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Shell pushes back investment decision on Canadian LNG project

Screen Shot 2016-02-05 at 11.12.10VANCOUVER | BY JULIE GORDON: 4 FEB 2016

British Columbia’s ambitions to become North America’s next major liquefied natural gas exporter took another hit on Thursday, as Royal Dutch Shell pushed back a final investment decision (FID) on its LNG Canada project to late 2016.

The delay came as Europe’s largest oil company reported its lowest annual income in over a decade and said it would take further steps to cut costs to cope with weak oil prices if needed.

LNG Canada, located on British Columbia’s rugged northern coastline, is one of the frontrunners in a now slowing race to build Canada’s first LNG export terminal. It has already been granted its key environmental permits.

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Shell Profits Plunge By 80% Amid Oil Slump

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Shell is pressing ahead with a £36bn ($52bn) merger with exploration group BG. It has said 10,000 jobs will go across the two companies as a result. The deal has been approved by shareholders and will complete later this month.

The industry has been hammered by the collapse in the world energy market which has seen the price of a barrel of Brent crude dive by three-quarters from $115 in the summer of 2014 to around $30 at the start of this year.

Mr van Beurden said Shell was seeing “substantial changes”, slashing costs and investment in response to the slump – and warned that more cuts could come.

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LIVELY POSTINGS ON SHELL BLOG 1 FEB 2016

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“TEXVETTE”

Looks like Marvin Odum was stripped of key responsibilities and placed in a lame Role. Ironically he will have to clean up the messes he left in Alaska and Unconventionals. A bit of Karma, but he should no longer be on the payroll after all his major mistakes.

“OUTSIDER”

The merger of Shell T&T and Royal Dutch in 2004 resulted in a major loss to the UK exchequer, as the taxes previously paid by Shell T&T went to the Dutch government instead. Presumably the taxes previously paid by BG will now go to the Dutch government too?

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Shell-led joint venture gets key permit for LNG facility in Kitimat, B.C.

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By The Canadian Press in News | January 6th 2016

A Shell-led joint venture company has obtained a key permit to build a liquefied natural gas export facility in northern British Columbia.

LNG Canada is the first in the province to receive a facility permit from the B.C. Oil and Gas Commission. The document outlines the requirements for design, construction and operation of the proposed facility in Kitimat, B.C.

Director of external affairs Susannah Pierce said it’s a crucial development for the project, following environmental approval from federal and provincial authorities last June.

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Big Oil braced for global warming while it fought regulations

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Screen Shot 2015-10-26 at 21.23.40As many of the world’s major oil companies — including Exxon, Mobil and Shell — joined a multimillion-dollar industry effort to stave off new regulations to address climate change, they were quietly safeguarding billion-dollar infrastructure projects from rising sea levels, warming temperatures and increasing storm severity.

By AMY LIEBERMAN AND SUSANNE RUST: DEC. 31, 2015

A few weeks before seminal climate change talks in Kyoto back in 1997, Mobil Oil took out a bluntly worded advertisement in the New York Times and Washington Post.

“Let’s face it: The science of climate change is too uncertain to mandate a plan of action that could plunge economies into turmoil,” the ad said. “Scientists cannot predict with certainty if temperatures will increase, by how much and where changes will occur.”

One year earlier, though, engineers at Mobil Oil were concerned enough about climate change to design and build a collection of exploration and production facilities along the Nova Scotia coast that made structural allowances for rising temperatures and sea levels.

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Oil Prices Could Collapse To $20

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By Tyler Durden

Extracts from extracts…

Could oil prices collapse to $20? 

The short answer is ‘yes.’

We believe that crude oil prices could fall further unless global oil production is reduced. As shown in Table 2, we estimate that the global oil market could be oversupplied by roughly 920,000 bpd in 2016. The key assumptions are year-over-year growth in global demand of 1.2 million bpd, Saudi Arabia, Iraq and Libya hold production at current levels, Iran ramps up production at moderate pace over the course of the year and the U.S. rig count remains at current levels.

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Shell to Expand CNOOC Petrochemical Venture in Southern China

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Screen Shot 2015-11-20 at 08.55.47By Bloomberg News: December 15, 2015

Royal Dutch Shell Plc. is expanding its petrochemical venture in southern China with China National Offshore Oil Corp.

The two companies signed an agreement Tuesday to double the capacity of their equally held ethylene-cracking facility in Guangdong province to 2 million metric tons a year and add other chemicals units, Shell said in an e-mailed statement. The new facilities are expected to start operation in two years, it said, without providing a figure on the cost of the expansion.

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Royal Dutch Shell’s Management Wants You to Know These 5 Key Things

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Royal Dutch Shell’s Management Wants You to Know These 5 Key Things

Screen Shot 2015-11-20 at 08.55.47Last quarter was a pretty rough one for Royal Dutch Shell (NYSE:RDS-A) (NYSE:RDS-B). The company was forced to take more than $7.9 billion in charges to the income statement to write down some abandoned development projects, and its oil and gas production in the Americas continues to be a bit of a headache. 

Management was well aware of how these results looked, and so on its most recent conference call its executives acknowledged these weaknesses but also had some things to say that any investor in Shell should be aware of. Here are five quotes from the most recent conference call that provide some juicy tidbits into how to view this company over the long term.

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Shell Cutting Salaried Positions At Corunna

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Screen Shot 2015-11-20 at 08.55.47By Dave Dentinger on December 8, 2015: BLACKBURNNEWS.COM 

Shell Canada is cutting an unspecified number of salaried positions at its Corunna refinery in 2016 to remain competitive in a challenging economy.

Spokesman Randy Provencal says he can’t get into numbers at this point but the reductions will affect employees like engineers and office support staff and not hourly workers.

“The employees who are working in the plant, running the plant, they’re not impacted by these staffing reductions,” says Provencal.

“Shell is taking the necessary steps to ensure our manufacturing site here in Corunna is competitive through all economic cycles, right now what we’re doing is exploring a number of efficiencies which will result in some staff reductions in the coming year.”

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Shell Has Underperformed, But It Could Be The Only Oil Major That Emerges Bigger From The Downturn

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Screen Shot 2015-11-20 at 08.55.47…the company’s profits plummeted 70% from last year to $1.77 billion…

Sarfaraz A. Khan: Sunday, Dec 6, 2015

Summary

  • The oil major Royal Dutch Shell is closing in on its biggest-ever merger with the UK based oil and gas producer BG Group.
  • Shell has been the worst performing stock in its peer group and now offers an above average yield of 7.8%.
  • But Shell is generating enough cash from operations and asset sales to cover its spending.
  • More importantly, Shell could be the only oil major that emerges even bigger from the downturn.

The oil major Royal Dutch Shell (NYSE:RDS.A) (NYSE:RDS.B) is closing in on its biggest ever merger with the UK based oil and gas producer BG Group (OTCQX:BRGYY). On Wednesday, the Anglo-Dutch oil producer revealed that it has received a green signal from Australia’s Foreign Investment Review Board following an approval from the country’s anti-trust regulator received last month. The BG Group is one of the major players in Australia’s rising LNG sector where the company has invested more than $20 billion on developing the Queensland Curtis LNG plant.

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Shell Forced to Scale Back Ambitions

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Screen Shot 2015-11-20 at 08.55.47By James StaffordThu, 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, emphasizing restraint. “Grow to simplify” is how he put it. What that means in practice is scrapping the Arctic campaign; pulling out of the expensive Carmon Creek oil sands project in Canada; shedding assets in the less desirable parts of North American shale; selling assets elsewhere around the world, including Nigeria; and focusing on its merger with BG, which is a big bet on LNG.

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By Charles Mandel | November 25th 2015

Screen Shot 2015-11-20 at 08.55.47A 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 well blowout were to occur, the company would be allowed to take 12 to 13 days to contain it. Shell’s original proposal suggested it could take 21 days to get a capping stack to the site.

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Royal Dutch Shell, Exxon Mobil and Glencore: Energy companies risk wasting trillions on uneconomic projects

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By Jessica Morris: 25 November 2015

Energy companies risk wasting $2.2 trillion (£1.46 trillion) on uneconomic projects over the next 10 years, according to a new report.

Think tank the Carbon Tracker Initiative’s (CTI) report how fossil fuel firms risk destroying investor returns says energy companies’ focus on fossil fuels at the expense of emerging clean technologies could put them out of kilter with environmental regulation, which will eventually dampen demand.

It comes ahead of next week’s Paris Climate Change Conference (COP21) which is expected to result in, or at least pave the way for, more climate change legislation.

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Shell Canada fined $825,000 for Sarnia refinery pollution

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CALGARY, ALBERTA

Nov 24 The Ontario government on Tuesday ordered Shell Canada, a wholly owned subsidiary of Royal Dutch Shell, to pay C$825,000 ($620,487.36) in fines for discharging a contaminating odour from its Sarnia refinery in 2013.

In a statement, the Ontario Ministry for Environment and Climate Change said Shell had pleaded guilty to one offense of permitting a discharge of an odour containing mercaptan, a foul-smelling gas.

The Shell Sarnia Manufacturing Centre is located in Corunna, Ontario, and on Jan. 11, 2013, employees discovered a leak from a line containing mercaptan, which flowed into an on-site ditch that empties into the refinery’s storm sewer system.

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Lorraine Mitchelmore is stepping down as the head of Shell Canada. But she’s not going quietly.

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Screen Shot 2015-11-20 at 08.55.47NOVEMBER 18, 2015 10:20 AM

Extracts

Shell has reduced greenhouse gas emissions by 20 per cent per barrel from its oilsands business in the past five years, through many small efforts, including making more efficient use of its trucks.

Yet that hasn’t stopped Shell from being a target and paying a high price for the anti-oilsands campaign.

Last month it cancelled the 80,000-barrels-a-day Carmon Creek oilsands project in Peace River in mid-construction, taking a $2-billion impairment charge.

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Shell share price: Canada boss leaves company

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Screen Shot 2015-10-28 at 08.03.29by Veselin ValchevTuesday, 17 Nov 2015, 11:18 GMT

Royal Dutch Shell Plc (LON:RDSA) announced yesterday that the boss of the firm’s Canada division, Lorraine Mitchelmore, is stepping down from the company at the end of 2015, following six years at the helm.

The move comes less than a month after the Anglo-Dutch oil major abandoned its 80,000 barrel per day Carmon Creek thermal oil sands project in Alberta, amid a reshuffle of the firm’s portfolio.

A spokesman for Shell Canada said Mitchelmore’s departure had nothing to do with the decision to shelve Carmon Creek.

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HERE FIRST TEN DAYS AGO: Lorraine Mitchelmore Fired

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Michael Crothers at Shell E&P Ireland Limited

By John Donovan

On 7 November, we published the first news of the firing of Lorraine Mitchelmore, the President and Country Chair of Shell Canada.

The information, which came from a Shell insider source, was posted on our Shell Blog under the alias of “Manny”

The departure of Lorraine Mitchelmore has been confirmed today by the mainstream media, 10 days later.

She claims that she was not sacked, but stepped down to spend more time with her children. 

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Lorraine Mitchelmore, head of Shell’s Canadian division, stepping down

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The Canadian Press

Published Monday, November 16, 2015 4:00PM EST

CALGARY — The head of Royal Dutch Shell’s Canadian operations is leaving her job at the end of this year.

Lorraine Mitchelmore has been Shell Canada’s president and country chair for past six years and has led the global energy giant’s heavy oil business for three.

Mitchelmore says she decided to move on in order to spend more time with her two daughters, the youngest of whom is in Grade 6.

She says her next career steps will involve contributing to Canada’s prosperity by serving on select boards.

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Are the Oil Sands Going Bust?

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Screen Shot 2015-09-17 at 07.55.40Written by Keith KohlPosted 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 opt out, taking a $2 billion hit in the process.

As you know, the slump in crude oil prices since the summer of 2014 has caused energy companies to re-think upcoming projects.

Shell’s absence leaves at least 18 future projects on hold.

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Shell share price: Company not giving up on oil sands

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by Veselin ValchevWednesday, 11 Nov 2015

Royal Dutch Shell Plc (LON:RDSA) boss Ben van Beurden said last week that the withdrawal from the Carmon Creek thermal oil sands project in Alberta, Canada, does not mean that the Anglo-Dutch oil major has given up on oil sands in general.

Shell’s chief executive noted that the company rates investment opportunities on a project-by-project basis. In contrast to Carmon Creek needing oil prices at about $70 per barrel to break even, van Beurden remarked that Shell’s Fort McMurray oil sands project has operational costs of only $25 per barrel.

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Shell CEO says company committed to oilsands despite Carmon Creek decision

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LAUREN KRUGEL, THE CANADIAN PRESS: November 10, 2015

FORT SASKATCHEWAN — The CEO of Royal Dutch Shell Plc says a decision to back away from its Carmon Creek oilsands project last month does not mean it’s backing away from the oilsands in general.

Ben van Beurden told reporters last week that his company ranks investment opportunities in its global portfolio project-by-project, not region-by-region — so the whole industry cannot be painted with the same brush as the halted 80,000-barrel-a-day Carmon Creek project in northwestern Alberta.

More important than its upfront cost was the project’s “resilience” under a variety of different scenarios, said van Beurden.

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Shell says $60-$80 carbon price needed to justify carbon storage

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Screen Shot 2015-10-28 at 08.03.29Nov 6 2015, 16:59 ET | By: Carl Surran, SA News Editor

Royal Dutch Shell (RDS.A, RDS.B) unveils a $1.3B carbon capture storage project for Alberta, but says future efforts to curb greenhouse gases will continue to need financial support from governments.

Shell CEO Ben van Beurden says carbon capture and storage projects need a $60-$80 price for carbon dioxide to justify building them, more than 5x the current price of C$15/ton (US$11.27) in Alberta.

Shell’s Quest facility will extract 1M tons of the gas from its Scotford refinery each year, and the carbon dioxide will be injected into an underground saline formation ~50 miles from the plant – it is the first in North America to store CO2 in a deep saline formation.

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Screen Shot 2015-09-17 at 07.55.40DAVID HOWELL, EDMONTON JOURNAL: November 6, 2015

Fort Saskatchewan — Shell and its partners Friday opened the $1.35-billion Quest carbon capture and storage project.

It is designed to capture and store more than one million tonnes of carbon-dioxide emissions a year from the bitumen upgrader at Scotford.

Built with financial help from the Alberta and federal governments, Quest is the world’s first oilsands CCS project. Shell says it can reduce CO2 emissions from the upgrader by up to 35 per cent, an amount equal to the annual emissions of 250,000 cars.

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Citing Climate Change, Obama Rejects Construction of Keystone XL Oil Pipeline

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President Obama is the first world leader to reject a project because of its effect on the climate,” said Bill McKibben, founder of the activist group 350.org, which led the campaign against the pipeline. “That gives him new stature as an environmental leader, and it eloquently confirms the five years and millions of hours of work that people of every kind put into this fight.”

By CORAL DAVENPORT: NOV. 6, 2015

WASHINGTON — President Obama announced on Friday that he had rejected the request from a Canadian company to build the Keystone XL oil pipeline, ending a seven-year review that had become a symbol of the debate over his climate policies.

Mr. Obama’s denial of the proposed 1,179-mile pipeline, which would have carried 800,000 barrels a day of carbon-heavy petroleum from the Canadian oil sands to the Gulf Coast, comes as he seeks to build an ambitious legacy on climate change.

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Keystone rejection tied to climate inaction frustration-Shell CEO

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Markets | Fri Nov 6, 2015 3:38pm EST

By Mike De Souza

Nov 6 (Reuters) – The U.S. rejection of the proposed Keystone XL pipeline was driven in part by protesters who are increasingly frustrated with inaction on climate change, Royal Dutch Shell Plc Chief Executive Ben van Beurden said on Friday.

Speaking at the launch of Shell’s new carbon capture and storage project in Alberta, the first Canadian project of its kind in the oil sands industry, van Beurden said anti-fossil-fuel movements are growing because of anxiety and resentment about a failure to reduce greenhouse gas emissions.

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Shell Canada says Keystone XL was already in uncertainty window

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Shell Canada says Keystone XL was already in uncertainty window

Screen Shot 2015-10-28 at 08.03.29CALGARY: Fri Nov 6, 2015

Royal Dutch Shell PLc said on Friday there are at least three other possible pipeline alternatives to TransCanada Corp’s Keystone XL project, which was rejected by U.S. President Barack Obama, and Shell would like to see at least one approved.

“So Keystone has been on for seven years now, so of course, it’s brought into the uncertainty window,” Lorraine Mitchelmore, president of Shell’s Canadian unit, told reporters in Calgary.

(Reporting by Mike De Souza in Calgary; Editing by Chizu Nomiyama)

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Shell Canada and Nova Scotia petroleum board quizzed on oil spill risks

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Shell Canada and Nova Scotia petroleum board quizzed on oil spill risks

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By Jennifer Henderson, CBC News: 5 Nov 2015

Executives from Shell Canada and Nova Scotia’s Offshore Petroleum Board were quizzed this week by the legislature’s resource committee on the oil company’s plans in the event of a blowout at an offshore drilling site near Shelburne. 

“We feel privileged that we’ve been allowed to drill exploration wells in Nova Scotia but we take our responsibilities extremely seriously and we are very focused on ensuring that a spill doesn’t happen,” said Christine Pagan, Shell’s Atlantic Canada venture manager.

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Shell Canada carbon capture likely last to get Alberta subsidies

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Screen Shot 2015-09-17 at 07.55.40CALGARY, ALBERTA | BY MIKE DE SOUZACommodities | Thu Nov 5, 2015 9:01pm GMT

Royal Dutch Shell’s launch on Friday of Canada’s first oil sands project to capture and bury carbon emissions – assisted by generous public subsidies – will likely be the last to get such funding, the Alberta government said this week.

The left-leaning New Democratic government of the energy-rich Western Canadian province, home to the country’s controversial oil sands, said it no longer plans to fund future efforts using the technology.

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Shell update on BG takeover stokes fears for North Sea jobs

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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 August last year.

MARK WILLIAMSON / Wednesday 4 November 2015 / Business

ROYAL Dutch Shell has highlighted the potential it sees to slash costs following the planned $70 (£45bn) billion takeover of BG in comments that stoked concern about the likely impact on jobs in the North Sea.

The deal will increase the size of Shell’s business in the North Sea where the oil and gas giant may then make significant cuts as directors try to achieve the returns they are targeting.

In an update on strategy, Shell said it has increased its estimate of the synergies it will be able to squeeze out of the enlarged business by $1bn since the deal was announced in April, to $3.5bn.

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

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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 more job losses on top of the 7,500 in layoffs Shell has announced this year, but officials declined to say how many jobs would be affected or lost.

The value of Shell’s original $70 billion offer for the British gas producer, which is known for its prized Brazilian deep-water fields and its big liquefied natural gas business, fell to $56 billion a month ago and edged back up to about $60 billion as Shell’s share price and crude prices have fallen. Shell had proposed to pay for the deal mostly with shares.

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Shell share price: Oil major sells downstream assets

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by Veselin ValchevMonday, 02 Nov 2015

Royal Dutch Shell Plc (LON:RDSA) announced today that it has completed the sale of two assets from its downstream portfolio as part of its strategy to divest lower-margin businesses, as profits wane amid the depressed oil price.

The Hague-based oil major has completed the sale of its Butagaz liquefied petroleum gas (LPG) business in France to DCC Energy for €464 million (£332 million).

The sale follows a binding offer received by Shell in May, in addition to consultation with staff and regulatory approval, the company noted.

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Shell boss confident of ‘good’ ruling from ACCC on BG takeover

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Angela Macdonald-Smith: 30 October 2015

Royal Dutch Shell’s global chief executive Ben van Beurden says there is “massive support” from Australian federal and state governments for the oil giant’s $US70 billion ($98.6 billion) takeover of BG Group and is confident the national competition regulator will wave the deal through.

Mr van Beurden said even though the decision from the Australian Competition and Consumer Commission on the deal had been put back twice, he was “confident that they will come back with a good and prudent ruling”.

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

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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. Just less than half the charges owed to Shell reducing its view of longer-term oil and gas prices by an unspecified amount. The remainder was write-offs resulting from its decision to cease drilling in the Arctic and call a halt to a Canadian oil sands project.

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Royal Dutch Shell’s share price tumbles as group posts dramatic loss as falling oil prices take toll

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Screen Shot 2015-10-29 at 08.02.52by Catherine Neilan: 29 Oct 2015

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 figures

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.   

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

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Screen Shot 2015-10-29 at 08.02.52By 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 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.

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Shell profits slump after huge write-offs

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Screen Shot 2015-10-29 at 08.02.52Business 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.

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Shell halts construction on new Alberta oil sands project

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CALGARY, ALBERTA: Tue Oct 27, 2015

Royal Dutch Shell Plc will not continue construction of its 80,000 barrel per day Carmon Creek thermal oil sands project in northern Alberta because of the lack of infrastructure to move Canadian crude to market, the company said on Tuesday.

Shell said the decision to halt the project was also the result of “current uncertainties” and chief executive Ben van Beurden said the company was having to manage costs in today’s low oil price environment.

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Shell cancels big Canadian oil sands project

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Posted on October 27, 2015 | By Collin Eaton

HOUSTON – Royal Dutch Shell says it will stop building a large Canadian oil sands project after low crude prices pushed it out of the company’s shortlist of profitable projects.

It’s the second large project Shell has canceled since August, when it ditched a $7 billion effort to drill for oil in the Arctic Ocean north of Alaska. Shell said Tuesday its Carmon Creek project in Alberta, which was expected to pump 80,000 barrels of crude a day, was sanctioned in late 2013 when oil prices were still hovering around $100 a barrel.

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Screen Shot 2015-10-26 at 21.23.40Energy giant will take a $2 billion write-down; cites uncertain business environment

“We are making changes to Shell’s portfolio mix by reviewing our longer-term upstream options world-wide, and managing affordability and exposure in the current world of lower oil prices. This is forcing tough choices at Shell,” Ben van Beurden, Royal Dutch Shell’s chief executive, said in a statement.

FULL ARTICLE

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

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Screen Shot 2015-09-17 at 07.55.40David 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 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.

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Concern over Shell drilling for oil off Nova Scotia

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Screen Shot 2015-09-17 at 07.55.40By Christopher Ives: 21 October 2015

Today’s announcement from CNSOPB really surprised me.
Tuesday, 10/20/2015 – Canada-Nova Scotia Offshore Petroleum Board Issues Shell Canada Operations Authorization – Drilling

The 2nd sentence of their 5th paragraph states “The granting of an Operations Authorization does not authorize the use of dispersants in case of a spill.”

Wow. Does this mean toxic Corexit is banned (finally)? What other spill response measures are offered? Will these remove the oil?

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Shell Canada gets green light to drill for oil off Nova Scotia coast

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Screen Shot 2015-10-20 at 21.50.22Shell’s timeline to cap a blowout is still between 12 and 13 days

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.

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Shell’s Quest $1.35 billion carbon-capture project near Edmonton on target for completion

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DAVID HOWELL, EDMONTON JOURNAL: 19 Oct 2015

Fort Saskatchewan — More than 100,000 tonnes of compressed carbon dioxide have been sequestered deep underground during startup testing of Shell Canada’s $1.35-billion Quest carbon capture and storage project.

“We’re not quite at commercial operations — we’re expecting that in the near future — but in that (testing) process we are proving that we can safely inject that CO2 underground,” Quest lead Tim Wiwchar said in an interview this week.

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Drill ship headed to N.S. as Shell prepares for oil exploration

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Screen Shot 2015-09-17 at 07.55.40CTV Atlantic: Wednesday, October 14, 2015

With a drill ship on its way to Nova Scotia, it may be just a few weeks before Shell Canada begins oil exploration in the Shelburne Basin.    

The Stena IceMax is one of the most modern drill ships in the world and weighs nearly 60,000 tonnes. It’s designed to drill in deep water and is due to arrive in Nova Scotia around Oct. 20, although the date is flexible.

“It’s difficult to say when it will be within the staging area because we are awaiting a decision from the CNSOPB [Canada-Nova Scotia Offshore Petroleum Board] before we could begin any drilling activity,” says Cameron Yost, a spokesman for Shell Canada.

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Oil Sands Boom Dries Up in Alberta, Taking Thousands of Jobs With it

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Screen Shot 2015-10-13 at 12.37.36By IAN AUSTENOCT. 12, 2015

FORT McMURRAY, Alberta — At a camp for oil workers here, a collection of 16 three-story buildings that once housed 2,000 workers sits empty. A parking lot at a neighboring camp is now dotted with abandoned cars. With oil prices falling precipitously, capital-intensive projects rooted in the heavy crude mined from Alberta’s oil sands are losing money, contributing to the loss of about 35,000 energy industry jobs across the province.

Yet Alberta Highway 63, the major artery connecting Northern Alberta’s oil sands with the rest of the country, still buzzes with traffic. Tractor-trailers hauling loads that resemble rolling petrochemical plants parade past fleets of buses used to shuttle workers. Most vehicles carry “buggy whips” — bright orange pennants attached to tall spring-loaded wands — to help prevent them from being run over by the 1.6-million-pound dump trucks used in the oil sands mines.

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Myths about Shell’s Arctic Alaska pullout persist

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Screen Shot 2015-10-04 at 09.03.21Yereth RosenAlaska 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 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.

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Shell awaiting green light to begin Nova Scotia offshore drilling

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Screen Shot 2015-09-17 at 07.55.40Shell says 90 per cent of the supply vessel staff will come from Nova Scotia

25 Sept 2015

Four ships are standing by in Halifax Harbour, waiting for Shell Canada Ltd. to get the green light to hunt for oil in the deep waters of Nova Scotia.

The company expects to begin drilling two exploration wells in the Shelburne Basin within the next few months, pending approval from the Canada-Nova Scotia Offshore Petroleum Board.

“What we are waiting on at this point is the very important regulatory approvals and the availability of the ship conducting the drilling activity,” said Shell spokesperson Cameron Yost.

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How to Invest in Arctic Developments After Obama’s Alaska Trip

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Arctic developments have great potential, but are they worth the risks?

By Debbie CarlsonSept. 7, 2015

As climate change melts some of the Arctic’s permafrost, natural resource companies and shippers are eyeing the potential to develop a region that is receiving renewed public attention from President Barack Obama’s trip to Alaska.

According to global management consulting firm A.T. Kearney’s Global Business Policy Council, worldwide investment in the region could reach $100 billion over the next decade. The Northwest Passage and Northern Sea Route could potentially decrease travel times between the U.S., Europe and Asia by 40 percent, while the value of hydrocarbon deposits – crude oil and natural gas – located in the U.S. Arctic alone could exceed $1 trillion. The region is also home to rich metal deposits.

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Melting Ice Isn’t Opening Arctic to Oil Bonanza

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Screen Shot 2015-08-13 at 11.35.25By STEVEN LEE MYERS and CLIFFORD KRAUSSSEPT. 7, 2015

TERIBERKA, Russia — The warming Arctic should already have transformed this impoverished fishing village on the coast of the Barents Sea.

The Kremlin spent billions in the last decade in hopes of turning it into a northern hub of its global energy powerhouse, Gazprom. It was once the most ambitious project planned in the Arctic Ocean, but now there is little to show for it aside from a shuttered headquarters and an enormous gravel road carved out of the windblown coastline like a scar.

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Court Says Chevron Can Be Pursued in Canada Over Ecuadorean Damage

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Screen Shot 2015-09-05 at 07.12.20By IAN AUSTEN and CLIFFORD KRAUSSA version of this article appears in print on September 5, 2015, on page B2 of the New York edition

The Supreme Court of Canada ruled on Friday that a group of Ecuadoreans can use an Ontario court in an attempt to collect billions of dollars from Chevron for environmental damage.

The ruling is the latest step in a 13-year legal battle over the contamination of a rain forest in Ecuador, where Texaco had oil operations. The lawsuit has pitted Ecuadorean villagers in the region of Lago Agrio against Chevron, which bought Texaco.

While a trial court in Ecuador initially awarded the villagers $17.2 billion, an appeals court reduced the damages to $9.5 billion. It was one of the largest judgments imposed by a court for environmental contamination.

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