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Posts Tagged ‘Oil Prices’

Shell’s long-standing head of crude trading Muller quits

Ron Bousso, Dmitry Zhdannikov: NOVEMBER 17, 2017 LONDON (Reuters) – Royal Dutch Shell’s (RDSa.L) head of crude oil trading Mike Muller, has stepped down after 29 years with the company, an internal announcement reviewed by Reuters on Friday showed. Muller, one of the world’s most powerful oil traders, has relinquished his role with immediate effect and will leave at the end of the year “to pursue interests outside of Shell”. His departure follows the appointment of Andrew Smith as Shell’s new head of supply and trading earlier this year. Mark Quartermain, currently head of refined products trading, has been appointed Vice President Trading and Supply Crude with effect from Dec. 1. Under Muller, a Cambridge university graduate, Shell expanded trading aggressively, handling as much as 8 million barrels per day and often taking large position in core markets such as the North Sea, home to benchmark crude Brent. FULL ARTICLE

Norway Idea to Exit Oil Stocks Is ‘Shot Heard Around the World’

Norway’s proposal to sell off $35 billion in oil and natural gas stocks brings sudden and unparalleled heft to a once-grassroots movement to enlist investors in the fight against climate change. read more

Big Oil is under pressure, unloved and on sale

  • Norway wants to dump its stakes in oil and gas companies
  • Proposal adds to doubts over industry’s long-term outlook

Big Oil is under pressure, unloved and on sale.

Energy giants from Exxon Mobil Corp. to Royal Dutch Shell Plc are struggling back to their feet after a three-year oil slump, while also fighting to prove they can survive for decades to come amid an accelerating shift to clean energy. So getting dumped by the world’s biggest investment fund wouldn’t be welcome news.

Norway’s $1 trillion sovereign wealth fund said on Thursday that it wants to sell about $35 billion of shares in oil and gas companies to make the nation “less vulnerable” to a drop in crude prices. Global energy giants favored by long-term investors including Italy’s Eni SpA, PetroChina Ltd. and Russia’s Gazprom PJSC account for more than $20 billion of that total. read more

World’s Biggest Wealth Fund Wants Out of Oil and Gas

The $1 trillion fund that Norway has amassed pumping oil and gas over the past two decades wants out of petroleum stocks.  

Norway, which relies on oil and gas for about a fifth of economic output, would be less vulnerable to declining crude prices without its fund investing in the industry, the central bank said Thursday. The divestment would mark the second major step in scrubbing the world’s biggest wealth fund of climate risk, after it sold most of its coal stocks. The plan would entail the fund, which controls about 1.5 percent of global stocks, dumping as much as $40 billion of shares in international giants such as Exxon Mobil Corp. and Royal Dutch Shell Plc. The Finance Ministry said it will study the proposal and decide what to do in “fall of 2018” at the earliest. FULL ARTICLE read more

Norway shakes oil world by dumping investments

Norway is western Europe’s biggest oil producer and its giant sovereign wealth fund wants to reduce its exposure to oil which hit shares in BP and Royal Dutch Shell. Oil platforms in the Cromarty Firth, ScotlandANDREW MILLIGAN/PA

Norway’s giant sovereign wealth fund has unveiled plans to dump its entire holding in oil and gas companies in a $37 billion sell-off that was welcomed by campaign groups but put downward pressure on share prices. The $1 trillion fund, which manages the assets of the oil-rich nation, signalled its intent to prune its exposure to companies including BP and Royal Dutch Shell in a move aimed at making it less vulnerable to a permanent drop in the price of crude. SOURCE read more

Oil Tumbles as Surprise Stockpile Surge Outweighs Platform Woes

  • Shell shuts Enchilada platform in Gulf of Mexico Wednesday
  • U.S. drillers lift crude production to an all-time high: EIA

Crude went on a roller-coaster ride Wednesday as platform closures in the Gulf of Mexico led futures to spike, while the stubborn increase in U.S. supplies pulled prices back down. Oil closed 0.7 percent lower in New York after alternating between gains and losses in the session. Multiple platforms in the Gulf of Mexico suspended operations after Royal Dutch Shell Plc shut its Enchilada-Salsa platform due to a fire. While the shutdowns caused shortages, the prevailing mood was set by a government report showing crude stockpiles unexpectedly rose last week, overseas demand shrank and U.S. output hit a record-high. FULL ARTICLE read more

Shell Gears Up For Peak Gasoline

By Jon LeSage – Nov 07, 2017, 3:00 PM CST

Royal Dutch Shell is hedging its bets over the next two decades with expectations that motor fuel consumption will be diminishing and other markets rising.

Since the oil price plummet it 2014, Shell has transitioned its business model over to refining oil, offering other refined oil products, and producing petrochemicals. The oil giant will produce well beyond gasoline to serve other growing economic sectors, and to offset the role EVs will play by the 2030s. FULL ARTICLE read more

Oil prices head towards $70 in the wake of Saudi purge

Jillian Ambrose: 

Global oil prices broke above two year highs and could climb higher to hit $70 a barrel in the wake of a shock anti-corruption purge of Saudi royals and senior officials.

Oil prices bounded to highs not seen since July 2015 at over $64 a barrel on Monday following a sweep of arrests targeting ministers, investors and members of the Saudi royal family on corruption charges over the weekend.

The shock crackdown also helped drive shares in Royal Dutch Shell to within a breath of its highest ever share price at £24.89 following the company’s rosy financial results last week. Before the oil price crash in late 2014 the company’s shares traded at a peak of £25.76. FULL ARTICLE read more

BP joins Shell in helping Mexico execute oil hedge: sources

Dmitry Zhdannikov: NOVEMBER 7, 2017 LONDON (Reuters) – BP (BP.L) helped Mexico execute its 2018 oil hedge, the biggest in the industry, becoming the second major after Shell to participate in the highly coveted program and challenging the traditional role of banks in the operation. BP joins rival Royal Dutch Shell (RDSa.L), which made a first foray last year to become the first major to challenge years of dominance of big Wall Street banks in the program.Shell declined to comment. FULL ARTICLE

Why Royal Dutch Shell’s Value Increased by $10 Billion in October

Shell has had a great year, and October added to the up trend, even though there wasn’t much actual news.

Reuben Gregg Brewer (TMFReubenGBrewer) Nov 6, 2017 at 4:32PM

However, since around July and August, Shell has been on a tear. There are two parts to this solid showing. First, oil has been heading in a generally upward direction since about that point. Shell is a commodity company, so energy prices will be a big piece of the performance puzzle. But second, and perhaps more important, Shell appears to be executing well. For example, it has made material headway on its debt reduction goals, which is being driven by asset sales. The oil major has also notably improved its return on capital employed, which has been hindered in recent years by high-profile misses like a now-curtailed effort to drill in the Arctic. The company also posted strong second-quarter earnings results, which fellow Fool Tyler Crowe described at the time as “turn[ing] on the cash flow tap.” FULL ARTICLE read more

News stories on Royaldutchshellgroup.com 6 November 2017

ALL OF THE THREE ARTICLES ABOVE CAN BE READ HERE

Royal Dutch Shell takes cashflow crown off Exxon Mobil

Royal Dutch Shell has taken Exxon Mobil’s cashflow crown, a year after completing the biggest deal in its history.

Europe’s largest energy company vaulted ahead on this closely watched indicator of financial health in the first nine months of 2017 as assets acquired from BG Group from Brazil to Australia churned out cash. For the year as a whole, Shell is on course to surpass its larger US rival on the measure for the first time in about two decades.

Shell generated $28.38 billion (€24.34bn) of cashflow from operations in the first nine months of the year, compared with $23.52 billion (€20.18bn) from Exxon. Chief executive Ben Van Beurden has already spelled out that his main long-term goal was overtaking Exxon to become the best-performing oil major. read more

Oil rebound drives Shell to booming profits

Jillian Ambrose: 

Royal Dutch Shell became the latest major oil company to deliver better than expected earnings in recent months as the market recovery begins to gain traction.

The Anglo-Dutch oil giant reported $4.1bn (£3bn) in earnings for the last quarter on a current cost of supply basis, its standard measure of profitability. The sum comes in well above analyst forecasts that the group would make $3.6bn for the latest quarter.

Shell’s quarterly earnings are almost 50pc higher than in the same quarter last year, when they reached $2.8bn. read more

Shell beats profit forecasts, targets lower 2017 spending

Ron Bousso

LONDON (Reuters) – Royal Dutch Shell (RDSa.L) reported an 18 percent rise in third-quarter profit on Tuesday, lowering next year’s capital spending to the bottom of the expected range as it grapples with persistently low oil prices and weak refining margins. The Anglo-Dutch oil major, whose acquisition of BG Group transformed it into the world’s top liquefied natural gas producer, has been under pressure from shareholders to cut annual spending to ensure it can maintain its dividend given the slow recovery in the oil prices LCOc1. “Lower oil prices continue to be a significant challenge across the business, and the outlook remains uncertain,” Chief Executive Officer Ben van Beurden said in a statement. FULL ARTICLE read more

Ben van Beurden says “our strategy is working”

Shell CEO Ben van Beurden

CEO statement

Royal Dutch Shell Chief Executive Officer Ben van Beurden commented:

“Shell’s three businesses all made resilient contributions to this strong set of results.

Upstream generated almost half of the $10 billion cash flow from operations excluding working capital this quarter, at an average Brent oil price of $52 per barrel, and this was complemented by good cash contributions from our growing Integrated Gas business and from Downstream.

This competitive performance is further evidence of Shell’s growing momentum, and strengthens my firm belief that our strategy is working.” read more

Threat to pensions if BP and Shell find themselves extinct


Stop crude focus on oil profits: The Guardian: Article by Sean Farrell: Sunday 29 October 2017

At the start of last year, Britain’s big oil companies, Shell and BP, appeared to be in crisis. A slump in the price of Brent crude – from more than $110 a barrel in 2014 to less than $30 in January 2016 – sent profits tumbling and appeared to threaten dividends. After painful cost cuts and a partial recovery in the oil price to near $60, the pressure has eased and both are expected to report solid first-half results this week.

BP goes first, on Tuesday, with Shell, the stronger of the two, on Thursday. The commotion over the oil slump diverted some attention from their commitments to low-carbon energy. To much fanfare, both companies’ boards supported resolutions at their 2015 annual meetings that required clearer reporting of emissions, business risks and efforts to develop green energy sources. read more

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