Energy companies slash another $19 billion as oil price remain near 20-year lows

Eleven energy companies over the past several days said they would cut a combined $18.6 billion dollars from their budgets as oil prices remain near 20-year lows, setting the stage for tens of thousands additional layoffs.

West Texas Intermediate crude closed at $23.36 per barrel Monday, a price not seen since March 2002 as Russia and Saudi Arabia flood global markets and the coronavirus pandemic crushes demand.

Energy companies big and small — including Conoco Phillips, Exxon Mobil, Marathon Oil, Hess and Halliburton — have responded by slashing spending for new projects and operations, halting stock buy back programs, putting deals on hold and selling assets. read more

Royal Dutch Shell has announced it is planning to save at least $8billion in the coming year following the huge fall in oil prices.

The world’s ninth-largest company by revenue says capital expenditures are to be scaled back by $5billion. At the same time, underlying operating costs will be cut by at least $3billion to help cope with the impact of the coronavirus.

It still plans to go ahead with their $10billion divestment programme but have cancelled the next tranche of their share buyback programme. read more

REUTERS: Ron Bousso: MARCH 23, 2020

LONDON (Reuters) – Royal Dutch Shell (RDSa.L) will lower spending by $5 billion and suspended its vast $25 billion share buyback plan in an effort to weather the recent collapse in oil prices, it said on Monday.

The Anlgo-Dutch oil major said it would reduce capital expenditure to $20 billion or below from a planned level of about $25 billion while seeking to reduce operating costs by an additional $3 billion to $4 billion over the next 12 months.

The cuts are expected to boost Shell’s cash generation by between $8 billion and $9 billion on a pre-tax basis. read more

Shell acts to reinforce business resilience and financial strength

Mar 23, 2020

As the COVID-19 virus spreads across the world – seriously impacting people’s health, our way of life and global markets – Shell is putting the safety and health of our people and customers first, along with the safe operations of all our businesses.

At the same time, we are taking decisive action to reinforce the financial strength and resilience of our business so that we are well-positioned for the eventual economic recovery.

“As well as protecting our staff and customers in this difficult time, we are also taking immediate steps to ensure the financial strength and resilience of our business,” said Ben van Beurden, Chief Executive Officer of Royal Dutch Shell. “The combination of steeply falling oil demand and rapidly increasing supply may be unique, but Shell has weathered market volatility many times in the past.” read more

Shell cuts spending by $9bn to counter oil price collapse

Royal Dutch Shell is to stop buying back shares and slash spending by up to $9 billion this year in response to the collapse in oil prices.

The Anglo-Dutch energy giant said that it would suspend its share buyback programme after the current $1 billion tranche is completed.

It said that it aimed to reduce underlying operating costs by $3 billion to $4 billion over the coming 12 months and would reduce its capital spending to $20 billion or less, down from $25 billion planned.

Ben van Beurden, Shell chief executive, said that he was “taking immediate steps to ensure the financial strength and resilience of our business”. read more

ROBIN PAGNAMENTA: 19 MARCH 2020

It is the biggest company in the FTSE 100 and its largest dividend payer – a cornerstone investment for millions of pension funds around the world.

Royal Dutch Shell has not cut dividend payments to shareholders for more than 70 years but a precipitous plunge in oil prices this month has left chief executive Ben van Beurden facing an agonising choice.

The oil price war launched by Russia and Saudi Arabia on March 9 and fuelled by a collapse in demand linked to coronavirus will damage the entire industry – but some producers are far better positioned than others to survive a lengthy downturn. read more

By DAILY MAIL CITY & FINANCE REPORTER: PUBLISHED: 23:30, 12 March 2020 | UPDATED: 00:33, 13 March 2020

Shell’s boss’s pay was cut in half in 2019.

The FTSE 100 energy business said Ben van Beurden was paid £8.7million last year – a 51 per cent drop on 2018. 

It came after a year when seven people died while working for the company and its turnover dropped.

Van Beurden has been chief executive since 2014. 

His base salary was around £1.4million and he received more than £6million from a long-term performance share plan.  read more

Ron Bousso: MARCH 12, 2020

LONDON (Reuters) – Royal Dutch Shell (RDSa.L) Chief Executive Ben van Beurden’s pay package halved last year to 10 million euros ($11.3 million) after the energy company suffered seven deaths and saw a drop in revenue.

Van Beurden, who became CEO in 2014, oversaw a sharp growth in Shell’s oil and gas output following the 2016 acquisition of BG Group for $53 billion.

But in January, the Anglo-Dutch company was forced to rein in its vast $25 billion share buyback programme amid a drop in oil and gas prices and sliding global demand for fuels and petrochemicals. read more

by Mark Lammey: 12/03/2020, 8:28 am

The energy giant’s annual report showed its boss was paid 87 times more than the average Shell employee in the UK in 2019.

Mr van Beurden took home a base salary of £1.37m, an annual bonus of £705,000, and £6.3m from his long-term incentive plan (LTIP).

His total remuneration, including pension and tax equalisation, came to £8.7m, the Anglo-Dutch firm said.

That total is about £9m lower than in 2018, when he was paid 143 times more than the average UK employee. read more

Shell doesn’t intend to “get into an arms race” with peer supermajor BP over goals to reduce its carbon footprint, Maarten Wetselaar, Shell’s Integrated Gas & New Energies Director, told The Times a week after BP joined the pack of oil majors that have set carbon-reducing goals.

In December 2018, in an industry first, Shell said that it plans to set short-term targets for reducing the net carbon footprint of the energy products it sells, and to link those targets with executive remuneration. read more

AS Shell boss Ben van Beurden hailed a strong recent performance by the oil giant last week a note of irritation crept into the tone of the normally affable-sounding executive.

Asked if the Anglo-Dutch giant would maintain investment in the North Sea following disruption by climate change activists in Scotland, Mr van Beurden saw no reason why it should not.

Shell boss highlights potential of North Sea and defends oil giant’s respose to climate change

His comments suggested he felt noisy protests were stifling the debate about how the world should respond to the challenge. read more

Prelude shutdown

OPERATION of the world’s largest offshore facility, Shell’s embattled Prelude floating LNG vessel, has descended into chaos with back up power generation failing, cardboard potties issued to replace regular toilet facilities and a fleet of helicopters called in to reduce crew numbers.

05 February 2020

Only last week Shell chief executive Ben van Buerden told analysts the Prelude was evidence of how new assets would improve the gas giant’s cash flow in 2020. read more

English translation of an article published by the Dutch newspaper NRC

Shell Corruption case: Minister Grapperhaus spoke regularly with the OM about a possible settlement

Article on PAGE 7

CORRUPTION RESEARCH

Minister wanted to know everything about possible Shell settlement

Minister Grapperhaus said he would not interfere in the criminal case against Shell. He did, however, talk to the OM (Dutch Public Prosecution Service) about settling several times.

By our editors Carola Houtekamer and Merijn Rengers

AMSTERDAM. On Monday 2 July 2018, Prime Minister Mark Rutte will be sitting at Donald Trump in the Oval Office for 45 minutes. While the American president complains about the European car industry, Rutte tries to keep the atmosphere good. That is in the interest of the Netherlands. Afterwards, Trump has half an hour for five men that Rutte has taken to Washington and who are waiting in an adjoining room. They are the leaders of Philips, Schiphol, Aegon, NXP and Ben van Beurden, the boss of the Anglo-Dutch oil company Shell. read more

Stuart Elliott: 30 JAN 2020

London — Shell CEO Ben van Beurden said Thursday the company was “not spending enough” on its new energies business, particularly in electricity.

Speaking to journalists following the release of Q4 earnings, van Beurden said he “desperately” wanted to grow the business more quickly, but it would remain disciplined in its spending.

Shell created its new energies division — which brings together assets in electricity supply and generation, electric vehicle charging, and other new fuels such as hydrogen and biofuels — in 2016. read more

By Tom Kool – Jan 31, 2020, 2:00 PM CST

Shell’s earnings fall by half. Royal Dutch Shell (NYSE: RDS.A) saw its fourth quarter earnings fall in half from a year earlier, weighed down by lower oil and gas prices, as well as weaker refining and chemical margins. “All macroeconomic indicators are working against us,” Shell CEO Ben van Beurden said. The disappointing results could slow the pace of share buybacks and result in more asset sales. Shell’s reserve life declined for the sixth year in a row, now only sitting on eight years’ worth of reserves. read more

By Nick Cunningham – Jan 30, 2020, 5:00 PM CST

Shell’s earnings of $2.9 billion were down by half from a year earlier, leading to a 3 percent drop in its share price on Thursday morning.

After the takeover of BG Group several years ago, the Anglo-Dutch company is now just as much a natural gas major as it is an oil major, so the global gas glut is hitting the company hard. Shell is one of the largest LNG exporters in the world. LNG prices in Asia are at a 10-year low and showing very little signs of life. read more