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Why Shell Investors Shouldn’t Ignore The Ongoing Security Situation In Nigeria

Royal Dutch Shell plc (NYSE:RDS.A) (NYSE:RDS.B) is a big player in Nigeria, a country that has been dealing with increases in civil unrest and sporadic violence over the past few years, particularly from the Niger Delta Avengers group that wants a larger portion of the oil & gas tax revenue to go to the Niger Delta region. This is on top of Nigeria’s ongoing fight against the Boko Haram insurgency in the northern parts of the country. The ongoing security situation is a major risk for Shell’s Nigerian operations, especially as the Niger Delta Avengers have shown the ability to repeatedly target bottlenecks like pipelines and force a lot of output offline. Let’s dig in by first going over what’s at stake for Shell. FULL ARTICLE read more

Shell’s Floating LNG Endeavor Is About To Begin

Royal Dutch Shell plc (NYSE:RDS.A) (NYSE:RDS.B) is getting closer and closer to finally completing its Prelude FLNG project off the northwestern coast of Australia. FLNG stands for floating liquefied natural gas, a marine vessel that can commercialize gas finds that are too small to justify building a new onshore LNG facility to develop. Let’s dig in. FULL ARTICLE

Shell plans $1B/year toward electric vehicle charging, energy management

|By: , SA News Editor

  • Royal Dutch Shell (RDS.A, RDS.B) is working on developing new energy technologies such as smart electric vehicle charging and models to reduce customers’ energy use, says Mark Gainsborough, head of the company’s New Energies division.
  • Goldman Sachs has predicted that oil demand could peak as early as 2024 due to the rollout of electric vehicles and rising fuel prices, and Shell says it plans to invest up to $1B/year through the New Energies division by the end of the decade as it seeks to ramp up involvement in technologies that are changing the market.
  • Gainsborough says Shell already has started to provide fast-charging for electric vehicles at its gasoline stations and is working on developing “smart charging” to help even out demand on the electricity grid.
  • read more

    Shell’s Little Talked About Permian Position

    Summary

    • Royal Dutch Shell bought into the Permian back in 2012.
    • An overview of its JV with Anadarko Petroleum Corporation.
    • Where its acreage is located.
    • Operatorship controversy and probable split from Anadarko.
    • What to expect going forward.

    Back in 2012, Royal Dutch Shell plc (NYSE:RDS.A) (NYSE:RDS.B) teamed up with Anadarko Petroleum Corporation (NYSE:APC) to develop the Permian Basin. Royal Dutch Shell plc purchased all of Chesapeake Energy Corporation’s (NYSE:CHK) 50% stake in the joint venture for just under $2 billion, a steal compared to where prices are today. Centered in the prolific Delaware Basin, this part of the Permian is home to some of the most economical unconventional horizons in the world, including the Leonard/Avalon, Bone Spring, and Wolfcamp plays. Let’s dig in. FULL ARTICLE 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

    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

    Royal Dutch Shell In The Clear

    Back on May 24th I “sounded the all clear” on Royal Dutch Shell (RDS.A) (NYSE:RDS.B). Shell, I felt, would henceforth be able to pay its dividends and capital expenditure from operational cash flow. Shell’s latest quarter was another continuation of that, with ongoing synergies from the huge BG Group acquisition two years ago and also continued opex savings. Shell’s pro-forma workforce is about 30% smaller than it was in the beginning of 2016, and while that may not be good for employees who were laid off, it is a reflection of impressive modernization and productivity gains from the company itself. This article takes a look at Shell’s ongoing cost-saving measures. This article also looks at the company’s updated cash flow situation, its dividend safety, and finally its valuation. FULL ARTICLE read more

    Shell Prepares For A Different Energy Reality

    : 14 August 2017

    Summary

  • This summer has seen the governments of several of the world’s major economies propose to eliminate internal combustion engine vehicles over the next 10-30 years.
  • At the same time, Royal Dutch Shell announced several major clean energy investments over the summer in anticipation of a drop-off in petroleum demand.
  • This article looks at how Shell’s clean energy investments fit into its energy profile forecasts compared to its peers. MAIN ARTICLE
  • read more

    More Shell Oil News 12 July 2017

    Royal Dutch Shell: Talking The Talk, But Walking The Walk?: Seeking Alpha: 12 July 2017

    CEO Ben van Beurden reinforces Shell’s readiness to play its part in achieving Paris agreement targets, but execution on this goal unclear. READ MORE

    Oil majors face downgrades if crude prices don’t pick up: S&P: Reuters: 12 July 2017 read more

    Shell News Update Wednesday 7 June 2017

    Shell Must Face ‘Take-Home’ Asbestos Suit, Calif. Court Says: LAW360: 6 June 2017

    A California appeals court has reversed itself and revived a lawsuit against Shell Oil Co. filed by a former employee’s wife who alleges she contracted mesothelioma from exposure to asbestos that accumulated on her husband’s work clothing.

    Norwegian Union Threatens Strike at Statoil, Shell, Eni Platforms: The New York Times: 6 June 2017

    Lederne, the smallest of the three Norwegian unions representing oil industry workers, said the strike would target platforms at Eni’s Goliat, Shell’s Draugen and Statoil’s Kvitebjoern, Oseberg East and Gudrun fields. “We believe it would mean shutting down production on those platforms,” a spokesman for the union said. read more

    Investors want more transparency in Shell’s climate pay policy

    |By: , SA News Editor

    Some investors are pushing Royal Dutch Shell (RDS.A, RDS.B) to explain the finer details of its plan to link executives’ bonus pay to lowering carbon emissions.

    Shell was hailed as a pioneer among the world’s biggest oil companies when it announced the policy to tie 10% of executive bonuses to cutting greenhouse gas emissions, which will be voted on at a May 23 annual general meeting in the Hague, but some investors are pressing Shell to show how it actually will calculate the targets for lowering emissions rather than provide the information retrospectively in its annual report. read more

    SHELL NEWS UPDATE 30 MARCH 2017

    Trump’s climate change executive order won’t change coal’s fortunes, Shell chair says: CNBC

    EXTRACT: President Donald Trump‘s effort to roll back Obama-era climate change policies will not do much to improve demand for coal at America’s power plants, Royal Dutch Shell Chairman Chad Holliday said Thursday.

    FT: Shell’s top oil trader defends North Sea Brent activity: Seeking Alpha

    EXTRACT: Royal Dutch Shell’s (RDS.A, RDS.B) VP of crude oil trading is out with a strong defense against accusations that the company’s activity in the North S
    ea crude market has skewed the benchmark Brent contract that underpins global oil prices.

    Big Oil Vows to Keep Dividends Up as Prices Falter: Bloomberg.com

    EXTRACT: “BP and Royal Dutch Shell have unsustainable dividends,” Neil Woodford, head of investment at Woodford Investment Management Ltd. who manages about $20 billion, wrote in a blog. read more

    Shell News Tuesday 28 March 2017

    Summary

    • The myth of a secure price range for OPEC in its battle against shale.
    • Why OPEC has painted itself into a corner, forcing it to extend lower output.
    • What’s far more important than OPEC and others’ cuts.
    • Cuts or not – low-cost shale producers like Shell will produce at a profit.

    FULL ARTICLE

    More Shell News Friday 24 March 2017

    Geologist for Shell says company hid Nigeria spill dangers: Associated Press

    Royal Dutch Shell’s Nigeria subsidiary “fiercely opposed” environmental testing and is concealing data showing thousands of Nigerians are exposed to health hazards from a stalled cleanup of the worst oil spills in the West African nation’s history, according to a German geologist contracted by the Dutch-British multinational.

    Shell says to start cleaning up 2008 Nigeria oil spills in April: Seeking Alpha

    The head of a group helping organize Royal Dutch Shell’s (RDS.A, RDS.B) clean-up of 2008 oil spills at a Nigerian Delta community says he hopes work can begin next monthShell agreed in 2015 on a £55M ($68.6M) settlement with the Bodo community after accepting liability for two pipeline leaks… read more

    Shell News Stories Friday 24 March 2017

    Shell sells onshore Gabon oil assets to Carlyle for $587 mln: Reuters/Daily Mail

    EXTRACT: For Shell, the deal marks a further step in a $30 billion asset disposal programme to help cut debt after its $54 billion acquisition of BG Group last year. The Anglo-Dutch oil company has sold assets for more than $15 billion since 2016.

    WSJ: Shell report cites “astonishingly high” pollution from Nigerian oil spills: Seeking Alpha

    EXTRACT: Royal Dutch Shell (RDS.A, RDS.B) oil spills that have not been cleaned up for more than eight years have contributed to “astonishingly high” levels of pollution in a Nigerian community, WSJ reports, citing a consultant who helped produce a confidential damage assessment for the company and its partners. The former director of the cleanup project says Shell has denied him permission to publish the study’s results, which dictated a need for health screenings in the Bodo community. read more

    Current Shell News Stories 23 March 2017

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