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Shell Prepares For A Different Energy Reality

: 14 August 2017

Summary

  • This summer has seen the governments of several of the world’s major economies propose to eliminate internal combustion engine vehicles over the next 10-30 years.
  • At the same time, Royal Dutch Shell announced several major clean energy investments over the summer in anticipation of a drop-off in petroleum demand.
  • This article looks at how Shell’s clean energy investments fit into its energy profile forecasts compared to its peers. MAIN ARTICLE
  • read more

    Shell Leaked Transformation Plans Part 6

    By John Donovan

    Published below is a further multi-page segment from Shell’s leaked internal document mentioned in a Reuters/New York Times article published last week: Shell Plans 400 Job Cuts at Dutch Projects and Technology Department. The plans are much greater in scope than suggested by the headline. Their implementation will result in a managerial jobs upheaval and significant job cuts as a consequence of the acquisition of BG Group and the decline in oil prices. Once again, I have left in the page numbers, which appear at the foot of each page and sometimes interrupt paragraphs. read more

    Shell’s 88 page global transformation plans leaked to John Donovan

    Embarrassingly for Shell, as the New York Times has reported this morning, I have a leaked copy of an 88 page Shell internal document setting out proposals for Shell’s global plans generally and in particular for the Netherlands, where several hundred more jobs are going to disappear. Part of a world-wide jobs upheaval at Shell. 

    A few days ago, CEO Ben van Beurden, mindful of the prospect of a falling oil price, claimed that Shell “is getting fit for the $40s.” Now we have a detailed insight about the scope of proposed transformational change at Shell deemed essential to achieving that objective. Embarrassingly for Shell, as the New York Times has reported this morning, I have a leaked copy of an 88 page Shell internal document setting out proposals for Shell’s global plans generally and in particular for the Netherlands, where several hundred more jobs are going to disappear. read more

    Shell shifts focus to chemicals and refining

    Anglo-Dutch energy giant Royal Dutch/Shell is shifting its focus toward downstream operations like refining and chemicals and away from traditional upstream activities like exploring for oil and gas, the Financieele Dagblad said on Wednesday.

    This shift is likely to become even clearer when the company publishes its second quarter figures on Thursday, the paper said.

    Shell’s investment in exploration slumped to $157m in the first quarter of 2017 from an annual quarterly average of between $500m to $600m in recent years, the paper points out.  This is partly due to the group’s recent acquisition of the BG Group which has large deep-sea reserves off the coast of Brazil. read more

    Shell News 18 July 2017

    Iran Looks To Close More Deals But Oil Majors Are Cautious: OilPrice.com: 18 July 2017

    Dutch Shell signed a preliminary deal last year to explore the Yadavaran field, together with the National Iranian Oil Company (NIOC) and China Petroleum & Chemical Corp, but has yet to make serious commitments, citing the uncertain political conditions within Iran. READ MORE

    Shell among firms fined over Indian oilfield dispute, report says: EnergyVoice.com: 18 July 2017

    The dispute over the Panna Mukta oil field when in favour of the Indian Government, the Economic Times reported, citing sources familiar with the matter. Reliance Industries and Shell have appealed the decision in a UK court, the report said. READ MORE read more

    Role of a hapless Ann Pickard in OPL 245

    By John Donovan

    During the period that Shell was conniving in setting up the OPL 245 deal, the company had a vice-like grip on the oil wealth of Nigeria and more power than the Nigerian government. This information comes from an analysis of leaked secret US embassy cables.

    Ann Pickard, a then senior Shell executive, was directly involved in the OPL 245 deal, and the primary indiscreet source of the secret information.

    Extracts below from various publications provide evidence of her role in OPL 245. They are followed by astonishing related extracts from a Guardian newspaper article about the leaked classified cables. read more

    Trump energised

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    By Ed Crooks, November 11, 2016

    “Between a battle lost and a battle won, the distance is immense and there stand empires,” said Napoleon. The same is true of elections.

    Donald Trump may have come slightly behind Hillary Clinton in the popular vote for the presidency, but his convincing victory in the electoral college will give him the ability to reshape the energy industry in the US and around the world.

    His hand will be strengthened by Republican control of Congress. Parts of Mr Trump’s agenda will face resistance in Congress, but his energy policy is unlikely to be one of those areas. His support for oil, gas and coal, his commitment to deregulation and his rejection of climate policy are all well aligned with mainstream Republican thinking. read more

    Oil From $50 Billion Kashagan Field Starts Flowing to Export

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    By Nariman Gizitdinov: 14 October 2016

    Kashagan, a vast oil field in the Caspian Sea, sent its first crude for export after about 16 years in development and more than $50 billion of investments.

    The venture loaded 26,500 metric tons of crude for export into the country’s pipelines, Kazakhstan’s Energy Ministry said in an e-mailed statement. Of that, 7,700 tons was sent to the Caspian Pipeline Consortium. Reaching stable production will take “some time” as commissioning work continues both offshore and onshore, the ministry said.

    The project has been plagued by multiple delays and cost overruns. A 2008 budget estimate of $38 billion jumped to $53 billion by the end of last year as the partners replaced undersea links after sour gas cracked the pipes. The crude from Kashagan is reaching an already saturated market, with prices at less than half the level of 2013 when the project hit a setback. Expectations for the field’s exports even prompted OPEC to flip supply predictions for next year. read more

    Shell’s Growth Priority Over The Next Five Years — Deepwater

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    Trefis Team SEP 29, 2016 @ 08:42 AM

    With the ever-growing energy needs worldwide, the conventional sources of energy are likely to exhaust soon. Having explored the majority of the onshore reserves, oil and gas producers around the globe are now moving to offshore reserves, that are primarily formations in deep waters, containing thick layers of oil and gas in permeable rock. Consequently, Deepwater drilling, often used to categorize drilling in water depths of greater than around 400 meters, has become an attractive alternative to onshore drilling. In line with this growing trend, Royal Dutch Shell (NYSE:RDS.A) has categorized Deepwater as one of its growth priorities for the next five years. (Also Read: Shell’s Growth Priority Over The Next Five Years – Chemicals) In this note, we discuss the growth potential of the deepwater market, Shell’s positioning in this market, and its strategy going forward. read more

    Shell Says While Gas Is the Future, It Won’t Be Traded Like Oil

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    At the moment, there is a global glut of natural gas…

    Screen Shot 2016-08-29 at 22.18.50By Kelly Gilblom and Rakteem Katakey: August 30, 2016

    Natural gas is rapidly becoming one of the most traded global commodities, but that doesn’t mean it will have a global price, according to Royal Dutch Shell Plc.

    While the fuel can be transported anywhere on liquefied natural gas carriers, it will probably remain regionally priced for the time being, with some contracts continuing to track oil, said Roger Bounds, senior vice president for global gas at Shell. Prices will depend on location, regulation and infrastructure, as some countries replace coal in electricity generation to cut carbon emissions. read more

    The Future of Big Oil? At Shell, It’s Not Oil

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    Screen Shot 2016-07-20 at 07.42.44The energy giant is shifting to gas as the industry adapts to climate change.

    By Matthew CampbellRakteem Katakey and James Paton: 20 July 2016

    At Australia’s Curtis Island, you can see Big Oil morphing into Big Gas. Just off the continent’s rugged northeastern coast lies a 667-acre liquefied natural gas (LNG) terminal owned by Royal Dutch Shell, an engineering feat of staggering complexity. Gas from more than 2,500 wells travels hundreds of miles by pipeline to the island, where it’s chilled and pumped into 10-story-high tanks before being loaded onto massive ships. “We’re more a gas company than an oil company,” says Ben van Beurden, Shell’s chief executive officer. “If you have to place bets, which we have to, I’d rather place them there.” read more

    Shell with a full tank of debt

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    By JACK HOUGH: JULY 16, 2016

    A dash of desperation is working wonders for module article chiclet Royal Dutch Shell. The price of Brent crude oil has fallen by half in two years, pulling Shell’s cash flow from operations well below what it typically needs to pay its dividend and fund exploration. Meanwhile, the purchase of United Kingdom gas specialist BG Group, completed in February, left Shell with a full tank of debt.

    Something had to give. Investors braced for a dividend cut, which is why the American depositary receipts (ticker: RDS.B) started the year priced low enough to yield 8%. But rather than reduce its payout, Shell slashed spending on projects and sold low-return businesses. Last month, it announced a capital plan through 2020 that calls for more asset sales and a limit on capital spending. read more

    Uncertainty in the oil price war

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    By Ed Crooks: JULY 15. 2016

    “War is the realm of uncertainty,” wrote the great Prussian military theorist Carl von Clausewitz. “Three quarters of the factors on which action in war is based are wrapped in a fog of greater or lesser uncertainty.”

    That applies to price wars every much as it does to the real kind. Almost from the moment crude began falling in 2014, news outlets started running confident-sounding claims that one side or another was winning the battle often depicted as a struggle between Saudi Arabia on one side and US shale producers on the other. read more

    Oil Is Still Heading to $10 a Barrel

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    By A. Gary Shilling:JUNE 28, 2016 12:00 PM EDT

    Back in February 2015, the price of West Texas Intermediate stood at about $52 per barrel, half of its 2014 peak. I argued then that a renewed decline was coming that could drive it below $20, a scenario regarded by oil bulls as unthinkable. But prices did fall further, dropping all the way to a low of $26 in February. Since then, crude rallied to spend several weeks flirting with $50 per barrel, a level not seen since last year. But it won’t last; I’m sticking to my call for prices to decline anew to $10 to $20 per barrel. read more

    Shell’s Ambitious Plan To Topple Exxon

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    By Rakesh Upadhyay – Jun 22, 2016, 5:17 PM CDT

    Ben Van Beurden, Chief Executive Officer of Royal Dutch Shell has laid out an ambitious plan to overtake ExxonMobil as the number one oil company in the world.

    Prior to the 1990s, Shell was the leader in total shareholder returns, however, its rivals went on a deal-making spree to gain the lead, while Shell shied away from making any acquisitions. Now, Mr. Beurden believes that Shell will be able to regain its lost glory post the acquisition of the BG group. read more

    Bad news for fossil fuels

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    By Ed Crooks: June 10. 2016

    Two of the most widely respected energy analysts – BP’s economics team and the International Energy Agency – published reports this week, and both brought bad news for fossil fuel producers. They differed, however, in the focus of their gloomy perspectives. For BP, publishing its 65th annual Statistical Review of World Energy, it was coal that came off worst. As Spencer Dale, BP’s chief economist, put it in his presentation, “2015 was undoubtedly an annus horribilis for coal”. The shift to natural gas for power generation in the US gathered pace, and there was a second consecutive year of declining consumption in China. read more

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