Royal Dutch Shell Plc  .com Rotating Header Image

Posts under ‘Shale Gas’

U.S. oil industry set to break record, upend global trade

Liz Hampton: 16 JAN 2018

HOUSTON (Reuters) – Surging shale production is poised to push U.S. oil output to more than 10 million barrels per day – toppling a record set in 1970 and crossing a threshold few could have imagined even a decade ago. And this new record, expected within days, likely won’t last long. The U.S. government forecasts that the nation’s production will climb to 11 million barrels a day by late 2019, a level that would rival Russia, the world’s top producer. FULL ARTICLE read more

NAM €265 BILLION REVENUE FROM GRONINGEN GAS: THEN THE EARTHQUAKES CAME

Once good for 20% of the government revenue and extra influence in Europe, now a national blight: the natural gas extraction in Groningen. The crane is getting closer and closer. But when the earth stops shaking, nobody knows.

€ 265 billion: Total revenue from Dutch natural gas revenues in the period 1960-2013 amounted to approximately € 265 billion.

The Groningen field was a jewel in the Shell portfolio.

Printed below is an English translation of an article published today by the Dutch equivalent of the Financial Times, Financieele Dagblad under the headline: 

If you produce gas, you do not actually have to do anything

By Carel Grol

Harry Klevering (68) can still remember the arrival of the gas. About eight years old, he was the youngest of a family of thirteen from the Groningen village of Spijk, when the gas bubble was discovered in Slochteren in the late 1950s. Soon after, the Dutch Petroleum Company (NAM) visited his house, the company that still lives a life later on gas. To install free gas pipes. Tightly over the plinth, even though the tubes were plastic.

This Tuesday afternoon Klevering is in the office of Centrum Veilig Wonen in Loppersum. He just reported damage. He has lived in the same house for 24 years. Red bricks with a pointed roof, on the water. It is the second time that he has suffered damage. On Tuesday there were two explosions and then it felt like the house was falling. read more

Financieele Dagblad: Shell is fully committed to oil and gas from shale

Printed below is an English translation of an article published by the Dutch equivalent of the Financial Times, Financieele Dagblad under the headline “Shell is fully committed to oil and gas from shale“.

By Bert van Dijk  Energy Editor

Shale gas and shale oil may then have a negative sound in Europe and hardly play a role, governments in the US, Canada, China and Argentina do see a lot of it. Shell hopes to benefit from this favorable investment climate in the coming years, especially now that the company has drastically reduced the costs of extracting shale gas and oil in recent years. read more

Shell share price: Group’s future growth to depend on shale

Oil major’s disposals continue with stake in Dutch wind farm

by Tsveta ZikolovaMonday, 08 Jan 2018, 08:58 GMT

The growth of Royal Dutch Shell’s (LON:RDSA) oil and gas operations in the next decade will depend on shale production, the company’s chief executive has told the Financial Times. In a separate development, Reuters reports that the energy major has inked a deal to offload a stake in a Dutch wind farm.

Shell’s share price has been little changed this morning, having inched 0.04 percent lower to 2,529.00p as of 08:24 GMT. The group’s shares are marginally outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.15 percent lower at 7,712.82 points. read more

Shell Chief Van Beurden Favours Shale For Future Growth – FT

  Mon, 8th Jan 2018 07:34 LONDON (Alliance News) – Royal Dutch Shell PLC Chief Executive Ben van Beurden said the company’s growth in the next decade will depend on shale production, the Financial Times reported Sunday.

According to the newspaper, van Beurden sees “chemicals, electricity and biofuels as key sectors for Shell’s long-term future”. Depending on the price of oil in the 2020s, the CEO said, the oil major would probably want to continue investing in shale “because we will really want to grow this business quite quickly”.

Van Beurden said Shell has been working hard in the past few years to reduce shale production costs, and with “a little bit of help from the oil price going up, we now see that we can significantly accelerate investment into this opportunity”. read more

Shell looks to shale production for rapid growth

in New York: Sunday 7 Jan 2018

The growth of Royal Dutch Shell’s oil and gas operations in the next decade will depend on shale production, its chief executive has said, in the latest sign of western energy groups pinning their hopes for expansion on those “unconventional” resources. Ben van Beurden told the Financial Times that he saw chemicals, electricity and biofuels as key sectors for Shell’s long-term futureFULL FT ARTICLE

All That New Shale Oil May Not Be Enough as Big Discoveries Drop

Companies like Royal Dutch Shell Plc and Exxon Mobil Corp.historically invested tens of billions of dollars over many years to develop huge reserves in isolated areas like northern Alberta, Kazakhstan or in the middle of the ocean. Shale is different. A tight-oil well could be drilled within a year for a few million dollars. As prices fell, more companies jumped in with more investment. Now, shale regions that were barely a blip on world markets a decade ago are expected to pump 7.5 million barrels a day in four years, and output probably won’t peak until after 2025… FULL ARTICLE read more

Pressured for profit, oil majors bet big on shale technology

Shell, in an initiative called “iShale,” has marshaled technology from a dozen oilfield suppliers, including devices from subsea specialist TechnipFMC Plc that separate fracking sand from oil and well-control software from Emerson Electric Co, to bring more automation and data analysis to shale operations.

Ernest Scheyder: NOVEMBER 28, 2017

HOUSTON (Reuters) – Shale oil engineer Oscar Portillo spends his days drilling as many as five wells at once – without ever setting foot on a rig. Part of a team working to cut the cost of drilling a new shale well by a third, Portillo works from a Royal Dutch Shell Plc office in suburban Houston, his eyes darting among 13 monitors flashing data on speed, temperature and other metrics as he helps control rigs more than 500 miles (805 km) away in the Permian Basin, the largest U.S. oilfield. FULL ARTICLE read more

US shale to help power Shell’s multi-billion dollar chemicals drive

Jillian Ambrose: 

Royal Dutch Shell will begin construction of a new $10bn petrochemicals site in the gas-rich Marcellus shale basin in the US within the next ten weeks as part of a radical growth plan for its petrochemicals business.

The oil major told investors that global demand for petrochemicals – which are used to manufacture the raw materials used to make plastics, paints and textiles – is set to grow by around 50pc by the end of the decade, making it a key area for the company’s growth. read more

South Africa Karoo shale gas deposits seen less than earlier estimates

South Africa’s government said in May it might award its first shale gas exploration licences by the end of September, after environmental objections delayed the process. Royal Dutch Shell, Falcon Oil and Gas and Bundu Gas & Oil are among five firms whose applications were being reviewed by the regulator. FULL ARTICLE

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

The Oil Price Tug Of War

By Tom Kool – Aug 15, 2017, 3:00 PM CDT

Oil prices remain in a game of tug of war as conflicting news sends both the bears and the bulls to the sidelines.

• In 2015, the U.S. spent the least on energy in over a decade, largely due to the collapse of oil prices.

• In real terms, the U.S. spent $1.27 trillion on energy in 2015, down 20 percent from a year earlier.

• In inflation-adjusted terms, as well as in terms of percentage of GDP, the expenditures were the lowest since 2004.

SOURCE

Shell shale oil gamble?

Shell recently announced a $300 million investment in a shale oil operation in Argentina: Shell opens treatment plant in Argentina shale play. Shell is developing controversial tight and shale oil and gas operations globally despite the significant financial and environmental considerations involved. Is this wise, or a sign of desperation? Shell is already on shaky ground with the NAM/Groningen project. There is a nice summary below of what we in the oilpatch already knew for years. Production from fracced wells (in a shale like in the US) declines very fast. A well in the Middle East in a high permeable reservoir typically declines 3-10% per year.

Shale oil declines 35-50% per year. You need to keep drilling faster and faster until you go bust…..

And when the costs are high and returns are marginal, corners will be cut and other problems start. Polluted aquifers, operators going bust so who will clean up the mess?

US shale oil will keep prices low – will it ??

Give this 5 mins – it’s fun.

Excellent website link below, with great interactive charts on how the shale wells in US are doing.

These were supposed to keep the oil price low remember? read more

Current Shell News Stories 23 March 2017

OPEC, U.S. begin ‘cat and mouse’ oil game as producers pounce on hedges

By Amanda Cooper and Catherine Ngai | LONDON/NEW YORK

As far as one of the world’s biggest commodities traders, Glencore’s chief Ivan Glasenberg, is concerned, the oil market will be at the mercy of “a cat and mouse game” between OPEC and its U.S. shale rivals in the coming year.

A 16 percent price rally over the past week has delivered U.S. frackers a golden opportunity to hedge – or sell forward – their production for 2017 and beyond, to shore up their coffers against possible future price falls. 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

%d bloggers like this: