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Posts Tagged ‘Gulf of Mexico’

Massive Shell platform starts its journey to Texas

The departure is the latest milestone for a gigantic venture the European company sanctioned two years ago in the face of a raging oil bust that forced many of its rivals to scuttle offshore plans. As oil prices tumbled, Royal Dutch Shell spent $600 million and employed 1,500 workers in Texas and Louisiana alone to fabricate parts for the so-called Appomattox platform, the company’s largest in the Gulf, expected to start pumping oil 80 miles off Louisiana by the end of the decade. Even so, Shell says it could still wring a profit from its 125,000-ton platform with oil prices below $50 a barrel, after deep cost cutting. FULL ARTICLE read more

One Shell Square in New Orleans will become Hancock Whitney Center in 2018

Shell will still be the building’s largest tenant, though it will now occupy 18 floors of the building its employees once filled. The company has cut its local workforce from about 2,300 to 1,400 over the past two years, part of global staff reductions spurred by low oil prices.

Rick Tallant, general manager of Shell’s assets in the eastern Gulf of Mexico, said the company is not reducing staff in New Orleans. He said the company has learned to do more with less space.

Giving up naming rights to the building Shell once built and owned is tough, but Tallant said the company is committed to running efficiently and keeping jobs in New Orleans and the Gulf of Mexico. read more

Shell slashes North Sea costs to make profit in a crash

Royal Dutch Shell has cut operating costs for some of its North Sea fields by 70 per cent since the price of crude crashed, the oil company said. Andy Brown, Shell’s head of upstream, said it was able to make “significant money in the North Sea at $50 [a barrel oil prices]” thanks to the reductions, which analysts said were among the steepest by any company. Mr Brown said he had been shocked by some of the inefficiencies Shell found when it reviewed operations worldwide after oil prices fell. read more

Current Shell News Stories 23 March 2017

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

Opec bends the markets

screen-shot-2016-12-03-at-08-16-41By Ed Crooks, December 2, 2016

In 451 CE, the great Roman general Flavius Aetius rallied a motley army of imperial troops and barbarian allies, and halted the advance of Attila’s Huns at the Catalaunian Plains in Gaul, buying the empire some time and temporarily interrupting its long-term decline. This week’s Opec meeting in Vienna had something of the same feel about it.

Opec’s power peaked in the 1970s, and the US shale oil revolution of the past half-decade has threatened to consign the cartel’s influence to history. But by agreeing a deal to cut production on Wednesday, the Opec ministers showed that if they all acted together they could still bend the oil markets to their will, at least for a while. read more

Obama administration bans Arctic offshore oil drilling through 2022. But will Trump reverse it?

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By William Yardley: 18 Nov 2016

The Obama administration said Friday it was banning offshore oil drilling in the Arctic through 2022, a move that prompted widespread praise from conservation groups but raised questions over how long the decision will stand just two months before President-elect Donald Trump takes office.

A new five-year leasing program prohibits any drilling in the Beaufort and Chukchi seas — an environmental battleground in recent years —and also blocks expansion in the Atlantic and Pacific oceans, while allowing some new leasing in the Gulf of Mexico. read more

LIVING IN TRUMPWORLD

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Comment from Bill Campbell on the Energy Voice Article: Shell stresses importance of stable regulatory environment post-Trump victory

Under Trump, with the senate and congress to support him, we can look forward soon to significant deregulation in the US effecting positively onshore fracking, tar sands development, offshore Deepwater in the Gulf and a boost perhaps to Alaska drilling. One assumes the Keystone pipeline will go ahead and perhaps pipelines running from central US to East Coast for new LNG Plants to supply a Europe hedging its bets over Russian gas availability with Europe’s ongoing problems with Putin, sanctions etc. A significant increase in US output, leading to increase in global supply over demand could dampen oil price. Shell seems to have divested assets recently in the US in some of these areas to offset BG takeover costs so uncertain whether Trumpworld will be good or bad for Shell. read more

Royal Dutch Shell Plc Third quarter 2016 summary of unaudited results

THE HAGUE, The Netherlands, Nov. 1, 2016 /PRNewswire:  Dutch Shell plc: 3rd Quarter 2016 Unaudited Results

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  • Royal Dutch Shell’s third quarter 2016 CCS earnings attributable to shareholders were $1.4 billion compared with a loss of $6.1 billion for the same quarter a year ago. 
  • Third quarter 2016 CCS earnings attributable to shareholders excluding identified items were $2.8 billion compared with $2.4 billion for the third quarter 2015, an increase of 18%. 
  • Compared with the third quarter 2015, CCS earnings attributable to shareholders excluding identified items benefited from increased production volumes mainly from BG assets, lower operating expenses more than offsetting the increase related to the consolidation of BG, and lower well write-offs. This was partly offset by the decline in oil, gas and LNG prices, and increased depreciation mainly resulting from the BG acquisition, and weaker refining industry conditions.
  • Third quarter 2016 basic CCS earnings per share excluding identified items decreased by 8% versus the third quarter 2015.
  • Cash flow from operating activities for the third quarter 2016 was $8.5 billion, which included favourable working capital movements of $0.7 billion.
  • Total dividends distributed to shareholders in the quarter were $3.8 billion, of which $1.1 billion were settled by issuing 44.1 million A shares under the Scrip Dividend Programme.
  • Gearing at the end of the third quarter 2016 was 29.2% versus 12.7% at the end of the third quarter 2015. This increase mainly reflects the impact of the acquisition of BG.
  • A third quarter 2016 dividend has been announced of $0.47 per ordinary share and $0.94 per American Depositary Share (“ADS”).

Royal Dutch Shell Chief Executive Officer Ben van Beurden commented:

“Shell delivered better results this quarter, reflecting strong operational and cost performance. But lower oil prices continue to be a significant challenge across the business, and the outlook remains uncertain.

Our investment plans and portfolio actions are focused firmly on reshaping Shell into a world-class investment case at all points in the oil-price cycle, through stronger returns and improved free cash flow per share. We are making good progress towards this aim in spite of current challenging market conditions. read more

Royal Dutch Shell – Additional Divestments In Order To Sustain The Dividend

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Oct. 21, 2016 10:17 AM ET

Summary

  • Shell is announcing further divestments, this time selling part of its shale operations in Canada.
  • These moves do little to address the giant debt load, although they allow for cash flow neutrality this year.
  • Asset sales, resulting in smaller operations, combined with shareholder dilution hurt the long term potential as management stubbornly tries to preserve the dividend.

Royal Dutch Shell (RDS.A) announced another round of divestments in order to keep leverage under control, even as oil prices have rebounded a bit in recent times. These modest divestments are countercyclical and hurt production quite a bit in relation to the proceeds. At best cash outflows come to a standstill this year following these moves, although they result in a smaller business going forward, while investors see dilution of the shareholder base in order to sustain the unsustainable dividend. read more

Opec’s unclear resolve

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Opec’s unclear resolve

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By Ed Crooks, September 30, 2016

After two years of inaction as a strategy, Opec this week decided to do… something. Exactly what it will end up doing has yet to be determined.

When Opec ministers met at a beach resort in Algiers, they agreed a statement setting a target for their oil production that is roughly 250,000-750,000 barrels per day lower than the cartel’s current output. The big missing piece from the deal, though, was how the cartel’s members would share out the cuts needed to reach that target. A “high-level committee” of representatives from member states, supported by the Opec secretariat, will work on recommendations for individual countries’ cuts, which could be confirmed at the next ministerial meeting, in Vienna on November 30. read more

Shell’s Growth Priority Over The Next Five Years — Deepwater

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Trefis Team SEP 29, 2016 @ 08:42 AM

With the ever-growing energy needs worldwide, the conventional sources of energy are likely to exhaust soon. Having explored the majority of the onshore reserves, oil and gas producers around the globe are now moving to offshore reserves, that are primarily formations in deep waters, containing thick layers of oil and gas in permeable rock. Consequently, Deepwater drilling, often used to categorize drilling in water depths of greater than around 400 meters, has become an attractive alternative to onshore drilling. In line with this growing trend, Royal Dutch Shell (NYSE:RDS.A) has categorized Deepwater as one of its growth priorities for the next five years. (Also Read: Shell’s Growth Priority Over The Next Five Years – Chemicals) In this note, we discuss the growth potential of the deepwater market, Shell’s positioning in this market, and its strategy going forward. read more

Shell begins production at world’s deepest underwater oilfield

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Simon BowersSunday 11 September 2016 17.15 BST

Royal Dutch Shell has started production at the world’s deepest underwater oil and gas field, 1.8 miles beneath the sea surface in the Gulf of Mexico.

The latest costly addition to Shell’s production capacity comes despite Van Beurden’s repeated pledges on climate change. In May, he said: “We know our long-term success … depends on our ability to anticipate the types of energy that people will need in the future in a way that is both commercially competitive and environmentally sound.” read more

Shell starts production at Stones in the Gulf of Mexico

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“Stones is the latest example of our leadership, capability, and knowledge which are key to profitably developing our global deep-water resources,” said Andy Brown, Upstream Director, Royal Dutch Shell.  “Our growing expertise in using such technologies in innovative ways will help us unlock more deep-water resources around the world.”

Stones, which is 100% owned and operated by Shell, is the company’s second producing field from the Lower Tertiary geologic frontier in the Gulf of Mexico, following the start-up of Perdido in 2010. read more

Speculation rises over Opec output freeze

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By Ed Crooks: September 2, 2016

Over the past month, the big stories in the oil market have been speculation about a possible production freeze from Opec, and the reality of rising activity in the US shale industry.

The rumours of Opec action have followed the pattern that has become wearingly familiar over the past couple of years, since the landmark meeting in November 2014 confirming that Saudi Arabia was not prepared to cut production to try to stabilise prices.

As the meeting – in this case, a gathering on the sidelines of the International Energy Forum in Algiers on September 26-28 – grows nearer, suggestions that a freeze will be discussed grow louder. Venezuela, which has the most urgent need for a higher oil price, sounds the most enthusiastic about curbing production. Other countries make supportive statements and agree to meet, without promising any action themselves. read more

Shell Sells Gulf Of Mexico Asset, But Faces A Tough Road Ahead

Screen Shot 2016-08-31 at 23.13.17Sarfaraz A. Khan: Aug. 31, 2016 3:20 PM ET

Summary

  • Royal Dutch Shell has agreed to sell its Brutus/Glider assets in the U.S. GoM to EnVen Energy for $425 million in cash.
  • The asset sale is a small step in the right direction which will improve Shell’s cash reserves.
  • The company, however, has made little progress toward achieving its target of selling $6Bn to $8Bn assets this year and $30Bn by 2018.

Royal Dutch Shell (RDS.A, RDS.B) has recently agreed to sell its Brutus/Glider assets in the U.S. Gulf of Mexico to Houston-based EnVen Energy for $425 million in cash. Shell was pumping 25,000 barrels of oil per day from these offshore properties, which was equivalent to 5.8% of the oil giant’s Gulf of Mexico production or less than 1% of its total production.

The asset sale is a small step in the right direction which will improve Shell’s cash reserves which stood at $15.2 billion at the end of June. Shell intends to sell $6 billion to $8 billion of assets this year. Overall, the company aims to dispose $30 billion of assets, spread in 5 to 10 countries and representing 10% of its production, by 2018. That will allow the company to reduce its debt which has ballooned following the $53 billion takeover of BG Group. read more

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