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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

Lower for longer oil prices vs higher, sooner

by : Sunday 1 Oct 2017

To clarify Ben van Beurden’s point, he was not forecasting that oil would be “lower forever”; he meant that Shell should be operating with the mindset that it might be. If you are a risk-averse oil producer, that makes sense. Oil consumers should probably likewise be thinking about the possibility that prices could be higher, sooner.

FULL FT ARTICLE

Shell takes cautious approach to green energy transition

by Andrew Ward, Energy Editor: 1 Oct 2017

Mr van Beurden, chief executive of Shell, allows himself only the briefest self-congratulation. “All the milestones, we are either ahead or on track,” he tells the Financial Times, referring to targets set at the time of the takeover. “But you are never done in this industry because everything is always in continuous decline.” The Dutchman is talking about the relentless pressure to find new resources… FULL ARTICLE

Shell CEO van Beurden says oil prices will be around $60 by the end of the decade

 | : 27 Sept 2017

It’s “not unreasonable” to expect oil prices at $60 a barrel by the end of the decade, Royal Dutch Shell CEO Ben van Beurden told CNBC’s “Managing Asia.”

To be sure, that’s not a large rise from current levels.

Brent crude rose 0.38 percent to trade at $58.66 a barrel in Wednesday Asia trade, after hitting a 26-month high on Tuesday, while U.S. crudewas higher by 0.5 percent at $52.14 at 12:00 p.m. HK/SIN.

Van Beurden said forecasting oil prices in the short term was “very difficult,” but he still expected gains. read more

Iran Says OPEC Action on Output Cuts Must Address Libya, Nigeria

OPEC’s commitment to cutting production to clear a global glut is working, but the group needs to address rising output from Libya and Nigeria, Iran’s Oil Minister Bijan Namdar Zanganeh said. 

Compliance with the output cuts is “acceptable,” Zanganeh told reporters in Tehran. The Organization of Petroleum Exporting Countries should focus on “the situation with Libya and Nigeria,” he said, referring to the two countries exempted from capping production due to their internal strife. 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

Will Shell’s Gas Gamble Pay Off?

By Cyril Widdershoven – Sep 16, 2017, 6:00 PM CDT

Supermajor Royal Dutch Shell has decided to divest its Iraqi oil assets in a move to focus on its future in natural gas. The industry giant is seemingly breaking from its oil heritage to head full speed into the “Golden Age of Gas.” Shell’s decision to leave Iraq’s upstream oil assets is not without risk, however, as the market for natural gas is even more oversupplied than it is for crude oil.

Reuters reported the move first, based on a letter from the Iraqi ministry of oil, followed by a confirmation from Shell. The Dutch heavyweight indicated to the press that its oil asset divestment in Iraq is in line with its strategy to focus more on natural gas and downstream activities. read more

The North Sea Oil Recovery Is Dead In The Water

At an oil industry conference in the North Sea’s oil capital, Aberdeen, the chief executives of BP and Royal Dutch Shell both offered bullish assessments for the turnaround underway off the coast of Scotland. BP’s Bob Dudley said the North Sea is “back to growth,” according to the FT. So, far from a boon for the country, the North Sea is in danger of becoming “a significant annual expenditure for government, rather than a provider of income” in the decades to come, according to a Wood Mackenzie assessment from earlier this year. FULL ARTICLE read more

Shell Is Nothing Short Of Exemplary

Earnings Forecast Focus: Sep. 5, 2017 6:49 PM ET

Summary

  • Shell CEO Ben van Beurden’s “lower forever” quote was aimed at operating costs and overall company culture. It does not reflect the CEO’s oil price outlook.
  • The company’s operational excellence has been nothing short of exemplary.
  • Scrip dividend will be removed when gearing is down to 20% from the current 25%.
  • At the current rate, it should take no more than twelve months to reduce the gearing to 20%.
  • Obviously, the dividend is safe. More importantly, this is an opportunity to buy a company with excellent leadership.
  • read more

    The North Sea must ‘earn its right to grow’, says Shell boss

    Jillian Ambrose: 

    The North Sea still has the support of supermajors BP and Royal Dutch Shell but the basin will need to earn its right to grow within a rapidly changing energy landscape, oil bosses have warned. Oil industry heavyweights have converged on Aberdeen this week for a conference focused on the future of the North Sea as oil majors shift their portfolios towards low cost oil, petroleum products, gas and even renewables. Ben Van Beurden, Shell’s chief executive, said the Anglo-Dutch group is still committed to the basin after its $3bn sell-off to private equity backed Chrysaor, but added that the North Sea needs to “earn its right to grow” amid “challenging times” for the oil and gas sector. FULL ARTICLE read more

    Shell’s Ben van Beurden: Oil vs Uber in the battle of reputations

    Written by

    But it wasn’t oil price, or strategy that landed him prime time interviews. Instead, it was the comment that his next car would be electric. “It wasn’t a planned remark, it just came out,” he said. “But it shows how charismatic renewables and electricity is at the moment, much more charismatic than gas and definitely much more charismatic than oil.” A perception that oil and gas have a shrinking role to play is one the industry needs to address head-on. “If you really want to be charismatic about what needs to happen in a big way you would focus on gas,” he said. And that includes an education around renewables. FULL ARTICLE read more

    INTERVIEW-Electric cars and renewables not enough to meet Paris climate goal – consultant

    By Karolin Schaps

    ARNHEM, The Netherlands, Sept 5 (Reuters) – The cost of electric vehicles (EVs) will fall to match those running on combustion engines by 2022, a key trigger that will mean by 2035 half of all passenger vehicles sold globally will be electric, according to the head of a top energy consultancy. But this expected exponential rise in cleaner vehicles, coupled with booming renewable energy production, will not be enough to meet the Paris Agreement goal of limiting climate warming, Ditlev Engel, chief executive of DNV GL’s energy consulting business, told Reuters in an interview. FULL ARTICLE read more

    Exclusive: Shell’s CEO – Oil slide is “biggest blessing”

    Written by

    Ben van Beurden’s rise to the top coincided with the oil price riding the crest of a wave.

    But for a man who assumed Shell’s chief executive role just months before it all came crashing down, he sums up the last three years as “a blessing”.

    “Less than a year into my new role, the oil price started going down and it’s been quite a journey, but if I look back on it I think this is probably the biggest blessing that I’ve had,” he said.

    “It has done two things. First of all it provided a tremendous amount of focus on the things that needed doing. I mean, there’s nothing like a crisis to focus on cost efficiency. read more

    Exclusive Interview: Ben van Beurden – No North Sea retreat

    Written by

    Ben van Beurden hailed the region’s “tremendous” progress.

    His commitment to the region comes after it sold more than half of its North Sea oil and gas fields for $3.8billion to Chrysaor.

    The sell-off included interests in the fields Buzzard, Beryl, Bressay, Elgin-Franklin, J-Block, the Greater Armada cluster, Everest, Lomond and Erskine, and a 10% stake in Schiehallion.

    Mr van Beurden insisted the shift in assets was about breathing new life into the portfolio Shell ring-fenced to keep.

    Speaking exclusively to Energy Voice from his Hague office, he said: “The North Sea has improved tremendously. “It’s one thing to say, look at what Shell’s selling. read more

    ‘Ogoni cleanup has been politicised due to diverse interests’

    What, in your view, is actually delaying the cleanup of Ogoni land for over two years after the Federal Government announced its commencement?
    The cleanup process was flagged off with funfair and with raised expectations that things will be done in Ogoni. But we have seen clearly that the cleanup process of Ogoniland has been politicised and the diverse interests in the process has not been properly managed to the extent that there are different expectations from different interest groups. This is one of the serious problems why the cleanup has not commenced. And because it has been politicised, the flag off itself is a mere political statement with what we have seen. Two years down the line, not a drop of oil has been cleaned up. read more

    Big Oil to be usurped by gas in little more than a decade, experts warn

    Jillian Ambrose: 

    THE dominance of Big Oil will be usurped in less than two decades by the dawn of a golden age for natural gas lasting at least until the middle of the century. One of the world’s biggest risk assurance experts in the global energy ­industry has predicted that gas will emerge as the world’s most important source of energy by the mid 2030s ­after a slow descent for oil which will peak within ten years and the ongoing decline of coal. The fresh findings are reassuring for investors in oil supermajors BP and Royal Dutch Shell which have both ­begun to shift their portfolios towards gas exploration and production in the wake of the global oil price crash. FULL ARTICLE read more

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