A series of recent events highlight the challenge Shell has ahead of it with Prelude, and plans for sister vessels which are supposed to follow.
Gulf of Mexico
Shell’s $12 Billion LNG Experiment Becomes A Big Headache
Shell plans major overhaul around climate drive, CEO tells employees
“Over the coming months we will go through a comprehensive review of the company. Where appropriate we will redesign our organization to adapt to a different future…”
LONDON — Royal Dutch Shell will announce a major restructuring by the end of the year as the energy company prepares to accelerate its shift towards low-carbon, CEO Ben van Beurden told employees according to a company source.
In a video interview published on Shell’s internal website, van Beurden said that the restructuring would involve job cuts as part of broad cost reductions, although no figures have been decided yet, according to sources who saw the interview.
EnergyVoice.com: Shell airlifts workers after coronavirus outbreak on Gulf rig
Shell airlifts workers after coronavirus outbreak on Gulf rig
Workers aboard a Shell Oil offshore rig in the Gulf of Mexico have tested positive for the coronavirus and flown back to land for treatment, a KHOU report says.
Shell Oil, the U.S. subsidiary of energy giant Royal Dutch Shell, has evacuated nine workers from a company platform in the Gulf of Mexico for testing and treatment of COVID-19, the illness caused by the coronavirus.
OilPrice.com: Shell Postpones Investment On Two Major Oil Projects
As oil prices collapse, Shell is postponing the final investment decisions (FIDs) for two planned projects, one in the U.S. Gulf of Mexico and another in the UK North Sea, a source with the supermajor told Reuters on Wednesday.
Shell is now thinking of postponing the FID for the development of the Whale discovery in the Gulf of Mexico, Reuters’ source said. The initial FID timeframe was to make the decision later in 2020, but it is now postponed to 2021.
Shell announced the large deepwater discovery in the U.S. Gulf of Mexico in January 2018, although it had made it six months earlier. Back then, the company said that the Whale discovery was “one of its largest U.S. Gulf of Mexico exploration finds in the past decade.” Shell is the operator of the planned project with a 60-percent interest, while U.S. supermajor Chevron holds the other 40 percent.
EnergyVoice.com: With Big Oil’s future in doubt, new BP boss gets ready to set out vision
As BP Plc’s new chief delivers his vision to transform the company on Wednesday, investors and activists want to know just how much appetite he has to take on the existential crisis facing the oil industry.
12 February 2020
Bernard Looney’s big challenge will be to navigate BP through an energy transition with the world falling out of love with oil, and louder demands from investors to pivot toward clean energy. When climate protesters forced the company to shut its London headquarters last week, the 49-year-old Irishman promised them he would address their concerns.
BP is already taking some modest steps to address climate change, including investment in renewables and selling some of its most carbon-intensive assets. But it remains an oil major through and through, still very much the company that tapped the first fields in Iran early in the last century and drilled wildcat wells on the Alaskan frontier more than 60 years ago.
Chron: ‘A sector in disarray’: Oil majors live beyond their means on investor payouts, study finds
“Investors are gradually moving away from energy stocks. A look behind the dividend payments of the leading companies helps explain why. For the core business of these companies, there is more money going out than coming in.”
The largest oil and gas companies for years have lived beyond their means and paid more money to investors than they can reasonably afford, according to a new report.
The study from the Cleveland-based Institute for Energy Economics and Financial Analysis found that the five largest Big Oil majors — Exxon Mobil, Chevron, Royal Dutch Shell, BP and Total — spent $536 billion on shareholder dividends and stock buybacks since 2010 while bringing in just $329 billion in free cash flow.
REUTERS: Shell confirms two killed after accident at Auger platform in Gulf of Mexico
By Reuters• last updated: 01/07/2019 – 16:04
(Reuters) – Royal Dutch Shell <RDSa.L> confirmed two fatalities as a result of an incident at its Auger Tension Leg Platform in the deep-water U.S. Gulf of Mexico on Sunday morning.
“One other non-life-threatening injury was sustained, and that individual is being treated at a nearby hospital,” Shell said in an emailed response on Monday.
The accident occurred around 9:00 a.m. CST during a routine and mandatory test of a lifeboat launch and retrieval capabilities at the platform, located 214 miles south of New Orleans.
ROYAL DUTCH SHELL BIG NEWS 24 APRIL 2019
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Dutch FT: Retired Shell chief safety officer warns of major Prelude risks
In brief
*The number of accidents per man-hour worked has risen again for the first time in a long time last year.
*A series of incidents, criminal investigations and warnings from regulators are damaging Shell’s safety image.
*Shell CEO Van Beurden himself is also not satisfied and wants to do more to guarantee safety.
Printed below is an English translation of an article published today by the Dutch Financial Times, Financieele Dagblad.
Beeld: Getty Images/ bewerking: FD Studio
Shells gas leaks, fires and accidents
Bert van Dijk: 13 March 2019
Last year the number of accidents per hour worked increased at the oil company. Supervisors warn that Shell needs to do more about safety.
In December 2017, during regular maintenance work, a lifeboat suddenly came loose on the Shell platform Brent Alpha in the North Sea. The lifeboat fell into the sea and was recovered a day later. Although no one is injured, it was not the first time. In 2008, it was discovered that two lifeboats on another nearby Shell platform, Brent Bravo, were technically in such poor condition that they had to be replaced. And in 2007 a rescue boat on another Shell platform broke loose and collapsed into the sea.
Royal Dutch Shell News 7 Jan 2019: Three different news items
Ben van Beurden Photographer: Aaron M. Sprecher/Bloomberg
The boss of oil giant Shell has admitted he is “still unhappy” with the firm’s safety performance, despite pledging a redoubling of efforts in 2018.
Written by David McPhee –
Chief executive, Ben van Beurden, raised a call to redouble the firm’s focus on safety last year after a number of serious incidents in 2017.
An overturned tanker spill and explosion in Pakistan caused the tragic death of 200 people, while there were also fatalities in Canada and Nigeria.
Mr van Beurden added he is also focusing on restoring trust in the oil firm.
He said: “I’m still unhappy with our safety performance.
“In 2018, sadly two people died on our watch – one at a refinery in Germany and another at an onshore well in the USA.
“More broadly, the safety performance at our facilities has improved, but our performance on personal safety is worse than the previous year.
“We have to step up our efforts to keep people safe.”
Mr van Beurden also said that he can see that trust has noticed an “eroding” or trust in the UK, the Netherlands and the USA.
Shell came under heavy criticism from climate groups in 2018, with high profile opposition coming from investor group Follow This.
The firm also faced widespread shareholder opposition over chief executive pay last year.
Mr van Beurden said: “I feel an attack on Shell as an attack on my personal integrity. It’s something I feel deeply, probably at least once a day. If I can reduce that to once every other day, I’ll know that we are making progress.
“Of our three strategic ambitions – to become a world-class investment case, to thrive through the transition to lower-carbon energy and to have a strong societal licence to operate – I’m confident that we can achieve the first two.
“But I can’t see a sure path towards strengthening our societal licence to operate just yet.
“We need to change people’s perceptions through better performance and behaviours. And we need to have a better dialogue with civil society in some parts of the world.”
SOURCE
Marissa Luck, Houston Chronicle: Monday, Jan 7, 2019
The Gulf Coast has become home of one the largest producers of a common plastic: Shell fired up its fourth alpha olefins unit at its chemical plant in Geismar, Louisiana, the company said Monday.
The multi-billion dollar expansion adds 425,000 metric tons per a year in capacity to the chemical manufacturing site, bringing its total alpha olefin production up at Geismar to more than 1.3 million metric tons per a year. That makes it the largest alpha olefins producing site in the world, the company said.
Royal Dutch Shell News 18 December 2018
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Royal Dutch Shell News 15 October 2018
Shell celebrates 40 years of deep-water innovation: CISION: 15 Oct 2018
Gazprom and Shell discuss next steps in Baltic LNG project: LNG INDUSTRY: 15 Oct 2018
Shell reaches milestone on plastics plant in Northeast, potentially a Gulf competitor: Houston Chronicle: 14 Oct 2018
Chevron, Shell get first waivers to U.S. steel tariffs
By: Carl Surran, SA News Editor: 12 July 2018
Shell adds competitive, deep-water production in the US Gulf of Mexico
Kaikias, an economically resilient, subsea development in the US Gulf of Mexico
HOUSTON, May 31, 2018 /PRNewswire/ — Shell Offshore, Inc. (Shell), a subsidiary of Royal Dutch Shell plc, announces today the early start of production – around one-year ahead of schedule – at the first phase of Kaikias, an economically resilient, subsea development in the US Gulf of Mexico with estimated peak production of 40,000 barrels of oil equivalent per day (boe/d). Shell has reduced costs by around 30% at this deep-water project since taking the investment decision in early 2017, lowering the forward-looking, break-even price to less than $30 per barrel of oil. FULL ARTICLE
Shell Makes Large Heartland Discovery In Gulf Of Mexico
Map showing the location of Shell’s Dover discovery and its proximity to Shell’s new Appomattox host in the U.S. Gulf of Mexico
HOUSTON, May 24, 2018 /PRNewswire/ — Shell Offshore, Inc. (“Shell”) today announced a large, deep-water, exploration discovery in the Norphlet geologic play in the U.S. Gulf of Mexico with its Dover well (100% Shell). The Dover discovery is Shell’s sixth in the Norphlet and encountered more than 800 net feet of pay (244 meters). The discovery is located approximately 13 miles from the Appomattox host and is considered an attractive potential tieback. Shell’s Appomattox host has now arrived on location in the U.S. Gulf of Mexico and is expected to start production before the end of 2019.
Shell Invests in the Vito Development in the Gulf of Mexico
Shell rendering of its Vito deep-water development in the U.S. Gulf of Mexico. Vito will feature a new, simplified host design and associated infrastructure.
HOUSTON, April 24, 2018 /PRNewswire/ — Shell Offshore Inc. (Shell), a subsidiary of Royal Dutch Shell plc, today announces the final investment decision for Vito, a deep-water development in the U.S. Gulf of Mexico with a forward-looking, break-even price estimated to be less than $35 per barrel. This decision sets in motion the construction and fabrication of a new, simplified host design and subsea infrastructure.
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