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Posts under ‘Ukraine’

Oil prices continue to fall

Screen Shot 2014-11-25 at 00.11.12Shell, BP and Petrofac shares close down as Opec decides not to cut oil production. Stocks of major oil producers were in the firing line as their profits are hugely dependent on the price of oil they extract. Royal Dutch Shell, for example, fell 4.3 percent while Total SA dropped 4.1 percent.

LONDON — Oil companies saw their shares take a beating Thursday as crude prices slid to their lowest in more than four years after OPEC’s decision to maintain production levels even though prices have fallen sharply in recent weeks.

Unsurprisingly, the stocks of major oil producers were in the firing line as their profits are hugely dependent on the price of oil they extract. Royal Dutch Shell, for example, fell 4.3 percent while Total SA dropped 4.1 percent.

FULL ARTICLE

Oil prices have fallen 30 per cent this year, as a glut in supply was exacerbated by a boom in shale gas in the US. read more

Shell backs out of Russian oil projects

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In April 2014, following the Russian Annexation of Crimea, Shell COE, Ben van Beurden, was still bowing to Putin and full of ambition for Russian oil and gas projects. 

By John Donovan

In April 2014, Royal Dutch Shell Chief Executive Ben Van Beurden claimed that the company had no plans to change its work with its Russian partners, despite the conflict in Ukraine.

His resolve seems to have crumbled following the imposition of further sanctions by the USA and Europe against the Putin regime.

A number of news articles are reporting that Shell has followed Exxon in suspending tight oil projects in Russia.

According to Reuters, “Oil major Shell has suspended development of hard-to-recover oil in Russia’s Bazhenov formation with Gazprom Neft, Interfax cited Gazprom Neft’s head as saying on Friday, after the West imposed sanctions on Russia over Ukraine.” read more

Royal Dutch Shell News Thursday 11 Sept 2014

Screen Shot 2014-09-11 at 00.56.29By John Donovan

The US and EU are ready to impose new sanctions on Russia arising from events in Ukraine. See extract from a fuelfix.com article published under the headline: “Sanctions threaten Putin’s oil deals with Exxon Mobil, Shell”

Other vulnerable international operators include Royal Dutch Shell, the world’s second-largest energy company by market value. Multiple investments by The Hague-based company in Russia include ventures to use advanced reservoir-management techniques to revive and increase crude output from Soviet-era fields and to explore some of the nation’s vast, untapped shale formations. “We are continuing to review the latest sanctions to assess the potential impacts on our business, and engaging with the respective authorities to gain further clarity,” Kayla Macke, a Shell spokeswoman, said in an e-mail. “We are taking action to ensure we comply with all applicable sanctions or related measures. We’re keeping the situation under close review.” read more

Shell CEO on global turmoil’s impact

Screen Shot 2014-09-07 at 21.14.49Screenshots from a Fox Business video of an interview with Royal Dutch Shell CEO Ben van Beurden on 4 Sept 2014 shows the uncertainty that surrounds Shell. Mr van Beurden bluntly made it clear at the May 2014 Shell AGM that Shell’s priority is what is in the economic interests of Shell shareholders, not geopolitical concerns i.e. the invasion of Crimea. That explains why he happily bowed to Putin days after the annexation. Whatever the spin, ethics and moral issues are ruthlessly put to one side. The lack of scruples by companies such as Shell, has encouraged the Putin regime. Driven by the same motive, access to hydrocarbon reserves, Shell also connived with Hitler in his territorial ambitions. More recently, Shell traded with Iran despite US sanctions and Shell spin to the contrary. Like in relation to Shell’s claimed business principles, it is Shell’s deeds, not the mixed messages, which count. read more

Potential Bad News for Royal Dutch Shell and BP

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Screen Shot 2014-02-10 at 16.29.29By John Donovan

An article by Matthew Smith published by Seeking Alpha warns about the potential adverse impact on the share value of companies with “exposure” in Russia, such as BP and Royal Dutch Shell.

The CEO of Shell, Ben van Beurden, is well aware of the risk to Shell’s Russian assets and future prospects, which explains his humiliating bowing to President Putin when they met just weeks after the Russian invasion and annexation of Crimea. Obviously a believer in appeasement.  read more

Shell stops shale gas production in Eastern Ukraine

Screen Shot 2014-02-10 at 16.29.29By John Donovan

Royal Dutch Shell says that it has suspended shale gas production in eastern Ukraine due to security concerns. 

A Shell spokesperson said:

“Currently we are not conducting drilling in eastern Ukraine. The security situation is such that we are not able to carry out certain activities scheduled by the shale gas production agreement for reasons beyond our control. Hence, we took a step specified in the contract to announce force majeure regarding certain obligations set in the agreement on gas production at the Yuzivka field. Shell’s interests in shale gas production in Ukraine remain the same, and we will continue to execute all kinds of operations that we can carry out safely.”  read more

Big Oil Could Be In Big Trouble

Screen Shot 2014-02-18 at 18.34.00By John Donovan

A number of current articles warn of falling oil prices. A zacks.com article says that oil prices have fallen below $100 to the lowest level this year and that natural gas has fared even worse. Nas.daq.com reports that the price of oil has plummeted, and that the fall is accelerating. It also points out that big oil has taken on $106 billion in new debt. A related article warns of $96 Billion of High-Risk Oil Megaprojects. The Russia/Ukraine crisis is partly responsible for the uncertainly and anxiety. read more

Roundup of Royal Dutch Shell News 16 August 2014

Screen Shot 2014-06-23 at 11.37.41SHELL’S USA FIRE SALE

The New York Times reports that the Blackstone Group, a private equity company, is paying Royal Dutch Shell $1.2 billion for a stake comprising more than 107,000 net acres in Louisiana. MORE

A related article by BusinessReport.com features a quote from Marvin Odum, president of Royal Dutch Shell’s U.S. division, Shell Oil Company. Marvin said in a statement: “We are adding highly attractive exploration acreage, where we have impressive well results in the Utica, and divesting our more mature, Pinedale and Haynesville dry gas positions.” MORE read more

Russia Sanctions Failing to Stanch Energy Deals With Japan

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By John Donovan

Nato says that Russia has amassed 20,000 combat-ready troops on the border of eastern Ukraine.

The US and the EU have stepped up sanction measures on Russia moving from targeted to sector sanctions. 

Unfortunately for Royal Dutch Shell its current business and future prospects depend on maintaining good relations with Putin.

Hence the bootlicking by Shell CEO Ben van Beurden when he met with Putin following the Russian invasion and annexation of Crimea. 

The Sakhalin II project in which Shell used to be the majority stakeholder still remains an important asset to the oil and gas giant. Sanctions may yet impact on Sakhalin II. read more

FT: 12 Shell staff and family members killed on flight MH17

Screen Shot 2014-02-10 at 16.29.29Extract from FT “Week in review” published 2 August 2014

Majors brace as sanctions against Russia tighten read more

Shell has declared force majeure on gas exploration in eastern Ukraine: CEO

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Extracts from a PLATTS article published 31 July 2014

Shell CEO Ben van Beurden said Thursday, July 31 that the recent events around the Ukraine crisis, including the crash of flight MH17 and the subsequent US and EU sanctions against Moscow, were a “game-changer” from an international political, economic and trade point of view. Shell, which has assets in both Russia and Ukraine, has also declared force majeure on its unconventional gas exploration operations in eastern Ukraine, van Beurden said on a Q2 earnings conference call. Van Beurden said it was too early to know exactly what the impact of the latest international sanctions against Russia would be for Shell. read more

The grief of Ben van Beurden

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Screen Shot 2014-02-10 at 16.29.29Extracts from a Daily Mail/This is MONEY” article by Rob Davies published 31 July 2014 under the headline: “Energy lift boosts shares in Royal Dutch Shell and BG Group after both post strong second quarter results”

Boss Ben van Beurden has vowed to sell underperforming assets and be more selective about spending, after beginning his tenure in January with the firm’s first profit warning in a decade. Van Beurden said Shell was ‘less exposed than some of our rivals’ to the impact of sanctions on Russia after the downing of Malaysian Airlines flight MH17 over Ukraine. But he focused on the emotional impact on Shell, which lost four staff and eight members of their families. ‘As a Dutchman, of course, I grieve for the many compatriots who lost their lives in this crash,’ he said. ‘Then, as CEO of Shell, I grieve together with the other 92,000 Shell staff for the colleagues we lost, together with so many of their family members.’ read more

BP: Russian sanctions could hurt us

Screen Shot 2013-12-18 at 10.04.21Extract from a Guardian Business Blog article by Graeme Wearden published 29 July 2014

Oil giant BP has warned the City this morning that it could suffer if fresh sanctions are imposed on Russia.

In its latest results, BP cautioned that it would suffer an “”adverse impact” if Western powers hit Moscow with fresh economic restrictions — in response to the crisis in Ukraine.

FULL ARTICLE

ROYAL DUTCH SHELL PLC AND RUSSIA: BUSINESS AS USUAL

By John Donovan

Shell CEO Ben van Beurden was straightforward in what he publicly stated at the 2014 AGM of Royal Dutch Shell Plc. He said that Shell puts the interests of its shareholders first, above any geopolitical considerations. That is his excuse for Shell’s dealings with evil regimes in Iran and Russia, irrespective of sanctions. You can tell all you need to know about Ben’s priorities from his failure to sign the document “SHELL BUSINESS PRINCIPLES” – it is still signed by his predecessor Peter Voser, who abandoned ship long ago.  read more

Shell Leaves Business Strategy for Russia Unchanged Despite Sanctions

Screen Shot 2014-02-10 at 16.29.29British oil giant is determined to continue its work in Russia and will not change its business strategy in the country, despite the sanctions imposed against Moscow by the United States and European Union, representative of Shell’s press service told RIA Novosti on Friday.

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MOSCOW, July 25 (RIA Novosti) – British oil giant is determined to continue its work in Russia and will not change its business strategy in the country, despite the sanctions imposed against Moscow by the United States and European Union, representative of Shell’s press service told RIA Novosti on Friday.

“Shell continues to run business in Russia both in the upstream and downstream without any changes. We monitor the situation regarding the sanctions. But so far there have been no changes in either the business itself or in the business strategy,” the source said. read more

The world is being held hostage

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Screen Shot 2014-02-10 at 16.29.29Extract from a NewsDay article by MARTIN SCHRAM published 23 July 2014 by McClatchy-Tribune News Service under the headline: “Schram: The world is being held hostage” read more

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