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Posts under ‘Oil Prices’

Oil prices slide as Obama lets Shell drill in the Arctic

As the giant Shell oil company begins highly controversial and risky exploration drilling in the Arctic, the price of crude continues to slide. Kieran Cooke from Climate News Network reports: 31 August 2015 It’s a gamble — some would say a giant gamble. Before even one litre of oil has been found, the Anglo-Dutch Shell group is […]

Shelling out too much

Mr van Beurden – who ill-advisedly said the deal only really sings once the oil price recovers to $90 a barrel – would be unwise to count on it. He’s on the hook for a £750m break fee if he pulls out, a pay-out he’d be hard pressed to survive. By Jeremy Warner: Sunday Telegraph […]

Oil price rises: is this the end of the slump?

“The trend is strong and down… do not be wrong-footed by a correction higher…” Aug 28, 2015: Brent in biggest one-day surge since December 2008 as pipelines closed down Oil prices are continuing to rise after the market posted its biggest one-day surge for close to seven years, a recovery that comes off the back of […]

Addressing The Royal Dutch Shell Dividend Concerns

Christopher F. Davis: Aug. 27, 2015 Summary Shares of oil majors have been crushed and Shell is no exception. Concerns over the dividend are being raised. I discuss the possibility of a dividend cut and what I see as likely happening. Royal Dutch Shell (NYSE:RDS.A) (NYSE:RDS.B) has been crushed in the last three months, and of […]

Market Rout

Oil’s slump has been brutal. More than half a trillion dollars of value has been wiped from the five biggest international oil companies — Exxon, Shell, Chevron, Total and BP — since mid-June last year. Rakteem Katakey: August 26, 2015: BLOOMBERG.COM Shares of the largest oil companies have slumped so low it suggests investors expect […]

Oil at rock bottom: Is your portfolio at risk?

Among individual oil producers, the biggest on the market is Royal Dutch Shell, and its share price has unsurprisingly performed terribly in the last year. The shares have fallen 36 per cent since last August… by Annabelle Williams: 26 August 2015 Shares in energy companies have plummeted – should investors be buying? OIL PRICES have fallen […]

Royal Dutch Shell Is Now A 7.54% Dividend Yield Monster

Aug. 24, 2015 6:45 PM ET Summary Stock market downturn takes Shell’s dividend yield to an astonishing 7.54%. The dividend looks reasonably safe. High initial yield but little growth expected in coming years. Royal Dutch Shell (NYSE:RDS.A) (NYSE:RDS.B) doesn’t need an introduction. This Anglo-Dutch multinational is one of the largest, integrated oil & gas majors […]

Impact of Global Sell-Off on Shell-BG Group Deal

By: MICHEAL KAUFMAN: Aug 25, 2015 Royal Dutch Shell plc. (ADR) (NYSE:RDS.A) earlier this year finalized its $70 billion merger deal with BG Group plc. (ADR) (NYSE:BRGYY). The cash-and-stock deal valued BG at $20 per share. Shell, based on BG’s stock price on April 7, agreed on paying a 50% premium. However, as yesterday’s sell-off and […]

Opec powerless to halt oil price slide, warns former group president

Opec veteran says that current oil prices slump has exceeded the worst expectations of the group By Andrew Critchlow, Commodities editor: 24 Aug 2015 Opec is powerless to arrest the slide in oil prices unless producers outside the group such as Russia match any cuts in output, according to a former president of the group. ‘Black […]

Royal Dutch Shell bid for BG Group at risk of falling apart

Arash Massoudi and Miles Johnson: 24 Aug 2015 A global stock market sell-off and tumbling oil prices have increased fears that some of this year’s largest takeover deals are at risk of falling apart — including Royal Dutch Shell’s $70bn bid for UK rival BG Group. FULL ARTICLE

Iran to Raise Oil Output ‘at Any Cost’ to Defend Market Share

U.S. benchmark West Texas Intermediate crude fell to less than $40 a barrel for the first time in more than six years in New York trading on Friday. Anthony Dipaola and Hashem Kalantari: BLOOMBERG.COM: 23 AUGUST 2015 Iran plans to raise oil production “at any cost” to defend the country’s market share and joins calls for […]

Oil slump highlights pressure on dividend payouts

Extracts from an article by Garry White: 22 Aug 2015 Some in the City are concerned that distributions to shareholders at some major dividend payers are too high. This is particularly true for the oil sector. • Opec is being eaten alive and needs to meet to heal its wounds • Low oil prices bite as […]

Shell begins ‘high-risk’ drilling for Arctic oil

Robin Pagnamenta Energy Editor: August 22, 2015 Shell has begun the final stage of its $7 billion attempt to drill for oil in Alaska’s remote Chukchi Sea. Despite tumbling oil prices and opposition from Hillary Clinton and conservationists, this weekend a steel drill bit was grinding its way through rocks deep beneath the icy waves. […]

Oil suffers longest weekly losing streak since 1986

Published: Aug 21, 2015 3:22 p.m. ET “It looks like the market will remain in a supply/demand surplus at least through 2016.” SOURCE

OIL BELOW $40

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Oil Companies Sit on Hands at Auction for Leases

By CLIFFORD KRAUSS: AUG. 20, 2015 PAGE B1 IN NEW YORK EDITION HOUSTON — 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 […]

Wellcome Trust loses millions as its fossil fuel investments plunge in value

The Wellcome Trust’s investments in fossil fuel companies have lost an estimated £175m in the last year, due to sharp falls in share prices. Research by the Guardian shows the medical charity has sold off two-thirds of its holding in Shell… FULL ARTICLE

Shell layoffs hit New Orleans as oil prices dive

By Jennifer Larino, NOLA.com | The Times-Picayune: 19 August 2015 Layoffs are starting to hit New Orleans as Royal Dutch Shell moves forward with plans to eliminate 6,500 jobs worldwide. The cuts come as Shell seeks to cut costs amid lower oil and gas prices. Shell spokeswoman Kimberly Windon confirmed in an email the company has […]

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

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 […]

BP plc and Royal Dutch Shell Plc Will Have To Survive Without $100 Oil

By Harvey Jones – Tuesday, 11 August, 2015 Low oil prices have sunk share prices at BP (LSE: BP) and Royal Dutch Shell (LSE: RDSB) and there is no sign of immediate respite. There was a flicker of hope as Brent crude climbed to nearly $68 a barrel in May, but it has now slid below $50 again, and […]

To please investors, Big Oil makes deepest cuts in a generation

August 7, 2015 Oil companies are making the largest cost cuts in a generation to reassure investors. They’re risking their own future growth. From Chevron Corp to Royal Dutch Shell, producers are firing thousands of workers and cancelling investments to defend their dividends. Cutbacks across the industry total $US180 billion so far this year, the most […]

Chevron Corporation, Royal Dutch Shell Plc & Other Oil Co.s Have Lost $1.3 Trillion Since Last Year

By: MICHEAL KAUFMAN: Aug 5, 2015 As the global benchmark of crude, Brent currently hovers around $50 per barrel. Meanwhile, the oil and gas industry has lost $1.30 trillion of its value this year, and this eroded value equals the annual gross domestic product (GDP) of Mexico. The combined market capitalization of 157 listed oil and […]

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

by Paul Barrett and Benjamin Elgin: 5 August 2015: BLOOMBERG.COM Protesters near the Polar Pioneer.: Photographer: Keri Coles/Greenpeace 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, […]

Shell’s Dividend Pledge: Solid Or Empty Promise?

One cannot but admire CEO Ben van Beurden for his courage… August 4, 2015 Summary Royal Dutch Shell is dead serious about protecting future dividend payments. CEO Van Beurden committed himself to paying attractive dividends in the next two years. Although I am impressed by Shell’s massive cost reduction plans and the slash in investments, […]

Oil Companies Spending Cuts Unlikely to Be Enough

LONDON–The world’s biggest oil company’s have vowed to bring down the costs of big projects in the face of slumping oil prices, but the unrelenting price weakness–with crude below $50 a barrel–suggests they could have to dig deeper still. In the past year, as oil prices plunged 60% from highs of $114 in 2014, U.K. […]

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

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 […]