Royal Dutch Shell plc .com Rotating Header Image

Shell quiz: when is a stake ‘held for sale’ on sale?

Screen Shot 2016-08-01 at 21.35.55

Screen Shot 2016-08-01 at 21.37.44

Screen Shot 2016-07-08 at 14.36.15

  • The Australian
  • 12:00AM August 2, 2016

BRIDGET CARTERMergers & Acquisitions Editor: Sydney

GRETCHEN FRIEMANNMergers & Acquisitions Editor: Sydney

It’s unlike the CFO of an oil major to be imprecise when it comes to accounting classifications of assets.

Unless maybe he doesn’t mind causing a bit of mischief for a joint venture partner with whom relationships have been less than rosy of late.

Shell finance director Simon Henry set the hares running last week during a second-quarter earnings call when he declared the company’s 13.3 per cent stake in Woodside Petroleum had been reclassified first as “held available for sale” and then “held as an asset for sale”.

read more

Unknown Militants Attack Shell Pipeline In Niger Delta

Screen Shot 2016-07-01 at 23.22.31

Screen Shot 2016-08-01 at 21.25.34

Screen Shot 2016-06-30 at 18.15.43By Lincoln Brown – Aug 01, 2016, 1:30 PM CDT

No one has claimed responsibility for an attack on a Shell pipeline in the early morning hours in the Niger Delta region on Sunday.

The attack came at about 1:00 AM local time on the Trans Ramos Pipeline near Odimodi—a pipeline owned by Shell Petroleum Development Company.

According to resident Godspower Gbenekama, residents heard a loud explosion and found an oil spill. There have been no reports of any injuries in the incident.

Another resident, who spoke on condition of anonymity, said that this was not the first time militants had hit the pipeline, stating: “Precisely on the 22nd of this month, there was a failed attempt to attack the same facility, hence we were expecting that security in the area would have been tightened, but we are really disappointed that they succeeded this time.”

read more

Suspected militants attack Shell affiliated pipeline in Nigeria’s Delta

Screen Shot 2016-08-01 at 21.19.23

Screen Shot 2016-08-01 at 21.16.35

Screen Shot 2016-07-29 at 16.46.22Mon Aug 1, 2016 6:24am EDT

Suspected militants have attacked an oil pipeline operated by a local affiliate of Shell in Nigeria’s restive southern Niger Delta region, locals and a community group said on Monday.

Militants have attacked oil and gas facilities in the OPEC member’s energy hub over the last few months, cutting the country’s crude production — which stood at 2.2 million barrels per day (bpd) at the start of the year — by around 700,000 bpd.

Nobody has claimed responsibility for a blast at the Trans Ramos Pipeline near Odimodi, operated by Shell’s joint venture SPDC, which locals said happened in the early hours of Sunday shortly after 1:00 a.m. (08:00 EDT). Shell said the line was closed for repairs.

read more

How Exxon Mobil, Royal Dutch Shell, BP Are Affected by Low Oil Prices

Screen Shot 2016-07-06 at 08.16.50

Screen Shot 2016-08-01 at 14.09.41

Screen Shot 2016-08-01 at 14.11.08

By Muhammad Ali Khawar on Aug 1, 2016 at 7:57 am EST

Just when you thought oil prices will rebound they got even worse. The last few weeks have been quite eventful for the oil and gas industry, with companies releasing their second-quarter earnings. The quarter hasn’t been as rewarding for integrated oil and gas majors.

The decline in crude oil price has persisted for quite a while now. West Texas Intermediate was down 0.50% at $41.40 per barrel, while Brent Crude was down 0.32% at $43.39 per barrel, earlier today.

read more

Militants bomb Shell oil pipeline in Nigeria: locals

Screen Shot 2016-07-31 at 22.58.36

Screen Shot 2016-07-31 at 23.01.53

Screen Shot 2016-06-20 at 07.46.55

Screen Shot 2016-07-29 at 16.46.22By AFPPUBLISHED: 22:14, 31 July 2016

Nigerian militants on Sunday blew up a crude pipeline operated by Anglo-Dutch oil giant Shell in the restive oil-producing south, residents said.

“The incident occurred at about 1:00 am near Odimodi community in Delta State with the velocity of the blast shaking apartments in the community amidst a huge ball of fire,” said local resident Endoro Newworld.

“The trunk line known as Trans Ramos belongs to the Shell Petroleum Development Company (SPDC), he said.

read more

Oil giants’ profits on the skids as crude price dives

Screen Shot 2016-07-31 at 18.39.36

  • BRADLEY OLSON, SELINA WILLIAMS
  • The Wall Street Journal
  • 12:00AM August 1, 2016

The world’s biggest oil companies posted losses or steep declines in profit for the second quarter, and now face a daunting remainder of the year as crude prices retreat to about $US41 a barrel.

ExxonMobil on Friday reported its quarterly profit fell 60 per cent to the lowest level since 1999, while Chevron disclosed its biggest quarterly loss since 2001. The results capped a bad week for big Western oil companies: BP and Royal Dutch Shell earlier posted earnings that disappointed investors.

read more

Gorgon full output delayed until mid-2017

Screen Shot 2016-07-31 at 18.30.44Brian Robins: August 1 2016

A series of commissioning problems has delayed the timing of when Chevron Corp expects the giant Gorgon gas export project to be in full production, until well into 2017.

Since it began to bring the initial stage of the project on stream, it has encountered a series of problems that have forced it to halt processing from time to time, and it has now told analysts the first unit is operating at only a little over two-thirds of its rated capacity.

Production was halted for two months soon after the initial exports of gas, forcing Chevron to push back towards mid-2017 when it expects the project to be fully operational, from earlier this year.

read more

Oil Giants Find There’s Nowhere to Hide From Doomsday Market

Screen Shot 2016-07-30 at 15.22.34

By Joe CarrollJuly 29, 2016 — 1:02 PM BST: Updated on July 30, 2016 — 5:01 AM BST

Exxon Mobil Corp. and Royal Dutch Shell Plc this week reported their lowest quarterly profits since 1999 and 2005, respectively. Chevron Corp.’s third straight loss marked the longest slump in 27 years, and BP Plc lodged its lowest refining margins in six years.

Welcome to year two of a supply overhang so persistent it’s upsetting industry expectations that the market would return to a state of balance between production and demand. It’s left analysts befuddled and investors running to the doorways as the crude market threatened to tip into yet another bear market, dashing hopes that a slump that began in mid 2014 would show signs of abating.

read more

This Is Why Oil Firms Suffered Another Awful Earnings Season

Screen Shot 2016-07-30 at 14.59.35

Screen Shot 2016-07-30 at 15.00.46BKatie Fehrenbacher: JULY 29, 2016

Analysts expected the oil giants’ cost cutting to help more.

Many of the world’s biggest oil companies continue to feel the pain as low oil prices continue to undercut profits and lead to shuttered projects and layoffs.

Exxon, Royal Dutch Shell, Statoil, BP, and Chevron announced dismal earnings this week, missing expectations and showing how slashing spending and pulling back isn’t yet enough in a world where oil has dropped from a high of $115-per-barrel in 2014 to a low of $27-per-barrel in January of this year.

read more

Unions to stage 48-hour strike on Shell’s North Sea assets

Screen Shot 2016-07-29 at 19.19.15

Written by Niamh Burns – 29/07/2016 7:59 am

Unions will stage a 48-hour strike next week as industrial action continues on seven Shell assets in the North sea.

Both RMT and Unite members voted in support of action for the first time in more than a generation.

Around 400 workers are taking part in a continuous overtime ban, while tools were also downed on Tuesday this week, followed by two three hour stoppages yesterday.

Wood Group is currently making changes to is contracts with workers on Shell installations after renewing its contract with the oil major earlier this week.

read more

Shell Announces Fort Sumter Discovery In Gulf Of Mexico

Screen Shot 2016-07-29 at 16.49.23

JUL 28, 2016, 08:00 ET

HOUSTON, July 28, 2016 /PRNewswire/ — Shell today announced a new exploration discovery in the deep water U.S. Gulf of Mexico. The initial estimated recoverable resources for the Fort Sumter well are more than 125 million barrels of oil equivalent (boe). Further appraisal drilling and planned wells in adjacent structures could considerably increase recoverable potential in the vicinity of the Fort Sumter well.

“The Fort Sumter discovery builds upon Shell’s global deep-water leadership. Its proximity to our nearby discoveries in the area, and to highly prospective acreage to the southeast, makes Fort Sumter particularly significant,” said Ceri Powell, Executive Vice President Exploration. “These successes demonstrate there is still running room in the producing basins of our heartlands where large, high-value discoveries have the potential to further strengthen our deep-water competitiveness.”

read more

Royal Dutch Shell stake in Woodside Petroleum ‘held for sale’

Screen Shot 2016-07-29 at 08.40.19

by Angela Macdonald-Smith: July 29 2016

Royal Dutch Shell looks to be heading for an exit from Woodside Petroleum sooner rather than later, after reclassifying its remaining $3 billion stake in the Australian oil and gas producer as an “asset for sale”.

The move appears to be driven by technical reasons because of Shell’s reduced representation on Woodside’s board. But at the same time it may signal a firmer intention to dispose of the circa 13 per cent stake, which Shell has for some time declared as a non-strategic holding.

read more

Shell’s Debt Nears Edge of Comfort Zone as Rout Boosts Borrowing

Screen Shot 2016-07-29 at 08.50.54

Net debt increased to a record $75 billion at the end of June from $70 billion three months earlier, Shell said Thursday as it reported a slump in second-quarter earnings. Additional borrowing drove up the ratio of net debt to capital, or gearing, to 28.1 percent — more than double the year-earlier level.

“We’re close to the maximum level and it could go up still with the oil price where it is,” Chief Financial Officer Simon Henry said on a conference call. “Thirty percent is an upper limit to where we can describe our position as comfortable.”

read more

Royal Dutch Shell may have to slash its dividend – analysts Share

Screen Shot 2016-07-28 at 18.34.41

17:00 28 Jul 2016

Investors in Royal Dutch Shell PLC (LON:RDSB) should be steeling themselves for an eventual cut in their dividend payouts, according to analysts.

In half-year results on Thursday, the Anglo-Dutch company held its interim dividend steady, at 47 cents, despite underlying earnings for the quarter falling 72% to US$1bn.

Its gas and downstream businesses fuelled earnings, more than outweighing a US$2bn loss in the upstream division, which faced one-off charges of US$649mln.

But shares in the group fell 53.5p, or 2.5%, to 2051.5p.

read more

Dividend At Risk – Royal Dutch Shell

Screen Shot 2016-07-28 at 18.00.17

Summary

Shell produced a meager $3B of operating Cashflow for H1 2016.

Cash Commitments for Capex, Debt and Dividends were about $20B.

Shell does not stack up until an oil recovery to $80 IMO.

Introduction

Royal Dutch Shell (NYSE:RDS.A) (NYSE:RDS.B) released results this morning in Europe. Both the London and Amsterdam listings are down 4%. RDS is yielding about 7% this morning at current prices in Amsterdam.

Let’s get the disclosure bit over with. I was long Shell up until a few months ago. I sold as its share price recovered from the January meltdown. Having analyzed the company several times on SA, I concluded I was not comfortable holding the stock. Of course, if I had continued to hold and sold now, I would have made a much better return at today’s prices.

read more

Shell: Paradise Postponed

Screen Shot 2016-06-07 at 10.26.02

Screen Shot 2016-07-28 at 16.46.14
PHOTOGRAPHER: ANDREY RUDAKOV

By Chris Hughes: July 28, 2016

Royal Dutch Shell has delivered a shock.

Weeks after cheering investors with a big plan for living within its means, the oil major’s second-quarter earnings plummeted from $3.4 billion to $239 million. Paradise — a cash-generative company driven by February’s $64 billion acquisition of BG Group — has been postponed.

So much for the benefits of BG. This was the first set of numbers to include a full contribution for the acquisition, and so far the deal has pushed indebtedness higher while introducing a raft of one-off integration costs.

read more

Shell focusing on ‘lasting changes’

Screen Shot 2016-07-28 at 16.42.21

THE HAGUE, Netherlands, July 28 (UPI) — Lower crude oil prices continue to present problems for the industry and Shell is now focused on retooling efforts, the chief executive officer said.

“We are making significant and lasting changes to Shell’s working practices and cost structure,” CEO Ben van Buerden said in a statement.

Shell, moving through the year after a merger with British energy company BG Group, said net income during the second quarter fell more than 70 percent to $1.18 billion. The company attributed the decline in part to some of the fiscal pressures from its $7 billion tie-up with BG Group, weak industry conditions and tougher tax regimes.

read more

Shell misses expectations with 70 percent earnings plunge

Screen Shot 2016-07-28 at 08.37.58By REUTERS: PUBLISHED: 08:16, 28 July 2016

By Karolin Schaps and Dmitry Zhdannikov

LONDON, July 28 (Reuters) – Royal Dutch Shell reported a more than 70 percent fall in quarterly profit on Thursday, well below analyst estimates, blaming weak oil prices, poor refining profits and higher charges resulting from its $54 billion acquisition of BG Group.

Shell’s current cost of supplies — its definition of net income — came to $1 billion in the second quarter, compared with analyst expectations of $2.2 billion and $3.8 billion achieved the same time last year.

read more

Shell profit falls 93% amid low oil prices

Screen Shot 2016-07-28 at 08.06.26

The quarter was the first full one that included BG Group PLC, which Shell bought in a roughly $50 billion acquisition that completed in February.

“Downstream and integrated gas businesses contributed strongly to the results, alongside Shell’s self-help program. However, lower oil prices continue to be a significant challenge across the business, particularly in the upstream,” said Shell Chief Executive Ben van Beurden.

FULL ARTICLE

Shell pays out more than $700,000 to settle civil prosecution over fuel reward cards

Screen Shot 2016-07-27 at 20.49.04

Written by Reporter – 27/07/2016 11:50 am

Shell Oil Products has agreed to pay more than $700,000 to settle a civil prosecution over gift cards and fuel reward cards.

The company settled the dispute in which is admitted no liability.

The case had been filed in Alameda County in the US state of California.

Prosecutors had alleged there was multiple consumer protection and advertising violations related to the cards.

They said it included not allowing the redemption of gift cards with a balance under $10 as required by state law.

read more

LNG takes another lurch toward financial oblivion

Screen Shot 2016-07-27 at 18.38.26

Lachlan Barker: 27 July 2016

The future for gas companies is looking grim and this means market forces will effect what our governments should have done and force the industry’s closure, says Lachlan Barker.

THE FINANCIAL REPORTING news for Queensland’s liquefied natural gas (LNG) companies is disastrous – for yet another quarter.

Santos were the first out with their second quarterly production report and even I – a fairly close observer of the LNG market – couldn’t quite believe what I was seeing.

read more

Oil Workers Strike Over Shell’s Proposed Cuts

Screen Shot 2016-07-26 at 16.55.45

By SELINA WILLIAMSJuly 26, 2016 9:47 a.m. ET

LONDON—About 400 workers at seven Royal Dutch Shell PLC oil and gas platforms in the U.K. North Sea began a 24-hour strike early Tuesday in a dispute over proposed cuts of up to 30% on pay and allowances, the Unite union said in a news release.

The strike will be followed by a series of other stoppages over the following weeks, Unite said.

FULL ARTICLE

Hundreds of North Sea workers down tools on Shell oil rigs

Screen Shot 2016-06-07 at 10.05.47

Screen Shot 2016-07-26 at 16.40.56

Screen Shot 2016-07-26 at 16.45.26Jillian Ambrose26 JULY 2016 • 1:26PM

Around 400 North Sea oil workers have downed tools on Shell oil rigs in the sector’s first spate of industrial action in 28 years.

The 24-hour strike began at 6.30am on Tuesday alongside an ongoing refusal to work overtime and will be followed by further stoppages in the weeks to come, trade union Unite warned.

Offshore oil workers employed by Wood Group to work on Shell’s giant Brent oilfield platforms voted overwhelmingly in favour of strike action earlier this month, after talks over plans to bring in longer hours and lower pay broke down.

read more

Solano County District attorney announces settlement with Shell

Screen Shot 2016-07-26 at 16.36.32

POSTED: 07/25/16, 5:59 PM PDT

Solano County District Attorney Krishna Abrams, announced Monday that Equilon Enterprises LLC, dba Shell Oil Products US (“Shell”) has entered into a stipulated judgment to resolve consumer protection and advertising violations related to Shell gift cards and fuel rewards cards.

Solano was joined by Alameda, Monterey, Napa, Santa Clara, and Santa Cruz in bringing this consumer protection action. Under the terms of the stipulated judgment, Shell agreed to pay $762,500 in civil penalties, costs, and restitution, and to injunctive provisions to ensure future compliance.

read more

Shell Philippines files for $629 million IPO, eyes November listing

Screen Shot 2016-07-26 at 16.29.38

MANILA | BY NEIL JEROME MORALES AND ENRICO DELA CRUZBusiness | Tue Jul 26, 2016 5:08am EDT

Pilipinas Shell Petroleum Corp has filed for an initial public offering (IPO) of shares that may raise as much as 29.7 billion pesos ($629 million) in one of the Philippines’ largest stock market listings.

The unit of Royal Dutch Shell Plc (RDSa.L) plans to launch the IPO in October involving up to 330 million primary and secondary shares at up to 90 pesos per share, with a listing on the Philippine Stock Exchange tentatively set for Nov. 10.

read more

Solano DA announces $762,000 Shell cards lawsuit settlement

Screen Shot 2016-07-26 at 16.15.01

Screen Shot 2016-06-30 at 18.15.43Solano DA announces $762,000 Shell cards lawsuit settlement

By Jess SullivanFrom page A5 | July 27, 2016

FAIRFIELD — District Attorney Krishna Abrams announced Monday that Shell Oil Products will pay out more than $762,000 to settle a lawsuit filed by eight California counties, including Solano County.

Prosecutors claimed Shell did not tell customers using gift cards and fuel rewards cards that some discounts could not be combined and that not all Shell gas stations honored the cards. The lawsuit also claimed Shell failed to redeem gift cards with balances of less than $10 for cash as required by California law and that Shell did not tell customers about some of the limits of its rewards programs.

read more

Shell to Lay Off 200 Gulf of Mexico Rig Workers

Screen Shot 2016-07-26 at 15.40.19

Shell to Lay Off 200 Gulf of Mexico Rig Workers

Screen Shot 2016-07-26 at 15.41.13

A Shell platform in the Gulf of Mexico (courtesy RDS)

By MarEx 2016-07-25 

Shell has announced plans to trim about 200 jobs from its Gulf of Mexico deepwater operations.

“We are making these changes in order to remain competitive and better position Shell’s Gulf of Mexico projects for future growth,” spokeswoman Kimberly Windon told the AP.

The cuts will affect personnel on nine facilities, and will reduce the oil major’s workforce in the region by about one quarter. Some will be transferred to other operations where openings are available.

read more

Oil price drops to three-month low on oversupply fears

Screen Shot 2016-07-25 at 21.30.50

25 July 2016

Oil prices have fallen to a three-month low, hit by rising concerns that a global oversupply of both crude and natural gas will dampen prices.

US oil fell 2.4% to $43.11 (£32.72) a barrel, its lowest level since April, meaning it has now fallen by 12% so far this month.

Brent crude dropped 2.1% to $44.75, its lowest level since 10 May.

Shares in oil and firms also lost ground, with Exxon Mobil shares down 1.8% and Chevron down 2.6%.

“Crude oil markets have been under pressure as oil supplies have started growing with the resumption of output from the capacity lost due to wildfires in the Canadian oil sands,” said EY energy analyst Sanjeev Gupta.

read more

Oil giants hit amid fears of drop in demand

Screen Shot 2016-07-25 at 19.07.42

PUBLISHED: 25/07/2016

The FTSE 100 index was off 20.4 points to 6710.13, as Brent crude sunk 1.9% to 44.83 US dollars (£37.50) a barrel after a report from Barclays warned global oil demand was down amid lacklustre growth from the global economy.

BP dropped 2.6%, or 11.8p, to 440.4p ahead of its interim results on Tuesday, while rival Royal Dutch Shell was also languishing in the red, slipping 2.5%, or 54.5p, to 2093.5p.

Sterling was also under pressure after a report from the Confederation of British Industry (CBI) said business optimism had deteriorated at its fastest pace since January 2009 following the Brexit vote.

read more

How do you hold a strike on a North Sea oil platform?

Screen Shot 2016-07-25 at 17.11.24

Hundreds of RMT and Unite union members who work for Wood Group are set to stage the 24-hour industrial action on Tuesday in a dispute over pay.

It will be the first industrial action of its kind in the offshore oil and gas industry in almost 30 years.

But how do you actually conduct a strike on a North Sea oil platform?

Those union members involved on the seven Shell platforms will go to designated areas – but will respond should there be an emergency situation.

There will not be the traditional high-profile picket lines that people associate with strikes on land.

read more

Shell Units Argue Market-Rigging Claims Lack Jurisdiction

Screen Shot 2016-07-22 at 08.26.21

Screen Shot 2016-07-25 at 09.05.53

Screen Shot 2016-07-08 at 14.36.15By Cara Bayles

Law360, San Francisco (July 22, 2016, 8:48 PM ET) 

Two Royal Dutch Shell PLC affiliates on Thursday tried to escape allegations of European market manipulation from a proposed class of crude oil derivatives traders, arguing in New York federal court that U.S. courts don’t have jurisdiction over conduct by Shell’s international arm in foreign markets.

The reply in support of the affiliates’ motion to dismiss said the traders were trying to “manufacture claims and jurisdiction where neither exists” by blurring the distinction between two “sister subsidiaries” — Shell’s U.S. arm, Shell Trading US Co., or…

read more

Carson’s contaminated Carousel tract wins $120 million settlement

Screen Shot 2016-07-24 at 09.33.27

By Sandy Mazza, Daily Breeze: POSTED: 07/23/16

Workers have only just begun removing millions of tons of oil-caked soil left buried for decades in the yards of Carson’s Carousel tract, but a long-awaited financial settlement for the pain and suffering of residents likely will be disbursed before Christmas.

The final payout from two companies deemed responsible for the mess will be $120 million for emotional and physical turmoil, according to an agreement between attorneys reached Friday.

The deal comes after more than a year of legal wrangling between Shell Oil Co., which operated the former oil-tank storage farm on the site, and Dole Food Co., which bought the tract’s developer, Barclay Hollander Corp., and was named responsible for cleaning the property by the Los Angeles Regional Water Quality Control Board in 2015.

read more

Nigeria arrests militant behind oil attacks

Screen Shot 2016-07-23 at 21.29.58

The Department of State Service (DSS) said it arrested a man named Jones Abiri who uses the alias General Akotebe Darikoro.

The arrest took place on Thursday in Yenagoa in southern Nigeria, amid “ongoing tactical operations to degrade the capabilities and hideouts of criminal gangs” in the country.

The DSS claimed the militant confessed to attacking pipelines operated by Agip — the Nigerian subsidiary of Italy’s Eni — and Anglo-Dutch oil group Shell.

Several recent attacks, including assaults on pipelines operated by Shell and Agip, have been claimed by a militant group named the Niger Delta Avengers (NDA).

read more

Santa Cruz County prosecutors win judgment against Shell Oil gift cards

Screen Shot 2016-07-23 at 21.09.39

Screen Shot 2016-07-23 at 21.10.27

Screen Shot 2016-06-30 at 18.15.43By Stephen Baxter, Santa Cruz Sentinel: 07/23/2016 

SANTA CRUZ — The Santa Cruz County District Attorney’s Office and prosecutors from six other counties won a $762,500 false advertising judgment against Shell Oil’s fuel rewards program on Thursday.

The lawsuit alleged that Shell failed to adequately disclose that discounts from fuel rewards cards and gift cards could not be combined, said Santa Cruz County prosecutor Douglas Allen. Second, it alleged that not all Shell gas stations honored the cards and the company failed to redeem gift cards with balances of less than $10. It also “falsely advertised that certain gift cards could ‘be used like cash’ when Shell knew or should have known some stations were charging customers the credit price for gasoline when purchasing with a gift card,” Allen said.

read more

2 Red Flags on Royal Dutch Shell’s Cash Flow Statement

Screen Shot 2016-07-22 at 20.51.48

Reuben Gregg BrewerJul 22, 2016 at 1:16PM

Royal Dutch Shell (NYSE:RDS-A) (NYSE:RDS-B) has been hit just as hard by the oil industry downturn as any other oil major. So far, though, it’s managed to keep its dividend intact. Still, the company’s cash flow statement bears watching, because keeping that dividend going is getting harder to pull off. Here are two red flags to watch on Royal Dutch Shell’s cash flow statement.   

Cash flow, not earnings

Shell’s earnings cratered following the mid-2014 oil price drop, going from around $3.00 a share in 2014 to just $0.60 or so last year. (Note that the U.S. traded ADRs represent two shares of Shell stock, so these figures and all of the other per share numbers in the text, which are based on one share of stock, may be half of what you expect to see if you own the ADR.) In the first quarter of this year, the integrated oil giant only earned about a dime a share. Clearly, things aren’t going well for Shell’s business right now. That’s understandable, since oil and natural gas prices play a big part in the company’s results, but there are implications to the bottom-line decline.  

read more

Next Week Is as Good as It Gets for Big Oil

Screen Shot 2016-07-22 at 13.47.46

ByRakteem Katakey and Joe Carroll: 22 July 2016

Several majors expected to post highest earnings in 3 quarters

Strong performance may not last as oil seen easing back to $40

For oil companies, the second quarter might be as good as it gets.

Shares gained more than in any other industry, thanks to crude rising from a 12-year low. Profits were the best in at least three quarters for majors including Royal Dutch Shell Plc, Chevron Corp. and BP Plc, helped by cost cuts, analysts say. The rest of the year might not be as rosy as supply holds near record levels.

The combined market value of the world’s oil companies shrank by $2 trillion in the past two years following crude’s collapse. While analysts agree the worst of the oversupply is over, BNP Paribas SA and JBC Energy GmbH are among those forecasting a slide back to $40 a barrel as output rebounds in Canada, Iran, Nigeria and the U.S., hurting producers whose investment cuts have put future growth in doubt.

read more

Shell, Philippines’ $1.2B Tax Dispute Heads To World Bank

Screen Shot 2016-07-22 at 08.35.05

By Bryan Koenig

Law360, Washington (July 21, 2016, 6:30 PM ET) — A Royal Dutch Shell PLC unit on Wednesday took its $1.2 billion tax recalculation dispute with the Philippines’ Commission on Audit over the gas-to-power Malampaya project the company operates to a World Bank arbitration dispute body.

The International Centre for Settlement of Investment Disputes records show that Shell Philippines Exploration BV initiated the arbitration proceedings, registered Wednesday, against the Republic of the Philippines over the taxation of a hydrocarbon concession.

read more

Shell to cut jobs in the Gulf of Mexico amid weak oil prices

Screen Shot 2016-07-21 at 22.49.59

By Jennifer Larino, NOLA.com | The Times-Picayuneon July 21, 2016 at 3:55 PM, updated July 21, 2016 at 4:00 PM

Shell plans to cut, consolidate or relocate more than 150 offshore jobs in the Gulf of Mexico as part of an effort to shave 2,200 positions across its global operations this year. The restructure offshore follows job cuts at the company’s New Orleans office amid weak oil prices.

Shell has decided to move forward with “structural changes and personnel reductions” after reviewing its deepwater Gulf of Mexico operations, spokeswoman Kimberly Windon said in a statement emailed to NOLA.com | The Times-Picayune. Shell informed employees of its decision Thursday afternoon (July 21).

read more

Doesn’t this all seem rather improper?

Screen Shot 2016-07-21 at 20.04.03

GRAY, LOUISIANA (PRWEB) JULY 20, 2016

Danos announces the hiring of Tom Broom as executive account manager. In this role, Broom will be responsible for overseeing and maintaining Danos’ long-term relationship with Shell.

“Tom is a perfect fit for Danos, said Executive Vice President Paul Danos. “His experience in the industry and long career with Shell make him the ideal person to oversee this relationship that has endured for 45 years.”

In 2015, Broom retired from Shell after a 35-year-career, most recently serving as director of coastal issues for Shell Exploration & Production Company. In that role he served as the inaugural director of a 25-person international team focused on collaborating with internal and external stakeholders on coastal management issues. Prior to that position he oversaw workforce development and construction risk mitigation and managed operations training for the United States, Canada and Brazil. He also supervised the daily operations of Shell’s Robert Training and Conference Center, the company’s primary operations training facility.

read more

Is Gas The Future? Shell Seems To Think So

Screen Shot 2016-07-01 at 23.22.31

Screen Shot 2016-07-21 at 08.28.48

Screen Shot 2016-07-08 at 14.36.15

By Gregory Brew – Jul 20, 2016

The world’s second largest private oil company sees a new future, and it’s not in oil.

Shell has made a concerted effort to shift the bulk of its business from oil-related projects to natural gas, LNG and renewables. Coming on the heels of its February purchase of BG Group (a $54 billion acquisition), Shell has organized a division focused solely on renewable energy. It announced new investment for its LNG facility on Curtis Island in Australia, where natural gas has enjoyed $180 billion in new capital. It has emerged as a stronger voice on global climate change than its competitor ExxonMobil and the company’s website proposes a number of “Shell Scenarios” that could allow for a growing energy market while creating less CO2.

read more

Why Big Oil Is Still A Good Bet For Investors

Screen Shot 2016-07-01 at 23.22.31

Screen Shot 2016-07-20 at 22.46.38

Screen Shot 2016-06-30 at 18.15.43By Michael McDonald – Jul 20, 2016, 2:23 PM CDT

Investors getting cold feet about the spiking price of Big Oil stocks over the last year may risk missing out on further gains, according to one top ranked analyst. Doug Terreson of Evercore, one of the top ranked oil analysts according to Institutional Investor magazine, is recommending that investors stick with integrated oil majors like Royal Dutch Shell, Chevron, and Exxon despite the run up in their prices.

Terreson’s thesis is that many of the catalysts for positive price performance remain in place. In particular, integrated oil companies have effectively reduced operating capital costs permanently, which lowers their breakeven expense to produce oil. The retort to this point of course is that Big Oil stocks may have cut costs but frackers have been much more successful than integrated majors in cutting their costs as a percentage of pre-crash production cost.

read more

Royal Dutch Shell: Huge Dividend And Long-Term Growth Ahead

Screen Shot 2016-07-20 at 17.07.11

Wayne Duggan: 20 July 2016

A number of British stocks have been hit hard since the referendum vote to leave the EU, but Royal Dutch Shell (RDS.A, RDS.B) is not one of them. Shares are now up 0.3% since the Brexit vote after initially falling more than 8% during the knee-jerk market sell-off.

With the possibility that the Brexit could severely impact British GDP growth in coming years, RDS.B offers a unique opportunity to invest in a company within a sector that is in a global upswing, a company that has significant international exposure and a company that is committed to maintaining the single largest dividend payment in the MSCI World Index.

read more

Intrigue Over Alleged Shell Employee Fatality At Falk Prime Atlantic, in Nigeria?

Screen Shot 2016-07-20 at 11.02.28

I have searched the web but, strangely, cannot find any information about the incident which one would have thought would have been widely reported. The nearest I got was your website and as you appear very knowledgeable about what goes on in Shell then I thought it might be worth contacting you. I have a professional interest in the incident and its background as there are many unanswered questions apart from the obvious attempts to keep it secret.

For example what was OPITO’s role, why are Royal Dutch Shell so agitated by the affair (to the extent they are insisting on draconian global safety measures  for all OPITO approved training establishments), why was no action taken against the training centre etc?

read more

JOHN DONOVAN SAR APPLICATION LETTER TO SHELL INTERNATIONAL LIMITED UNDER THE DATA PROTECTION ACT 1998

Screen Shot 2016-07-20 at 10.19.07

LINK TO ARTICLE

Screen Shot 2016-07-20 at 10.23.39JOHN DONOVAN SAR APPLICATION LETTER TO SHELL INTERNATIONAL LIMITED UNDER THE DATA PROTECTION ACT 1998

19 July 2016

Mr. Gary Thomson SI-LSC/K
Shell International Limited
40 Bank Street
London E14 5NR

Dear Mr Thomson

Data Protection Act 1998 – Subject Access Request (SAR)

Thank you for your email dated 19 July 2016.

Please find enclosed completed application forms together with a postal order for £10 made out to Royal Dutch Shell Plc.

I obtained it before finding out that the fee can now instead be paid to a charity.

As you are aware, I operate royaldutchshellplc.com – a website focussed on the activities of Shell.

read more

The Future of Big Oil? At Shell, It’s Not Oil

Screen Shot 2016-06-07 at 10.26.02

Screen Shot 2016-07-20 at 07.36.57

Screen Shot 2016-07-20 at 07.42.44The energy giant is shifting to gas as the industry adapts to climate change.

By Matthew CampbellRakteem Katakey and James Paton: 20 July 2016

At Australia’s Curtis Island, you can see Big Oil morphing into Big Gas. Just off the continent’s rugged northeastern coast lies a 667-acre liquefied natural gas (LNG) terminal owned by Royal Dutch Shell, an engineering feat of staggering complexity. Gas from more than 2,500 wells travels hundreds of miles by pipeline to the island, where it’s chilled and pumped into 10-story-high tanks before being loaded onto massive ships. “We’re more a gas company than an oil company,” says Ben van Beurden, Shell’s chief executive officer. “If you have to place bets, which we have to, I’d rather place them there.”

read more

Royal Dutch Shell: Does Everything Come Down to Oil Price Recovery?

Screen Shot 2016-07-19 at 20.39.16

By Staff Writer on Jul 19, 2016 at 9:07 am EST

World’s leading integrated oil and gas company, Royal Dutch Shell plc (ADR) (NYSE:RDS.A), concluded a deal to acquire BG not too long ago. The move was widely perceived as an aggressive step to become a dominant supplier of liquefied natural gas (LNG) across the globe. The deal is expected to help Shell diversify its operations and enable it to benefit from cost synergies in the years to come.

The merger came at a time when oil prices were on a downward trajectory, with the step expected to drive the company out of the downturn. Oil prices that were once above $110 per barrel have now plunged below $50. Last year, when the Dutch company announced the deal, many mergers and acquisition pundits criticized Shell’s willingness to pay 50% premium in a depressed crude oil environment.

read more

How Lower Oil Prices, Brexit Are Impacting North Sea Operations

Screen Shot 2016-07-19 at 20.30.58

By Muhammad Ali Khawar on Jul 19, 2016 at 7:35 am EST

Thanks to Brexit vote, the oil and gas markets are experiencing significant level of uncertainties. With UK now stepping out of the European Union, many oil and gas companies have reduced operations as they feel that demand may not be as robust as it used to be.

The North Sea is one of the highest cost regions in the world. With the recent development in the UK market, companies fear higher costs, which can derail operations in the region. As reported by Bloomberg, Wood Mackenzie, a consulting firm, has indicated that around 30% of the fields in the region are operating at a loss.

read more

Nigeria: Militants Bomb Shell Pipeline in Delta

Screen Shot 2016-07-19 at 20.14.14

Screen Shot 2016-07-19 at 20.15.20

By Sylvester Idowu: 19 July 2016

Warri — Daring militants Monday blasted an oil pipeline belonging to the Shell Petroleum Development Company (SPDC) in Batan community in Warri South West Local Government area of Delta State.

Security sources told THISDAY that the incident occurred at SPDC Camp Five at about 1 a.m. with a huge fire enveloping the site of the attack.

“Suspected militants attacked the SPDC pipeline in Batan at about 1 a.m. with dynamites. As I am speaking, the place is engulfed with fire but efforts are being made to put it off,” one security source said.

read more

American Gas Will Be First to Pass Through Expanded Panama Canal

Screen Shot 2016-06-07 at 10.26.02

Screen Shot 2016-07-19 at 19.50.13

Naureen Malik: July 19, 2016

Shell set to send tanker carrying U.S. LNG through canal

BP scheduled to send second tanker through the following day

The first cargo of liquefied natural gas set to pass through the newly expanded Panama Canal locks will be American.

Royal Dutch Shell Plc’s Maran Gas Apollonia vessel is scheduled to pass through the canal linking the Atlantic and Pacific oceans on July 25 after loading LNG from the U.S. Gulf Coast, according to the Panama Canal Authority, which oversees the locks’ operations. BP Plc’s British Merchant LNG tanker is expected to become the second to pass through the canal the following day and a third tanker is slated for early August, the agency said in a statement late Monday.

read more

Niger Delta Avengers Blow Up Shell Facility Again

Screen Shot 2016-07-18 at 18.38.50

BY THE PUNCHJUL 18, 2016

Militant group, the Niger Delta Avengers, has once again attacked a crude oil trunkline belonging to the Shell Petroleum Development Company of Nigeria in Batan, Warri South West Council Area of Delta State.

It was gathered that the militants blew up the trunkline at 12:05am on Monday morning.

The fresh attack happened around Camp Three, few kilometres away from the spot where the militants had attacked oil installations early this month.

It took soldiers over five hours to locate the spot of the incident and confirm the attack.

read more

%d bloggers like this: