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Posts under ‘Oil’

Why oil discoveries are in decline

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Screen Shot 2016-05-24 at 10.29.57On 4th of May REP published its seventh annual ‘State of Exploration’ report, which benchmarks the performance of international conventional oil and gas exploration. The report has grown to become one of the definitive global benchmarks in the E&P sector. 

In a world awash with the stuff, new oil discoveries continue to be elusive. Global exploration drilling in 2016 is forecast to be down 73% on 2014 with discovered oil volumes at a decade low, according to Richmond Energy Partners’ annual ‘The State of Exploration’ report.

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Exxon Investors Seek Assurance as Climate Shifts, Along With Attitudes

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By CLIFFORD KRAUSS and JOHN SCHWARTZA version of this article appears in print on May 24, 2016, on page A1 of the New York edition

HOUSTON — Exxon Mobil has been under pressure for over a year to explain its handling of climate change issues in the past. Now the company faces new pressure to explain its future, particularly how it will change in response to a warming world.

At the company’s planned annual meeting on Wednesday in Dallas, shareholders will vote on a resolution to prod Exxon Mobil to disclose the risks of climate change to its business.

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Lensbury Club, owned by Shell Oil, defends its opposition to Teddington and Ham Hydro renewable energy scheme

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Screen Shot 2016-04-20 at 13.50.03George Odling, Senior Reporter: 23 May 2016

A leisure club owned by Shell Oil has defended its position to block plans for a renewable energy scheme near its land.

Its decision, which has left council-tax payers footing the bill, has been blasted as “shameful” by a Teddington councillor.

Teddington’s Lensbury Club, wholly owned by the oil giant, is appealing a High Court dismissal of a review into Richmond Council’s decision to grant planning permission to the Teddington and Ham Hydro scheme.

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Royal Dutch Shell faces demand to reveal all on climate change

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Screen Shot 2016-04-20 at 13.50.03Investors say Shell has failed to fully address the impact of lower oil & gas demand due to new technologies

Coalition says Shell’s climate change management could have a bearing on executive pay

Philip Waller23 May 2016

Campaigning investors have urged Royal Dutch Shell PLC (LON:RDSB) to be more upfront with its plans to handle climate change, saying it could affect executive pay.

The Aiming for A coalition says Shell has failed to fully address the impact of reduced demand for oil and gas because of new technologies such as carbon capture and electric cars.

The group acknowledged improvements made by the company, but demanded more risk and strategy disclosure.

It said investors with assets worth US$5.05trln, including Rathbone Greenbank Investments, will provide Shell with direct feedback on progress at Shell’s AGM on Tuesday.

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Shell reduces ex-pat workforce on Manjoon oilfield

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Written by Reporter – 23/05/2016 2:28 pm

Oil major Shell is said to be reducing its workforce at the Majnoon oilfield in Southern Iraq as the country continues to manage a number of financial pressures.

The field has an estimated recoverable reserves of almost 13 billion barrels.

It has managed to provide significant financial funds for the Iraqi government in recent years since exporting began.

According to reports, the expatriate workforce has been reduced from 400 to 200 workers.

A Shell spokesman said the move had been taken in “light of the economic challenges” facing the region.

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Dutch pension fund PGGM critical of Shell ahead of annual meeting

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By REUTERSPUBLISHED: 18:56, 23 May 2016

AMSTERDAM, May 23 (Reuters) – Dutch pension fund PGGM, a major shareholder in Royal Dutch Shell, criticised the company’s climate change policy on Monday, a day before Shell’s annual meeting.

“We are not yet convinced Shell has sufficiently internalised the consequences of climate change in its strategy and future plans,” the fund said in a statement published on its website.

But PGGM said it would not vote in favour of a resolution put on the shareholder meeting’s agenda by activist group “Follow This” directing the oil giant to transform itself into a “sustainable energy” company.

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Shell shareholders to vote on pay

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Screen Shot 2016-05-12 at 11.17.55BOSSES at Royal Dutch Shell will face shareholders at the group’s annual general meeting tomorrow amid concern over the chief executive’s “unacceptable” £4million pay deal.

Investors have been urged to vote against the firm’s remuneration report in protest at Ben van Beurden’s pay for 2015, even though it marked a significant reduction from the £18.6million he was paid in 2014 in the wake of plunging profits.

Shell’s latest annual report revealed boss Mr van Beurden’s total pay for last year was £4.3million – a 77 per cent fall on 2014 after the tumbling cost of crude took its toll on the group.

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Shell ‘failing to plan for green future’

Screen Shot 2016-05-23 at 07.34.07A statement tabled by Aiming for A, a coalition of investors, with the backing of asset managers with $5 trillion under management, calls on Shell to do more to model the impact of reduced demand for oil and gas because of new technologies.

FULL ARTICLE (PAYWALL)

Club owned by Shell tries to block local hydropower scheme

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Damian Carrington: Sunday 22 May 2016

Shell is involved in blocking the development of a renewable energy project in a legal battle between a private club owned by the company and a community hydropower scheme on the river Thames.

The latest legal moves came just as Shell created a separate division, New Energies, to invest in renewable and low-carbon power.

The site is by the bank of the Lensbury, which was formerly a staff club for Shell employees and is now a hotel and private leisure club. The Lensbury is wholly owned by Shell and its five named directors are all “oil company executives” according to filings to Companies House, including Mike Napier, executive vice-president of external communications at Shell.

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Nigeria beefs up security after oil installation attacks

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By AFPPUBLISHED: 21 May 2016

President Muhammadu Buhari has ordered security to be stepped up in Nigeria’s oil-producing south, after a spate of attacks blamed on local militants that he said threatened the economy.

Buhari on Friday met senior executives of the Anglo-Dutch oil group Shell, whose Nigerian subsidiary has been targeted in recent months by a group calling itself the Niger Delta Avengers.

The group wants a fairer share of oil revenue for local people and wants a government amnesty programme that brought similar unrest to an end in 2009 to be continued.

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Nigeria’s Buhari orders heightened military presence in restive Niger Delta

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ABUJA/ONITSHA, NIGERIA | BY FELIX ONUAH AND ANAMESERE IGBOEROTEONWU

Nigeria’s President Muhammadu Buhari on Friday said he ordered a heightened military presence in the restive Niger Delta region to deal with a resurgence of attacks on oil and gas facilities, a day after yet another pipeline explosion.

British Foreign Minster Philip Hammond warned on Saturday military action would not end a wave of attacks in the southern swamps because it did not address rising anger among residents over poverty despite sitting on much of Nigeria’s oil wealth.

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Green really is the new black as Big Oil gets a taste for renewables

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Terry MacalisterSaturday 21 May 2016

The world’s largest oil companies have in recent weeks announced a series of “green” investments – in wind farms, electric battery storage systems and carbon capture and storage (CCS). These unexpected moves come hot on the heels of revelations by Saudi Arabia, the world’s biggest crude exporter, that it plans to sell off parts of its national oil company and diversify its economy away from petroleum.

They also come in the aftermath of a United Nations climate change agreement and before annual general meetings for Shell and Exxon Mobil this week, meetings at which shareholders will demand that more be done to tackle climate change.

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NEW FILM EXPOSES SHELL OIL SPILL WORKERS AT SERIOUS RISK FOR CHEMICAL EXPOSURE

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May 21, 2016 (San Diego) — Mark Manning, director of The Road to Fallujah, has been covering the BP Oil Spill for six years. Being immersed in the communities suffering severe health circumstances following that spill and the risky ‘clean-up’ operations using chemical dispersants prompted him to act on the current response to the Shell spill off the Louisiana coast last Thursday.

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Manning released a short outtake from his documentary film on http://www.therisingfilm.tv/ and his Facebook page https://www.facebook.com/TheRisingDocumentary/ highlighting the risks that all spill workers face and the risks that current Shell clean-up contractors are unknowingly facing today.

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Shell cutting back manpower sharply at Iraq’s Majnoon oilfield

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Anthony McAuleyMay 21, 2016

Royal Dutch Shell is cutting its workforce sharply at the Majnoon oilfield near Basra in southern Iraq as the government’s financial woes deepen.

Majnoon is one of the five “supergiant” (containing more than 5 billion barrels) oilfields located in southern Iraq, with estimated recoverable reserves of nearly 13 billion barrels, and it has been a major provider of additional funds for the Iraqi government since it started exporting two years ago.

The field employed more than 3,000 at peak construction – three-quarters of whom were Iraqis. But the expatriate workforce had dwindled to 400 amid cutbacks as the government has struggled with both the collapse in oil prices over the past 18 months and the costs of the war with militants in the west of the country.

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Royal Dutch Shell Merger Completion Results in Serious Debt Woes

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By Micheal KaufmanMay 20, 2016 at 2:09 pm EST

The energy sector has been badly affected due to substantial decline in oil and gas price. This has forced companies to implement counter steps such as capital expenditure reduction and asset disposals.

Royal Dutch Shell plc (ADR) (NYSE:RDS.A), a major oil company, is reportedly looking for buyers for its North Sea assets. The assets had been mainly bought during its multibillion takeover of BG Group.

According to a report by Bloomberg, the company is in talks with chemical producers including privately owned Neptune Oil and Gas and Ineos Group AG, established by former CEO of Centrica Sam Laidlaw. Shell could look to sell a package of assets and want to gauge buyers’ sentiments before formal assets disposals process is launched. With no final decision been made yet, there is also a possibility that the assets might be retained.

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Buhari to Niger Delta militants: Don’t confront my govt.

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Friday, May 20, 2016

President Muhammadu Buhari on Friday urged militants in the Niger Delta to drop their confrontational stance and work with his government to review the Amnesty Programme initiated by the Yar’Adua Administration.

Mr. Buhari assured oil companies operating in the Niger Delta that the Federal Government is taking all necessary actions to protect strategic assets in the region from vandals and criminals.

Speaking at a meeting with the Global Director (Upstream) of the Royal Dutch Shell Group, Andrew Brown, President Buhari said that he had directed the Chief of Naval Staff to reorganise and strengthen the military Joint Task Force (JTF) in the Niger Delta to deal effectively with the resurgence of militancy and the sabotage of oil installations.

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Shell, Exxon Seen as Oil Majors Most Exposed to Nigeria Violence

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Shell may be losing almost 50,000 barrels of oil a day: Rystad

Exxon fields linked to Qua Iboe terminal also vulnerable

By Angelina Rascouet: May 20, 2016

Royal Dutch Shell Plc and Exxon Mobil Corp. are the international oil companies most exposed to the explosion of violence in the Niger River delta that has cut Nigeria’s output and fueled a rally in global crude prices, according to Rystad Energy.

Shell and Exxon have the most production in vulnerable parts of the oil-rich region — onshore or near the coast, according to Per Magnus Nysveen, senior partner and head of analysis at the Oslo-based consultant. Shell is losing almost all of the 50,000 barrels a day it pumped in the delta last year, he said. That’s about a quarter of its output in the country. Exxon pumped 145,000 barrels a day last year — about half its Nigeria total — from shallow-water fields that could also be targeted, Nysveen said.

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Inaccurate predictions of when oil production won’t meet demand

Screen Shot 2016-05-20 at 13.11.39By John Donovan

Retired Shell Oil President John Hofmeister (right) will say practically anything to get quoted in the news media, presumably in the hope of raising his public profile. 

CNBC is today reporting his prediction that oil production won’t meet demand in 5 yearsFor some reason, he consistently tries to talk up the price of oil. 

Those of us with good memories may recall a similar reckless prediction made by his former Shell boss, Jeroen van der Veer. 

As reported in the Times newspaper article below (published in January 2008), Mr. van der Veer said that oil and gas demand would outstrip supply within 7 years. In other words, by 2015. 

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Royal Dutch Shell Under Pressure As It Seeks To Divest North Sea Assets

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Summary

Royal Dutch Shell reportedly testing the waters for its $30 billion divestiture plan.

Most of the assets are located in the North Sea.

What will potential buyers be looking at?

Weak selling environment could result in company retaining some assets.

Gary BourgeaultMay 19, 2016 5:35 PM ET

After its $54 billion acquisition of BG Group, Royal Dutch Shell Plc (NYSE:RDS.A) (NYSE:RDS.B) had its credit rating cut after the huge increase in debt. Now it has reportedly entered into talks with interested parties in order to raise about $30 billion from the sale of assets, according to Bloomberg, citing sources not wanting to be identified.

The report said the bulk of the assets in question are from the BG acquisition, with the majority of the assets located in the high-cost North Sea region. In March, other unidentified people said Shell was also shopping assets in India and Trinidad and Tobago, along with the U.S. pipelines.

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Shareholders Outraged At BP, Shell CEO Pay Packages

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Screen Shot 2016-05-12 at 11.17.55…investors will be left holding underperforming oil stocks, whereas oil company CEOs will continue to reward themselves with fat paychecks, disregarding shareholder’s sentiments.

By RAKESH UPADHYAY: May 19, 2016

The massive revolt against the pay of BP’s chief executive, Bob Dudley, where almost 60 percent of the shareholders rejected the £14m (US$20 million) pay package is a stern warning to oil companies that investors aren’t pleased with the gaping disconnect between performance and pay structure.

Similarly, Royal Dutch Shell CEO Ben Van Beurden’s 2015 pay package, including pension and tax equalization of 5.576 million euros (US$6.1 million), is likely to face resistance from shareholders as two shareholder-advisory firms have urged them to oppose the CEO’s pay.

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Could Royal Dutch Shell plc drop to 1,000p?

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By Prabhat Sakya – Thursday, 19 May, 2016

Change is an unavoidable part of business. Schlumpeter’s concept of “creative destruction” means that no company can afford to stand still.

For example, the photographic industry, which had always been based on film, made the move to electronic CCD technology, and people now take photos not just using digital cameras but also phones and tablets.

And the television was based on the clunky and expensive cathode ray tube (CRT) for around a century, but now LCD and LED flat screens have transformed this sector.

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Shell Said to Start Talks With Buyers for North Sea Asset Sales

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Screen Shot 2016-04-20 at 13.50.03By Dinesh Nair and Rakteem Katakey: May 19, 2016 – 1.24PM BST

Royal Dutch Shell Plc is in talks with potential buyers for some North Sea assets, mostly fields it got this year as part of the record acquisition of BG Group Plc, according to people familiar with the matter.

The Anglo-Dutch energy giant has been in talks with companies including privately held chemical producer Ineos Group AG and Neptune Oil & Gas, set up by former Centrica Plc chief Sam Laidlaw, the people said, asking not to be identified as the information is private. Shell is seeking to sell a package of assets and is talking with companies to gauge their interest before a formal sale process is launched, the people said. No final decision has been made and Shell may decide to retain the properties, they said.

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Has Royal Dutch Shell Plc lost its blue chip status?

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Blue chips are stocks that are considered more reliable than most of their peers. This could be because they operate in an industry that has been relatively stable in the past, or because they have an advantage over their peers, which makes their financial performance more consistent and robust than sector rivals.

With Shell’s (LSE: RDSB) share price having fallen by almost a third since its 2014 high and its bottom line forecast to decline by 35% in the current year, it appears at first glance as though Shell is not a blue-chip share. Yet despite this it still features as a core stock in a wide range of portfolios, with investors having historically viewed it as being a safe, secure and reliable investment for the long term.

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Royal Dutch Shell Clings To Its Dividend

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Casey Hoerth: May 18, 2016 

Summary

  • Management decreased operating expenses 20% year on year in the first quarter.
  • However, record low oil and gas prices have caused a large cash flow gap in Q1.
  • Results should improve in coming quarters, but I still do not expect Shell to become cash flow neutral.
  • I believe the dividend’s days are numbered, even with crude at $49 per barrel.

Upstream energy companies have taken quite a beating over the first quarter of 2016, thanks to record low crude oil prices. Brent Crude hit its $31 low back in January, and as earnings results came in over the last couple weeks, it became readily obvious to me that the carnage was widespread. Even the big integrated names took it on the chin, financially.

Royal Dutch Shell (NYSE:RDS.A) is no exception. Shell has adamantly clung to its dividend since the downturn started, and the company’s balance sheet has suffered as a result. On April 15th Moody’s downgraded Shell from Aa1 to Aa2, and outlook remains negative. It’s not too hard to see why that is.

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Dutch Take On Gazprom in Battle Over Europe’s Oil-Linked Gas

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Screen Shot 2016-05-13 at 10.52.28The legal action coincides with government curbs on output after earthquakes in the Netherlands…

By Kelly Gilblom: May 18, 2016

In its new role as a natural gas importer, the Netherlands wants to make sure it doesn’t overpay.

GasTerra BV, the nation’s biggest buyer and seller of gas, initiated arbitration against Gazprom PJSC’s export unit, the Russian company said Monday. It is seeking a price review for fuel purchased from Europe’s largest supplier under a long-term contract linked to oil, which has rallied this year as the price on gas hubs extended declines.

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The legal action coincides with government curbs on output after earthquakes in the Netherlands, home to the European Union’s largest gas field, which turned it into a net importer of the fuel. Utilities from Germany’s RWE AG to Turkey’s Botas Boru Hatlari Ile Petrol Tasima AS filed arbitration claims against Gazprom PJSC’s export unit after market prices fell below contract rates, with EON SE and Engie SA settling cases with Europe’s biggest gas supplier this year.

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Houma woman to stage protest at Shell AGM

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Screen Shot 2016-04-20 at 13.50.03Written by Keith Findlay – 18/05/2016 6:32 am

A representative of the native American Houma Nation Council will attend Shell’s annual general meeting next week to call on the board and investors to put an end to new offshore leases in the Gulf of Mexico.

Monique Verdin, who lives on the Louisiana coast, is travelling to Tuesday’s gathering in the Netherlands with the support of both the Indigenous Environmental Network (IEN) and UK Tar Sands Network (UKTSN).

IEN and UKTSN are pressure groups opposed to new drilling in the Gulf, claiming fossil fuel exploitation is causing major environmental damage in the region.

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Shell Faces Opposition on CEO’s Pay as Bonus Seen as Excessive

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Screen Shot 2016-05-12 at 11.17.55Rakteem Katakey: May 17, 2016

Two shareholder-advisory firms recommended investors vote against the Royal Dutch Shell Plc Chief Executive Officer Ben Van Beurden’s pay, saying his bonus is “excessive.” A third adviser said shareholders should give “qualified support.”

Van Beurden’s annual bonus, equivalent to 245 percent of his salary last year, was not acceptable, Pensions & Investment Research Consultants Ltd. said in an e-mail on Tuesday. Advisory firm Glass Lewis also said shareholders should oppose the pay deal.

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Shell shareholders advised to oppose CEO’s pay

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Screen Shot 2016-05-12 at 11.17.55LONDON | BY RON BOUSSO: Tue May 17, 2016

Two investor advisory firms have recommended Royal Dutch Shell (RDSa.L) shareholders oppose the CEO’s 2015 remuneration, in the latest sign of rising discontent over pay amid falling oil prices.

Shell Chief Executive Ben van Beurden’s 2015 remuneration fell 8 percent to 5.135 million euros (£4 million) last year, when the company’s revenue dropped sharply due to low oil prices.

Proxy adviser Glass Lewis said in a report it remains “concerned by the disconnect between bonus payouts and financial performance, and the bonus scheme structure more generally”.

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Shell working on repairs after Gulf of Mexico spill

Screen Shot 2016-05-17 at 15.34.57By Daniel J. GraeberMay 17, 2016

NEW ORLEANS, May 17 (UPI) — A fleet of vessels was deployed in the U.S. Gulf of Mexico and repair work is underway in response to the spill of 2,100 barrels of oil, Shell said.

Shell reported the release from its Glider field about 100 miles south of the coast of Louisiana last week. The company said about 2,100 barrels of oil spilled and crews so far have recovered about 2,000 barrels of an oil-water mixture from the water’s surface.

In its latest update, Shell said there are five vessels on site working with Shell and the U.S. Coast Guard to recover oil from the surface. One vessel is designated specifically to asses any potential environmental impact from the release.

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Shell Looks for a Hedge Against Climate Change

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Screen Shot 2016-04-20 at 13.50.03BGeoffrey Smith: MAY 16, 2016

Royal Dutch Shell is creating a new unit specially for renewables and alternative energy, but it continues to insist that its current business of burning hydrocarbons is under no threat from global policies to mitigate climate change.

The company told investors last week that it will combine its modest operations in green energy—biofuels, wind and solar technologies—into a business unit called “new energies” under its natural gas business. It will go public with the idea in June, according to The Guardian.

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Why Jim Chanos is Shorting the Oil Majors

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Screen Shot 2016-05-06 at 15.37.54By RAKESH UPADHYAY: May 16, 2016

Famous short seller Jim Chanos is shorting oil majors Royal Dutch Shell Plc and Chevron Corp, according to Bloomberg. He is operating under the belief that the negative cash flows and dividend payments using borrowed money by both the companies is an unsustainable move in the long-term.

He also believes that a preference for electric cars and trucks can seriously dent the demand for crude oil in the near future.

Shell’s current cost of supplies earnings tanked in the latest quarter from $4.8 billion to $0.8 billion. The worrying point was the $4.6 billion in cash flow against an expenditure of $6.1 billion in Capex. $3.7 billion of dividends were distributed to the shareholders, of which the company managed to settle $1.5 billion in payouts by issuing 65.7 million A shares under the scrip dividend program.

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Shell says Nigerian pipeline repair ‘not straightforward’ – paper

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Sun May 15, 2016 5:07pm BST

Royal Dutch Shell (RDSa.L) does not know when its Nigerian Forcados oil terminal will reopen as the repairs to an underwater pipeline damaged by a blast are not straightforward, its country head was quoted as saying on Sunday.

Shell shut the 250,000 barrel a day terminal in February after an attack on an underwater pipeline claimed by a militant group, part of a wave of attacks on oil facilities in the Niger Delta in the past three months.

Shell had initially declined to give details about the incident.

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Shell creates green energy division to invest in wind power

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Terry Macalister Energy editor: Sunday 15 May 2016 16.08 BST

Shell, Europe’s largest oil company, has established a separate division, New Energies, to invest in renewable and low-carbon power.

The move emerged days after experts at Chatham House warned international oil companies they must transform their business or face a “short, brutal” end within 10 years.

Shell’s new division brings together its existing hydrogen, biofuels and electrical activities but will also be used as a base for a new drive into wind power, according to an internal announcement to company staff.

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Party time over for Nigeria’s oil billionaires

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Screen Shot 2016-03-30 at 13.04.33By Danny Fortson in IBIZA: SUNDAY 15 May 2016

Extracts

The new president estimated that more than $lbn a month was being I funnelled out of Nigeria’s public accounts, mostly through dodgy deals in the oil and gas industry. He has declared it his mission to track down the worst offenders and force them to give back their ill-gotten gains.

The recent Panama papers leak laid bare London’s role at the heart of the global money-laundering industry.

Much of the cash that has disappeared from Nigeria’s coffers over the years has been recycled into sports cars, country piles and mansions in west London.

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Argentina’s Energy Minister is stealing for the Crown

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By Eduardo J. Vior

While Royal Dutch Shell PLC has announced ten days ago an annual drop of its global sales in the first quarter by 83%, its Argentine subsidiary is filling the pockets of its mother company and the Dutch crown with the help of Energy Minister José Luis Aranguren. Since his appointment by President Mauricio Macri at last 10th December, Mr. Aranguren, Shell Argentina CEO from 2003 to 2015, and 2009-15 with downstream responsibility for the whole of South America, pursuits a policy which extremely benefits his company, and sows hatred and resentment.

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Protesters block train tracks to 2 Washington refineries near Anacortes

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Protesters walk north along West March Point Road Saturday past the Tesoro Refinery rail yard near Anacortes. About 1,000 people walked the six-mile round trip to the tip of March Point, home to two refineries. (Scott Terrell)

By PHUONG LE: The Associated Press: May 14, 2016

Hundreds of climate activists on Saturday marched to the site of two refineries in northwest Washington state to call for a break from fossil fuels, while a smaller group continued to block railroad tracks leading to the facilities for a second day.

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Shell is not leaving Nigeria, despite attacks — MD

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Amid renewed attacks on infrastructure in the Niger Delta, the Managing Director of The Shell Petroleum Development Company of Nigeria Ltd and Country Chair, Shell Companies in Nigeria, Mr. Osagie Okunbor, speaks with ‘FEMI ASU about the Nigerian oil and gas industry and the company’s operations and plans in Nigeria

As the oldest and largest oil producer in Nigeria, how do you currently see the country’s oil and gas industry and the business climate?

You are right; we have been around for some time. Shell has a history of over 50 years in Nigeria and the largest footprint of all the international oil and gas companies operating here. I’m pleased to say that Shell companies and investments in Nigeria have played a pioneering role in onshore, shallow and deep water oil exploration and production. Shell has also been at the forefront of gas development, producing and delivering gas to domestic consumers and export markets for more than 40 years.

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Shell eyes $40bn non-core asset spin-off to cut its huge debt pile

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By Tara Cunningham, business reporter: 14 MAY 2016

Oil giant Royal Dutch Shell is eyeing a possible $40bn spin-off of non-core assets around the globe as it grapples with a $70bn debt pile following a takeover of BG Group earlier this year. 

Chief financial officer Simon Henry told analysts last week that a float of Shell’s non-core assets is “very much on the agenda”.  

The comments were made after the Anglo-Dutch multinational announced its intention to sell off assets totalling $30bn over the next three years in an attempt to protect its dividend, after the merger with BG left it with a stretched balance sheet.

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$1.1billion Malabu scam: Italian oil giant, Eni, admits wrongdoing

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Nicholas Ibekwe: Saturday 14 May 2016

After coming under intense questioning from its shareholders, the management of Italian oil giant, Eni has finally admitted to wrongdoing in the infamous Malabu Oil deal.

Eni, as well as Royal Dutch Shell, had previously insisted that it followed the law in the purchase of one of the most lucrative oil blocks in Nigeria, OPL-245, which belonged to Malabu Oil, a company owned by a convicted former minister, Dan Etete.

Mr. Etete was the petroleum minister under Sani Abacha. PREMIUM TIMES’ previous investigations had detailed how he fraudulently awarded the oil block to himself and friends, including Mohammed Abacha, Mr. Abacha’s son, in contravention of Nigerian laws.

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Shell’s Saudi Aramco Option

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Cheap oil crimping your spending plans? Sitting on a bunch of valuable upstream oil assets that could be monetized? How about a mammoth IPO? No, not Saudi Arabia. I’m talking about Royal Dutch Shell.

Shell is Europe’s third-biggest company by market value. But after the $54 billion acquisition of BG Group, its net debt is by far the largest: an eye-watering $70 billion.

Big Borrowers

Shell’s net debt is the largest of any company in western Europe

CLICK ON IMAGE TO ENLARGE

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The Anglo-Dutch company says debt is likely “to go up before it goes down” and its reduction is “priority number one”. With credit-rating agencies on its case, Shell has to deliver on a pledge to divest $30 billion of non-core assets within three years.

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Shell Oil Spill Dumps Thousands Of Barrels Of Crude Into Gulf Of Mexico

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The U.S. Bureau of Safety and Environmental Enforcement (BSEE) said a 2 mile by 13 mile (about 3 km by 21 km) sheen was visible in the sea about 97 miles off the Louisiana coast.

The sheen is near Shell’s Glider Field, a group of four subsea wells whose production flows through a subsea manifold to the Brutus platform, which sits in water with a depth of 2,900 feet (884 m).

In a statement, Shell spokesman Curtis Smith said a company helicopter observed the sheen on Thursday, and that the wells were under control after it isolated the leak and shut in production.

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Halliburton-Baker Hughes deal ‘not fixable’

Shell participates in bid for Dutch offshore wind farm

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Markets | Thu May 12, 2016 12:40pm EDT

By Toby Sterling and Thomas Escritt

May 12 Royal Dutch Shell is in a consortium bidding to build two 350 megawatt wind farms off the coast of the Netherlands, the oil company said on Thursday, delivering on a promise to invest more in wind energy.

Shell, bidding in the Dutch government tender together with energy company Eneco and contractor Van Oord NV, will use turbines built by Vestas if successful, the three companies in the consortium said in a statement.

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Shell Plans Oil-Asset Sale in Gabon, Says President

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By DREW HINSHAW in Kigali, Rwanda, and SARAH KENT in London: May 12, 2016

Royal Dutch Shell PLC is looking to sell oil blocks in Gabon, the country’s president said, as the company’s mammoth divestment plan threatens a Central African nation already hard hit by crashing crude prices.

Shell is in the process of selling off $30 billion of assets in the wake of its roughly $50 billion acquisition of BG Group PLC earlier this year. The deal gives the Anglo-Dutch oil major a strong position in the fast-growing liquefied-natural-gas market and lucrative deep-water blocks offshore Brazil, but investments that don’t fit within those core areas are likely to come under serious scrutiny as the company looks for cash to bring down its debt level.

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Top Shell investor vents anger at boss pay

Screen Shot 2016-05-12 at 11.33.40“The peer group of four companies that Shell uses to benchmark its long-term incentive plans (L-tips) is too narrow and we remain concerned about the overly generous senior management pension plans.”

However, Royal London, which owns nearly £1bn of shares in Shell, said it acknowledged that the company had notched up several successes, including the completion of its £35bn takeover of BG.

Mr van Beurden stands to take home a salary of £1.4m, bonus of £3.5m, and pension of £441,000 for 2015. He also received shares worth £9.7m, which vest in three years if he hits a series of targets.

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Royal Dutch Shell Faces Criticism From Glass Lewis on Payment Plans

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Royal Dutch Shell plc (ADR) (NYSE:RDS.A) has faced huge criticism from Glass Lewis, a shareholder advisory firm to award its CEO Ben Van Beurden with a huge bonus in 2015. The shareholder advisory firm further persuaded the shareholders of the oil giant to cast their vote against the payment plans of the company.

As reported by the Wall Street Journal, Glass Lewis said in a report: “We remain concerned by the disconnect between bonus payouts and financial performance. We find it troubling that the CEO continues to receive payouts at just short of maximum while the company’s financials deteriorate.”

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Niger Delta militants kill five people and oil companies evacuate

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Nigerian trade unions called for oil companies to evacuate workers on Tuesday, following two attacks in the Niger Delta which left five people dead. Armed men killed two police officers and three soldiers in separate attacks in a region that has seen a resurgence of militancy.

After coming under fire from militants, Royal Dutch Shell and Chevron have evacuated some of their workforce in high-risk areas. Last week, a group known as Niger Delta Avengers (NDA) attacked a Chevron oil facility in the Delta and succeeding in blowing up the platform. The NDA went on to claim responsibility for bombing an underwater Royal Dutch Shell pipeline in February. Consequently, Nigeria’s crude output has fallen to its lowest point in 22 years.In a country whose economy and foreign currency reserves are largely dependant on oil and gas, the destruction of its pipelines by such armed groups could be absolutely catastrophic,” strategic consultant Leke Adebayo told The World Weekly. “Bad enough in boom times but in the middle of a crippling recession, the results would be devastating. This provides yet another reason as to why Nigeria needs to diversify its economy as soon as is reasonably practicable.”

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Pipeline explosion in Nigeria’s Delta behind shutdown of Shell’s Bonny Light exports: community leader

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Screen Shot 2016-05-09 at 15.25.56Wed May 11, 2016 12:50pm GMT

YENAGOA, Nigeria (Reuters) – An explosion has shut down an oil pipeline in Nigeria’s Delta, a community leader said on Wednesday, explaining why Shell has shut down its Bonny Light exports.

Shell said earlier a leak had shut down the exports, without giving details.

“There was a blast on the trunk line around Kalabari community of Rivers state,” said Nengi James, a community leader dealing with oil and gas companies operating in the region. “We don’t know the cause and who is behind the explosion.”

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Pipeline Outage Adds to Nigerian Oil Disruptions

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BY SARAH KENT and MIRIAM MALEK:Updated May 11, 2016 

LONDON— Royal Dutch Shell PLC on Wednesday said its exports of Nigerian crude oil had been significantly disrupted, adding to a slew of stoppages that have knocked out around 500,000 barrels a day of oil output in the West African country.

It is the latest hit to oil exports across the world, leading to mounting concerns about the global crude supply. A series of output interruptions from Canada to Libya have illustrated how quickly the global glut of oil could be cleared out after nearly two years of weighing on prices.

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Nigeria oil output set to fall to 22-yr low on pipeline outage

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YENAGOA, NIGERIA: Wed May 11, 2016

(Reuters) – Nigeria’s oil production is set to fall to its lowest in more than two decades after Royal Dutch Shell’s local operation said it had shut a major pipeline.

Nigeria’s oil output fell close to a 22-year low this month due to attacks on oil pipelines in the southern Niger Delta, home to much of the country’s oil and gas wealth, compounding the impact of low oil prices on Africa’s largest economy.

On Wednesday, Shell Petroleum Development Co (SPDC) said it declared force majeure on Bonny Light crude exports on Tuesday after closing the Nembe Creek Trunk line (NCTL) for repairs after a leak. NCTL carries all the country’s Bonny Light.

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