Royal Dutch Shell Plc  .com Rotating Header Image

Posts under ‘Saudi Aramco’

Royal Dutch Shell Motiva Blues

Over the next few days, we will be posting some outspoken insider comments made several years ago in relation to Motiva, kicking off with the exchange below between “Jim Hartsock” and “Motivasux.”

The comments reveal the low esteem, to put it mildly, in which Shell Oil executives were held at that time.

Comments are welcome from current employees about worker morale these days bearing in mind the dramatic consequences of the Shell/Saudi Aramco divorce. Comments can be posted on our Shell Blog under an alias, thus preserving confidentiality. Or send them to me for publication on the same confidential basis: [email protected]

read more

Dramatic Breakup of Shell/Saudi Aramco jv Motiva

Photo taken in happier times several years before the divorce

Comment posted on Wall Street Journal article: Shell Seeks to Streamline in 2017

The US operations will face drastic cuts. with the breakup of Motiva, many people will be reassigned, told to post for other positions, or face layoff.

The process has already begun, and will intensify as the April 1 target date for the breakup gets closer.

Middle management will be realigned, as some northeast terminals will be sold off to raise cash, and managers will be scrambling for other available positions which may involve relocation, taking early retirement or the unemployment line.

read more

Shell Norco chemical plant malfunction triggers flaring

HOUSTON, Dec 18 2016 (Reuters) – A malfunction on Saturday triggered flaring at Royal Dutch Shell Plc’s Norco, Louisiana, chemical plant, said a Shell spokesman.

Shell’s Ray Fisher on Sunday declined to say which unit sustained the malfunction.

A source familiar with plant operations said the malfunction was in an olefins unit at the chemical plant.

The Shell chemical plant in Norco shares the safety flare system with the adjoining Motiva Enterprises refinery. Flaring from the chemical plant is sometimes thought to come from the refinery.

read more

Trump stance could complicate Saudi/Shell deal

By RUSSELL GOLD: Dec. 16, 2016 2:45 p.m. ET

The election of Donald Trump threatens to complicate efforts by Saudi Arabia’s national oil company to purchase refineries and expand its petrochemical footprint in the U.S.

Speaking in Louisiana earlier this month, he said: “We use refineries from other countries. The whole thing is just crazy. It’s crazy.”

That stance could complicate a continuing deal: Saudi Aramco and Royal Dutch Shell PLC are in talks to end a joint venture called Motiva Enterprises. The Saudi company, which is state owned and state controlled, has said it expects after negotiations are concluded to own the 603,000-barrel-a-day refinery in Port Arthur, Texas. Shell is expected to get two smaller refineries in Louisiana.

read more

screen-shot-2016-12-05-at-16-34-00 By The Motley Fool  Dec 5, 2016

Today I’m looking at the critical reasons to sell out of Royal Dutch Shell (LSE: RDSB).

A drop in the ocean

The oil sector’s major players breathed a huge sigh of relief last week after OPEC — responsible for four-tenths of the world’s oil supply — confounded the expectations of many and agreed to cut its output.

Saudi Arabia brokered a deal that will see production fall by 1.2m barrels per day, to 32.5m barrels beginning in January. The news prompted Brent oil to top the $55 per barrel marker for the first time since the summer of 2016.

read more

Leaner and meaner: U.S. shale greater threat to OPEC after oil price war

screen-shot-2016-11-14-at-10-17-26

screen-shot-2016-11-30-at-17-49-55

screen-shot-2016-11-30-at-17-53-13

By Catherine Ngai and Ernest Scheyder

NEW YORK/HOUSTON In a corner of the prolific Bakken shale play in North Dakota, oil companies can now pump crude at a price almost as low as that enjoyed by OPEC giants Iran and Iraq.

Until a few years ago it was unprofitable to produce oil from shale in the United States. The steep slide in costs could encourage more U.S. shale output if OPEC members cut supplies, undermining the producer group’s ability to boost prices. OPEC ministers meet Wednesday to weigh output cuts to end a two-year glut that has pressured global oil prices.

read more

OPEC agrees first output cut since 2008, Saudis to take ‘big hit’

screen-shot-2016-11-14-at-10-17-26

screen-shot-2016-11-30-at-17-41-34

screen-shot-2016-11-30-at-17-43-50

screen-shot-2016-11-30-at-17-44-28

By Ahmad Ghaddar, Alex Lawler and Rania El Gamal | VIENNA

OPEC has agreed its first limit on oil output since 2008, sources in the producer group told Reuters, with Saudi Arabia accepting “a big hit” on its production and agreeing to arch-rival Iran freezing output at pre-sanctions levels.

Brent crude futures jumped 8 percent to more than $50 a barrel after Riyadh signaled it had finally reached a compromise with Iran after insisting in recent weeks that Tehran fully participate in any cut.

read more

Opec cuts neither dead nor alive

screen-shot-2016-11-12-at-10-34-30

screen-shot-2016-11-28-at-20-34-20

screen-shot-2016-11-08-at-16-03-35

By Ed Crooks November 28, 2016

Opec’s possible production cut is the oil market equivalent of Schrödinger’s cat: neither dead nor alive. When they met in Algiers in late September, Opec ministers agreed the need to reduce output, but left the allocation of the cuts between individual members to be finalised later. If they cannot agree on that, the deal will die. At their meeting in Vienna on Wednesday, the ministers will have to open the box, and we will find out whether or not the agreement is still breathing.

read more

OPEC makes last-ditch bid to save oil deal as tensions grow

screen-shot-2016-11-14-at-10-17-26

screen-shot-2016-11-28-at-17-40-59

By Rania El Gamal and Alex Lawler | VIENNA

OPEC was trying on Monday to rescue a deal to limit oil output as tensions grew among the producer group and non-OPEC member Russia, with top exporter Saudi Arabia saying markets would rebalance even without an agreement.

OPEC experts started a meeting in Vienna at 0900 GMT and were due to make recommendations to their ministers on how exactly the Organization of the Petroleum Exporting Countries should reduce production when it meets on Nov. 30.

read more

Not dead yet

screen-shot-2016-11-12-at-10-34-30

screen-shot-2016-11-19-at-15-54-51

screen-shot-2016-11-08-at-16-03-35

By Ed Crooks: November 19, 2016

The last rites have been read over the Age of Oil a few times recently, but this week the International Energy Agency suggested there was still plenty of life left in it yet.

In its 2016 World Energy Outlook, the IEA argued that even if the Paris climate agreement were fully implemented, demand for oil would keep rising until at least 2040.

The message was reassuring for oil producers worried that “peak demand” might condemn them to stagnation or decline, or even put them out of business. There was colder comfort, however, in a warning from Wood Mackenzie that big oil companies risked being left behind in the transition to low-carbon energy.

read more

This bad news should encourage you to avoid Royal Dutch Shell plc!

screen-shot-2016-11-07-at-14-00-05

By The Motley Fool  Nov 7, 2016

Deal in danger

My bearish view on Royal Dutch Shell (LSE: RDSB) hasn’t improved over the weekend, either, following news of fresh bickering between OPEC members.

On Monday, OPEC’s Mohammed Barkindo was forced to deny that the wheels are not falling off its much-lauded supply freeze agreement, with the group’s secretary general announcing that all 14 member states remain committed to the deal.

But rumours that Saudi Arabia vowed late last week to raise its own production, should members fail to rubber-stamp the deal this month, negates any suggestion of cross-cartel unity. Some members like Iran have been exempted from cutting, or even holding, their own production, causing other group members to publicly call for similar exemptions. The political and economic ramifications of getting an agreement over the line are clearly colossal.

read more

Royal Dutch Shell: The Comeback Is Here

screen-shot-2016-11-06-at-10-59-42

Alpha Investor: Sunday Nov 6, 2016

Summary

  • Shell posted a massive turnaround in its bottom line last quarter on the back of an improved production profile, lower costs, and higher price realizations.
  • Shell’s financial improvement is set to continue going forward as upstream oil price realizations will continue to improve on the back of a positive demand-supply environment in the oil industry.
  • Oil demand has exceeded supply by 500,000 bpd this year and the trend will continue as the likes of Russia, Saudi Arabia, and the U.S. continue to reduce output.
  • Shell’s focus on lowering both operating and capital costs will allow it to attain break-even point even if oil prices remain at $50/barrel, which will also improve cash flow.

On Tuesday last week, Royal Dutch Shell (NYSE:RDS.A) (NYSE:RDS.B) reported impressive results for the third quarter. In fact, Shell was able to achieve a major turnaround in its bottom line performance, posting a profit of $1.4 billion as compared to a huge loss of $6.1 billion in the same quarter last year. This impressive turnaround in Shell’s bottom line was a result of an increase in production as compared to the prior-year period, driven by the acquisition of BG that led to a favorable production mix in the upstream segment.

read more

%d bloggers like this: