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Posts under ‘Gas’

Warning of US sanctions ‘disaster’ for Russia energy projects

By: Henry Foy in Moscow and Andrew Ward in London

International energy investments in Russia will suffer from new US sanctions imposed on Moscow, executives have warned… A senior executive at a western oil group with a large presence in Russia told the Financial Times that the new sanctions “could be a disaster” given its current business in the country. Mr van Beurden said Shell had authorisation from Dutch authorities to press ahead with financing of Nord Stream 2, but was waiting to see how the US situation “evolves.” FULL FT ARTICLE read more

Shell cannot say it was not warned about Prelude FLNG

Warning by Bill Campbell, retired HSE Group Auditor, Shell International: Hydrocarbon leaks on offshore installations are unavoidable!

The answer to the question, can offshore installations meet a zero tolerance standard for hydrocarbon leaks, is easily answered, they cannot! Keeping hydrocarbons in the box appears beyond the wit of man. 

The support for this rather pessimistic view is based on actual historic data from the North Sea. It should be noted that this key indicator is the number one, the foremost technical integrity measure recorded by the HSE offshore division in the UK. All operators also are required to have it as their top indicator and non-reporting of hydrocarbon leaks is an offence in Law. So there is a degree of confidence in the accuracy of this data.  read more

Alarming news today of potential fire and explosion on Shell North Sea platform

By John Donovan

History is repeating itself. Shell is in the news today over its  dangerous North Sea oil platform activities.

Nearly 20 years ago, Shell senior management ignored warnings by HSE Auditor Bill Campbell about the Touch Fuck All regime on the Brent Bravo platform and its potential impact on worker safety. Production and profits were the overriding consideration. Maintenance records were routinely falsified. Lives were put at risk.

Shell EP MD Malcolm Brinded promised to take action based on the scandalous state of affairs Mr Campbell’s team had discovered when he led the safety audit on the platform. The promises were not kept. As a result, platform workers subsequently lost their lives in what was judged by the Scottish legal authorities to be an avoidable accident on Brent Bravo. A record-breaking fine was imposed on Shell. read more

Alarm Bells: Shell Hydrocarbons continue getting out the box

ALARMING COMMENT POSTED BY RETIRED SHELL INTERNATIONAL HSE GROUP AUDITOR, BILL CAMPBELL

Hydrocarbons continue getting out the box

With a Fire breakout at Pernis and a leak at Singapore refinery, both incidents over the last few days, it seems loss of containment is a continuing serious issue both onshore as well as offshore.

Much has been written about FLNG suggesting Prelude for example simply just cannot afford leaks and fires because of the potential consequences – but can they be totally avoided, can they?

Can any offshore installation meet a zero tolerance standard for leaks? 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

LNG possibility lives on, even after death of Pacific NorthWest LNG

And two other large global energy players with regulatory approval from the B.C. and Canadian governments say they are trying to position themselves to be ready to make a decision on building their own billions-of-dollars of mega-projects in northwest B.C. to coincide with increased demand they forecast could kick in by the middle of next decade. Those projects are LNG Canada led by Royal Dutch Shell plc and Kitimat LNG, a 50-50 venture of Chevron and Australian-based Woodside Energy. read more

Shell CEO Ben Van Beurden says his next car will be an electric Mercedes S500e

Jul 28 2017 at 9:03 AM

When the boss of Europe’s biggest listed oil company says his next car will be electric, it says a lot about the future of fossil fuels. Royal Dutch Shell responded to the worst oil-price crash in a generation with its $US54 billion ($68 billion) takeover of BG Group, betting that demand for natural gas will rise as the world shifts to cleaner-burning fuels. Now chief executive officer Ben Van Beurden says the next thing he’ll buy is a car that doesn’t depend on either oil or gas to run. Van Beurden will switch from a diesel car to a plug-in Mercedes-Benz S500e in September, a company spokesman said. Chief financial officer Jessica Uhl already drives a BMW i3 electric car. FULL ARTICLE read more

Shell eyes possible North Sea target – Penguins

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Chief executive Ben van Beurden said a number of final investment decisions are due to be made in the next 18 months. And among the eight upstream projects is Shell’s Penguins developments in the northern North Sea comprising of several oil and gas fields in the northern end of the East Shetland Basin. Although discovered in the 1970s, the cluster field has never been fully developed due to variety of factors including poor reservoir performance, lack of subsea technology, tricky geology involving faults and the large area involved. But speaking to investors following Shell’s Q2 results yesterday Mr van Beurden said it had made the possible shortlist for sanction. FULL ARTICLE read more

Shell backs gas export limits

: Resources reporter, Melbourne: 28 July 2017

Royal Dutch Shell chief executive Ben van Beurden has said he is very supportive of Malcolm Turnbull’s moves to impose export restrictions to increase domestic supply on the east coast, where Shell runs the Queensland Curtis LNG project. But the oil major has revealed there have been some unspecified operational problems at QCLNG, which exports coal-seam gas from Gladstone. Speaking on a second-quarter earnings call in London last night, Mr Van Beurden backed the Prime Minister’s intervention in the markets, which gives the government the power to restrict exports from any LNG project that is not a “net contributor” to domestic markets. FULL ARTICLE read more

Shell Still Thinks Canadian LNG Project Could Be a Go

Royal Dutch Shell Plc said it hasn’t written off its Canadian liquefied natural gas project in Kitimat, British Columbia, yet as a global supply glut killed off a competing project earlier this week. LNG Canada, which is also backed by Mitsubishi Corp., PetroChina Co. and Korea Gas Corp., is still weighing an investment decision that’s expected by early 2019, Shell’s Chief Executive Officer Ben Van Beurden said on a conference call Thursday. “We need to get the timing properly right — we think we can,” he said. “If we look at an investment decision in the next 18 months or so, this is going to be a project that could start producing right at the moment when the spot market, the short-term market is getting very tight again.” FULL ARTICLE read more

PRELUDE FLNG is a very risky business

BILL CAMPBELL

Bill Campbell, retired HSE Group Auditor, Shell International, comments on the UPI article “In Australia, Shell signals new era for LNG

For hazardous substances plants Size Matters, it’s crucial.

The size re surface deck area of the Prelude vessel wrt an onshore plant continues to be misstated, purposefully I assume. Even if the total deck of Prelude was used exclusively for the LNG process ignoring area taken up by Accomodation, Turret etc we have total of 3.6 Hectares. On average LNG land plants with equivalent throughputs are 20 times (not four times) on average larger than the 3.6 Hectares provided on the Prelude deck. As an example of this that you can check out easily on the web is that Woodside Energy has allocated 80 Hectares for its onshore Pluto LNG site and facilities or 22.2 times the total area of the Prelude deck. I took up the propaganda on size with Shell Australia a few years ago, they are the regular publisher of these alternative facts, asking them to clarify where in the world was there a LNG plant onshore occupying just 14 Hectares (4 times the Prelude total deck space). read more

Shell profits surge as Van Beurden puts focus on ‘discipline’

By Press Association: 

Royal Dutch Shell has reported a large rise in second quarter profits after the energy giant was boosted by higher oil and gas prices. The firm said adjusted earnings rose from $1.05bn (£800m) to $3.6bn, an increase of 245pc, as chief executive Ben van Beurden said he was making progress on “reshaping the company”. “Cash generation has been resilient over four consecutive quarters, at an average oil price of just under $50 per barrel,” Mr Van Beurden said. “The external price environment and energy sector developments mean we will remain very disciplined, with an absolute focus on the four levers within our control, namely capital efficiency, costs, new project delivery, and divestments. “I am confident that we are on track to deliver a world-class investment to our shareholders.” The figures were flattered by a disastrous second quarter in 2016, when it was stung by depressed crude prices and costs linked to its takeover of BG Group. FULL ARTICLE read more

Royal Dutch Shell’s earnings more than triple in 2Q

By Associated Press July 27 at 2:53 AM

LONDON — Royal Dutch Shell says second-quarter earnings more than tripled as it benefited from a cost-cutting drive and recovering oil prices.The Anglo-Dutch energy giant said Thursday that profit adjusted for changes in the value of inventories and excluding one-time items rose to $3.60 billion from $1.05 billion in the same period last year. Net income rose 31 percent to $1.55 billion.CEO Ben van Beurden says the earnings reflect Shell’s restructuring to cope with lower oil prices and the purchase of natural gas producer BG Group. Shell’s oil price averaged $45.62 a barrel for the quarter, up 16 percent from a year earlier. Prices were above $100 a barrel as recently as 2014. Van Beurden says the “external price environment and energy sector developments mean we will remain very disciplined.” read more

Shell nears finishing line with $30billion divestment programme

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The supermajor announced this morning that it had shed assets worth $25billion as part of the reshaping of its portfolio. This included the landmark North Sea deal with Chrysaor earlier this year, worth around $3.8billion. It also comes following the $68.2billion merger with BG Group. The supermajor also recently agreed to sell its stake in Irish gas project Corrib in a deal worth up to 1.23 billion US dollars (£956 million). The firm said adjusted earnings rose from 1.05 billion US dollars (£800 million) to 3.6 billion US dollars (£2.7 billion), an increase of 245%. read more

EU warns U.S. it may respond swiftly to counter new sanctions on Russia

Alissa de Carbonnel: 26 July 2017

BRUSSELS (Reuters) – The European Union warned on Wednesday that it was ready to act within days to counter proposed new U.S. sanctions on Russia, saying they would harm the bloc’s energy security.

Sanctions legislation overwhelmingly approved by the U.S. House of Representatives on Tuesday has angered EU officials…

FULL ARTICLE

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

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