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Posts under ‘Oil Prices’

Oil companies’ grim outlook weigh on investors’ sentiment

By Bloomberg | 4 August 2015 NEW YORK: The world’s biggest oil companies are painting a grim picture of the future and speculators are listening. Hedge funds reduced bullish bets to the lowest level in five years as oil capped the worst month since the financial crisis. The net-long position in West Texas Intermediate contracted 7 […]

August Off To A Shaky Start For Oil Markets

By Evan Kelly: Tue, 04 August 2015 August started off on a dour note for crude oil, with prices tanking by around 5 percent on August 3. A slew of negative news from around the world weighed on prices. The Greek stock market plummeted on the first day of trading after being closed for five weeks. […]

Oil price: return to $45 barrel now ‘inevitable’

August 4, 2015 A “re-test” of the $45-a-barrel low for the benchmark Brent crude oil price is “inevitable” in the near future as supply prices continue to squeeze the market, an analyst arm of Fitch Ratings has said. The comments from BMI Research, quoted by Reuters, came in the wake of major falls on Monday […]

Oil sinks below $50

Oil dives 5 percent to six-month low under $50 on China worry Markets | Mon Aug 3, 2015 4:21pm EDT Oil prices lurched 5 percent lower on Monday to their lowest since January, taking global benchmark Brent below $50 a barrel as weak factory activity in China deepened a commodity-wide rout. Growing concerns over excess […]

BG Group Profits Crash By 65%

By LAURA CHESTERS FOR DAILY MAIL The oil price rout found new victims on both sides of the Atlantic yesterday as BG Group and Chevron revealed profits had tanked. BG, which is in the process of being sold to Royal Dutch Shell, reported a 65 per cent fall in second quarter profit to £275.5million, while […]

Royal Dutch Shell Profits Continue to Fall, Prompting 6,500 Layoffs By

By STANLEY REED: JULY 30, 2015 LONDON — Royal Dutch Shell said on Thursday that its profit fell sharply in the second quarter as a strong performance in marketing and refining failed to offset the brunt of lower oil and gas prices. The oil giant also said it would cut its capital investment and eliminate 6,500 jobs […]

Shell to cut jobs, spending to cope with lower oil prices

LONDON | BY RON BOUSSO AND KAROLIN SCHAPS: 30 July 2015 Royal Dutch Shell on Thursday reported a 37 percent drop in second quarter profits and said it would cut 6,500 jobs this year and reduce spending further to deal with an extended period of lower oil prices. The Anglo-Dutch oil and gas company also said […]

Shell to Cut 6,500 Jobs, Reduce Investment by $7 Billion

By Rakteem Katakey: July 30, 2015″ BLOOMBERG.COM Royal Dutch Shell Plc, the oil producer buying BG Group Plc for more than $70 billion, said it plans to cut 6,500 jobs this year and reduce capital investment by $7 billion. Shell is planning for a “prolonged downturn,” the company said Thursday in a statement. Its dividend commitment […]

Royal Dutch Shell to cut 6,500 jobs

Oil giant Royal Dutch Shell has announced it is to shed 6,500 jobs as part of cost cutting plans. 30 July 2015 The company said the cost cutting was to help “mitigate the impact” on profits amidst a drop in oil prices. Its “prudent approach” included a reduction in operating costs of $4bn and reduced oil […]

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

Europe’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 […]

British energy giants set to axe costs in a bid to cope with falling gas and oil prices

BG could reveal a 75 per cent fall in profit to £200million By LAURA CHESTERS FOR THE DAILY MAIL: 26 July 2015 The falling price of oil and gas continues to take its toll on energy firms as British Gas-owner Centrica, BP and Royal Dutch Shell are set to reveal increased cost cutting to cope. The […]

Oil groups have shelved $200bn in new projects as low prices bite

Shell, which stunned the energy industry with a £55bn agreed offer for BG Group in April, will this week set out deeper cuts to its capital spending this year, revising downwards its most recent estimate of $33bn expenditure. FULL FT ARTICLE Like this:Like Loading…

Green Activists Outraged At U.S. Approval Of Shell Arctic Drilling

By Andy Tully: 23 July 2015 Environmental activists are furious that the Obama administration is allowing Royal Dutch Shell to begin its much-debated drilling in the Arctic Ocean this summer, even with one remaining condition. Two permits were issued July 22 by the Interior Department’s Bureau of Safety and Environmental Enforcement, but with the provision that […]

Here’s Why Royal Dutch Shell plc Was Downgraded By S&P

According to S&P, the softness in crude oil prices and significant capital expenditures, despite recent spending cuts, have weakened Shell’s financial risk profile, which is reflected in the ratings downgrade. By: MICHEAL KAUFMAN: Jul 22, 2015  Standard & Poor’s (S&P) has downgraded the credit rating of European oil major Royal Dutch Shell plc (ADR) (NYSE:RDS.A) […]

Shell to cut capital expenditure to adjust books for plunge in oil prices

By Jerin Mathew: July 20, 2015 Anglo-Dutch energy major Royal Dutch Shell plans to cut its 2015 capital expenditure, as the company looks to balance its accounts in light of a 50% decline in oil prices since June 2014. The Financial Times reported that Shell’s CEO Ben van Beurden is expected to outline the cut […]

Shell expects oil price recovery to take several years

Ron Bousso, Karolin Schaps and Dmitry Zhdannikov, Reuters LONDON (Reuters) – Royal Dutch Shell expects oil prices to recover gradually over the next five years, with progress slowed by persistent global oversupply and receding Chinese demand growth. The Anglo-Dutch energy giant is betting on crude rising to $90 a barrel by 2020, a key assumption […]

Here’s How Shell Can Restart Its Tar Sands Projects In Canada

By: MICHEAL KAUFMAN Exploring for new oil has now become a difficult task for the oil majors. Oil and gas are now mostly situated in the deep-waters, Canadian tar sands and the Arctic waters where the cost of exploration and production is very high. These high costs coupled with the lower crude oil prices make […]

Oil price: five reasons why oil has re-entered a bear market

The oil price has fallen by more than a fifth since it hit a year-high of $69.63 a barrel in May Jul 8, 2015 Oil re-entered a bear market yesterday as the price for Brent Crude, the international benchmark, recorded its largest one-day loss since February. On Monday, the oil price fell by six per […]

Not Deterred By Huge Risks, Shell Opts For Megaprojects

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 […]

Logistics and Lizards Disrupt Chevron’s Project Off Australia

Chevron agreed to share the cost with Exxon Mobil, Shell and three Japanese power companies, Osaka Gas, Tokyo Gas and Chubu Electric Power. “This is probably the last of the megaprojects for the oil companies for a while…” By A. ODYSSEUS PATRICK: JULY 3, 2015 SYDNEY, Australia — Getting anything to Chevron’s gas-processing plant on Barrow Island […]

Royal Dutch Shell CEO Blames Saudi Arabia For Slowed US Shale Growth

Bidness Etc takes a look at how Saudi Arabia led to slowed growth of the US shale oil industry By: MICHEAL KAUFMAN: Published: Jul 2, 2015 at 9:37 am EST The Organization of Petroleum Exporting Countries (OPEC), led by Saud Arabia, usually monitors the crude oil supplies and prices prevailing in the market. The US energy […]

Shell Chief says U.S. shale producers under pressure from Saudi Arabia -FT

Wed Jul 1, 2015 OPEC’s decision, led by Saudi Arabia, to not cut oil production has put pressure on U.S. shale gas producers which in turn has put brakes on America’s energy boom, the chief executive of Royal Dutch Shell Plc said in an interview with the Financial Times published on Wednesday. Ben van Beurden […]

Shell Executives Visit Tehran for Projects If Sanctions End

by Javier Blas 24 June 2015 Royal Dutch Shell Plc executives have visited Tehran to discuss possible partnerships, the latest sign that the largest oil companies are serious about returning to Iran once a deal on the country’s nuclear program is done. The meeting with Iranian officials covered its outstanding debt to National Iranian Oil Co. […]

Can You Really – Really – Be Sure Of Shell?

By Owain Bennallack – Thursday, 18 June, 2015 Making glib comments about the flaws of tracker funds – or even more so the foolishness of those who invest in them – is a mug’s game.  The evidence shows that over the long term, tracker funds beat most actively managed ones, not least because of the far […]

Shell Cleared For Exploration Off Nova Scotia

By Andy Tully: Posted 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 […]

Low oil price hits $200 billion in mega-projects

* Ernst and Young say more project delays likely * Say at least 24 projects worth more than $1 bln put on ice By Ron Bousso LONDON, June 16 (Reuters) – Deepwater oil projects and complex gas facilities worth around $200 billion have been cancelled or put on hold worldwide in recent months due to […]

Shell Gets U.S. Permit to Disturb Marine Life Off Alaska’s Coast

Bloomberg.com article by Mark Drajem: June 16, 2015 Royal Dutch Shell Plc received U.S. approval to disturb marine mammals as part of its plan to resume oil exploration off Alaska’s Arctic coast. The National Oceanic and Atmospheric Administration issued an “incidental harassment authorization,” which allows noise from air guns, icebreaking, drilling and anchor handling. The June […]

Why I’d Buy British American Tobacco plc Before Royal Dutch Shell Plc

By Peter Stephens – Tuesday, 16 June, 2015 EXTRACTS For investors in Shell the last year has been particularly tough. The declining oil price has hit its profitability and investor sentiment very hard, with Shell’s share price falling by 24% during the period, while the outlook for ‘black gold’ remains highly uncertain. While Shell’s financial performance […]

U.S. Ousts Russia as Top World Oil, Gas Producer

Article by Rakteem Katakey published 10 June 2015 by Bloomberg.com The U.S. has taken Russia’s crown as the biggest oil and natural-gas producer in a demonstration of the seismic shifts in the world energy landscape emanating from America’s shale fields. U.S. oil production rose to a record last year, gaining 1.6 million barrels a day, according […]

BP sees ‘tectonic shift’ in world energy production

BP sees ‘tectonic shift’ in world energy production Oil giant’s chief economist says energy consumption slowed dramatically last year as China cutback and Opec battled US shale drillers for supremacy of world markets By Andrew Critchlow, Commodities editor:10:00AM BST 10 Jun 2015 Global energy consumption slowed to its slowest rate of growth since the late […]

Royal Dutch Shell stock has fallen by over 26% in the last year

By: MICHEAL KAUFMAN: Published: Jun 10, 2015  The stock for Royal Dutch Shell Plc. (ADR) (NYSE:RDS.A) has fallen by over 26% in the last one year. The S&P 500 during the same period rose by 6.71%. The decline in the stock prices of energy companies has been a norm. Over the last one year, crude oil […]

Mars joins BP and Shell in opposing European financial market regs – FT

NEW YORK: 7 JUNE 2015 Confectionery company Mars Inc has joined oil companies BP Plc and Royal Dutch Shell Plc to oppose planned new European financial market regulations, arguing that they would increase volatility and reduce liquidity in raw materials markets, according to a report by the Financial Times on Sunday. The companies, along with […]

Saudi Arabia Lets The World Drown In Oil

Article by Nathan Vardi: Forbes Staff: Friday 5 June 2015 To the surprise of nobody, Saudi Arabia and the other OPEC member states decided in Vienna on Friday to maintain production targets of 30 million barrels a day, making sure the world remains flooded with oil. The fact that OPEC—particularly the core countries of Saudi Arabia, […]

BG deal disguises a hole in Shell’s financial projections

The market is having one of its periodic anxiety attacks about Big Oil.  BG deal disguises a hole in Shell’s financial projections and the dividend is not sustainable. Shell shares have slumped by 14%. sort of yield may not come again. FULL FT ARTICLE:  5 June 2015 (WITH WORKING LINKS) Like this:Like Loading…

Shell CFO Expects Oil Rebound as Shale Fails to Fill Supply Gap

Article by Firat Kayakiran and Jonathan Ferro published 3 June 2015 by Bloomberg.com Royal Dutch Shell Plc sees oil prices increasing because supply from shale drilling in the U.S. won’t be enough to meet increasing global demand. The industry needs to find an additional 4 million barrels to 5 million barrels a day of supply every year to […]

Prices Are Down, but Saudis Keep Oil Flowing

Article by CLIFFORD KRAUSS and STANLEY REED published 1 June 2015 in the New York edition of The New York Times under the headline Prices Are Down, but Saudis Keep Oil Flowing HOUSTON — The international cartel of oil producers has long followed the same basic strategy. When the market was soft, the group slashed production […]

Opec under siege as Isil threatens world’s oil lifeline

Opec under siege as Isil threatens world’s oil lifeline By Andrew Critchlow: 30 May 2015 Thick black smoke rising from the Baiji oil refinery could be seen as a dirty smudge on the horizon as far away as Baghdad after fighters from the Islamic State of Iraq and the Levant (Isil) set fire to the enormous […]

Could Shares In BP plc And Royal Dutch Shell Plc Collapse By More Than A Third?!

By Royston Wild – Friday, 29 May, 2015 “In my opinion both stocks are in danger of a severe share price collapse as the oil market outlook becomes ever gloomier.” Shares across much of the oil sector have received a massive fillip in recent months in line with a recovery in the crude oil price. […]

Shell Elects Huibert Vigeveno To Lead BG Group Merger

By: MICHEAL KAUFMAN: May 29, 2015  European oil giant Royal Dutch Shell Plc (ADR) (NYSE:RDS.A) has elected the head of its Chinese operations to lead the company’s planned merger with UK-based natural gas company, BG Group Plc (ADR) (OTCMKTS:BRGYY), as it seeks approval from regulatory authorities in several countries. Earlier this week, the oil company told […]

OPEC Seen Backing Saudi Arabia’s Plan to Keep Supplies Elevated

by Grant Smith and Maher Chmaytelli: Bloomberg.com: 27 May 2015 When Saudi Arabia argues next week that OPEC should keep up production to fight the rise in U.S. shale oil, prices will be on its side. Crude plunged for eight of nine weeks prior to the group’s November gathering, when the kingdom faced down opposition from the […]