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Kashagan oil field allegations ignored by Shell exec Andy Brown?

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By John Donovan

Printed below are extracts from a communication received from a Shell Civil Engineer who, until recently, worked on the construction of the ill-fated Kashagan oil field.

He says his dire warnings in regard to construction issues were escalated to Shell top management, including Andy Brown, but were ignored.

He has also raised the subject of Shell depriving sacked workers tax breaks on redundancy pay. A policy he describes as theft.

The same source supplied related, apparently authentic, Shell emails.

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Opec bends the markets

screen-shot-2016-12-03-at-08-16-41By Ed Crooks, December 2, 2016

In 451 CE, the great Roman general Flavius Aetius rallied a motley army of imperial troops and barbarian allies, and halted the advance of Attila’s Huns at the Catalaunian Plains in Gaul, buying the empire some time and temporarily interrupting its long-term decline. This week’s Opec meeting in Vienna had something of the same feel about it.

Opec’s power peaked in the 1970s, and the US shale oil revolution of the past half-decade has threatened to consign the cartel’s influence to history. But by agreeing a deal to cut production on Wednesday, the Opec ministers showed that if they all acted together they could still bend the oil markets to their will, at least for a while.

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Shell studying acquisitions in the green energy sector

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screen-shot-2016-11-09-at-19-58-01Written by Reporter – 30/11/2016 2:02 pm

Shell said it is studying acquisitions in the green energy sector.

It comes amid shareholder pressure to look at a strategy beyond fossil fuels.

The oil major currently has a market value of $200billion and produces 2% of the world’s oil and gas.

Chief executive Ben Van Beurden said: “The idea you can just be a very clever observer and step in when the moment is right, forget about it.

“I am convinced that in this space we will play an active role, a leafing role and we will plan acquisitions in it.”

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Shell to Start Feeling Norway Heat on Ormen Lange Gas Project

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By Mikael Holter: November 30, 2016 

Norway expects Royal Dutch Shell Plc to go forward with a shelved project to boost recovery of natural gas at the Ormen Lange field and warned it will start pushing the company for progress from next year.

“A clear message to Shell is that we expect that it seizes the opportunities that exist at Ormen Lange and comes to a decision to take this forward,” Bente Nyland, the head of the Norwegian Petroleum Directorate, said in an interview in Oslo on Wednesday. “There are a lot of resources at Ormen and we have to get them out.”

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Nigeria reaches a deal to pay $5.1 billion in unpaid bills to oil majors – minister

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By Felix Onuah

Nov 17 Nigeria has reached a deal to pay $5.1 billion in unpaid bills to oil majors including Royal Dutch Shell and Exxon Mobil, the minister of state for oil said on Thursday.

The Nigerian National Petroleum Corporation (NNPC), the OPEC member’s state oil firm, has amassed a total of $6.8 billion in unpaid bills up to December 2015, so-called cash calls, that it was obliged to pay under joint ventures with Western oil firms, with which it explores for and produces oil.

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Dutch groups demand tighter curbs on Groningen gas production

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screen-shot-2016-11-17-at-19-09-24A top Dutch court has received 25 appeals against the government’s decision to cap production at the Groningen gas field at an annual figure of 24 billion cubic metres from protesters who think it does not go far enough.

Several groups in the region had asked for a steeper reduction to prevent earthquakes, which have damaged thousands of structures in the northern province.

Output from Groningen, which once supplied 10 percent of demand in the European Union, has halved over the past two years after the Dutch Safety Board said the government was failing to protect citizens from earthquakes triggered by gas exploitation.

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Nigeria Reaches $5.1 Billion Debt Settlement With Oil Majors

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By Elisha Bala-Gbogbo and Rakteem Katakey: November 17, 2016

Nigeria reached a $5.1 billion settlement to reimburse foreign oil companies including Exxon Mobil Corp. and Royal Dutch Shell Plc for past operating costs.

The amount, less than the $6.8 billion previously discussed, will be settled through crude-oil sales over five years and will be interest free, Petroleum Minister Emmanuel Kachikwu told reporters in the capital, Abuja, Thursday.

“What we have been able to put together has enabled us to shave about $1.7 billion in savings for the federal government from the $6.8 billion that was owed,” he said. “The barrels to pay those will come from incremental barrels generated by the oil companies, not from the current 2.2 million-barrel-a-day production.

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How Royal Dutch Shell plc Has Changed in the Past Three Years

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SHELL EMPLOYEE AT WORK. IMAGE SOURCE: ROYAL DUTCH SHELL.  

By Reuben Gregg Brewer (ReubenGBrewer: Nov 17, 2016

Royal Dutch Shell plc (NYSE:RDS-A) (NYSE:RDS-B) is one of a small collection of international energy giants. That group, which includes companies like ExxonMobil (NYSE:XOM) and Chevron (NYSE:CVX), as a whole, is thought of as oil companies. But over the past few years, Royal Dutch Shell has taken steps to tip the balance toward natural gas, a key difference investors need to know about.

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Big Oil Looks Past Profit Crunch as Cash Flow Shows Recovery

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By Javier Blas: November 9, 2016

Ask any oil-company accountant, “what’s the difference between income and cash flow?” and they’re likely to say income makes the headlines, cash pays the bills.

It may be glib, but there’s a nub of truth there. Cash generation is the yardstick used to judge a company’s ability to invest and pay dividends, and it’s been growing at the biggest oil producers for three quarters in a row.

Last quarter the world’s largest listed energy companies — Exxon Mobil Corp., Royal Dutch Shell Plc, Chevron Corp., Total SA and BP Plc — reported cash from operations of almost $26 billion, up 67 percent from the previous three months and more than double the first-quarter amount, according to data compiled by Bloomberg.

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FT: Western oil companies reach $5B deal with Nigeria

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Nov. 8, 2016 10:23 AM ET|By: Carl Surran, SA News Editor

Nigeria’s government has reached an outline settlement to resolve a dispute with western energy firms that would pay the companies $5B to cover exploration and production joint venture costs in the country, Financial Times reports.

Nigeria’s petroleum minister tells FT that Royal Dutch Shell (RDS.A, RDS.B), ExxonMobil (NYSE:XOM), Eni (NYSE:E), Chevron (NYSE:CVX) and Total (NYSE:TOT) accepted the settlement of costs incurred during 2010-15, and hopes a deal can be finalized by year-end.

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Western oil companies reach $5bn deal with Nigeria

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by: Anjli Raval and Maggie Fick in Lagos

Emmanuel Ibe Kachikwu, Nigeria’s minister of state for petroleum resources, told the Financial Times the settlement had been “accepted” by the five companies. It is hoped the deal can be finalised before the end of the year.

FULL FT ARTICLE

Hold the champagne

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screen-shot-2016-11-03-at-14-50-16By Ed Crooks, November 4, 2016

If you are looking forward to the oil industry recovery, you shouldn’t break out the champagne just yet.

Over the past eight days, the world’s largest listed oil companies have released third quarter earnings reports. From all of them, the message was that while the worst might be over, they were still facing a long hard road ahead.

The snap reactions from the stock market were mixed: positive for  ChevronRoyal Dutch ShellTotal and ConocoPhillips; negative for ExxonMobilBPEniStatoilPetrochina and Cnooc.

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Big Oil Slowly Adapts to a Warming World

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By CLIFFORD KRAUSSNOV. 3, 2016

In a warming world, Big Oil doesn’t look quite so big anymore.

A global glut of oil and natural gas has sent prices tumbling over the last two years, and profits are evaporating. Improving auto fuel efficiency standards threaten to depress oil consumption eventually, and fleets of electric vehicles are gradually emerging in China and a few other important markets.

Perhaps most troubling for oil companies over the long term is the goal — agreed to last December by virtually every country in the world at a climate conference in Paris — of staving off a rise in average global temperatures of more than 2 degrees Celsius above preindustrial levels.

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Shell’s Record BG Deal Starts to Pay Off as Production Surges

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screen-shot-2016-11-01-at-16-01-19By Rakteem Katakey: November 1, 2016

Royal Dutch Shell Plc’s biggest takeover, the subject of intense investor scrutiny during crude’s collapse, is starting to pay off as Europe’s largest oil company chalks up its highest profit in five quarters.

The cash now generated by BG Group Plc — acquired by Shell for $54 billion in February — outstrips its spending, while production has risen by about a third in two years, Shell Chief Financial Officer Simon Henry said Tuesday. The integration of its assets has been completed “well ahead of time,” he said.

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Shell’s earnings beat Exxon as oil majors adapt to low prices

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By Ron Bousso and Karolin Schaps | LONDON

Royal Dutch/Shell and BP on Tuesday joined peers in reporting higher than expected earnings by making further deep cuts in spending to cope with an oil price downturn now in its third year.

Shell’s stocks rose by over 3 percent as it announced higher quarterly earnings than arch-rival U.S. Exxon Mobil, the world’s largest listed company by output. Anglo-Dutch Shell is hoping to outgrow Exxon over the next few years after acquiring rival BG for $54 billion earlier this year.

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Shell Smashes Estimates as BG Acquisition Drives Up Output

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By Rakteem Katakey: November 1, 2016

Royal Dutch Shell Plc reported third-quarter profit that beat analyst estimates after its acquisition of BG Group Plc boosted oil production, helping to counter a slump in prices. The shares rose.

Profit adjusted for one-time items and inventory changes advanced 17 percent from a year earlier to $2.79 billion, The Hague-based Shell said Tuesday. That exceeded the $1.79 billion average estimate of 14 analysts surveyed by Bloomberg, and the earnings of U.S. giant Exxon Mobil Corp.

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Can Royal Dutch Shell plc Regain Its Mojo?

screen-shot-2016-10-31-at-19-00-26By Reuben Gregg BrewerOct 31, 2016

Royal Dutch Shell plc (NYSE:RDS-B) is one of a small and elite group of energy giants, competing with companies such as Chevron (NYSE:CVX) and ExxonMobil (NYSE:XOM). While this group is often, and correctly, thought of collectively as oil companies, Shell is pushing hard in a slightly different direction. So if you, as an investor, are wondering if Royal Dutch Shell can regain its mojo, you need to frame the answer in a slightly different way than you might have just a couple of years ago.

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Fitch: Batteries could be key disruptor to oil industry in “investor death spiral”

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Oct 18 2016, 12:45 ET | By: Carl Surran, SA News Editor

Oil producers such as ExxonMobil (NYSE:XOM), Chevron (NYSE:CVX) and Royal Dutch Shell (RDS.A, RDS.B) must prepare for radical change as adoption of new technologies like electric cars could happen faster than originally anticipated, according to a new report from Fitch Ratings.

“Widespread adoption of battery-powered vehicles is a serious threat to the oil industry,” and an acceleration of the electrification of transport infrastructure could create an “investor death spiral” as investors flee the oil patch, Fitch warns.

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Shell retains Deutsche Bank to seek buyer for California refinery

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By Jessica Resnick-Ault | NEW YORK

Oct 18 2016

Royal Dutch Shell plc has retained Deutsche Bank to sell its Martinez, California refinery, according to three people familiar with the matter.

Shell is in the midst of a three-year, $30 billion divestment plan following the company’s purchase of BG Group earlier this year.

A Shell spokesman said the company would not comment on “rumor or speculation.” Deutsche Bank declined to comment.

The refinery, located 30 miles (48 km) northeast of San Francisco, has been operating since 1915. It can process about 165,000 barrels of crude oil daily into gasoline, jet fuel, diesel and other refined products. It has a coker unit used for processing heavy grades of crude.

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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.

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Oil: OPEC Finally Agrees And Investor Takeaways

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Dividend Income: 5 October 2016

Summary

  • OPEC has agreed to put a ceiling on oil production at 32.5 million barrels per day, representing a 900k cut from its current output at 33.4 million.
  • The news supported oil’s rise by nearly 10 percent, and benefits some companies significantly more than others.
  • The author still recommends to stay away from offshore, but upstream producers with lower break even cost could be an attractive investment. Integrated majors’ dividends are also safer than ever.

News Summary

To the surprise of everyone, the Organization of Petroleum Exporting Nations (OPEC) has agreed to put a ceiling on oil production at 32.5 million barrels per day, which is significantly less than its current 33.4 million barrels per day of production. The news has helped oil price rally nearly 10% to almost $51.50 per barrel Brent.

In this article, I will try to dissect the news and its effect on integrated majors, upstream producers and offshore producers. Of course, the news benefit some of these companies significantly more than others, which are actually unaffected or evenly negatively affected by the news. Similarly, I will analyze how it will affect the United State Oil ETF (NYSEARCA:USO) and other oil related ETFs going forward.

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Nigerian Militants Are Getting Ready to Strike Oil Again

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By Elisha Bala-Gbogbo: October 4, 2016

If the Nigerian government wants to fight militants blowing up oil pipelines, it should send troops into the creeks and mangrove swamps of the Niger River delta. Not the city.

That’s the suggestion of Babalola Olarewaju, a taxi driver who plies the airport route in Port Harcourt, the largest city in the restive oil-rich region.

“We’re talking about people who blow up pipelines in the night and then disappear,” said Olarewaju, 41, as he perched on the hood of his rickety cab outside the Le Meridien Hotel in the city center, referring to three T-72 tanks, Nigeria’s main battle tank, parked about a mile away. “What has a tank got to do here in the city?”

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Norway oil and gas workers may strike, threatening UK gas supply

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Norway oil and gas workers may strike, threatening UK gas supply

Mon Oct 3, 2016

Workers at three onshore plants serving Norway’s oil and gas industry will strike from Oct. 7 unless they get a new wage deal, the SAFE labour union said on Monday, potentially threatening Britain’s natural gas supplies.

Some 338 workers at Statoil’s Melkoeya LNG plant, Shell’s Nyhamna natural gas processing plant and ExxonMobil’s Slagen refinery terminal would go on strike if talks on a new pay deal break down, the union said.

The Melkoeya plant turns gas from the Arctic Snoehvit field into liquefied natural gas (LNG) which is shipped worldwide, while Nyhamna supplies about 20 percent of Britain’s natural gas demand from the giant Ormen Lange field offshore Norway.

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Russia’s Gazprom plans to launch third LNG train at Sakhalin-2 in 2021

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By Katya Golubkova | YUZHNO-SAKHALINSK/PRIGORODNOYE, RUSSIA: Thu Sep 29, 2016 | 2:25am EDT

Gazprom said on Thursday it plans to launch a third liquefied natural gas (LNG) production train at the Sakhalin-2 LNG plant in 2021, possibly fed by a newly drilled field, as Russian companies seek to boost their share of the global LNG market.

Russia accounts for less than 5 percent of the global LNG market but new plants are being built or considered by Novatek, Gazprom and Rosneft.

Located at Prigorodnoye on Sakhalin island, Sakhalin-2, Russia’s sole LNG plant, operates two production lines with a combined capacity of 10 million tonnes of LNG per year. The third train should add another 5 million tonnes.

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Shell: Fire Forces Closure of Key Oil Pipeline in Nigeria

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Shell says a fire has forced it to close a key oil pipeline feeding Nigeria’s strategic Bonny Export Terminal, which militants attacked last week.

The ongoing challenges are losing oil multinationals billions of dollars in what used to be Africa’s biggest petroleum producer.

SBM Intelligence risk analysts estimate that renewed militant attacks, low oil prices and weak refinery margins have cost Dutch-British Shell and U.S.-based Chevron and ExxonMobil $7.1 billion in the first half of the year, representing about 70 percent of earnings.

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Dutch government confirms cut in Groningen gas output

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Screen Shot 2016-09-01 at 08.40.08By REUTERSPUBLISHED: 23 September 2016

AMSTERDAM, Sept 23 (Reuters) – Gas extraction from the northern Groningen gas field will be held at 24 billion cubic metres per year for the coming five years, Dutch Prime Minister Mark Rutte said on Friday.

The decision made on Friday by Rutte’s government cemented a preliminary plan to cut output to minimise the risk of earthquakes resulting from production at Groningen, which once supplied 10 percent of the gas used in the European Union.

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Shell moving out of downtown complex but to remain in Houston

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Tue Sep 20, 2016 | 8:49pm BST

Shell Oil Co, the U.S. arm of Royal Dutch Shell Plc, plans to move most of the operations at its company’s downtown headquarters to new offices on the city’s west side, Shell announced to employees on Tuesday.

Only Shell Oil’s U.S. trading floor with remain in Shell Plaza after the first quarter of 2017, the company said in a statement.

Shell follows ExxonMobil Corp, which relocated 10,000 employees from offices across Houston, including downtown, to a custom-built complex 25 miles (40 km) north of the city in 2015.

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What Is Really Pushing Oil Prices Down?

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Gaurav Agnihotri: 19 Sept 2016

Oil prices fell last week after the IEA and OPEC reported in their respective oil market reports that the supply-demand rebalancing of oil will take longer than market expectations. The WTI (WTI) and Brent were down by almost 2% and were trading at $43.3 and $45.77 at the time of writing this article. Even the U.S rig count increased for the 12th week in a row. Oil prices are going down as markets have realized that global oil supplies are only going to increase in the coming time. “It really looks similar to the period of the early 1990s, when we were at $20 oil. Is $45 to $50 the new $20? I am not ready to say we are in this new equilibrium environment, but it sure does feel like we’re moving in that direction,” said the head of commodities research at Goldman Sachs (NYSE:GS), Jeff Curie. It must be noted that investment firms such as Goldman Sachs have started lowering their 2017 forecast for oil prices. Let us look at those factors that are putting downward pressure on oil.

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Dutch parliament orders annual check on Groningen gas production

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Thu Sep 15, 2016 4:51pm BST

The Dutch parliament adopted a motion on Thursday ordering the government to evaluate every year whether gas production at the country’s Groningen field can be reduced further.

Output from Groningen, Europe’s largest gas field, has halved over the past two years after the country’s Safety Board said the government was failing to protect citizens from earthquakes triggered by gas exploitation.

In June, the government capped production at 24 billion cubic meters (bcm) annually for the coming five years but the motion adopted Thursday opens the door to further reductions.

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Groningen gas demand seen falling sharply

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The Netherlands has been forced to scale back production at Groningen, which once supplied 10% of European Union gas requirements, to 24B cm/year due to damage from earthquakes.

Sep 13 2016, 08:31 ET | By: Carl Surran, SA News Editor

Demand for gas from the Groningen field in the Netherlands will fall sharply from 2020 as production is reduced, Economy Minister Kamp says in a letter to the Dutch parliament.

The Netherlands has been forced to scale back production at Groningen, which once supplied 10% of European Union gas requirements, to 24B cm/year due to damage from earthquakes.

Groningen is operated by a joint venture between Royal Dutch Shell (RDS.A, RDS.B) and ExxonMobil (NYSE:XOM).

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Dutch see demand for Groningen gas down sharply from 2020

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Screen Shot 2016-09-01 at 08.40.08Demand for gas from Groningen will “fall sharply from 2020” as production at the northern Dutch field is reduced, Economy Minister Henk Kamp said in a letter to parliament released on Tuesday.

The Netherlands has been forced to scale back production by roughly half at Groningen, which once met 10 percent of European Union gas requirements, to 24 billion cubic meters per year due to damage from earthquakes.

Citing a June study by Gasunie, Kamp said a 480 million euros gas conversion facility in Zuidbroek was no longer needed due to falling exports.

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Shell and ExxonMobil apologise for Groningen earthquake problems

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Officials made the comments during a parliamentary hearing with Shell and ExxonMobil executives after being challenged by GroenLinks MP Liesbeth van Tongeren, broadcaster NOS reported.

‘We acknowledge that the people of Groningen are dealing with most of the problems caused by gas extraction, which we in the Netherlands can thank for our prosperity,’ Shell Nederland president Marjan van Loon said.

‘That is why the people of Groningen deserve our support. The NAM has expressed its regrets and I can fully support that. So I can say too, “I’m sorry, sorry”.’

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Intelligent Energy 2016: Shell operating huge Groningen gas field from “control room of next week”

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Written by Mark Lammey – 08/09/2016 7:00 am

The thought of just two people operating one of the world’s largest gas fields might perplex some, but that’s just what’s happening in the Netherlands.

NAM, a joint venture between Shell and ExxonMobil, has been producing gas from the Groningen field since the early 1960s.

In the mid-1990s, NAM needed to replace older equipment and put in compressor modules to maintain pressure in the field.

The restoration programme led to a 50% reduction in headcount on the field as NAM brought in greater automation, according to Carl Schmitz, Shell’s current operations manager for Groningen.

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Chevron Corporation, Royal Dutch Shell: Is the LNG Market Nearing Saturation?

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By Staff Writer on Sep 7, 2016 at 3:19 pm EST

In the past few years, the global energy market has undergone major changes. The usage of traditional energy resources has dropped significantly, while demand for cleaner, environmental-friendly energy sources has escalated. People are now increasingly becoming aware of the effects of greenhouse gases emissions from conventional energy sources, crude oil, and coal on our natural environment and most importantly, the ozone layer.

Last year, the Paris Agreement (COP21) was a major breakthrough for the renewable industry, as leaders from around 195 countries agreed to curb their carbon emissions. The energy producers aim to maintain the rise in global temperature to 2 degrees above pre-industrial levels in the coming few years. The agreement has provided a positive momentum to the green-tech resources as a number of international energy companies have now started to increase their exposure in the segment.

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Royal Dutch Shell plc Ramps up Production Despite Crude at $50 per Barrel

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By Staff Writer on Sep 7, 2016 at 11:30 am EST

The oil majors continue to overlook the low crude environment, which is expected to persist for longer, so much so that they have resorted to increasing their production at record-breaking highs. According to estimates by analysts, overall output from the seven largest energy giants globally is set to surge 9% between 2015 and 2018.

Energy giants are grappling with deteriorating balance sheet positions, even as prices continue to hover near $50 per barrel, dropping from $115 per barrel in June 2014. However, they continue to pump crude from plants sanctioned earlier.

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Despite cuts, oil giants look to expand production

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Ben Chapman: 6 Sept 2016

Never mind the drop in crude prices, huge spending cuts and thousands of job losses, the world’s top oil and gas companies are set to produce more than ever for some time.

While top oil companies struggle with slumping revenues following a price rout after years of spectacular growth, their production has grown as projects sanctioned earlier in the decade come on line. Overall production at the world’s seven biggest oil and gas companies is set to rise by around 9 per cent between 2015 and 2018, according to analysts’ estimates.

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Slashing Dividends: The Only Option Left For Big Oil?

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By Nick Cunningham – Aug 31, 2016, 4:03 PM CDT

The oil majors will have an extraordinarily difficult time trying to maintain their hefty dividends in today’s oil market environment, and unless oil prices rebound substantially, companies may be forced to slash their payouts to shareholders.

The largest oil producers pay shareholders a combined $40 billion in dividends each year, a level that is not sustainable with oil prices at $50 per barrel, according to Chris Kettenmann of Macro Risk Advisors. “There’s massive risk to the dividend structure of these big oil companies over the next 12 months,” Kettenmann said on Bloomberg TV.

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Shell Looking Beyond Petroleum

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There are many players looking to enter the oil markets thanks to the raft of deals available as the oil price crash appears to be over. For the oil majors, this will likely mean major opportunities to snap up unconventional producers and assets at low valuations. One “oil” major that may not be participating is Shell. The Anglo-Dutch oil giant is increasingly turning away from its roots in oil and moving towards natural gas as an alternative.

In the year 2000, 37 percent of Shell’s production was from natural gas. By 2015, that number had risen to 49 percent. For ExxonMobil, those figures were 40 percent in 2000 and 43 percent in 2015. For Chevron and BP, the 2000 figures were 27 percent and 40 percent respectively, and for 2015, it was 33 percent and 38 percent. Among oil majors, only ConocoPhillips has seen a comparable shift to gas going form 33 percent to 43 percent gas production between 2000 and 2015.

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SHELL CEO: REINVEST NATURAL GAS REVENUES IN RENEWABLE ENERGY

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Screen Shot 2016-09-01 at 08.40.08Posted on Sep 1, 2016 by Janene Pieters

Marjan van Loon, CEO of Shell Nederland, wants to use natural gas revenues from Groningen for a “delta plan” for the transition to green energy and for the local economy, she said in an Interview with the Financieele Dagblad. Though she adds that the Netherlands must continue gas extraction for as long as possible.

According to Van Loon, the Netherlands can still earn billions of euros with the Groningen gas fields, but only if support from Groningen residents and safety are made priorities. Shell has a 50 percent share in NAM, which is responsible for gas extraction in Groningen.

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Shell Sells Gulf Of Mexico Asset, But Faces A Tough Road Ahead

Screen Shot 2016-08-31 at 23.13.17Sarfaraz A. Khan: Aug. 31, 2016 3:20 PM ET

Summary

  • Royal Dutch Shell has agreed to sell its Brutus/Glider assets in the U.S. GoM to EnVen Energy for $425 million in cash.
  • The asset sale is a small step in the right direction which will improve Shell’s cash reserves.
  • The company, however, has made little progress toward achieving its target of selling $6Bn to $8Bn assets this year and $30Bn by 2018.

Royal Dutch Shell (RDS.A, RDS.B) has recently agreed to sell its Brutus/Glider assets in the U.S. Gulf of Mexico to Houston-based EnVen Energy for $425 million in cash. Shell was pumping 25,000 barrels of oil per day from these offshore properties, which was equivalent to 5.8% of the oil giant’s Gulf of Mexico production or less than 1% of its total production.

The asset sale is a small step in the right direction which will improve Shell’s cash reserves which stood at $15.2 billion at the end of June. Shell intends to sell $6 billion to $8 billion of assets this year. Overall, the company aims to dispose $30 billion of assets, spread in 5 to 10 countries and representing 10% of its production, by 2018. That will allow the company to reduce its debt which has ballooned following the $53 billion takeover of BG Group.

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Is energy industry ready to join open source world?

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By David Hunn: August 26, 2016

Landmark, a technology unit of the energy services company Halliburton, is betting that it is, unveiling a cloud-computing platform last week that will allow companies to collaborate on developing software to process the massive volumes of data they collect on everything from geology to seismology to chemistry to drilling to flows of oil and gas. The idea is that easy and open access to the code on which the platform is based will lead to faster and better analysis of the data and ultimately to innovations that allow the industry to extract more oil and gas at lower costs.

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Why I’ve sold all of my Shell and BP shares, by manager of £543 million

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Screen Shot 2016-07-29 at 16.46.22Bailey concluded his comments with the remark that the Shell dividend is uncovered. That means the company is not generating enough cash to pay the dividend itself.

David Thorpe 25 Aug 2016

Stephen Bailey, who runs the Liontrust Macro Equity Income fund has revealed the reasons why he has sold all of his shares in Shell and BP.

He began selling his Shell shares about a year ago, and completed the sale, ‘during the month of August’ 2016.

Bailey commented, ‘A year ago we had 9 per cent of the fund in oil, now it’s zero. You have to look at the macro view on this, and be very concerned about the oil market. The big suppliers in the market can no longer be controlled by OPEC, the Saudis recently announced an initiative called project 2030 which is aimed at boosting other areas of the economy, and they are doing that because they expect to receive less revenue from fossil fuels in the future.’  

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Oil major debt climbs to record high as crude prices continue to wallow

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Billy Bambrough is City A.M.’s deputy news editor. Wednesday 24 August 2016

Some of the biggest global oil majors are being weighed down by record levels of debt.

Exxon Mobil, Royal Dutch Shell, BP and Chevron hold a combined net debt of $184bn (£138bn) — more than double their debt levels in 2014, according to analysis by the Wall Street Journal.

The drop in the oil price has been blamed for the soaring debt levels. The price of a barrel of oil remains less than half of what it was in the summer of 2014.

The enduring low oil price and soaring debt levels have caused some investors to question whether the majors will be able to fork out for new investments and dividends in coming quarters.

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Largest Oil Companies’ Debts Hit Record High

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By SELINA WILLIAMS and BRADLEY OLSON: Aug. 24, 2016 

Executives at BP, Shell, Exxon and Chevron have assured investors that they will generate enough cash in 2017 to pay for new investments and dividends, but some shareholders are skeptical. In the first half of 2015, the companies fell short of that goal by $40 billion, according to a Wall Street Journal analysis of their numbers.

“Eventually something will give,” said Michael Hulme, manager of the $550 million Carmignac Commodities Fund, which holds stakes in Shell and Exxon. “These companies won’t be able to maintain the current dividends at $50 to $60 oil—it’s unsustainable.”

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Exxon, Motiva refineries continue reduced operations amid floods

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Thu Aug 18, 2016 5:18pm EDT

Exxon Mobil Corp and Motiva Enterprises refineries continued to operate at reduced levels amidst flood waters in southern Louisiana, sources familiar with operations at each refinery said on Thursday.

An Exxon spokeswoman said the Baton Rouge Complex, which includes a 502,500 bpd refinery, continued to operate on Thursday, but declined to discuss the level of production or the status of specific units. The Baton Rouge refinery is the fourth largest in the United States.

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Shell advises JPMorgan to sell $1bn NZ oil portfolio

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BRIDGET CARTERMergers & Acquisitions Editor, Sydney

GRETCHEN FRIEMANNMergers & Acquisitions Editor, Sydney

19 August 2016

Shell has called on investment bank JPMorgan to offload its $1 billion-plus portfolio of oil exploration and production assets in New Zealand, with some analysts questioning whether Australian players will express interest in the offering.

It comes as part of a global selldown by the oil and gas giant, which signalled a retreat from various markets, amid a $US30bn ($39bn) global asset sale plan following its $US50bn takeover of BG Group.

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Royal Dutch Shell (RDS.A): Declaration of Force Majeure; Crude Price Rally Underway?

Screen Shot 2016-08-14 at 11.56.06With the recent shutdown of pipeline owned by the energy giant in Nigeria coupled with the pipeline outages and militants attacks, we forecast a crude price rally

By Staff Writer on Aug 14, 2016 at 6:34 am EST

Following a string of attacks on its oil facilities combined with pipeline outages in Nigeria, Royal Dutch Shell (ADR) (NYSE:RDS.A) has finally declared a force majeure on Bonny Light crude oil. Citing statement by the company on Friday, Reuters reported that the Nembe Creek Trunk Line (NCTL) was shut down after a leakage by Aiteo, the pipeline’s operator. Aiteo was unavailable to comment on the matter.

Natasha Obank, spokesperson for the company stated: “The pipeline has been shut down for a joint investigation visit into the cause of the leak and repairs.”

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Crude Slump Sees Oil Majors’ Debt Burden Double to $138 Billion

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Screen Shot 2016-07-29 at 16.46.22“On the debt, it may go up before it comes back down,” Shell Chief Financial Officer Simon Henry told investors last week. “And the major factor is the oil price.”

By Javier Blas: August 5, 2016

When commodity prices crashed in late 2014, oil executives could look at their mining counterparts with a sense of superiority.

Back then, the world’s biggest oil companies enjoyed relatively strong balance sheets, with little borrowing relative to the value of their assets. Miners entered the slump in a very different state and some of the world’s largest — Rio Tinto Plc, Anglo American Plc and Glencore Plc — had to reduce dividends and employ draconian spending cuts to bring their debt under control.

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How Exxon Mobil, Royal Dutch Shell, BP Are Affected by Low Oil Prices

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By Muhammad Ali Khawar on Aug 1, 2016 at 7:57 am EST

Just when you thought oil prices will rebound they got even worse. The last few weeks have been quite eventful for the oil and gas industry, with companies releasing their second-quarter earnings. The quarter hasn’t been as rewarding for integrated oil and gas majors.

The decline in crude oil price has persisted for quite a while now. West Texas Intermediate was down 0.50% at $41.40 per barrel, while Brent Crude was down 0.32% at $43.39 per barrel, earlier today.

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Gorgon full output delayed until mid-2017

Screen Shot 2016-07-31 at 18.30.44Brian Robins: August 1 2016

A series of commissioning problems has delayed the timing of when Chevron Corp expects the giant Gorgon gas export project to be in full production, until well into 2017.

Since it began to bring the initial stage of the project on stream, it has encountered a series of problems that have forced it to halt processing from time to time, and it has now told analysts the first unit is operating at only a little over two-thirds of its rated capacity.

Production was halted for two months soon after the initial exports of gas, forcing Chevron to push back towards mid-2017 when it expects the project to be fully operational, from earlier this year.

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