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Posts Tagged ‘Oil Sands’

Arctic Was a Bet That Didn’t Pay Off, Departing Shell Chief Says

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Jennifer A Dlouhy: Bloomberg.com: 24 FEB 2016

The departing chief of Royal Dutch Shell Plc’s U.S. division, who presided over its failed quest to find crude in Arctic waters off Alaska, said the effort was still a point of pride because it demonstrated the company’s technical expertise.

Marvin Odum, 57, is leaving the company in a reorganization announced Wednesday. He has been with the company for 34 years and held the post atop its U.S. division, Shell Oil Co., since oil prices were at record highs.

The Arctic was “a big bet,” Odum said in a telephone interview Wednesday. 

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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. 

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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.

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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.

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