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Posts under ‘Gulf of Mexico’

Royal Dutch Shell: The Cash Machine

 Nov. 6, 2017 12:35 PM ET

Summary

  • Royal Dutch Shell has reported nearly 50% increase in profits following improvement in energy prices which fueled a turnaround of its upstream division.
  • In the first three quarters of 2017, Royal Dutch Shell generated $15.42 billion of free cash flows (ex. working cap. changes), surpassing even the industry’s cash flow king Exxon Mobil.
  • Oil prices have climbed to almost $61 a barrel and could stay at this level in the future, which could give a major boost to Shell’s earnings and cash flows.
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    Layoffs avoided as Shell to revamp gasoline unit at Convent refinery

    CONVENT — Royal Dutch Shell plans to refurbish the gasoline-producing catalytic cracking unit at its Convent oil refinery in St. James Parish next year and not demolish it as previously planned under an effort to link up the oil major’s Gulf Coast operations, a local government official said.

    St. James Parish President Timmy Roussel announced Wednesday night that refinery managers told him the fluidized catalytic cracker would be furbished in a forthcoming “major turnaround” so it could be run for another four to five years, avoiding possible layoffs at the 227,600 barrel-per-day refinery. read more

    Shell says can pump oil from Brazil’s pre-salt fields below $40/bbl

    Simon WebbAlexandra Alper: OCTOBER 25, 2017

    RIO DE JANEIRO (Reuters) – Royal Dutch Shell will participate in Brazil’s deepwater oilfield auction on Friday and is confident it can pump oil from the fields on offer for less than $40 a barrel, a top Shell executive said. Brazil will hold its first auction in four years for its pre-salt oilfields on Friday. The eight deepwater blocks on offer hold billions of barrels in reserves, and for the first time, Brazil will allow foreign oil firms to operate the fields in the region. Shell believes it could pump oil from the pre-salt fields below the company’s target breakeven cost of $40 per barrel, Wael Sawan, Executive Vice President for Shell’s deepwater division, told Reuters. The high quality of the reserves and the prolific output volume that the pre-salt wells can produce make them an attractive proposition, he said. FULL ARTICLE read more

    Why $55 Brent Is Big News For Shell

    In light of material increases in realized upstream prices and an improving downstream sector, Royal Dutch Shell plc’s (NYSE:RDS.A) (NYSE:RDS.B) financials have shown tremendous improvement this year. The worst of the downturn is behind the oil sector, but keep in mind crude prices remain range-bound. That being said, with Brent (global oil benchmark) back over $55/barrel (high end of the range), things are looking brighter and brighter for Royal Dutch Shell every day. Especially when it comes to fully covering Royal Dutch Shell plc Class A and Class B shares’ lofty 6+% yields. Let’s dig in. read more

    Harvey May Pinch Some Gulf Coast Refining, Chemical Projects

    NEW YORK/HOUSTON — Oil and petrochemical plants along the U.S. Gulf Coast intend to go ahead with plans for near record spending on expansions next year, despite Hurricane Harvey driving up labor costs and slowing work, experts said. Harvey largely spared oil and petrochemical plants along the U.S. Gulf Coast from significant damage but thousands of homes and businesses were not as fortunate. Refiners and recovery projects will compete for the same labor, driving up costs or causing labor shortages. read more

    Oil giants donate $23 million for Harvey victims

    Harvey has soaked Texas with the heaviest rainfall in US history. Texas officials said more than 185,000 homes were damaged and 9,000 destroyed as 42,000 people remain in shelters amid overflowing rivers and reservoirs.

    “In the community, Shell staff have helped out so many in need that people are flagging down anybody wearing the company pecten symbol to say thank you,” Shell CEO Ben van Beurden wrote in a LinkedIn article on the storm. FULL ARTICLE

    Shell, Exxon say some pollution released as storm hits Texas

    Shell staff return to Gulf of Mexico platform after Harvey: sources

    Storm Harvey: Shell boss takes stock of disruption

    Hurricane Harvey Tosses Global Oil Markets Into Chaos

    By Nick Cunningham – Aug 28, 2017, 6:00 PM CDT

    The most powerful Hurricane to hit Texas in more than 50 years has devastated much of the coast, and the historic flooding is now causing havoc in the energy markets. The rain is not over, and will continue over the next few days, spilling a year’s worth of rain within a week. Royal Dutch Shell closed its 360,000 bpd Deer Park refinery, according to S&P Global Platts, and Phillips 66 shut down its 247,000 bpd Sweeny refinery. FULL ARTICLE read more

    Full extent of Harvey’s aftermath starts to come into chilling focus

    In the aftermath of Hurricane Harvey, Houston and an ever-expanding swath of cities and towns in the region remained under siege Monday by torrential rain and surging floodwaters that showed no signs of abating. FULL STORY

    Shell halts operations at Deer Park refinery

    Royal Dutch Shell said Sunday the aftermath of Hurricane Harvey is causing the shutdown of its massive refining and petrochemical complex in Deer Park. Shell is closing one of Texas’ largest refineries, which can refine more than 315,000 barrels of crude oil a day into gasoline and other petroleum products. “The top priority of Shell Deer Park is to operate in a safe and environmentally sound manner. Due to continued inclement weather conditions from Hurricane Harvey, Shell Deer Park is conducting a controlled/planned shut down of the refinery and chemical plant,” Shell said in an email response. FULL ARTICLE read more

    Damage unknown to Shell’s Perdido platform in U.S. Gulf

    AUGUST 27, 2017

    HOUSTON (Reuters) – Royal Dutch Shell Plc said on Sunday it has not yet been able to assess damage to its deepwater Perdido platform in the U.S. Gulf of Mexico after evacuating it ahead of Tropical Storm Harvey, which came ashore as a hurricane. The company scrapped plans on Saturday to send a reconnaissance flight over the platform, about 200 miles (321 km) south of Freeport, Texas, said spokesman Curtis Smith. A second flight will be attempted on Sunday.

    Reporting by Ernest Scheyder; Editing by Sandra Maler read more

    Shell says Deer Park, Texas refinery may be shut for a week

    AUGUST 27, 2017

    HOUSTON (Reuters) – Royal Dutch Shell Plc said its Deer Park, Texas, refinery and chemical plant complex may be shut for up to a week because of Tropical Storm Harvey’s impact on the Houston area. Shell spokesman Curtis Smith said following a controlled shutdown of the complex including the 325,700 barrel per day (bpd) refinery on Sunday, only essential personnel would remain at the plant through the end of the week.

    Reporting by Ernest Scheyder and Erwin Seba; Editing by Andrea Ricci read more

    Harvey, Biggest Hurricane Since 2005, Spiraling Toward Texas Coast

    Massive Shell platform starts its journey to Texas

    The departure is the latest milestone for a gigantic venture the European company sanctioned two years ago in the face of a raging oil bust that forced many of its rivals to scuttle offshore plans. As oil prices tumbled, Royal Dutch Shell spent $600 million and employed 1,500 workers in Texas and Louisiana alone to fabricate parts for the so-called Appomattox platform, the company’s largest in the Gulf, expected to start pumping oil 80 miles off Louisiana by the end of the decade. Even so, Shell says it could still wring a profit from its 125,000-ton platform with oil prices below $50 a barrel, after deep cost cutting. FULL ARTICLE read more

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