News and information on Royal Dutch Shell Plc
Will Shell’s share price ever recover?
Edward Sheldon, CFA:
It’s fair to say 2020 has been a challenging year for Royal Dutch Shell (LSE: RDSB) investors. As a result of Covid-19, and the subsequent drop in demand for oil, Shell’s share price has plummeted. Year to date, shares in the FTSE 100 oil major are down about 50%.
Can Shell’s share price recover? I think it’s possible. That said, there are a few things that need to happen for the FTSE 100 oil stock to rebound.
‘Greenwashing’ and ‘dirty tricks’: Shell sparks fierce backlash with emissions tweet
AOC and Greta Thunberg lead criticism of multinational fossil fuel firm
Her tweet refers to executives at Shell who have publicly admitted they knew decades ago that burning fossil fuels would cause the planet to warm. Shell chief executive Ben van Beurden said in a Time magazine interview this year: “Yeah, we knew. Everybody knew.”
Harry Cockburn: 03 Oct 2020
Multinational oil and gas company Shell – the second-largest investor-owned company in the world – is no stranger to the criticisms and concerns of the environmental movement, but this week, the energy giant inspired fresh anger with a tweet asking how people were reducing their emissions.
Outlook darkens for North Sea oil and gas industry
TWO oil and gas majors provided votes of confidence in the North Sea last week but these may only provide cold comfort as the outlook for the sector gets ever bleaker.
On Tuesday BP underlined its belief in the exploration potential of the North Sea as it announced that it had returned to profit in the third quarter.
The giant included its successful bid for new North Sea exploration licences in a list of highlights for the three months to 30 September.
On the horizon: the end of oil and the beginnings of a low-carbon planet
With demand and share prices dropping, Europe’s fossil fuel producers recognise that peak oil is probably now behind them
Even as economies slowly emerge from the financial fallout of the pandemic, the shift towards cleaner energy has gained pace. A sharp plunge in fossil fuel use will be followed in quick succession by a renewable energy revolution, which will occur at unprecedented pace. The tipping point for oil demand may have come and gone, and major oil companies are taking note.
City investors deserting oil giants
EXTRACTS:
BP and Shell are undergoing the biggest restructurings in their histories, shedding a total of 19,000 jobs globally. Both have committed to cutting the carbon footprint of the oil and gas they produce to net zero by 2050.
BP chief executive Bernard Looney said in August that his company is shifting to a low-carbon business because ‘the energy mix is changing’, with greater demand from customers for cleaner fuels. The pandemic has made the shift more urgent as global oil prices and demand have collapsed further.
Investors fear there’ll be no bright post-Covid dawn for oil majors
Jillian Ambrose: Sun 25 Oct 2020 00.05 BST
Royal Dutch Shell and BP will both face investors this week with quarterly financial results that will deliver profits well below those achieved a year ago, against a backdrop of tumbling share prices and rising Covid infections across major economies. In the same week, Shell is expected to reveal a modest underlying profit, of $146m, for the third quarter, according to analysts, after plunging to a loss of $18.4bn for the second quarter. This is still a fraction of the $4.76bn profit recorded in the same quarter last year, and follows the company’s decision to cut 9,000 jobs and reduce the dividend for the first time since the second world war.
Shell and BP investors look to results after tough year for oil majors
Britain’s two biggest oil companies are set to update shareholders next week amid a low oil price and a race to reduce emissions.
Investors will be leafing through BP’s results on Tuesday, while Shell will present how its third quarter went two days later.
Shares in both have cratered during 2020, as oil prices fell to record lows at one point at the beginning of the pandemic.
The Telegraph
Big Oil’s huge bet to save itself from extinction
A shift to renewables and the rise of green energy giants means the future for former fossil fuel titans is far from certain, writes Rachel Millard
Tuesday 20 October 2020 The Daily Telegraph
EXTRACTS
It was the early days of 2015 when Shell’s chief executive Ben van Beurden ascended the stage of the InterContinental Hotel on London’s Park Lane with a stirring message for his industry peers amid strengthening global action on carbon emissions.
Investing in oil: I wonder if a BP-Shell merger could be a possibility?
With the crude oil price stagnating around $40 for the past few months and no solution to Covid-19 yet in sight, investing in oil is a risky business and oil companies are out of favour with investors.
Premier Oil is merging with Chrysaor, and rumours abound that Tullow Oil might be next in line for a takeover. No less than 36 US oil and gas companies had declared bankruptcy by August. But with pressure piling on, even the majors are in trouble and as both Royal Dutch Shell (LSE:RDSB) and (LSE:BP) appear to be struggling, could a merger be on the cards?
By Oct. 11, 2020 at 1:54 p.m. GMT+1
Covid-19 may do for Big Oil what the Chicxulub asteroid did for the dinosaurs when it struck Earth 66 million years ago.
BP Plc plans to cut 10,000 jobs, equivalent to 14% of its workforce; Shell will shed 9,000 workers, or 11%; and Chevron will reduce its payroll by 6,000, a 13% reduction.
Much like the “terrible lizards,” Big Oil was already in decline before the novel coronavirus hit. The world in which they thrived is changing around them and they face multiple threats to their future health. But the outbreak’s impact has accelerated the process.
Shell Plans to Cut Thousands of Jobs Amid Shift to Carbon Neutrality: What Investors Need to Know
Shell’s job cuts are just the latest unsettling news for Wall Street’s least-loved oil major (shares of Shell are down more than any other integrated oil and gas company so far this year).
To say it’s been an off-year for big oil would be an understatement. Shockwaves of volatility and lower energy demand have rippled through global markets. An added threat is the increasing role of renewables in the energy mix as wind and solar companies continue to gain market share — and oil companies lose it.
Royal Dutch Shell: Energy Transition Woes
Michael Boyd: Energy Income Authority: Oct 8, 2020 High-quality income and growth plays in the energy space. SummaryI often get asked why I don’t cover the supermajors all that often on Seeking Alpha. The answer comes down to a rather simple reality: time invested versus potential gain. Anyone that has followed my long / short book knows that whatever I take a stake in, I know inside out. Quite frankly, the sprawling operations of most majors coupled with competing against institutionals that have enough research analysts on the payroll to pack a local gymnasium makes it a losing proposition – or at least in my view.
Bloomberg: Fossil Fuel Firms Not Doing Enough on Emissions, Funds Say
(Bloomberg) — None of Europe’s largest oil, gas and coal companies are on track to limit global warming to within 2 degrees Celsius, according to a report by money managers overseeing more than $22 trillion.
Energy and mining companies have been under increasing pressure, from both environmental groups and their own investors, to demonstrate how their business models align with the Paris climate agreement and to show they’re taking action to curb their emissions.
Op-ed: A $100 billion Big Oil divestiture plan is coming
Energy transition has climbed towards the top of the agenda in the boardrooms of the world’s largest oil and gas companies. With electrification and renewable energy on the rise, Big Oil is striving to adapt to a transformation that could eventually render their business obsolete if they don’t latch on to the opportunities it brings. The result could be a massive sell-off of assets as the biggest petroleum players concentrate their oil and gas production to the countries where oil and gas is cheapest and easiest to produce.
Shell and BP hit after oil falls to $40
Shares in Royal Dutch Shell and BP closed at their lowest level in 25 years yesterday as the oil price fell back towards $40 a barrel.
Brent crude, the global benchmark price, dipped below $40 at one stage in afternoon trading and was down 3.2 per cent at $40.93 in New York last night.
The sell-off was driven by renewed fears of global oversupply as a second wave of the coronavirus hits demand and rising output from the Opec cartel boosts supplies.
Brent crude is down about 40 per cent from the start of the year but remains well above the lows in April, when it fell below $20 a barrel during the height of global lockdowns.
Shell on Wednesday announced a major reorganization that will see thousands of jobs lost. The last major reorganization dates back to 2016 when Shell cut 10,000 jobs after the acquisition of BG Group.
English translation of an article published by the Dutch equivalent of the Financial Times.
Thousands of jobs at stake in Shell reorganization, not spared
Shell on Wednesday announced a major reorganization that will see thousands of jobs lost. The restructuring is also reportedly hitting the top layers of management. The restructuring is needed to reduce costs as oil prices have fallen sharply and the outlook has deteriorated. Shell is also working on it. a new strategy. This will be revealed early next year.
EBOOK TITLE: “SIR HENRI DETERDING AND THE NAZI HISTORY OF ROYAL DUTCH SHELL” – AVAILABLE ON AMAZON
EBOOK TITLE: “JOHN DONOVAN, SHELL’S NIGHTMARE: MY EPIC FEUD WITH THE UNSCRUPULOUS OIL GIANT ROYAL DUTCH SHELL” – AVAILABLE ON AMAZON.
EBOOK TITLE: “TOXIC FACTS ABOUT SHELL REMOVED FROM WIKIPEDIA: HOW SHELL BECAME THE MOST HATED BRAND IN THE WORLD” – AVAILABLE ON AMAZON.
: If Prelude is planning to complete a swivel swap out or repair, it is at least 3 months of work. But that is for a typical NS FPSO, the massive Prelude unit is one of a kind. And no spares were manufactured with 2 production paths. (Operating one at temporary high rates could be done.) Based on the news reports it sounds like both production swivels have failed or have leakage into the secondary containment system. Possibly due to the delays in operation? But this is just one piece of the puzzle. Putting the entire upstream processing facility, gas conditioning, liquefaction, storage and export on one site is just asking for problems. You can not comply with NFPA 59A separation distances...
: Prelude again
Wonder if the Shell Australia Chairman is still pleased with the “progress being made”.
Bill
: https://www.energyvoice.com/oilandgas/271096/petrofac-new-ceo-asfari-retire/ The revolving door continues to spin, BG Group / Shell ‘executive’ demonstrates cronyism is alive and flourishing. Yes, this was the COO that believed corporate projects could be controlled under (what was eventually validated to be flawed) the Value Assurance process, while he sampled corporate hospitality and champagne at Wimbledon.
: More on Shell's fumblings: https://seekingalpha.com/amp/article/4378196-royal-dutch-shell-energy-transition-woes
: Looking at the senior executive org charts revealed last week, seems there is not a lot of “Reshape” at that level... Looks like the worker bees will be sacrificed again...
: Looks like Stacey Orlandi never stays long enough in one job for very long. I suppose long enough to be seen and then off to the next one. I wonder what she left behind for others to clear up? Neither did Walter or Malcolm and see where that got us.
The point I find difficult to swallow is her role as Refinery Manager. After two years in procurement in an office somewhere she spends a year as a production Manager and then become THE refinery manager of the Cherry Point Refinery, capable of refining 250k barrels a day plus converting Diesel from biomass etc, a large and complex plant.
Anyway, we shall see.
: Bogus Group, hopefully the Executives will be 'executed' and we will be saying 'goodbye' to these worthless, low integrity, sociopaths to whom probity is alien.
: Does the statement “It is very painful to know that you will end up saying goodbye to quite a few good people. I know I, and many others in Shell, will be saying goodbye to people we know well and really like and who have great loyalty to the company” mean that executives will be saying goodbye to good people, or good people will be saying goodbye to executives?
: More on Shell's proposed Upstream cost cutting. https://oilprice.com/Energy/Energy-General/Shell-May-Cut-Upstream-Oil-Operations-By-40.amp.html
: Perhaps time to clear out the Brazil Asset? https://uk.mobile.reuters.com/article/amp/idUSKCN26C0GI
: USA USA USA. BG Group was an Internet Cafe and Cappuccino Lifestyle company that could not get its ducks lined up in a row for the simple reason that it didn't know what a duck is. In consequence, its goose was cooked.
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