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Posts Tagged ‘Oil Prices’

Will Shell’s Gas Gamble Pay Off?

By Cyril Widdershoven – Sep 16, 2017, 6:00 PM CDT

Supermajor Royal Dutch Shell has decided to divest its Iraqi oil assets in a move to focus on its future in natural gas. The industry giant is seemingly breaking from its oil heritage to head full speed into the “Golden Age of Gas.” Shell’s decision to leave Iraq’s upstream oil assets is not without risk, however, as the market for natural gas is even more oversupplied than it is for crude oil.

Reuters reported the move first, based on a letter from the Iraqi ministry of oil, followed by a confirmation from Shell. The Dutch heavyweight indicated to the press that its oil asset divestment in Iraq is in line with its strategy to focus more on natural gas and downstream activities. read more

Shell’s Ben van Beurden: Oil vs Uber in the battle of reputations

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But it wasn’t oil price, or strategy that landed him prime time interviews. Instead, it was the comment that his next car would be electric. “It wasn’t a planned remark, it just came out,” he said. “But it shows how charismatic renewables and electricity is at the moment, much more charismatic than gas and definitely much more charismatic than oil.” A perception that oil and gas have a shrinking role to play is one the industry needs to address head-on. “If you really want to be charismatic about what needs to happen in a big way you would focus on gas,” he said. And that includes an education around renewables. FULL ARTICLE read more

Hurricane Harvey Tosses Global Oil Markets Into Chaos

By Nick Cunningham – Aug 28, 2017, 6:00 PM CDT

The most powerful Hurricane to hit Texas in more than 50 years has devastated much of the coast, and the historic flooding is now causing havoc in the energy markets. The rain is not over, and will continue over the next few days, spilling a year’s worth of rain within a week. Royal Dutch Shell closed its 360,000 bpd Deer Park refinery, according to S&P Global Platts, and Phillips 66 shut down its 247,000 bpd Sweeny refinery. FULL ARTICLE read more

Damage unknown to Shell’s Perdido platform in U.S. Gulf

AUGUST 27, 2017

HOUSTON (Reuters) – Royal Dutch Shell Plc said on Sunday it has not yet been able to assess damage to its deepwater Perdido platform in the U.S. Gulf of Mexico after evacuating it ahead of Tropical Storm Harvey, which came ashore as a hurricane. The company scrapped plans on Saturday to send a reconnaissance flight over the platform, about 200 miles (321 km) south of Freeport, Texas, said spokesman Curtis Smith. A second flight will be attempted on Sunday.

Reporting by Ernest Scheyder; Editing by Sandra Maler read more

Shell says Deer Park, Texas refinery may be shut for a week

AUGUST 27, 2017

HOUSTON (Reuters) – Royal Dutch Shell Plc said its Deer Park, Texas, refinery and chemical plant complex may be shut for up to a week because of Tropical Storm Harvey’s impact on the Houston area. Shell spokesman Curtis Smith said following a controlled shutdown of the complex including the 325,700 barrel per day (bpd) refinery on Sunday, only essential personnel would remain at the plant through the end of the week.

Reporting by Ernest Scheyder and Erwin Seba; Editing by Andrea Ricci read more

Canada’s Oil Industry Doomed If Prices Fall Lower

By Nick Cunningham – Aug 20, 2017, 6:00 PM CDT

Canada’s oil industry has faced a lot of strain lately. The list of oil majors selling off assets and withdrawing from high-cost oil sands is long. ConocoPhillips, Royal Dutch Shell, Marathon Oil, Murphy Oil and Statoil have sold upwards of $25 billion worth of oil sands assets this year. ExxonMobil also wrote down more than 3.5 billion barrels of oil reserves in Canada at the beginning of 2017. The companies viewed Alberta’s bitumen and heavy oil as no longer competitive in a $50 market, and many of them are focusing on other types of production, such as shale. FULL ARTICLE 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 paid $31 billion to Nigerian govt between 2002-2016 – Official

Shell Petroleum Development Company (SPDC) remitted 29.8 billion dollars to the federation account and 1.2 billion dollars to Niger Delta Development Commission (NDDC) between 2002 and 2016, Igo Weli, General Manager, External Relations, made the disclosure on Monday. Mr. Weli spoke in Port Harcourt while reacting to the shut-down of SPDC flow station and gas plant in Belema community by angry youth. The youth accused the company of neglecting them and marginalising their community. Addressing journalists, Mr. Weli said the seizure of the company’s facilities by the youth would not only send wrong signal to the international community, but was capable of discouraging further investment in the Niger Delta. FULL ARTICLE read more

Europe’s Biggest Oil Refinery Plans to Restart Key Unit

The Secret Behind Better Oil Major Earnings

By Gregory Brew – Aug 02, 2017, 6:00 PM CDT

After several years of austerity and belt-tightening, the major international oil companies posted substantial profits in Q2 of 2017. The five largest private oil companies together generated more than $30 billion in profit, an indication that most have successfully adapted to the current bout of low prices, while a few have publicly indicated their belief that prices will hover around $50 for the foreseeable future.

What this means is that the “mega projects” that dominated many companies’ balance sheets for the last decade will become increasingly rare, as the majors pivot towards short-term, low-risk ventures with a faster turnaround. read more

Oil Companies at Last See Path to Profits After Painful Spell

ABERDEEN, Scotland — This port city built of granite on the North Sea has taken a battering in recent years. Plunging oil prices hit the petroleum industry, which dominates the economy. Tens of thousands of jobs were slashed. Projects worth billions of dollars were sent back to the drawing board. Oil executives here now speak with a relief similar to survivors of a fierce storm. When oil prices fell, the industry scrambled to adjust. It initially relied on tried-and-true tactics: cutting jobs and investment. But then companies realized they had to go further, starting a far-reaching reworking of their businesses to embrace new technologies and construction methods to stretch each dollar just a little more. The result has been drastically lower operating costs and higher cash flows. Learning to live in a weaker oil price environment gives them upside if prices firm up. This shift was borne out in recent days as major oil companies, including Chevron, Exxon Mobil, Royal Dutch Shelland Total, reported much healthier results. FULL ARTICLE read more

BP and Shell face huge challenge from switch to electric cars

Emily Gosden, Energy Editor: 31 July 2017

Oil investors are getting worried. Electric cars have accelerated on to the front pages. Sales are surging, carmakers are unveiling plans for all-electric models and this week Britain vowed to ban sales of petrol and diesel cars by 2040. Yet if Big Oil believes that death is about to pull up in a Tesla, it’s doing a good job of hiding it. On Thursday, Ben van Beurden, the boss of Royal Dutch Shell, welcomed Britain’s plans and declared that his next car would be electric. And earlier in the year Spencer Dale, BP’s chief economist, bluntly described the arrival of electric vehicles on the oil majors’ lawn as “not a game-changer”, adding that not even “enormous” growth in sales of such vehicles would make a big dent in global oil demand. As Big Oil evolves into Big Energy, the sight of Mr van Beurden behind the wheel of an electric vehicle might not seem so crazy, so long as he’s charging it up on a Shell forecourt. read more

RON BOUSSO: JULY 30, 2017 / 8:45 PM 

LONDON (Reuters) – Royal Dutch Shell suspended loadings of oil products from its Pernis refinery in the Netherlands following a fire at the plant, the company said in a statement to traders on Sunday. Shell shut down most of its production at Pernis, Europe’s largest refinery, after the fire at the 404,000 barrels per day plant late on Saturday caused a power outage. The outage at the Rotterdam plant was likely to boost prices of oil products such as diesel, jet fuel and gasoline in northwest Europe, where refinery profits have risen in recent weeks due to other refinery issues in the region. FULL ARTICLE read more

OPEC’s Existential Sucker Punch

Julian Lee: July 30, 2017 3:00 AM EDT

You wait decades for an existential crisis, then two come along at once. At least that’s how it must feel for OPEC’s beleaguered ministers. In the short term the market for their oil is being eroded by rising production outside their control. Looking further ahead, oil demand itself is under threat from the electrification of road transport. OPEC may not yet be dead, but its days are surely numbered. The most obvious short-term threat to the group comes from the rapid rise in U.S. shale oil, but the risks have expanded to include other areas like Brazil’s prolific sub-salt discoveries and more recent finds further north along the east coast of South America. FULL ARTICLE read more

Cheap oil forcing a rethink, says Royal Dutch Shell

  • The Wall Street Journal

Royal Dutch Shell has presented a pessimistic vision for the future of oil, even as the company reported success in generating cash during a prolonged energy downturn. Shell has cut costs and said it was preparing for a world in which crude prices might never regain precrash levels and petroleum demand declined. Shell chief executive Ben van Beurden said the company had a mindset that oil prices would remain “lower forever”. “We have to have projects that are resilient in a world where oil has peaked,” Mr van Beurden told reporters on a conference call discussing the company’s second-quarter financial results. “When it will happen we don’t know, but that it will happen we are certain.” READ MORE read more

Shell Braces For ‘Lower Forever’ Oil As Profits Soar

by  Reuters: Ron Bousso & Karolin Schaps: Thursday, July 27, 2017

LONDON, July 27 (Reuters) – Royal Dutch Shell is gearing up for a world of “lower forever” oil prices, its Chief Executive Ben van Beurden said on Thursday, after the company’s profits tripled in the second quarter. The oil and gas industry has struggled with three years of weak prices while also facing the prospect of oil demand plateauing by the end of the next decade. But Europe’s largest energy company was able to boost its profits more than expected, increase cash flow to $12.2 billion and reduce debt thanks to asset sales and as big savings introduced since the oil price collapse kicked in. FULL ARTICLE read more

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