BP (NYSE:BP), Chevron (NYSE:CVX) and ConocoPhilips (NYSE:COP) had all suspended activity in the area.
Royal Dutch Shell’s abrupt announcement today that it would cease all offshore drilling in the Arctic is surprising for several reasons. One is the unusual degree of confidence the company expressed as recently as mid-August that it had identified 15 billion barrels of oil beneath the well known as Burger J it’s now abandoning.
What on earth happened?
After spending $7 billion over several years to explore a single well this summer, Shell said in a statement that it “found indications of oil and gas … but these are not sufficient to warrant further exploration.” This contrasts sharply with Shell officials’ statements as recently as July and August that based on 3D and 4D seismic analysis of core samples, its petroleum geologists were “very confident” drillers would find plentiful oil.
As oil prices have continued their steady decline this year, rig after rig has been shut down, costing thousands of jobs in the United States. Yet major oil producers have been loath to pull the plug on their most ambitious projects — the multibillion-dollar investments that form the backbone of their operations.
Until now. On Monday, Royal Dutch Shell ended its expensive and fruitless nine-year effort to explore for oil in the Alaskan Arctic — a $7 billion investment — in another sign that the entire industry is trimming its ambitions in the wake of collapsing oil prices.
BY ZOË SCHLANGER 9/28/15
After a season spent drilling an exploratory oil well in one of the harshest environments on Earth, Royal Dutch Shell announced Monday morning it was abandoning its attempt to develop the Alaskan Arctic “for the foreseeable future.”
The exploratory well 150 miles offshore in the Chukchi Sea did not turn up enough oil to warrant the expensive and “unpredictable” enterprise, Shell said in a statement. It will be sealed and abandoned “in accordance with U.S. regulations,” the company said.
It’s all about oil prices.
Royal Dutch Shell said Monday it will stop drilling for oil off Alaska’s coast. The move comes after Shell failed to discover a noteworthy amount of undersea oil in a well off northern Alaska despite spending $7 billion on exploration efforts.
The decision will undoubtedly please the many environmentalists who were against the project from the start. But their protests aren’t the reason Shell is calling it quits in Alaska. Instead, Shell’s decision was economic: The price of oil has dropped precipitously over the past year, meaning it’s getting much harder to make a profit on the stuff.
ANCHORAGE, Alaska (AP) — Royal Dutch Shell has abandoned its long quest to become the first company to produce oil in Alaska’s Arctic waters, darkening the nation’s long-term oil prospects and delighting environmental groups that tried to block the project.
After years of effort, Shell is leaving the region “for the foreseeable future” because it failed to find enough oil to make further drilling worthwhile.
The company has spent more than $7 billion on the effort, slogged through a regulatory gauntlet and fought environmental groups that feared a spill in the harsh climate would be difficult to clean up and devastating to polar bears, walruses, seals and other wildlife.
To the delight of eco-warriors worldwide, Shell pulled the plug on its Arctic drilling campaign, taking a £2.7billion hit on the controversial venture that was persistently undermined by the prolonged oil price weakness and fierce opposition from ecological activists.
Although an exploratory well showed indications of oil and gas in Alaska’s Chukchi Sea, Shell blamed high costs associated with the project as well as the ‘challenging and unpredictable’ regulatory environment as it shelved its drilling plans for the foreseeable future.
It could have been Hillary Clinton’s tweet that did it.
Just after the US government had given the go-ahead for Shell to restart its exploration in Alaska, the Democratic presidential candidate took to the social media site.
“The Arctic is a unique treasure,” Mrs Clinton said on Twitter. “Given what we know now, it’s not worth the risk of drilling.”
Which seemed to ignore the fact that drilling has been taking place in the Arctic for decades – for example oil was first discovered in one of the main basins, Prudhoe Bay, in 1968.
(Reuters) – Royal Dutch Shell has abandoned its Arctic search for oil after failing to find enough crude, a move that will appease environmental campaigners and shareholders who said its project was too expensive and risky.
The withdrawal came six weeks after the final U.S. clearance and three months after Shell was still defending the project, a rapid change of heart for such a large company that showed it is preparing for a prolonged period of low oil prices while trying to close its $70 billion takeover of rival BG.