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Posts Tagged ‘Oil Prices’

Quest for new oil discoveries still on back burner

Ron Bousso: January 4, 2018

LONDON (Reuters) – Despite the strongest start for oil prices in four years, the world’s top oil companies are hesitating to accelerate the search for new resources as a determination to retain capital discipline trumps the hope of making bonanza discoveries. Exxon Mobil, Royal Dutch Shell, Total and their peers are set to cut spending on oil and gas exploration for a fifth year in a row in 2018, according to consultancy Wood Mackenzie (WoodMac), despite a growing urgency to replenish reserves after years of reining back investment. FULL ARTICLE read more

The Year We Lost God But Gained OilCoin

Royal Dutch Shell Plc’s CEO Ben Van Beurden was creating a stir of his own by talking about “lower-forever” oil prices. 

: Dec 28, 2017

God didn’t die in 2017, but he did throw his hands up. Andy Hall, the oil trader blessed with that nickname, caused a stir this summer by closing down his main hedge fund after long arguing for oil prices to rally and reportedly suffering big losses. Hall didn’t declare oil was dead; indeed, he warned his withdrawal could be a contrarian signal (which turned out to be prescient). Hall’s capitulation was a warning of a different kind. And while it may be mere coincidence, the appearance of something called OilCoin four months after God bowed out is a fitting coda. FULL ARTICLE read more

Ineos sees Forties oil flows back to normal around new year

Reporting by Dmitry Zhdannikov and Julia Payne; Editing by Elaine Hardcastle and Mark Potter: December 28, 2017

LONDON (Reuters) – Britain’s biggest and most important oil and gas pipeline Forties should resume normal flows around the new year, slightly earlier than previously flagged, its operator Ineos said on Thursday. Ineos had previously expected the pipeline, which suffered a rare unplanned shutdown because of a crack, to resume normal operations in early January. On Wednesday, Royal Dutch Shell said it had restarted fields that link up the Forties pipeline. FULL ARTICLE read more

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

Oil workers sue Shell over Gulf of Mexico platform fire

REUTERS STAFF: 18 DECEMBER 2017

HOUSTON (Reuters) – Three offshore oil workers filed a lawsuit against units of Royal Dutch Shell and Enbridge, seeking $1 million in damages for injuries they allegedly received during a Nov. 8 fire on a U.S. Gulf of Mexico production platform. The suit, filed in Galveston County court in Texas on Dec. 5, claims safety lapses on Shell’s Enchilada platform caused severe injuries to the three. The complaint seeks more than $1 million in damages from Shell International Exploration and Production, Shell Offshore, and Garden Banks Gas Pipeline Co, a unit of Enbridge, which owns a gas pipeline connected to the platform. read more

Production Halted At 2 North Sea Platforms After Main Pipeline Shutdown

Fun Trading: 18 Dec 2017

Summary

  • Shell announced that production from the Shearwater and Nelson platforms in the central North Sea had been suspended due to Forties pipeline shutdown.
  • Forties pipeline is a vital artery of the North Sea production. Production loss is estimated at about 400K Boep/d which is significant and may boost oil prices for weeks.
  • This situation could be considered as a net positive for Shell and other oil majors.

FULL ARTICLE

Oil stable on tighter market, but rising US output looms for 2018

BY HENNING GLOYSTEIN: DECEMBER 15, 2017

* OPEC-led supply cuts, Forties pipeline outage support crude

* But rising U.S. output, driven by shale, weighs on market

SINGAPORE, Dec 15 (Reuters) – Oil markets were stable on Friday as the Forties pipeline outage in the North Sea and the ongoing OPEC-led production cuts supported prices, while rising output from the United States kept crude from rising further. U.S. West Texas Intermediate (WTI) crude futures were at $57.13 a barrel at 0119 GMT, up 9 cents from their last settlement. read more

Shell shuts down Shearwater, Nelson platforms amid Forties closure

Oil major Shell said today that it had suspended production on two of its North Sea platforms due to the Forties pipeline shutdown.

Written by  – 

Owner Ineos has said it will take “weeks rather than days” to fix the leak, which was detected during a routine inspection at Netherley last week.

The 235-mile pipeline system links more than 80 North Sea field to the UK mainland and the Ineos site in Grangemouth. It delivers almost 40% of the UK’s North Sea oil and gas production.

Ineos completed a deal to buy the system from BP for up to £190million ($250million) at the end of October. read more

Royal Dutch Shell Suspends Production on Two Offshore Oil and Gas Platforms

By Neanda Salvaterra:  Dow Jones Newswires

Royal Dutch Shell PLC said on Tuesday it has suspended production on two offshore oil and gas platforms following the shutdown of a major European oil transport node. The British-Dutch oil giant confirmed that it has halted the flow of oil and gas from its Shearwater and Nelson platforms in the central North Sea as a result of the shutdown of the Forties Pipeline System owned by Ineos, a refining and chemicals company. Ineos closed down the Forties Pipeline after a hairline crack worsened following its discovery Wednesday, south of Aberdeen, Scotland. The company said pipeline repairs could take a “matter of weeks,” during which Forties would remain out of commission. FULL ARTICLE read more

Norway parties inclined to back fund’s plan to slash oil exposure -report

REUTERS STAFF: DECEMBER 12, 2017

OSLO, Dec 12 (Reuters) – Norway’s $1 trillion sovereign wealth fund, the world’s largest, will probably win backing from parliament for its proposal to cut most oil and gas stocks from its portfolio, business daily Dagens Naeringsliv reported on Tuesday. If adopted by parliament, the fund would over time divest billions of dollars from oil and gas stocks, which now represent 6 percent – or around $37 billion – of its benchmark equity index. The fund is among the top investors in a wide range of oil companies. At the end of 2016 it held 2.3 percent of Royal Dutch Shell, 1.7 percent of BP, 0.9 percent of Chevron and 0.8 percent of Exxon Mobil. FULL ARTICLE read more

Shell: ‘No plans’ to sell North Sea assets

Shell has told BBC Scotland it has no more plans to sell assets

Oil giant Shell will not sell off any more North Sea assets.

A senior figure at the company has told BBC Scotland he has no plans to sell resources despite the chancellor announcing measures to make the process easier.

Shell has just completed the sale of a package of assets to the company Chrysaor for $3.8bn.

It included stakes in the Buzzard, Beryl, Elgin-Franklin and Schiehallion fields.

Director of Shell’s Upstream Commercial business, Steve Phimister, said he would now invest in what remains. FULL ARTICLE read more

Royal Dutch Shell’s Deepwater Strength

Dividend Stream: Nov. 30, 2017

Summary

  • Royal Dutch Shell held its annual analyst day earlier this week.
  • Management expects to generate at least $25 billion in excess cash flow by 2019.
  • Despite rising share prices, Shell can still be picked up here.
  • This idea was discussed in more depth with members of my private investing community, Streaming Income.
Earlier this week Shell gave its annual analyst meeting, which included guidance for next year. This article takes a look at that guidance, not least because a big chunk of Shell’s growth capital budget is going toward deepwater platforms across the world. This article also takes a look at what should matter most to income investors; cash flow and valuation. FULL ARTICLE

Investors’ fortunes transformed as Shell restores cash dividend

Royal Dutch Shell investors reaped the rewards of its “transformation” yesterday when it said that it would resume paying its entire $16 billion annual dividend in cash and would press ahead with at least $25 billion of share buybacks by 2020.

Europe’s biggest listed energy company has been saving cash over the past two and a half years by paying about a quarter of its dividend in the form of new shares, part of a strategy to help it to cope with the longest sustained downturn in oil prices for a generation. read more

Shell, to Cut Carbon Output, Will Be Less of an Oil Company

By Nov. 28, 2017

Bowing to pressure from shareholders and the Paris international climate accord, Royal Dutch Shell pledged on Tuesday to increase its investment in renewable fuels and to cut its carbon emissions in half by 2050. Shell and other big oil companies have moved only sporadically over the last decade toward greater production of wind and solar energy. Now there are signs of a commitment to take climate change more seriously. In comments to investors, Ben van Beurden, Shell’s chief executive, said that from 2018 to 2020, the company’s new-energies division would spend up to $2 billion a year on renewable energy sources like wind, solar and hydrogen power and on electric-car charging stations. FULL ARTICLE read more

Shell signals return to pure cash dividend, focus on renewables

FILE PHOTO: Ben van Beurden, chief executive officer of Royal Dutch Shell, speaks during a news conference in Rio de Janeiro, Brazil, February 15, 2016. REUTERS/Sergio Moraes /File Photo

Ron Bousso: NOVEMBER 18, 2017

LONDON (Reuters) – Royal Dutch Shell (RDSa.L) will return to paying pure cash dividends and step up its investment in cleaner energy as it turns a corner after more than two years of cost cuts and disposals prompted by weak oil prices. Shell Chief Executive Officer Ben van Beurden sought to strike a balance between reassuring investors it can increase returns in its core fossil fuel business during an “era of volatility” in oil prices while preparing to step up investments in renewables. FULL ARTICLE read more

Shell investors reap dividends from oil revival

Royal Dutch Shell Malikai superlift at a deep-water project in Malaysia. The global business is in a healthier financial state than it has been recently and intends to resume cash dividends

Royal Dutch Shell is expected to signal its return to paying its entire dividend in cash this week, in the latest evidence of renewed confidence in the oil industry. The Anglo-Dutch group, the biggest listed oil company in Europe, makes a proportion of its payments to investors in the form of new shares rather than cash. READ MORE read more

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