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Posts from ‘November, 2015’

Royal Dutch Shell, Exxon Mobil and Glencore: Energy companies risk wasting trillions on uneconomic projects

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By Jessica Morris: 25 November 2015

Energy companies risk wasting $2.2 trillion (£1.46 trillion) on uneconomic projects over the next 10 years, according to a new report.

Think tank the Carbon Tracker Initiative’s (CTI) report how fossil fuel firms risk destroying investor returns says energy companies’ focus on fossil fuels at the expense of emerging clean technologies could put them out of kilter with environmental regulation, which will eventually dampen demand.

It comes ahead of next week’s Paris Climate Change Conference (COP21) which is expected to result in, or at least pave the way for, more climate change legislation. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Some Thoughts On Royal Dutch Shell’s Dividend In 2016

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Screen Shot 2015-11-20 at 08.55.47Casey Hoerth, Casey’s Finance Journal (Blog) Nov. 25, 2015 

Summary

Shell expects substantial cost savings and capex cuts in 2016.

Dividend sustainability in 2016 will depend on Brent crude prices.

At this time, I prefer companies that can actually acquire with oil at these prices.

Back in April, I wrote that Royal Dutch Shell’s (NYSE:RDS.A) dividend, while sustainable in the short term, would be hard to maintain in the long run if crude oil prices remained as low as they were. From what we’ve seen since April, it looks as if crude indeed wants to remain lower for longer.

Just last week, Shell had its Investor Day for 2016, where the company explained its vision for the coming year. This time around, the company didn’t center its presentation on full-year cash flow guidance for 2016. That’s because crude prices have been volatile to the point of full-year guidance being less than valuable. That, in turn, makes it difficult to get a handle on dividend sustainability for next year. This article focuses on a few things important to the company’s dividend: cash flow and capital expenditures. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Shell’s £22,500 fine for North Sea oil spill slammed as ‘paltry’ by campaigners

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Screen Shot 2015-11-21 at 00.19.03The World Wildlife Fund warned the size of the fine would ‘do little to deter future poor behaviour’

Shell apologised for the lack of information and said it was not a deliberate attempt to cover up the spill. 

Adam Barnett: 24 November 2015

A £22,500 fine imposed on the energy giant Shell as punishment for the worst North Sea oil spill in a decade has been dismissed as “paltry” by environmental campaigners.

The World Wildlife Fund (WWF) warned the size of the fine, for a company that earns billions, would “do little to deter future poor behaviour” by oil and gas companies to avoid more damage to the environment.

The leak from the Gannet Alpha platform in August 2011 was the worst in the region in 10 years and saw more than 200 tons of oil – about 1,300 barrels – flood into the sea.  read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Shell fined by Scottish court for 2011 North Sea oil spill

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“Despite being responsible for the worst North Sea spill in a decade, the level of the fine is literally a drop in the ocean when compared to the billions earned by Shell annually…” Screen Shot 2015-11-21 at 00.19.03

LONDON: Business News | Tue Nov 24, 2015 2:42pm GMT

Oil major Royal Dutch Shell (RDSa.L) was handed a 22,500 pound fine by a local Scottish court on Tuesday for a 2011 oil spill in the North Sea that was the largest in more than a decade.

A subsea pipeline leak from Shell’s Gannet Alpha field spilled more than 200 tonnes of oil into the central North Sea in August 2011. Aberdeen Sheriff Court imposed the fine after Shell pleaded guilty in the case.

The oil major has accepted the charge and said it had since carried out a review of its North Sea pipeline system and had applied lessons learned across its British operations. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Shell Canada fined $825,000 for Sarnia refinery pollution

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CALGARY, ALBERTA

Nov 24 The Ontario government on Tuesday ordered Shell Canada, a wholly owned subsidiary of Royal Dutch Shell, to pay C$825,000 ($620,487.36) in fines for discharging a contaminating odour from its Sarnia refinery in 2013.

In a statement, the Ontario Ministry for Environment and Climate Change said Shell had pleaded guilty to one offense of permitting a discharge of an odour containing mercaptan, a foul-smelling gas.

The Shell Sarnia Manufacturing Centre is located in Corunna, Ontario, and on Jan. 11, 2013, employees discovered a leak from a line containing mercaptan, which flowed into an on-site ditch that empties into the refinery’s storm sewer system. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Shell wins backing of Qataris for BG takeover

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Screen Shot 2015-11-25 at 07.46.39One of the biggest shareholders in Royal Dutch Shell has thrown its weight behind the oil group’s £43 billion takeover of BG Group, despite mounting concerns about the impact of plunging oil prices on the commercial logic that underpins the deal.

The Qatar Investment Authority, the sovereign wealth fund that holds a stake of up to 2 per cent in the Anglo-Dutch group and also is a shareholder in BG, is understood to be “fully supportive” of the proposed transaction, which was announced in April. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Shell handed £22,500 fine over August 2011 North Sea oil spill

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Screen Shot 2015-11-20 at 08.55.47November 24, 2015 12:30 pm

The company carried out a review of its North Sea pipeline system following the leak, which came from a subsea pipeline in the Gannet field in August 2011.

More than 200 tonnes of oil – about 1,300 barrels – entered the North Sea from the pipe about 112 miles east of Aberdeen after the problem was first detected on August 10.

The fine was handed down at Aberdeen Sheriff Court after Shell admitted two charges.

Paul Goodfellow, Shell’s upstream director, UK & Ireland, said: “We deeply regret the Gannet spill and accept the fine which has been handed down to us. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Shell under fire over BG Group takeover as oil price slump continues

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Robin Pagnamenta Energy Editor: November 24 2015

A leading Royal Dutch Shell shareholder has urged it to consider renegotiating the terms of its £43 billion takeover of BG Group.

It said that circumstances had “changed so much” since the proposed deal was announced in April that Shell should cut the price. Figures show that investors are betting more heavily on further falls in the oil price than at any time for more than a year. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Gas Field quakes hit Dutch dykes

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Screen Shot 2015-11-24 at 08.13.11Senay Boztas AMSTERDAM: 22 Nov 2015: Sunday Times

THE Dutch are being forced to earthquake-proof their dykes after a spate of tremors blamed on the effects of extracting gas from the vast field running beneath the country.

Although Holland lies far from any big geological fault lines, half a century of exploitation of the Groningen field – Europe’s largest – is blamed for causing about 50 earthquakes a year.

The government is considering how much it should reduce lucrative gas production, which has been a mainstay of the Dutch economy throughout the financial crisis. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Shell joins queue of investors waiting on Iran oil contracts

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Robin Pagnamenta read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Questor delivers a damning verdict of the proposed Shell BG merger

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An Opec meeting on December 5 could send oil price even lower and sound the ‘death knell’ for the deal.

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‘If oil prices remain at these deeply depressed levels, then it could bring nothing but disaster. The famous Shell dividend could be cut, investors will be diluted and the shares would become a riskier prospect,’ writes John Ficenec in the Sunday Telegraph

He argues that while the deal makes sense on paper – as it bolsters Shell’s prospects in the dash for gas – the success rests on one factor ‘price’. 

The price here is not right, says Questor, and there is a risk that Shell is overpaying at £47 billion. 

Shell will fund the deal with 30 per cent cash and 70 per cent new Shell shares – that means selling some $30 billion (£19 billion) of assets during the three years from 2016 and a £25 billion share buy-back from 2017 to reverse dilution effects.  read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Questor share tip: Shell should walk away from BG

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The FTSE 100 oil major has endured a turbulent year after announcing its offer for rival BG, says Questor.

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By John Ficenec, Questor Editor: 22 Nov 2015

SHELL’S [LON:RDSB] deal to buy gas group BG makes perfect sense on paper. But if oil prices remain at these deeply depressed levels, then it could bring nothing but disaster.

The famous Shell dividend could be cut, investors will be diluted and the shares would become a riskier prospect.

Deal logic

Shell is suffering from declining reserves and some well publicised exploration failures such as in Alaska. BG has had its problems, but is just about to greatly increase production at one of the largest natural gas fields in the world off the coast of Brazil. There is a dash for gas around the world as governments increasingly shun coal-fired power stations.

In one fell swoop Shell can use its cash and balance sheet strength to return its dwindling reserves to growth, and underpin its dividend payments for the foreseeable future. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

China wants LNG supply concessions in return for BG merger approval, sources say

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Beijing holding a “wonderful piece of leverage”

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by Veselin ValchevFriday, 20 Nov 2015

Royal Dutch Shell Plc (LON:RDSA) might have to shell out in order to get regulatory approval from Chinese authorities for its proposed takeover of fellow UK energy giant BG Group.

According to unnamed sources cited by Reuters, the Chinese ministry of commerce has requested that Shell review liquefied natural gas (LNG) prices in long-term supply contracts with the nation’s top energy companies – CNPC, CNOOC and Sinopec.

“It’s a reasonable request given the premiums Chinese and other Asian buyers are paying for long-term LNG versus those for Europe and America. The market is oversupplied, and this situation may well last through the next five to 10 years,” said a gas official with one Chinese state energy firm. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

State regulators fine Shell Oil for toxic release in Anacortes

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Screen Shot 2015-11-21 at 00.19.03Inspectors found that Shell had skipped critical decontamination steps while shutting down the main flare. The uncontrolled release exposed workers to toxic substances.

BY ASSOCIATED PRESS: NOVEMBER 20, 2015

TUMWATER, Wash. (AP) — Washington state regulators have fined Shell Oil Products $77,000 after an investigation found that it failed to control a toxic release.

The Department of Labor and Industries said Friday that they began investigating Shell’s Puget Sound Refinery in Anacortes after learning that the refinery’s main flare released contaminates into the environment.

The release prompted complaints about the odor by people living nearby.

A refinery flare is designed to burn off waste gases and vapors not used in production. It also helps to prevent fires. But the flare must be decontaminated and shut down periodically for maintenance. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Shell charged over biggest North Sea oil leak in more than a decade

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Energy giant Shell has been charged over a major oil leak from a North Sea platform four years ago. 

The equivalent of more than 1300 barrels of oil spilled into the sea from the Gannet Alpha in August 2011, the largest leak in more than a decade. 

The UK Government carried out an investigation into the incident and Shell now faces charges over the spill, as well as pipeline maintenance and health and safety. 

Shell was able to bring the leak 112 miles east of Aberdeen under control but then faced a smaller leak which was spilling around 80 gallons of oil a day.  read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Goldman eyes $20 oil as glut overwhelms storage sites

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By Ambrose Evans-Pritchard: 20 Nov 2015

The world is running out of storage facilities for surging supplies of oil and may soon exhaust tanker space offshore, raising the chances of a violent plunge in crude prices over coming weeks, experts have warned.

Goldman Sachs told clients that the increasing glut of oil on the global market has combined with mild weather from a freak El Nino this winter. The twin-effect could send prices plummeting to $20 a barrel, the so-called ‘cash cost’ that forces drillers to abandon production. “Risks of a sharp leg lower remain elevated,” it said. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com
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