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Posts from ‘October, 2015’

Profit Down at BP, Which Predicts Era of Low Oil Prices

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By STANLEY REED: OCT. 27, 2015

LONDON — The British oil giant BP said on Tuesday that its profit was down sharply in the third quarter as depressed oil prices took a heavy toll.

The company, saying it expects prices to stay low for years, indicated that it would continue to cut costs and limit its investments in searching for and developing new oil and gas fields.

“We are now in action to rebalance our financial framework in this new price environment,” BP’s chief executive, Robert W. Dudley, said in a statement.

The company said its profit in the quarter was $46 million, compared with $1.3 billion a year earlier. Profit on the basis of underlying replacement cost, a more widely used figure, fell to $1.8 billion for the quarter from $3 billion a year earlier. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

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

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

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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

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

How Much Is My Shell Pension Worth?

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Screen Shot 2015-10-28 at 08.03.29October 28, 2015 By Lisa Smith

Shell runs several pension schemes with different features and benefits depending on if you worked for the firm before 2009, still work with the company or have left.

If you belong to the Shell Overseas Contributory Pension Fund and were an employee on or before December 31, 2008 and have a salary of more than £30,000 a year, you are contributing 6%.

Shell pays the ‘balance of cost’ which makes up the difference of the amount you should receive as benefits less your contributions and any investment growth. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Shell Takes $2 Billion Charge to Quit Oil-Sands Project

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Screen Shot 2015-09-17 at 07.55.40David Marino: 27 October 2015

  • Company stops work at Carmon Creek facility in Alberta

  • Halted oil-sands work follows Shell’s Arctic drilling exit

Royal Dutch Shell Plc made its second major strategic change in two months, announcing it will take a $2 billion charge to exit an oil-sands project in Alberta.

Shell is stopping construction on the 80,000 barrel-a-day Carmon Creek facility, the company said in a statement on its website Tuesday. The charge will be recorded in third-quarter earnings, which are due to be released Thursday.

The cancellation comes a month after Shell said it would stop drilling in the Arctic, where it spent $7 billion searching for oil. Shell is among several companies pulling back spending as oil prices linger below $50 a barrel, less than half of their 2014 high. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Shell upstream boss says UK sector still in ‘dark ages’ on collaboration

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Screen Shot 2015-10-27 at 22.23.04Written by Phil Allan – 27/10/2015 11:28 am

The boss of Shell’s UK upstream business said the oil and gas industry was still in the “dark ages” when it came to collaboration.

Paul Goodfellow said companies working in the North Sea need to learn from other industries on how to work together.

The Shell boss looked to examples both in Scotland and the US of how collaboration could be driven across the sector.

Goodfellow, who took up his new role earlier this year, pointed to both Aberdeen City and Aberdeenshire Councils in Europe’s ‘oil capital’ and further a field to the shale industry in America. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Kiev says Shell withdraws from shale gas project in Ukraine

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Screen Shot 2015-09-17 at 07.55.40Xinhua News Agency: Oct 27, 2015 

KIEV, Oct. 27 (Xinhua) — Ukrainian Energy Minister Volodymyr Demchyshyn confirmed here Tuesday that Royal Dutch Shell plc, the Anglo-Dutch multinational oil and gas company, had completed a procedure of withdrawal from a shale gas exploration project in eastern Ukraine.

“Shell has withdrawn from the treaty. The operations on the Yuzovska field are frozen,” Demchyshyn told reporters during a media conference.

He said that Shell has pulled out of the project, whose total cost has been estimated by the government at 3.95 billion U.S. dollars, because of “unfavorable conditions on the global energy markets.” read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Shell share price: Company’s problems extend beyond oil prices, analyst says

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Screen Shot 2015-10-27 at 12.33.24Big bets on shale “destroyed huge amounts of capital” and the company has few growth assets…the firm is far more likely to remain a laggard than become a leader among the oil majors for the rest of this decade…

by Veselin Valchev: Tuesday, 27 Oct 2015

Royal Dutch Shell Plc (LON:RDSA) carries hefty baggage and even if oil prices were to recover back to $100 per barrel, it would not solve all the firm’s problems, argued senior Morningstar analyst Stephen Simko.

Big bets on shale “destroyed huge amounts of capital” and the company has few growth assets, Simko said.

The notable exception is the potential addition of BG Group’s Brazilian operations, should the proposed merger complete successfully. BG’s interests in the Santos Basin are estimated to hold more than three billion barrels of recoverable oil resources and are projected to break even at only $30-35 per barrel. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Britain’s oil giants to post worst set of earnings since rout in price of crude began last year

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By LAURA CHESTERS FOR THE DAILY MAIL: 25 October 2015

Britain’s oil giants will this week post their worst set of earnings since the rout in the price of crude began last year.

Investors will also be looking for any update on Royal Dutch Shell’s £55bn takeover of rival BG Group amid fears Shell is overpaying.

Shell, BG and BP will all post third-quarter earnings this week with the City expecting an average of a 60 per cent collapse in profits, according to experts at Morgan Stanley, suggesting the industry is facing its worse downturn in a decade. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Oil profits set to plummet by billions: BP and Shell hit as prices plunge and exploration venture collapses

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Photo Credit: www.alamy.com: Dark days: The price of a barrel of Brent crude has plunged from more than $100 a barrel in the summer of last year to $48 a barrel today

By JON REES, FINANCIAL MAIL ON SUNDAY: 24 October 2015

BP and Shell will this week report billions of pounds wiped off their profits as the effect of the low oil price coupled with expensive exploration failures hammer two of Britain’s biggest companies.

The City expects BP, under chief executive Bob Dudley, to report an underlying profit fall of 60 per cent to £800 million on Tuesday when it unveils results for the three months to the end of September, compared with a profit of £2 billion for the same period last year. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

BP and Shell slip up on Crude bottom

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ROYAL Dutch Shell and BP are set to blame the weak oil price for dramatic falls in third-quarter pre-tax profits and revenues, analysts say.

By GEOFF HO: Sun, Oct 25, 2015

The price of crude oil has nearly halved over the past 12 months because of a Saudi Arabia-led effort by the Opec cartel to crush competition from US shale oil operators. 

On Tuesday, BP is expected to say its third-quarter profits have slumped 57.5 per cent to $2.2billion (£1.4billion), with revenues down 47.6 per cent to $49.2billion (£31.9billion), even though analysts believe that its refining, processing and retail divisions have performed well. 

On Thursday, arch rival Shell is also likely to produce a weak set of results.  read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Shell share price: Q3 earnings to fall 55 percent, analysts say

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Company has “ample room to weather the storm”

by Veselin ValchevMonday, 26 Oct 2015

On Thursday, Royal Dutch Shell Plc (LON:RDSA) is expected to post a 55 percent drop in quarterly earnings to £2.65 billion for the three months ended September 30, analysts’ consensus holds.

The slump due to the significantly lower oil price year-on-year will be exacerbated by Shell’s withdrawal from its costly Alaskan adventure. While not specifying the extent of the expected impact, the company noted last month that its Arctic position is worth about $3 billion (£1.97 billion), while it also has about $1.1 billion in “future contractual commitments”. To date, Shell has spent about $7 billion towards furthering its Arctic ambitions. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Shell Will Struggle to Overcome Oil Price Crash, say Analysts

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Stephen Simko, CFA: 26 October 2015

Even when oil prices were $100 a barrel, Shell’s (RDSB) portfolio was strewn with problems. Huge bets on shale destroyed huge amounts of capital, and the company’s upstream resource base has few growth options with strong economics, the low-cost Brazilian oil it is acquiring from BG (BG.) is the one major exception.

The company’s chronically poorly performing downstream also has been a consistent drag on returns on capital. Even though significant restructuring actions have begun under new CEO Ben van Beurden, the recent collapse in oil prices adds considerable pressure that we think the company will struggle mightily to overcome. After all, Shell’s issues of poor execution and capital efficiency predate even ex-CEO Peter Voser, who was responsible for a lot of the poor recent strategic choices. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Transocean, Shell delay delivery of two new drillships

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Screen Shot 2015-09-17 at 07.55.40By Rhiannon MeyersOctober 26, 2015

Transocean and Royal Dutch Shell struck an agreement to delay the delivery of two new ultradeep-water drillships as the offshore drilling industry cools amid a global downturn in oil prices.

The Swiss-based offshore drilling contractor announced early Monday that it would push back the operating and delivery contracts of the Deepwater Pontus and Deepwater Poseidon by one year each.

Drillships are used to hunt for new oil and gas in waters deep offshore. With oil prices refusing to budge above $50 a barrel for months, oil companies have throttled expensive offshore exploration projects as they wait for crude to rebound. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Shell and BP prepare for further cost-cutting as oil prices stay low

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Results this week could give more detail on savings to protect dividend payments

By Marion Dakers: 24 Oct 2015

Britain’s oil giants are preparing to make further cuts to their investment plans in the face of plummeting crude prices.

Shell, like many oil explorers, has already slashed spending and jobs to counteract the effects of a 40pc slump in oil prices in the past year, with the price sliding as low as $43 a barrel from highs of more than $110 in 2014.

However, Shell is this week expected to unveil a new round of cuts alongside its third quarter results, which are set to show a 38pc slump in sales to $67bn (£43.7bn) and a 54pc drop in adjusted earnings. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Cash Crunch Clouds Future for Oil Firms

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By SARAH KENT and JUSTIN SCHECK: Oct. 25, 2015 

At Shell, Chief Executive Ben van Beurden has said he was “pulling out all the stops” to protect the dividend. At the same time, he has flagged the potential for even deeper cuts at his company, based in The Hague.

“I think in the end, the success of companies like us is going to be determined by our ability to drive down cost,” Mr. van Beurden said in a June interview. If they can’t do that, people “will not like to invest in us.” read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.
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