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Posts Tagged ‘Oil Sands’

Shell replaces U.S. chief, splits unconventionals unit

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HOUSTON | BY KRISTEN HAYS AND RON BOUSSO: Wed Feb 24, 2016 3:42pm EST

Royal Dutch Shell’s U.S. head Marvin Odum will step down after the company abandoned a troubled drilling project offshore Alaska, and the global oil company said on Wednesday it will split up its U.S. shale and Canadian oil sands unit.

Stung by a 70 percent slide in crude prices since mid-2014, Shell this month reported its lowest annual income in more than a decade and pledged further cost saving measures.

The Anglo-Dutch company said on Wednesday its shale resources unit would become part of the global upstream business led by Andy Brown, and its Athabasca Oil Sands Project and Scotford Upgrader in Canada would be folded into the global downstream unit, headed by John Abbott. read more

Shell Has Underperformed, But It Could Be The Only Oil Major That Emerges Bigger From The Downturn

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Screen Shot 2015-11-20 at 08.55.47…the company’s profits plummeted 70% from last year to $1.77 billion…

Sarfaraz A. Khan: Sunday, Dec 6, 2015

Summary

  • The oil major Royal Dutch Shell is closing in on its biggest-ever merger with the UK based oil and gas producer BG Group.
  • Shell has been the worst performing stock in its peer group and now offers an above average yield of 7.8%.
  • But Shell is generating enough cash from operations and asset sales to cover its spending.
  • More importantly, Shell could be the only oil major that emerges even bigger from the downturn.

The oil major Royal Dutch Shell (NYSE:RDS.A) (NYSE:RDS.B) is closing in on its biggest ever merger with the UK based oil and gas producer BG Group (OTCQX:BRGYY). On Wednesday, the Anglo-Dutch oil producer revealed that it has received a green signal from Australia’s Foreign Investment Review Board following an approval from the country’s anti-trust regulator received last month. The BG Group is one of the major players in Australia’s rising LNG sector where the company has invested more than $20 billion on developing the Queensland Curtis LNG plant. read more

Lorraine Mitchelmore is stepping down as the head of Shell Canada. But she’s not going quietly.

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Screen Shot 2015-11-20 at 08.55.47NOVEMBER 18, 2015 10:20 AM

Extracts

Shell has reduced greenhouse gas emissions by 20 per cent per barrel from its oilsands business in the past five years, through many small efforts, including making more efficient use of its trucks.

Yet that hasn’t stopped Shell from being a target and paying a high price for the anti-oilsands campaign.

Last month it cancelled the 80,000-barrels-a-day Carmon Creek oilsands project in Peace River in mid-construction, taking a $2-billion impairment charge. read more

Shell share price: Canada boss leaves company

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Screen Shot 2015-10-28 at 08.03.29by Veselin ValchevTuesday, 17 Nov 2015, 11:18 GMT

Royal Dutch Shell Plc (LON:RDSA) announced yesterday that the boss of the firm’s Canada division, Lorraine Mitchelmore, is stepping down from the company at the end of 2015, following six years at the helm.

The move comes less than a month after the Anglo-Dutch oil major abandoned its 80,000 barrel per day Carmon Creek thermal oil sands project in Alberta, amid a reshuffle of the firm’s portfolio.

A spokesman for Shell Canada said Mitchelmore’s departure had nothing to do with the decision to shelve Carmon Creek. read more

Are the Oil Sands Going Bust?

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Screen Shot 2015-09-17 at 07.55.40Written by Keith KohlPosted November 12, 2015 at 6:51PM

After backing out of an Arctic drilling program, Shell is taking yet another hit by leaving the Canadian oil-sands in Alberta.

To put it simply: the losses were too great.

There was no way Shell would have been able to stay competitive, so it decided to opt out, taking a $2 billion hit in the process.

As you know, the slump in crude oil prices since the summer of 2014 has caused energy companies to re-think upcoming projects.

Shell’s absence leaves at least 18 future projects on hold. read more

Shell Canada carbon capture likely last to get Alberta subsidies

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Screen Shot 2015-09-17 at 07.55.40CALGARY, ALBERTA | BY MIKE DE SOUZACommodities | Thu Nov 5, 2015 9:01pm GMT

Royal Dutch Shell’s launch on Friday of Canada’s first oil sands project to capture and bury carbon emissions – assisted by generous public subsidies – will likely be the last to get such funding, the Alberta government said this week.

The left-leaning New Democratic government of the energy-rich Western Canadian province, home to the country’s controversial oil sands, said it no longer plans to fund future efforts using the technology. read more

Shell share price: Oil major sells downstream assets

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by Veselin ValchevMonday, 02 Nov 2015

Royal Dutch Shell Plc (LON:RDSA) announced today that it has completed the sale of two assets from its downstream portfolio as part of its strategy to divest lower-margin businesses, as profits wane amid the depressed oil price.

The Hague-based oil major has completed the sale of its Butagaz liquefied petroleum gas (LPG) business in France to DCC Energy for €464 million (£332 million).

The sale follows a binding offer received by Shell in May, in addition to consultation with staff and regulatory approval, the company noted. read more

Shell’s Loss: Oil Prices Aren’t the Only Problem

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There is blood in the water at Royal Dutch Shell

By HELEN THOMAS: Oct. 29, 2015 

There is blood in the water at Royal Dutch Shell. The wound will take some time to heal. The U.K. oil and gas company Thursday posted a huge third-quarter loss, dragged down by impairments of $8.2 billion in its upstream business. Just less than half the charges owed to Shell reducing its view of longer-term oil and gas prices by an unspecified amount. The remainder was write-offs resulting from its decision to cease drilling in the Arctic and call a halt to a Canadian oil sands project. read more

In defence of Shell CEO Ben van Beurden

By a regular contributor

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Only one member of the EC is directly involved in North American activities, Marvin Odum. 

Perhaps worth noting is that investment decisions on the scale of the recent Shell write-offs would have required approval by the entire EC in the Hague long before BvB was around. Few of the EC members who made those decisions are still present. 

It seems strange that so many of the huge projects which have been abandoned are in North America, and serious questions need to be asked about why approval was given by the EC for these huge projects. Only one member of the EC is directly involved in North American activities, Marvin Odum.  read more

Low Oil Prices Take a Toll on Royal Dutch Shell in Quarter

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Screen Shot 2015-10-29 at 08.02.52By STANLEY REED: OCT. 29, 2015

LONDON — Lower petroleum prices took a big toll on Royal Dutch Shell in the third quarter.

The company reported a loss of $7.4 billion, compared with a profit of $4.5 billion in the quarter a year earlier. Adjusted for inventory changes and one-time items — a more closely watched measurement — earnings fell 70 percent to $1.8 billion.

The company took about $7.9 billion in write-offs for its recently halted exploration venture off Alaska, a canceled heavy-oil project in Canada and other operations. read more

Shell halts construction on new Alberta oil sands project

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CALGARY, ALBERTA: Tue Oct 27, 2015

Royal Dutch Shell Plc will not continue construction of its 80,000 barrel per day Carmon Creek thermal oil sands project in northern Alberta because of the lack of infrastructure to move Canadian crude to market, the company said on Tuesday.

Shell said the decision to halt the project was also the result of “current uncertainties” and chief executive Ben van Beurden said the company was having to manage costs in today’s low oil price environment. read more

Shell cancels big Canadian oil sands project

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Posted on October 27, 2015 | By Collin Eaton

HOUSTON – Royal Dutch Shell says it will stop building a large Canadian oil sands project after low crude prices pushed it out of the company’s shortlist of profitable projects.

It’s the second large project Shell has canceled since August, when it ditched a $7 billion effort to drill for oil in the Arctic Ocean north of Alaska. Shell said Tuesday its Carmon Creek project in Alberta, which was expected to pump 80,000 barrels of crude a day, was sanctioned in late 2013 when oil prices were still hovering around $100 a barrel. read more

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Screen Shot 2015-10-26 at 21.23.40Energy giant will take a $2 billion write-down; cites uncertain business environment

“We are making changes to Shell’s portfolio mix by reviewing our longer-term upstream options world-wide, and managing affordability and exposure in the current world of lower oil prices. This is forcing tough choices at Shell,” Ben van Beurden, Royal Dutch Shell’s chief executive, said in a statement.

FULL ARTICLE

Oil Sands Boom Dries Up in Alberta, Taking Thousands of Jobs With it

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Screen Shot 2015-10-13 at 12.37.36By IAN AUSTENOCT. 12, 2015

FORT McMURRAY, Alberta — At a camp for oil workers here, a collection of 16 three-story buildings that once housed 2,000 workers sits empty. A parking lot at a neighboring camp is now dotted with abandoned cars. With oil prices falling precipitously, capital-intensive projects rooted in the heavy crude mined from Alberta’s oil sands are losing money, contributing to the loss of about 35,000 energy industry jobs across the province.

Yet Alberta Highway 63, the major artery connecting Northern Alberta’s oil sands with the rest of the country, still buzzes with traffic. Tractor-trailers hauling loads that resemble rolling petrochemical plants parade past fleets of buses used to shuttle workers. Most vehicles carry “buggy whips” — bright orange pennants attached to tall spring-loaded wands — to help prevent them from being run over by the 1.6-million-pound dump trucks used in the oil sands mines. read more

Here’s How Shell Can Restart Its Tar Sands Projects In Canada

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By: MICHEAL KAUFMAN

Exploring for new oil has now become a difficult task for the oil majors. Oil and gas are now mostly situated in the deep-waters, Canadian tar sands and the Arctic waters where the cost of exploration and production is very high. These high costs coupled with the lower crude oil prices make the task difficult for oil companies.

Crude oil prices last week fell again following claims by Iran to double its production if a nuclear deal was reached. The US benchmark for crude oil, West Texas Intermediate (WTI) which had gone high at $60 per barrel, has plunged again to less than $45 per barrel. read more

Oil Spillage: Nigerian High Court Orders Shell to Pay N30m

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Oil Spillage: S-Court Orders Shell to Pay N30m to Four Communities

The Supreme Court, yesterday, ordered Shell Petroleum Development Company of Nigeria Limited to pay the sum of N30,288,681 to four communities in Delta State.

The apex court found the company culpable for the oil spillage that adversely affected the communities about 32 years ago.

The communities to benefit from the judgment of the court yesterday are Obotobo, Sokebolo, Ofogbene (Ezon Burutu) and Ekeremor Zion (Ezon Asa).

Some leaders of the communities had in 1983, dragged the oil company before a High Court of the then Bendel State. read more

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