Daily Express
Oil giant Royal Dutch Shell to see profits slump by 38 per cent
How much reliance can be placed on Royal Dutch Shell predictions?
How much reliance can be placed on predictions emerging from Shell scenarios team? Very little if past accuracy of Shell predictions is any guide. Six years ago the then head of Royal Dutch Shell, the clueless Jeroen van der Veer predicted that the world would begin to run out of oil within 7 years – that’s next year. Since then, the whole outlook for oil and gas reserves has changed dramatically as a result of fracking and the US will surpass Saudi as the worlds top oil producer by 2016.
By John Donovan
Bloomberg news has published an article today under the headline Shell Sees Stable Oil Price for 20 Years With Volatility Bursts
Extract
In Shell’s “tighter” supply scenarios, crude prices could steadily increase over the 20 next years, while still going through periods of volatility that could see Brent falling to $70 a barrel, Bentham said.
How much reliance can be placed on predictions emerging from Shell scenarios team?
Very little if past accuracy of Shell predictions is any guide.
BP and Shell profits set to fall by billions
Shell will report that its net earnings have fallen 25 per cent to £4.9 billion, due to its struggles with spills, theft and disruption at its Nigerian operations, as well as higher exploration costs and a weak refining and petrol market. “Unfortunately, ongoing issues in Nigeria, higher exploration charges, losses in Upstream Americas plus a weak downstream environment do not augur well,†Investec said.
BRITISH oil giants BP and Royal Dutch Shell are set to report plunging third-quarter profits this week, with both expected to say that they have been hit by weak refining margins and production outages, according to City analysts.
By: Helen Massy-Beresford Aside from tougher market conditions, analysts believe BP’s Gulf of Mexico oil spill legal battles will weigh on its results expected on Tuesday. They predict increased US legal provisions will contribute to profits falling 37 per cent to £4.9 billion.Investec forecasts BP’s arch-rival Shell will report that its net earnings have fallen 25 per cent to £4.9 billion, due to its struggles with spills, theft and disruption at its Nigerian operations, as well as higher exploration costs and a weak refining and petrol market.“Unfortunately, ongoing issues in Nigeria, higher exploration charges, losses in Upstream Americas plus a weak downstream environment do not augur well,†Investec said.
Deutsche Bank said challenges in Nigeria meant they viewed the quarter with “continuing trepidation†saying that in refining “Shell’s outsized footprint combined with the usual bout of unplanned downtime looks set to cost them dearly.â€
Resources exploration firm BG Group, which was part of British Gas owner Centrica until 1997, is expected to say on Thursday that its profits for the third quarter have fallen 20 per cent to £1.8 billion.
Links to a selection of Shell related articles
Links to a selection of current Shell related articles kindly supplied by a regular contributor
Montepeque of Platts Caught in Battle Over Oil Assessments:Â Bloomberg:Â The oil-market investigation became public in May when European … Royal Dutch Shell Plc (RDSA), three of Europe’s largest oil companies, …
Shell will keep oil shale R&D, sell its other Colorado assets:Â Denver Business Journal (blog)-Aug 23, 2013;Â Royal Dutch Shell’s U.S. subsidiary will keep its oil shale research project going in Colorado, but the company’s other assets in the …
Shell ‘shuts down £8.3bn project in China’
Royal Dutch Shell is likely to face questions over the future of its operations in China after sources claimed an £8.3bn project in the country had been quietly shelved. The cancellation of the project in the eastern city of Taizhou will raise doubts about Shell’s bold push into China and its partnership with CNPC. Shell has assiduously courted the state-owned giant, only to see CNPC swept up in a political purge which has seen at least five current or former executives investigated by the Communist party.
The news raises questions about Shell’s position in China Photo: GETTY
By Malcolm Moore, in Beijing: 8:30PM BST 10 Sep 2013
The tie-up with China National Petroleum Corp (CNPC), the country’s largest energy producer, and Qatar Petroleum to build a refinery and petrochemical plant is believed to have been suspended after losing political support.
The cancellation of the project in the eastern city of Taizhou will raise doubts about Shell’s bold push into China and its partnership with CNPC.
Shell has assiduously courted the state-owned giant, only to see CNPC swept up in a political purge which has seen at least five current or former executives investigated by the Communist party.
Blaze hits Shell plant in Texas
Published: Tue, August 20, 2013
ROYAL DUTCH SHELL has shut down parts of a refinery in Port Arthur, Texas, after a fire broke out following a £6.4billion expansion scheme.
Shell closed units at the Motiva refinery, which is run by a joint venture of the oil giant and Saudi Refining, after the second blaze in a week is said to have started near the biggest of the plant’s three crude oil units.
The first attempt to start the unit, at the end of a five year upgrade of the refinery, was hampered by a chemical leak in June 2012.
The unit has been running at reduced rates since it began production early this year.
The company may shut the crude unit in the autumn of 2014 to fix the problems.
Shell shock as new boss is appointed
ROYAL DUTCH SHELL sprang another surprise on the City yesterday by naming its head of refining Ben van Beurden as its new chief executive to succeed Peter Voser next January.
Dutchman Van Beurden, 55, who has been with the Anglo-Dutch oil giant for 30 years but only appointed to the board in January as boss of its downstream operations, had not been touted as a likely contender to replace Voser, whose decision to stand down after less than five years in the top job had stunned investors.
Analysts had focused on chief financial officer Simon Henry and other divisional heads including Marvin Odum and Andy Brown as potential successors, although Shell also reviewed outside candidates.
All the worst Shell traits – secrecy, haughtiness, inertia
From our Shell News Archive Sunday 31 October, 2004
The fallout from the Shell reserves fraud continues…
The Independent On Sunday (UK): Business View: Shell’s real location problem is finding more black stuff: “The misreporting of reserves scandal showed all the worst Shell traits – secrecy, haughtiness, inertia.”: “So what’s the hurry? Was it because Shell had to admit that it had uncovered another 900 million barrels of doubtful crude in its reserves and was likely to uncover 600 million more?”
Sunday Express (UK): Shell boardroom changes backfire on reserves news: “ONE OF the world’s most influential financial firms has given the thumbs down to an announcement from Shell it is to end its 97-year-old dual board structure.”: “…financial ratings agency Standard & Poor’s said it had adjusted Shell’s investment rating downwards to “creditwatch negative”, a status which implies there may be more bad news to come from the company.”
Mail on Sunday (UK): Shell bosses in a charm offensive: “The Board, headed by Jeroen van der Veer, will see thousands of staff to explain the proposed changes and shore up the mood of the employees damaged by scandals over Shell’s inflated oil reserves.”: “Last week, Shell was forced to downgrade its estimates of proven oil reserves for the fifth time this year. Reserves are now a third lower than originally thought”
A DREADFUL DAY FOR SHELL SHAREHOLDERS, ESPECIALLY UK SHELL SHAREHOLDERS
FROM OUR OCTOBER 2004 SHELL NEWS ARCHIVE
Friday 29 October, 2004 – A DREADFUL DAY FOR SHAREHOLDERS IN SHELL TRANSPORT AND TRADING COMPANY PLC
The Times (UK): The Hague for head office: “ALTHOUGH it maintains otherwise, Shell is effectively going Dutch…”: “From May, the big decisions will be taken by a new board in The Hague, which has seven Dutch members and only four Britons.”: “…from 2006 it will hold AGMs only in The Hague.”
The Times (UK): Fear of new Shell reserves downgrade: “ROYAL Dutch/Shell yesterday raised fears that it may have to write down its reserves by more than 1.5 billion barrels…”: “With less than 60 per cent of its reservoir audit completed, Shell was unable yesterday to put a ceiling on the potential downgrade of its reserves…”
Daily Telegraph (UK): Dutch chiefs take helm of merged Shell: “The radical move, which needs to be approved by shareholders, is likely to be seen as a Dutch takeover of the energy giant…”: “The news was overshadowed by yet more revelations about the company’s “proven” reserves…”
OIL GIANTS BACK IN BLACK AS CRUDE RISES
By Geoff Ho: Sunday October 28,2012
OIL giant BP is expected to return to profit this week when it reports its third-quarter results thanks to the rising oil price, while arch-rival Royal Dutch Shell is also set to announce improved profits.
BP is expected to make a net profit of $4 billion (£2.5 billion) for the three months to September 30, which would return it to profitability after registering a $1.3 billion loss in the preceding quarter. The oil giant will unveil its third-quarter results on Tuesday.
City analysts expect Royal Dutch Shell to report a net profit of $7.3bn, an increase of 79.7 per cent on the second quarter, when it announces its third-quarter results on Thursday.
SHELL’S ANNUS HORRIBILIS
FROM OUR SHELL NEWS ARCHIVE SEPT 2004
Daily Express (UK): SHELL’S ANNUS HORRIBILIS
Published 23 Sept 2004
Jan 9, 2004: Reserves downgraded; shares slump
Mar 7: Chairman Sir Philip Watts ousted
Apr 19: E-mails about ‘lying’ revealed
Apr 24: FSA launches probe
Jun 6: Shell forced to speed up structural reform
Jul 29: Fined £84m by US and UK watchdogs
Sep 22: New investment strategy
SCOTTISH OIL RIGS IN DIRE STRAITS
Mr Campbell insisted it is only a matter of time before there is another major tragedy in the North Sea. He said: According to public domain data there were 85 gas releases and 443 dangerous occurrences last year. If you are getting 85 gas leaks thats one and a half, or two, leaks a week. The probability of an undesirable event is very high.
CLICK ON IMAGE TO ENLARGE
By John Donovan
The Sunday Express has today published an article under the headline: “Rusting rigs spark fears of oil tragedy” (above newspaper article) and “SCOTTISH OIL RIGS IN DIRE STRAITS” (online version).
The newspaper approached us for assistance and we were happy to supply extensive information, including the revealing letter we obtained from the Health & Safety Executive that is mentioned in the article.
We also put the Sunday Express journalist Paula Murray into contact with Bill Campbell, the retired HSE Group Auditor of Shell International to led the safety audit team on Shell North Sea platforms in 1999 which exposed a “Touch F*** All” maintenance culture with bodged repairs and falsified safety records. A more recent report (in 2008) by upstreamonline revealed that even the oil rig lifeboats were not seaworthy.
BOSSES SOARING PAY IS SLAMMED
Shell is often at odds with institutional investors over the generous pay packages it gives to its executives, such as boss Peter Voser, who last year took home £4.6 million in pay and bonuses.
By Tracey Boles and Geoff Ho: Sunday May 15,2011
THE pay of top earners is spiralling out of control, a high-level report will warn tomorrow, as investors prepare to tackle three of Britains biggest companies over excessive remuneration.
The independent inquiry into high pay across both the public and private sectors, says that it is climbing at an alarming rate.
The High Pay Commission will also warn in its report, out tomorrow, that Britain is on course for levels of inequality not seen since Victorian times.
SHELL SURGES BUT BP FAILS TO CASH IN ON OIL PRICES
Sunday April 24,2011
By Tracey Boles
A DIP in production is expected to stop BP reaping the full benefit of the high oil price in its first-quarter results, out this week.
But arch-rival Royal Dutch Shell is forecast to enjoy a surge in first-quarter earnings on the back of the oil price which averaged $105 (£64) per barrel in the three-month period.
First-quarter profits at crisis-hit BP are expected to be broadly flat at $5.6 billion (£3.4 billion).
Analysts at Charles Stanley said: Production volumes could be some 7 per cent lower and as a result, BP will have less leverage from higher oil prices which are some 32 per cent higher than a year ago.
The Times: Shell chief fears oil shortage in seven years
THE TIMES
Carl Mortished, World Business Editor
January 25, 2008
World demand for oil and gas will outstrip supply within seven years, according to Royal Dutch Shell.
The oil multinational is predicting that conventional supplies will not keep pace with soaring population growth and the rapid pace of economic development.
Jeroen van der Veer, Shell’s chief executive, said in an e-mail to the company’s staff this week that output of conventional oil and gas was close to peaking. He wrote: “Shell estimates that after 2015 supplies of easy-to-access oil and gas will no longer keep up with demand.”
Daily Express: Boss in Shell scandal starts legal fightback
Daily Express (UK): Boss in Shell scandal starts legal fightback
“… Watts’ counsel, David Pannick, claimed Watts could be easily identified by any “reasonable reader”. This was because the notice referred to Shell’s annual report, signed off by Watts, which contained false reserves statements, and to a Shell-commissioned report into the scandal, naming him among others. This had led to “contemptuous press coverage”.
Published by Daily Express 26 July 2005
By Andrew Johnson
SIR PHILIP WATTS, ousted as Shell’s boss in the oil reserves scandal, yesterday fired the opening shot against the Financial Services Authority in the fight to clear his name.
His lawyers told a preliminary hearing of the Financial Services and Markets Tribunal the City watchdog had infringed his rights by identifying him in a potentially damaging way when explaining why it had fined Shell £17million for market abuse. He should have been given an advance look at the notice to answer criticisms, they said.
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