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Posts under ‘Arctic’

Shell Forced to Scale Back Ambitions

By James Stafford: Thu, 26 November 2015 As with most oil companies, 2015 has been a rough year for Royal Dutch Shell. The Anglo-Dutch company reported a third quarter loss of $6 billion, which included $7.9 billion in impairment charges. During its third quarter earnings call, Shell’s CEO Ben van Beurden summed up the company’s strategy, […]

By Charles Mandel | November 25th 2015 A handful of protesters from Sum of Us, Greenpeace, the Ecology Action and the Clean Ocean Action Committee delivered a massive 233,000-signature petition to the Canada-Nova Scotia Offshore Petroleum Board (CNSOPB) opposing what they said were extremely lax safety standards around Shell’s drilling program. Currently, if a subsea oil […]

Are the Oil Sands Going Bust?

Written by Keith Kohl: Posted November 12, 2015 at 6:51PM After backing out of an Arctic drilling program, Shell is taking yet another hit by leaving the Canadian oil-sands in Alberta. To put it simply: the losses were too great. There was no way Shell would have been able to stay competitive, so it decided to […]

Pickard quits Shell

Peter Klinger: November 11, 2015 Ann Pickard, once dubbed the “bravest woman in oil and gas” before she transformed Royal Dutch Shell’s century old presence in Australia, has quit the Anglo-Dutch giant. However, the decision to retire from Shell will not spell the end of her exposure to oil and gas, and LNG in particular which […]

Shell’s top Arctic exec is retiring, will join KBR board

Posted on November 10, 2015 | By Joshua Cain After Royal Dutch Shell scuttled its $7 billion Arctic drilling program in September, the company’s top executive on the project is moving on. Ann Pickard, Shell’s executive vice president in the Arctic, will retire from the company in February 2016, Shell spokeswoman Kelly op de Weegh […]

Shell update on BG takeover stokes fears for North Sea jobs

The update fuelled fears about the implications for the North Sea, where Shell and BG have around 2,800 staff and contractors working in total. Both have big operations centres in Aberdeen. The company has shed 7,500 posts globally this year in response to the crude price plunge. It has cut 500 North Sea jobs since […]

Shell’s boss fights to keep BG deal alive as he attempts to calm jittery investors

By LAURA CHESTERS FOR DAILY MAIL: 3 November 2015 Royal Dutch Shell chief executive Ben van Beurden is the oil industry’s equivalent of a swan – below his calm demeanour he is furiously paddling to keep his planned £40billion mega-deal afloat. Shell is buying rival BG Group and, to get the deal away and for […]

Shell carves more savings from BG Group deal, expects further job cuts

Posted on November 3, 2015 | By Collin Eaton HOUSTON — Shell has found another $1 billion in costs it could shake free after it buys BG Group, company officials said Tuesday, partly in response to critics of the huge acquisition Shell announced when crude was more expensive in the spring. The cuts would mean […]

Shell describes Arctic drilling project as a good prospect that just didn’t work out

Associated Press: Nov. 3, 2015 LONDON (AP) — Royal Dutch Shell CEO Ben van Beurden says the company will reflect on its decision to consider drilling off the coast of Alaska but voiced his regret that the prospect couldn’t be made to work out. Van Beurden told reporters Tuesday as Shell updated its strategy that it […]

Shell leaves door open for future exploration in Alaska’s Arctic

Jennifer A. Dlouhy | Houston Chronicle: November 2, 2015 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 […]

Shell’s Loss: Oil Prices Aren’t the Only Problem

There is blood in the water at Royal Dutch Shell By HELEN THOMAS: Oct. 29, 2015  There is blood in the water at Royal Dutch Shell. The wound will take some time to heal. The U.K. oil and gas company Thursday posted a huge third-quarter loss, dragged down by impairments of $8.2 billion in its upstream business. […]

Even as it walks away from Arctic drilling, Shell keeps door open for future work

Posted on October 29, 2015 | By Jennifer A. Dlouhy 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 […]

Low Oil Prices Take a Toll on Royal Dutch Shell in Quarter

By STANLEY REED: OCT. 29, 2015 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 […]

Shell Takes $2 Billion Charge to Quit Oil-Sands Project

David Marino: 27 October 2015 Company stops work at Carmon Creek facility in Alberta Halted oil-sands work follows Shell’s Arctic drilling exit 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 […]

Shell share price: Company’s problems extend beyond oil prices, analyst says

Big bets on shale “destroyed huge amounts of capital” and the company has few growth assets…the firm is far more likely to remain a laggard than become a leader among the oil majors for the rest of this decade… by Veselin Valchev: Tuesday, 27 Oct 2015 Royal Dutch Shell Plc (LON:RDSA) carries hefty baggage and even […]

Britain’s oil giants to post worst set of earnings since rout in price of crude began last year

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. […]

Oil profits set to plummet by billions: BP and Shell hit as prices plunge and exploration venture collapses

Photo Credit: 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 […]

Shell share price: Q3 earnings to fall 55 percent, analysts say

Company has “ample room to weather the storm” by Veselin Valchev: Monday, 26 Oct 2015 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 […]

BP and Shell profits poised to fall by half

Terry Macalister Energy editor: 25 October 2015 EXTRACTS BP and Shell are set to unveil a drop of more than half in their third-quarter profits this week, raising new questions about their ability to retain dividends and avoid further job losses. Shell has recently carried out its own cost reductions by trimming jobs in Aberdeen and […]

US Follows Royal Dutch Shell plc Backs Away From Arctic Drilling

By: Micheal Kaufman: Oct 19, 2015 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 […]

Interior: No more new Arctic oil leases for remainder of Obama’s presidency

Interior: No more new Arctic oil leases for remainder of Obama’s presidency Gregory Korte, USA TODAY: Oct 16, 2015 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. […]

U.S. Cancels Remaining Arctic Oil Lease Sales Under Obama

Brian Wingfield and Joe Carroll: BLOOMBERG.COM: 17 October 2015 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 […]

US curbs Arctic offshore oil and gas drilling

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 […]

U.S. Blocks Alaskan Arctic Drilling for 2 Years

By CLIFFORD KRAUSS: OCT. 16, 2015 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 […]

U.S. cancels Arctic offshore lease sale after Shell drops interest

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 […]

The risks of wildcatting in the Arctic

A former Shell Oil executive and catastrophic risk expert on the nightmare scenario when oil and ice mix. by Lauren Ellis @lauren_jellis: October 15, 2015 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 […]

Shell had to write-down some of its shale assets in the U.S., after spending $24 billion on a bet that failed to pay off, with company executives regretting ever having made the investment. By James Stafford: Wed, 14 October 2015 A new report finds that the largest oil companies are set to cut spending on exploration […]

Shell’s drilling vessels leave Arctic waters after company ends oil exploration off Alaska

DAN JOLING: Associated Press: Oct. 13, 2015 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 […]

Shell Is Reeling After Pulling Out of the Arctic

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 […]

Shell’s Arctic drill rigs make final Alaska stop

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, […]

Alaska mulls extra oil drilling to cope with climate change

By Matt McGrath: Environment correspondent, BBC News, Alaska: 12 Oct 2015 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 […]

Environmentalists ramp up resistance to big oil

Environmental groups have become emboldened by their perceived triumph over Shell in the Arctic, in which they refined new tactics. What impact might this decision have on the future green movement in the United States? Environmental organizations celebrated when Royal Dutch Shell announced it was halting oil and gas explorations in Alaska’s Chukchi Sea “for […]

UNESCO sees bright side to Shell’s Arctic pullout

Alaska Dispatch News: October 8, 2015 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 […]

Shell’s withdrawal from Arctic energizes activists

Activists plan broader green campaign 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 pledges to keep dividend despite slump in oil prices

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 […]

Aggressive bidding after reserves scandal put Shell on path to Arctic disappointment

$7 billion bust in the Arctic Ocean By Jennifer A. Dlouhy: 5 Oct 2015 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 […]

Shell Starts Nigeria Offshore Expansion of Up to 50,000 Barrels

Rakteem Katakey: 5 Oct 2015 Bonga phase 3 oil passes through floating production facility Shell has 55% of Bonga, Exxon 20%, Total, Agip 12.5% each 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 […]

Myths about Shell’s Arctic Alaska pullout persist

Yereth Rosen: Alaska Dispatch News: October 3, 2015 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 […]

Shell may post loss after taking £2.7bn Arctic exploration hit

Shell chief executive Ben van Beurden told The Mail on Sunday just two weeks ago that he was committed to the Arctic By Jon Rees For The Mail On Sunday: 4 Oct 2015 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 […]

What Shell’s latest move says about Arctic drilling myths

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 […]

Shell’s Exit From Arctic Oil Drilling

LETTER TO THE EDITOR OF THE NEW YORK TIMES “I am hesitant to pop open the Champagne quite yet…” 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 […]

Shell boss confronts environmental, carbon challenges

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. […]

A rig too far

Ben van Beurden, installed as Shell’s chief executive in 2014, could have halted the ill-fated project. But after a “personal journey”, he decided to go ahead. Shell’s retreat from the frozen north shows the new realities of “big oil”: Reputation was another factor in Shell’s retreat Oct 3rd 2015 | HOUSTON | From the print […]

Emma Thompson joins Greenpeace to celebrate Shell scrapping Arctic drilling

Emma Thompson joins Greenpeace to celebrate Shell scrapping Arctic drilling 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 […]

Royal Dutch Shell’s Arctic Bucket Of Ice Has Melted, Yield Is Now North Of 8%

Sep. 29, 2015 Summary * The Burger J well test results were a dud, no major reserves found. * Shell puts Arctic drilling on hold indefinitely, which further reduces future capex. * Dividend yield tops the 8% mark. Royal Dutch Shell (RDS.A / RDS.B) was always upbeat about the prospects of drilling in the Arctic, […]

Shell’s Arctic defeat ends dream of new frontier

Christopher Adams, Ed Crooks and Jack Farchy After nine difficult years and $7bn of spending, Royal Dutch Shell has admitted it has nothing to show for its contentious campaign to discover oil in the Arctic. As it pulled the plug on further drilling — announcing billions of dollars in likely losses — the prospects for […]

Why Shell Quit Drilling in the Arctic

By Paul Barrett: BLOOMBERG.COM: 28 SEPT 2015: 6:12 PM BST 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 […]

Shell Exits Arctic as Oil Slump Forces Industry to Retrench

By CLIFFORD KRAUSS and STANLEY REED 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 […]

Shell Abruptly Abandons Arctic Drilling, Finding It Too Costly

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 […]

These 2 charts explain why Shell stopped drilling in Alaska

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 […]