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Shell Shareholders Approve Acquisition of BG Group

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Screen Shot 2016-01-26 at 08.12.50Shell Shareholders Approve Acquisition of BG Group

By STANLEY REEDJAN. 27, 2016

LONDON — In one of the first major deals struck as oil prices plummeted, Royal Dutch Shell shareholders on Wednesday approved the acquisition of the BG Group, the Britain-based oil and gas producer, for about $50 billion.

Analysts had expected major oil companies like Shell and ExxonMobil to take advantage of low prices to acquire rivals or smaller companies to strengthen their position, but there have been few big moves so far, perhaps because of the steepness of the drop in oil prices, which have fallen since the summer of 2014 to around $30 a barrel from more than $100 dollar a barrel.

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US Gulf oil spill nearly ruined BP, says chief Bob Dudley

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Screen Shot 2015-12-07 at 20.08.32Saturday 2 Jan 2016

The giant oil spill from a BP rig off the US coast in 2010 nearly ruined the company, its chief executive has said.

Bob Dudley described the fire on the Deepwater Horizon and its aftermath as “a near death experience” for the firm.

It was one of the worst environmental disasters in the US and saw BP pay fines and compensation and sell off more than £30bn ($45bn) in assets.

Mr Dudley told ex-BP boss Lord Browne – a guest editor on BBC Radio 4’s Today programme – it was a “tragic accident”.

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OPEC Won’t Cut Drilling, and Prices Plunge 5%

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By CLIFFORD KRAUSSA version of this article appears in print on December 8, 2015, on page B1 of the New York edition

HOUSTON — Crude oil prices slid a further 5 percent on Monday to fall to their lowest levels since the 2009 global recession, pummeled by the fading chance that Saudi Arabia would cut production to halt the commodity’s yearlong slide.

In only 16 months global oil prices have collapsed from over $110 a barrel to less than half that, and the oil industry in the United States and around the world is reeling from its worst crisis since the late 1990s. On Monday, the American benchmark broke the $38-a-barrel mark, a price that makes drilling and completing wells a losing proposition in almost all oil fields around the country.

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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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Shell’s £22,500 fine for North Sea oil spill slammed as ‘paltry’ by campaigners

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Screen Shot 2015-11-21 at 00.19.03The World Wildlife Fund warned the size of the fine would ‘do little to deter future poor behaviour’

Shell apologised for the lack of information and said it was not a deliberate attempt to cover up the spill. 

Adam Barnett: 24 November 2015

A £22,500 fine imposed on the energy giant Shell as punishment for the worst North Sea oil spill in a decade has been dismissed as “paltry” by environmental campaigners.

The World Wildlife Fund (WWF) warned the size of the fine, for a company that earns billions, would “do little to deter future poor behaviour” by oil and gas companies to avoid more damage to the environment.

The leak from the Gannet Alpha platform in August 2011 was the worst in the region in 10 years and saw more than 200 tons of oil – about 1,300 barrels – flood into the sea. 

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Shell finds 100 million oil barrels in deep-water Gulf discovery

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Posted on November 18, 2015 | By Collin Eaton

HOUSTON — Probing one of its recent discoveries in deep waters of the Gulf of Mexico, Royal Dutch Shell found 100 million barrels of oil equivalent buried at its Kaikias field, nearby three of its massive production facilities and a network of subsea pipes, the company said Wednesday.

The one-year-old Kaikias discovery, about 60 miles south of the Louisiana coast in the Mars-Ursa basin, is nowhere near the size of the big-ticket deep-water oil fields that Shell uncovered in that region two decades ago.

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An Oil-Soaked Globe as Production Keeps Climbing and Demand Falls

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A version of this article appears in print on November 14, 2015, on page B1 of the New York edition

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HOUSTON — Such is the state of the oil industry these days that there is sometimes nowhere to put the oil. Off the coast of Texas, a line of roughly 40 tankers has formed, waiting to unload their crude or, in some cases, for a willing buyer to come along. Similar scenes are playing out off the coasts of Singapore and China and in the Persian Gulf.

There is little sign that the logjam will ease, as the price of oil continued its yearlong plunge this week, declining by nearly $10 a barrel.

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Shell vessel heads to deep Gulf waters amid region’s uncertainty

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Screen Shot 2015-09-17 at 07.55.40Posted on November 13, 2015 | By Collin Eaton

HOUSTON — Royal Dutch Shell’s newest oil-production vessel began a 15,000-mile journey this week from a Singapore shipyard to the world’s deepest underwater oil field, tasked with adding more crude to a worldwide oil glut that could upend industry plans to venture deeper offshore.

The $1 billion globe-trotting ship is bearing toward the Gulf of Mexico, and is set to become the fourth ultra deep-water production facility to extract hydrocarbons from a region called the Lower Tertiary, which for oil companies is at the edge of charted U.S. waters. Shell plans to begin filling barrels next year with oil from two wells drilled in about 9,500 feet of water — the deepest-ever depth.

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Shell affiliates are buyers, sellers in $390 million midstream transaction

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Screen Shot 2015-11-12 at 09.52.10Posted on November 11, 2015 | By Joshua Cain

A pipeline subsidiary of Royal Dutch Shell has sold a crude terminal in Illinois and a pipeline system in the Gulf of Mexico for $390 million to a master limited partnership affiliated with Shell.

Shell Midstream Partners, the Houston-based MLP that Shell formed in 2014, said on Wednesday that it will buy Pecten Midstream from another Shell subsidiary, Shell Pipeline Co.

Pecten Midstream operates the Lockport Crude Terminal about 50 miles from Chicago and the Auger Pipeline System, which transports crude oil from parts of the Garden Banks and Keathley Canyon offshore blocks in the Gulf.

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Profit Down at BP, Which Predicts Era of Low Oil Prices

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By STANLEY REED: OCT. 27, 2015

LONDON — The British oil giant BP said on Tuesday that its profit was down sharply in the third quarter as depressed oil prices took a heavy toll.

The company, saying it expects prices to stay low for years, indicated that it would continue to cut costs and limit its investments in searching for and developing new oil and gas fields.

“We are now in action to rebalance our financial framework in this new price environment,” BP’s chief executive, Robert W. Dudley, said in a statement.

The company said its profit in the quarter was $46 million, compared with $1.3 billion a year earlier. Profit on the basis of underlying replacement cost, a more widely used figure, fell to $1.8 billion for the quarter from $3 billion a year earlier.

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Britain’s oil giants to post worst set of earnings since rout in price of crude began last year

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By LAURA CHESTERS FOR THE DAILY MAIL: 25 October 2015

Britain’s oil giants will this week post their worst set of earnings since the rout in the price of crude began last year.

Investors will also be looking for any update on Royal Dutch Shell’s £55bn takeover of rival BG Group amid fears Shell is overpaying.

Shell, BG and BP will all post third-quarter earnings this week with the City expecting an average of a 60 per cent collapse in profits, according to experts at Morgan Stanley, suggesting the industry is facing its worse downturn in a decade.

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Shell and BP prepare for further cost-cutting as oil prices stay low

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Results this week could give more detail on savings to protect dividend payments

By Marion Dakers: 24 Oct 2015

Britain’s oil giants are preparing to make further cuts to their investment plans in the face of plummeting crude prices.

Shell, like many oil explorers, has already slashed spending and jobs to counteract the effects of a 40pc slump in oil prices in the past year, with the price sliding as low as $43 a barrel from highs of more than $110 in 2014.

However, Shell is this week expected to unveil a new round of cuts alongside its third quarter results, which are set to show a 38pc slump in sales to $67bn (£43.7bn) and a 54pc drop in adjusted earnings.

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Shell had to write-down some of its shale assets in the U.S., after spending $24 billion on a bet that failed to pay off, with company executives regretting ever having made the investment.

By James Stafford: Wed, 14 October 2015

A new report finds that the largest oil companies are set to cut spending on exploration by at least half, potentially leading to very few new oil discoveries in the years ahead.

The report from investment bank Tudor, Pickering, Hold & Co., and reported by Fuel Fix, estimates that exploration budgets among the oil majors will drop to $25 billion in 2016, down from $50 billion from just a few years ago. Obviously, low oil prices are taking their toll, forcing deep spending cuts in a desperate attempt to shore up profitability. But the cuts have large implications for the energy sector, increasing the chances that some large oil fields remain undeveloped for years.

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Shell Is Reeling After Pulling Out of the Arctic

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Screen Shot 2015-10-04 at 09.03.21BY ANTONIA JUHASZ / OCTOBER 13, 2015

Earlier this month, Shell’s tumultuous Arctic drilling campaign came to an abrupt and costly end. In a written statement, the company announced the cessation of its offshore Alaska activities “for the foreseeable future”—at a loss of billions of dollars. This both stunned and thrilled critics, many of whom worried that the seven-year effort to stop Shell was dead in July, when the Obama administration approved the company’s permits to drill.

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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 boss confronts environmental, carbon challenges

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On Monday, the oil and gas giant gritted its teeth and pulled out of one of the most ambitious, expensive and controversial exploration forays on the planet – Alaska. A project that could have delivered tens of billions of dollars instead delivered a dry well and, on Sunday, van Beurden and his team called it quits.

ANALYSIS: By The Business presenter Ticky Fullerton: 2 Oct 2015

Rarely have energy companies faced greater challenges, and global giant Shell has moved to tackle some of them head on.

Of all weeks to be in London to catch up with global Shell chief executive Ben van Beurden, this was it.

On Monday, the oil and gas giant gritted its teeth and pulled out of one of the most ambitious, expensive and controversial exploration forays on the planet – Alaska.

A project that could have delivered tens of billions of dollars instead delivered a dry well and, on Sunday, van Beurden and his team called it quits.

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Shell’s Arctic oil well comes up dry

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Screen Shot 2015-08-13 at 11.35.25September 28, 2015 | By Jennifer A. Dlouhy

WASHINGTON — After spending $7 billion and seven years searching for oil under Arctic waters, Royal Dutch Shell on Monday said its quest had come up dry.

Shell announced that its exploratory oil well in the Chukchi Sea north of Alaska encountered “indications of oil and gas” that are “not sufficient to warrant further exploration” — a significant blow for the Anglo-Dutch firm that had hoped to find a multibillion barrel crude reservoir in those remote waters.

“Shell continues to see important exploration potential in the basin, and the area is likely to ultimately be of strategic importance to Alaska and the U.S.,” said Marvin Odum, director of Shell Upstream Americas. “However, this is a clearly disappointing exploration outcome for this part of the basin.”

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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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IF SHELL FINDS OIL IN CHUKCHI SEA, WHAT NEXT?

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Screen Shot 2015-06-13 at 09.26.5318 September 2015

The short drilling season for oil exploration in U.S. Arctic offshore waters will reach one stopping point Sept. 28 and a complete halt Oct. 31 for Royal Dutch Shell Plc. The company has been drilling since July 30 at the Burger prospect in the Chukchi Sea north of Alaska. If oil is discovered, it will require some very interesting and complicated development decisions and regulatory considerations.

Shell has come a long way to get this far. It acquired a set of leases over the Burger prospect in 2008 and has spent about $7 billion on trying to develop the leases. Shell, operating through its subsidiary Shell Gulf of Mexico Inc., did not report a discovery from the well it drilled in 2012, and no one has ever yet discovered oil in the Chukchi — not oil in commercial quantities, at any rate. A dry hole is always a possibility.

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Shell’s big gamble: Oil wrangling at the far reaches of the Arctic frontier

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By Steven Mufson September 11

Shell Oil Co.’s president Marvin Odum made the trip on Sept. 2 from Houston to this northern-most town in the United States, a spot whose traditional name, Ukpeagvik, means “place where snowy owls are hunted.”

Odum is here hunting, too, for oil offshore and political support from Alaska Natives living in Barrow, a ramshackle town of muddy streets, littered with all-terrain vehicles and guarded by snow fences on one side and on the other a four-foot-high earthen berm to protect against high winds and seas.

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Shell bringing world’s deepest floating oil production vessel to Gulf of Mexico

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By Jennifer Larino, NOLA.com | The Times-Picayune: 9 Sept 2015

Royal Dutch Shell has launched its first floating oil production, storage and offloading vessel in the Gulf of Mexico. The facility will operate in 9,500 feet of water, making it the deepest of its kind in the world.

The vessel — named Turritella after a genus of sea snails with a long conical, spiraled shell — is part of the company’s multibillion-dollar Stones development about 200 miles southwest of New Orleans in the ultra-deep waters of the Gulf of Mexico. The facility is expected to start operations in early 2016.

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Shell confirms has canceled Westward Ho pipeline project

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Screen Shot 2015-07-31 at 19.22.09HOUSTON | BY KRISTEN HAYS: Tue Sep 8, 2015

Royal Dutch Shell shelved its Louisiana-to-Texas Westward Ho pipeline after years of delays, reductions in scope and after other new pipelines began flowing, a spokeswoman confirmed on Tuesday.

“After a thorough review and as a result of changing market conditions, Shell Pipeline Company LP has decided to not proceed with the proposed Westward Ho Pipeline project,” spokeswoman Kimberly Windon said.

Proposed in 2011 at a top capacity of 900,000 barrels per day, Shell said Westward Ho would move Gulf of Mexico and imported crudes from the St. James, Louisiana oil hub to Houston. The leg between Nederland, Texas and Houston would move up to 500,000 bpd, and the entire project was targeted to start in late 2015.

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Discussing the costs of disaster for offshore US oil : Regulation and Environment

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Screen Shot 2015-08-28 at 08.10.57In this week’s Oilgram News column, Regulation and Environment, Gary Gentile asks if the risks associated with ultra-deepwater oil production endeavors are properly disclosed to shareholders.

By Gary Gentile | August 31, 2015

Opponents of offshore drilling in frontier environments, such as the Arctic, have opened up a new front in their effort to curtail such efforts — asking US financial regulators to require more robust disclosure of the risks involved.

A group of Democrats in the US Congress have asked the Securities and Exchange Commission to force companies to tell investors the cost of a catastrophic accident resulting from drilling in ultra-deepwaters or in the harsh and remote waters off the coast of Alaska.

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President Obama Defends Shell Arctic Drilling Decision

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By: MICHEAL KAUFMAN: Aug 29, 2015 

Critics argue that allowing Shell to explore Arctic for oil goes against the country’s stance on climate change

President Obama has defended his decision to grant approval for drilling in the Arctic region, ahead of his trip to Alaska. Royal Dutch Shell plc (ADR) (NYSE:RDS.A) had been seeking the US government’s permission to conduct oil exploration in offshore Arctic. Last month, Shell was granted permission to drill a well off the coast of Alaska. The decision has been criticized heavily, as environmentalists have been quick to point out the risks associated with drilling in the Arctic.

President Obama’s Clean Power Plan, announced earlier this month, has also come in the line of fire. The plan, which calls for a 32% reduction in carbon emissions from power plants in the US, is aimed at reducing the country’s carbon footprint, as the US tries to lead the charge in the battle against climate change. Critics argue that allowing Shell to explore Arctic for oil goes against the country’s stance on climate change.

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Shell offshore drilling application prompts conflict-of-interest charge

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By Charles Mandel | August 29th 2015

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Shell Canada Limited is applying to bring offshore drilling to Nova Scotia’s waters. But environmentalists are raising alarm bells over potential conflict of interest, as the group reviewing Shell’s application — the Canada-Nova Scotia Offshore Petroleum Board (CNSOPB) — includes a board member who worked at Shell Canada and Royal Dutch Shell for 30 years.

The federal Privy Council Office re-appointed Douglas Gregory as an alternate board member in March, 2014.

Gregory’s background includes work as an exploration geophysicist in Canada; and in 1999 opening Shell Canada’s exploration office, focused on deep water seismic exploration within Nova Scotia’s waters.

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Obama defends Shell Arctic drilling decision

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Screen Shot 2015-08-13 at 11.35.25By AFP 29 August 2015

Two days before heading to Alaska to raise climate change awareness, US President Barack Obama on Saturday defended his controversial decision to allow Shell to drill in the Arctic’s Chukchi Sea.

The Obama administration’s green light for the Anglo-Dutch oil giant angered environmental groups which have decried the “hypocrisy” of the president, who in recent months has stressed the need for aggressive actions against climate change.

Opponents note how the decision comes in the run-up to the UN climate conference in Paris in December. The meeting is seen as crucial in efforts to forge an agreement to curb international emissions.

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Charlotte Church joins the campaign trail once again as she performs a requiem in musical protest over Arctic drilling

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By REBECCA DAVISON FOR MAILONLINE: 26 August 2015

Singer Charlotte Church joined a protest rally outside the Shell headquarters in London on Wednesday in protest over Arctic drilling on behalf of Greenpeace. 

The 29-year-old took to the streets to lead a performance of Requiem for Arctic Ice as well as The Bitter Earth outside the building, writing ‘Save The Arctic’ across her hands in pen. 

According to Greenpeace, the campaign was part of the charity’s month-long run of Titanic-themed orchestral protests.

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Oil Companies Sit on Hands at Auction for Leases

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By CLIFFORD KRAUSSAUG. 20, 2015 PAGE B1 IN NEW YORK EDITION

Screen Shot 2015-08-04 at 22.49.59HOUSTON — With oil prices collapsing and companies in retrenchment, a federal auction in the Gulf of Mexico on Wednesday attracted the lowest interest from producers since 1986.

It was the clearest sign yet that the fortunes of oil companies are skidding so fast that they now need to cut back on plans for production well into the future.

The auction, for drilling leases, attracted a scant $22.7 million in sales from five companies, but energy analysts said that came as no surprise on a day when the American oil benchmark price plummeted by more than 4 percent. For the first time since the recession, it is approaching the symbolic $40-a-barrel level. Last summer, it was above $100 a barrel.

A glut on American and world markets is to blame for the depressed prices, but the unusually large daily decline occurred after the Energy Department, in a report, lowered its oil price projections and showed a considerable increase in inventories.

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Hillary Clinton scuppers Shell’s plan to drill for oil in the Arctic

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Screen Shot 2015-08-13 at 11.35.25By CITY & FINANCE REPORTER FOR THE DAILY MAIL

PUBLISHED: 19 August 2015

Royal Dutch Shell’s Arctic ambitions have sparked a political row in the US after presidential candidate Hillary Clinton opposed its plans.

President Obama’s administration gave Shell the final green light to drill for oil and gas in the Arctic this week – which will see it resume drilling in the area for the first time since 2012 when it suffered a series of setbacks and pulled out. 

Clinton said drilling in the area is ‘not worth the risk’.

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BVB Personal Journey? Was it to a bank or a casino?

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By John Donovan

Royal Dutch Shell CEO Ben van Beurden claims that he has been on a personal journey in relation to authorising Shell’s latest Arctic gamble.

All due credit for the courage needed to take such a huge risk. The same applies to Shell’s takeover of the BG Group and the alliance with the corrupt and murderous Putin regime. All could go terribly wrong.

With regards to economics, the price of oil is an important factor in all three ventures. Shell has now admitted that oil prices are likely to remain low for some time. 

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Inside Shell’s Extreme Plan to Drill for Oil in the Arctic

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by Paul Barrett and Benjamin Elgin: 5 August 2015: BLOOMBERG.COM

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Protesters near the Polar Pioneer.: Photographer: Keri Coles/Greenpeace

Ann Pickard

Ann Pickard – Shell VP Arctic Drilling

In a windowless conference room in Anchorage, a dozen Royal Dutch Shell employees report on the highest-profile oil project in the multinational’s vast global portfolio. Warmed by mid-July temperatures, Arctic ice in the Chukchi Sea, northwest of the Alaskan mainland, is receding. Storms are easing; helicopter flights will soon resume. Underwater volcanoes—yes, volcanoes—are dormant. “That’s good news for us,” Ann Pickard, Shell’s top executive for the Arctic, whispers to a visitor.

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Shell toughens local project hurdles

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Screen Shot 2015-07-31 at 19.22.09Matt ChambersResources Reporter: Melbourne: 31 July 2015

Oil major Shell has laid down tougher hurdles for its Australian projects including Browse LNG off Western Australia and Arrow coal-seam gas in Queensland.

It has cut the oil price at which new projects need to go ahead and flagged a major LNG project ­pipeline overhaul if its planned $91 billion takeover of BG Group is successful.

Shell chief executive Ben van Beurden said the company would require projects to be profitable near $US50 a barrel of oil, down from previous indications of ­between $US70 and $US90.

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Big oil to sharpen focus on costs after $200bn of cuts

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Screen Shot 2015-07-27 at 08.40.27Europe’s biggest oil companies have to find deeper cuts as oil prices expected to weigh on earnings

By Andrew Critchlow, Commodities editor: 27 July 2015

Three of Europe’s biggest oil companies will report weaker earnings this week and the City is looking for guidance on how to mitigate a sustained slump in Brent crude prices beyond the cost cuts already in motion.

In a market defined by oil prices 60pc lower than they were a year ago, energy giants are running out of options to protect their bottom line and all-important progressive dividends.

The brakes have already been put on 45 oil and gas development projects worth $200bn (£129bn) since prices started to fall towards the end of last year, according to a new report from Edinburgh-based consultancy Wood Mackenzie. Combined, these projects account for around 20bn barrels of reserves. The danger is that international oil companies will reveal this week that even deeper cuts are planned, tipping the industry into a form of atrophy.

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Not Deterred By Huge Risks, Shell Opts For Megaprojects

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It is curious then that Royal Dutch Shell is not ready to give up on the huge complex oil project. It is only a few weeks away from starting to drill in the Chukchi Sea, a campaign that has cost the company somewhere in the neighborhood of $7 billion so far, with very little results to show for its troubles. Shell is committing another $1 billion this year, and it appears that it will only be able to drill one well.

By Nick Cunningham: 6 July 2015

U.S. shale has offered the oil industry a business model that is different from conventional drilling of the past.

High initial decline rates, especially compared to conventional wells, requires companies to continuously drill to keep up production. But with lower upfront costs and shorter ramp up times, shale drilling is arguably less risky than a multibillion-dollar megaproject that the oil majors had become accustomed to over the past decade. And in a period in which prices are relatively weak, shale could allow exploration companies to increase drilling or throttle back depending on market conditions, providing a degree of flexibility over conventional drilling that often has longer lead times.

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After Settlement, Relief at a Diminished BP

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By STANLEY REED and CLIFFORD KRAUSS JULY 2, 2015

LONDON — BP’s future no longer has a giant cloud ahead. But it will take years, if not decades, for the company to approach its size of five years ago, before the explosion of the Deepwater Horizon rig.

Since the 2010 blowout of the Macondo well killed 11 rig workers and dumped millions of gallons of crude into the Gulf of Mexico, BP has vigorously fought in court and on American television to salvage its image and minimize the costs. But in preparation for a settlement to resolve legal wrangling over economic and environmental damages, in which it eventually agreed to pay $18.7 billion, the British-based company also had pruned its global operations to save itself.

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BP has finally settled Deepwater Horizon Case

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Shares in oil giant BP climb on news it has finally settled long-running US court case over Deepwater Horizon explosion and oil spill

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Dudley dismissed market talk of a takeover of BP and said BP is ‘neither prey nor predator’. A clause in the settlement with the US means that if BP were sold to another company the fine would be payable immediately – putting off any potential suitor.

By LAURA CHESTERS FOR THE DAILY MAIL: 2 July 2015

Shares in oil giant BP climbed nearly 5 per cent following a relief rally on news it had finally settled its long-running US court case over the Deepwater Horizon explosion and oil spill that killed 11 workers five years ago.

A record £12bn fine will settle all US federal, state and local claims for the Gulf of Mexico disaster, with payments spread over 18 years – working out at £700m a year.

BP’s shares are down a third since the explosion at the Macondo oil field in the Gulf of Mexico in April 2010. Concerns about the ongoing liability of the spill and the falling oil price since last year weighed on the shares.

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BP to pay £12bn for Gulf oil spill

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BP has reached an $18.7bn (£12bn) settlement with the US Department of Justice (DoJ) following the 2010 Gulf of Mexico oil spill.

It comes as a US federal judge was expected to rule on how much BP owed in Clean Water Act penalties following the environmental disaster.

Over 125 million gallons of oil spewed into the Gulf after an explosion at the Deepwater Horizon oil rig in 2010.

The settlement is the largest paid by a single company in US history .

The Deepwater Horizon oil spill was one of the worst environmental disasters in US history and claimed the lives of 11 people.

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BP Pays Record $18.7 Billion to Settle Claims in Gulf Oil Spill

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Screen Shot 2015-07-02 at 14.56.47By Margaret Cronin Fisk, Laurel Brubaker Calkins and Del Quentin Wilber: July 2, 2015 1:13 PM BST

BP Plc will pay a record $18.7 billion to resolve claims by the U.S. and five states along the Gulf of Mexico related to the 2010 oil spill.

The payments will be spaced out over as long as 18 years. A record $5.5 billion will cover federal penalties under the Clean Water Act, topping the previous high of $1 billion. Louisiana, Mississippi, Alabama, Florida and Texas will also receive payouts for harm done in the worst offshore spill in U.S. history.

“This agreement will resolve the largest liabilities remaining from the tragic accident,” BP Chief Executive Officer Bob Dudley said in a statement today. “For the United States and the Gulf in particular, this agreement will deliver a significant income stream over many years for further restoration of natural resources and for losses related to the spill.”

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Shell goes ahead with giant Gulf of Mexico field after cost cuts

Screen Shot 2015-06-11 at 19.31.15Shell goes ahead with giant Gulf of Mexico field after cost cuts

Markets | Wed Jul 1, 2015

* Appomattox project set to start production by end of decade

* Will be Shell’s largest platform in the region (Adds details, quotes, share price)

By Ron Bousso

LONDON, July 1 (Reuters) – Royal Dutch Shell has given the green light for the development of its largest platform in the Gulf of Mexico after making steep cost cuts which made the deep water project economical despite low oil prices.

The decision to pour billions of dollars into the Appomattox project comes as companies have scrapped around $200 billion of mega-projects in the wake of the sharp decline in oil prices over the past year.

Shell has operated in the Gulf of Mexico for over 60 years. The region contributes about 17 percent of total U.S. crude oil production according to the Energy Information Administration and was the location in 2010 of the worst offshore oil spill in U.S. history, involving BP’s Deepwater Horizon well.

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Shell to tap new Gulf of Mexico oil

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Screen Shot 2015-06-11 at 19.31.15Shell to tap new Gulf of Mexico oil

HOUSTON, July 1 (UPI) — Royal Dutch Shell said Wednesday it made a final investment decision to open up new oil developments in the deep waters of the U.S. Gulf of Mexico.

Shell said it was moving forward with a decision to build what it says will be the largest floating platform in the Gulf of Mexico in order to tap into the deepwater Appomattox prospect. Average production is expected to be about 175,000 barrels of oil equivalent per day.

“Appomattox opens up more production growth for us in the Gulf of Mexico, where our production last year averaged about 225,000 boe per day, and this development will be profitable for decades to come,” Upstream Director Marvin Odum said in a statement. “With its competitive cost and design, Appomattox is next in our series of deep-water successes.”

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Shell Cleared For Exploration Off Nova Scotia

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Screen Shot 2015-06-11 at 19.31.15By Andy TullyPosted on Wed, 17 June 2015

Shell Canada Ltd. is ready to begin exploratory drilling off the coast of Nova Scotia now that it has received conditional approval for the project from the country’s environmental minister.

Canada’s Environmental Assessment Agency issued the decision the night of June 15 after the environmental minister, Leona Aglukkaq, found that the project in the Shelburne Basin, 125 miles south of Nova Scotia’s southwestern coast, would not have a major impact on the local environment.

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As Shell moves toward Arctic, industry decries regulations

Screen Shot 2015-06-17 at 11.28.52Article by Jennifer A. Dlouhy published June 16, 2015 by The Houston Chronicle

As Shell moves toward Arctic, industry decries regulations

Industry leaders and allies in Congress say red tape will discourage Arctic exploration

WASHINGTON – Even as Shell Oil Co. gets closer to drilling new exploratory wells in Alaska’s Chukchi Sea, industry leaders and their congressional allies are insisting that the Obama administration’s planned Arctic drilling standards are so onerous and costly they will discourage others from following suit.

“Is the proposed rule intended to make exploration so expensive that it is not financially feasible to explore in our Arctic?” asked former Alaska state Sen. Drue Pearce, who headed the state Senate’s oil and gas committee. “If we want to have development in the Arctic as the president has called for, then we need to have standards that are economically feasible to allow them to go forward.”

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Shell gets go-ahead for Shelburne Basin drilling project

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Screen Shot 2015-06-11 at 19.31.15Shell gets go-ahead for Shelburne Basin drilling project

SHERRI BORDEN COLLEY STAFF REPORTER: June 15, 2015 

Shell Canada has received the green light to begin exploratory drilling off the coast of Nova Scotia later this year.

The project cleared its final regulatory hurdle late Monday when federal Environment Minister Leona Aglukkaq gave the company conditional approval.

In a news release, Aglukkaq ruled the project won’t have a major impact on the environment.

“We are pleased that the Canadian Environmental Assessment Agency issued its environmental decision statements on the Shelburne Basin Venture Exploration Drilling Project,” Larry Lalonde, spokesman for Shell Canada Ltd., said in an interview Monday night.

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Shell removing non-essential workers from Gulf of Mexico

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Screen Shot 2015-06-11 at 19.31.15Shell removing non-essential workers from Gulf of Mexico

Markets | Sun Jun 14, 2015 9:50pm EDT

(Reuters) – Leading Gulf of Mexico oil producer Shell Oil Co, the U.S. arm of Royal Dutch Shell Plc , said it was removing non-essential workers from offshore platforms as a precautionary measure ahead of a low-pressure storm system given an 80 percent chance of becoming a tropical cyclone in the next 48 hours.

Shell said there would be no impact to offshore production due to the removal of non-essential workers ahead of the storm system’s approach to the U.S. Gulf Coast.

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We May Not See Arctic Oil For Decades

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Screen Shot 2015-05-19 at 18.39.24We May Not See Arctic Oil For Decades

SHELL MAY END UP WITH NOTHING

By Nick CunninghamPosted on Wed, 27 May 2015

Shell’s Arctic campaign this year will be pivotal. If the company cannot find large reserves of oil, it will likely set back Arctic oil development for a generation.

The Financial Times reported that Royal Dutch Shell will not see Arctic oil come online anytime soon, even in the best of scenarios. Even Shell officials think that the oil major will not be able to see Arctic oil hit the market until sometime in the 2030s.

Related: Shell Approval May Trigger Resource Race In The Arctic

There are a few reasons for this. Finding and developing offshore oil can typically take around a decade. First there is a long lead time before any drills hit the waters – analyzing data, purchasing acreage, planning, doing seismic surveys, getting permits, moving equipment into place, and finally deploying rigs. Shell first started buying up Arctic leases in 2007. After years of preparation (and huge setbacks), Shell has done most of this pre-drilling work.

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Shell faces what amounts to an almost existential crisis

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Analysts Downgrade Troubled Shell

Given Mornigstar’s view that long-term oil prices will be well below $100 going forward, we don’t believe Shell’s has a lasting competitive advantage over its peers

Stephen Simko, CFA 27 May, 2015

Shell (RDSB) faces what amounts to an almost existential crisis: even when oil prices were $100 its portfolio was strewn with problems. Huge bets on shale destroyed huge amounts of capital, cost overruns on key projects such as the Motiva refinery, and a chronically poor-performing downstream all combined to leave the company with very weak returns on capital.

We have recently lowered our Shell fair value estimate to £20.50 per share from £21 per share to reflect what we believe was an overpayment with respect to its planned acquisition of BG Group.

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Exxon, Hunt among companies approved to bid on drilling in Gulf of Mexico

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“Shell, the European oil giant, and Brazil’s national oil company Petrobras, both of which had initially explored pursuing drilling rights in Mexico, ultimately decided to pull their applications…”

By JAMES OSBORNE: Staff Writer: Published: 26 May 2015 

Exxon Mobil and Hunt Oil aren’t turning their backs on Mexico’s oil fields yet.

The North Texas-based oil companies were among 26 entities approved to bid on drilling rights in the shallow-water Gulf of Mexico off Veracruz, the Mexican government announced Monday.

Mexican President Enrique Peña Nieto announced in 2013 that the country was opening its oil and natural gas fields to foreign companies for the first time in almost 80 years to try to revive lagging production. But enthusiasm has waned since last summer, as low crude prices threaten drilling projects worldwide.

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No Shell Arctic Oil Until 2030’s

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By: MICHEAL KAUFMANPublished: May 26, 2015 

Royal Dutch Shell Plc’s (ADR) (NYSE:RDS.A) head of oil and gas production in Americas, Marvin Odum has told the Financial Times (FT) in an interview that the company’s Arctic drilling operations would take at least a decade to extract oil reserves, which would then be sent to production.

The leading executives dealing with this particular exploration project stated that there are enormous difficulties that the company is facing during the process of securing environmental approvals. Amid strong opposition from environmental groups, to obtain the needed approvals is taking longer than the expected time.

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Out to Stop Shell’s Giant Oil Rig

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Screen Shot 2015-05-19 at 18.39.24Extracts from a Rolling Stone article by ANTONIA JUHASZ published 22 May 2015

Meet the Rappers and ‘Kayaktivists’ Out to Stop Shell’s Giant Oil Rig

…several hundred people trying to disrupt business as usual for the world’s largest oil company

Their target, Royal Dutch Shell’s 400-foot-long, 300-foot-tall offshore oil rig, dubbed the Polar Pioneer, was just out of sight in Elliott Bay, behind the terminal building. In January, Seattleites learned Shell is planning to park the rig at their port for eight months of the year, when it isn’t drilling for oil in Alaska’s Chukchi Sea. Since then, a growing group of citizen-activists, elected officials and non-governmental organizations has been plotting ways to not only kick the rig out of the city, but also halt Shell’s Arctic drilling plans altogether. 

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Environmentalists score a little discussed big win in Arctic drilling plans

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Screen Shot 2015-05-19 at 18.39.24May 19 2015, 14:48 ET | By: Carl Surran, SA News Editor

Environmentalists score a little discussed big win in Arctic drilling plans

  • Environmentalists angered by the Obama administration’s approval of Royal Dutch Shell’s (RDS.A, RDS.B) broad plan for boring exploratory oil wells in the Chukchi Sea seem to have overlooked that they scored a major victory in one respect.
  • The approval and newly proposed government mandates for Arctic oil development insist that Shell and other companies drilling in the region keep a second rig nearby to bore a relief well in case of a blowout, like the one that destroyed BP’s Gulf of Mexico well in 2010; Shell is being forced to shave off roughly a month of precious potential drilling days to leave time to bore a relief well in case of such an emergency.
  • Oil industry lobbyists fought the relief well requirement, at one point convincing a White House inter-agency review office that it is unnecessary and prohibitively expensive, but top Interior Department officials ended up winning out, insisting that it is essential to have all equipment on hand to act swiftly in case of an emergency at the remote, forbidding and often-frozen Arctic.

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