Shell Share Discussion Threads

[sarkasm] 13/11/2017 22:13

Oil Drillers Reopen The Fracking Debate
By Nick Cunningham - Nov 09, 2017, 4:00 PM CST Permian

The fracking debate reached its zenith a few years ago, with the industry largely winning the war over environmentalists. Since then, tens of thousands of wells have been drilled across the country. But the debate is not entirely dead—and even some oil companies are a little uneasy with the pace of drilling underway in certain parts of the country.

In Oklahoma—hardly a haven for hippy environmentalists212;there’s some anxiety that the oil industry is drilling too much and too aggressively, and not just because of the spike in seismic activity that the state has seen in recent years. The concern is over groundwater, the same issue that has characterized the fracking debate for much of the last decade.

However, what makes Oklahoma interesting is that it isn’t just environmentalists raising questions about fracking. Some oil producers also warn that the shale industry’s slapdash approach to drilling is endangering groundwater resources.

The complaints come from some companies that drill vertical wells. Mike Majors, a small producer in Oklahoma, told E&E News that his operations have been impacted by other companies who have drilled horizontally close to his vertical wells. The high pressure from a hydraulic fracturing operation can result in frack fluids leaking far away from their intended location, potentially damaging other wells nearby. These so-called “frack hits,” Majors worries, are polluting groundwater.

That would be bad enough, but Majors worries that if the practice continues, the reckless drillers could ruin things for the entire oil industry if they provoke a public outcry and regulatory backlash. "I'm convinced we're impacting fresh water here," Majors told E&E News. "If they truly impact the groundwater, we can kiss hydraulic fracturing goodbye."

Related: Oil Refining Could Become Much Less Lucrative

Other small producers echoed this sentiment, arguing that larger shale companies are putting the entire industry at risk. "If it happens where farmers depend on groundwater, the entire industry will get blamed," Dewey Bartlett, a small producer, told E&E News. "That's scary."

The industry and the state’s regulators say there’s no evidence of groundwater contamination. But that won’t put the issue to rest—not after years and years of vociferous debate between the oil and gas industry on one side, and environmentalists and local communities on the other. The complaints from some oil producers about fracking adds another layer of complexity to this saga.

A comprehensive EPA study examining the links between fracking and water contamination intended to shine some light on the situation, but failed to put the issue to rest. A 2015 draft of the report had a key takeaway line that was hailed by the industry: “Hydraulic fracturing activities have not led to widespread, systemic impacts to drinking water resources.”

But that line sparked a ton of controversy from scientists, even from within the EPA, who argued that the agency didn’t have the data to come to that conclusion. After feedback, the agency removed that sentence from its final report, arguing that such a sweeping conclusion “could not be quantitatively supported.”

In short, the EPA said that fracking could indeed contaminate water in some cases, including situations in which well cases aren’t done right, fracking fluid is injected directly into groundwater, wastewater is spilled, or a company disposes of wastewater into unlined pits. Still, the EPA said it didn’t have enough data to calculate the national frequency of impacts on drinking water.

In other words, the debate rolls on.


The problem for shale companies is that they’re used to drilling far beneath aquifers, to depths of 10,000 feet—a reason why they argued water resources weren’t in jeopardy. But companies are now focusing on shallower formations, and as E&E News points out, some wells only go as deep as 2,800 feet, putting them much closer to an aquifer, which typically sit at just a few hundred feet below the surface.

Small oil and gas producers in Oklahoma believe their larger peers are contaminating groundwater, so they got together and formed the Oklahoma Energy Producers Alliance (OEPA), and published a study that found that there have been at least 451 “frack hits” on vertical wells. Vertical drillers have to bear the cost of frack hits, which include replacing damaged equipment, cleaning out wellbores and cleaning up the impacted area.

The conflict between larger shale companies and small producers is already playing out in individual court cases, with small companies suing for damages.

But in such an oil-friendly state, rigorous regulation that would affect shale drillers doesn’t appear imminent. Shale companies have incredible political influence, particularly in states like Oklahoma.

Still, the fight over how fracking affects groundwater is far from dead.

By Nick Cunningham of Oilprice.com

[fjgooner] 13/11/2017 20:46

@voetstoets post 1443:

Hi Misca (from LSE),

They are rather different posting names!

My apologies for the delay but I have been away.

I have posted some things onto LSE for you - I hope it was what you had in mind.

I had to update the data feed to take into account the last few days of crude price movement which required some recalculation.

@ Everyone

What did you all think of the impressive coverage of Shell shale technology at minutes 16 to 21 on the Bloomberg video I posted last week - I'd be interested in comments:



The great thing is that the payback from this project will be starting to really ramp up soon - it was back around 2011 that Shell investors had to, well, shell out for these very expensive assets. Current newish shareholders are in effect getting the benefit of those earlier investments.

Of course, in this sector, there's always this aspect of investment offset - for instance some of today's investors are "paying for" the massive investment in chemical production infrastructure build that they may not be around to benefit from - but then, more fool them :)

FJ

[montyhedge] 13/11/2017 18:47

Play golf today with oil expert, $80 reason could all kick off Middle East.

[the white house] 13/11/2017 18:01

So Black Rock top sliced a mere £17m worth (accurate?) halting the nice rise last week.

[sarkasm] 13/11/2017 16:45

Has the share price hit a ceiling or at a floor readying itself for a spring up or an autumn fall

[sarkasm] 13/11/2017 14:36

and on the 3rd day thy shell go ex divi


Ex-dividend date RDS A and RDS B shares November 16,
2017

Record
date
November 17, 2017

OIL HAVE TO ADMIT IT SHELL B GETTING BETTER ALL THE TIME

[waldron] 13/11/2017 13:45

BP CEO: Venezuela Is a Bigger Concern Than the Middle East for Oil Industry
Venezuela is 'defying economic gravity,' BP CEO Bob Dudley says. 'That's a real wild card.'
ByKinsey Grant
Nov 13, 2017 8:25 AM EST
Donald Trump Issues Updated Travel Ban

BP plc (BP - Get Report) isn't as worried about the Middle East as some of its peers, CEO Bob Dudley said. Instead, the London-based oil company is most concerned about Venezuela as a geopolitical threat to the oil industry.

"I think Venezuela is just defying economic gravity," Dudley told CNBC at the Abu Dhabi Petroleum Exhibition & Conference. "I think that's a real wild card."

Venezuela is an OPEC nation and one of the world's largest oil producers. The country is currently mired in debt negotiations with foreign investors that began Monday. It's unclear if Venezuelan president Nicolas Maduro will succeed in the debt talks, which could increase the risk of a debt default for the country.

Venezuela is looking to restructure roughly $60 billion in bonds. The country has struggled in refinancing, as U.S. banks are forbidden from buying new Venezuelan bonds due to sanctions imposed by the U.S. government.

Many oil industry leaders have focused concern on the Middle East, where Saudi Arabia's and Iran's relationship has become increasingly delicate.

BP stock dipped 0.7% to $40.01 in premarket trading Monday. Shares have gained 7.8% since the start of the year.

More of What's Trending on TheStreet:

[waldron] 13/11/2017 13:08

ANY ONE IDEAS ABOUT THE SPIKES DOWN

NOT A LOT OF VOLUME SO FAR TODAY BUT IS SOMEONE SELLING SMALL BLOCKS AT LOWER THAN
MARKET PRICE JUST TO MAKE SURE OF SALE

[waldron] 13/11/2017 10:51

voetstoets
13 Nov '17 - 10:24 - 1446 of 1447 1 0
To FJGooner -from Voetstoets - [same fellow as Misca at LSE]

Your comments echo my views with accuracy - indeed precisely my thoughts.



WELCOME NEW BOY IN THE HOOD

[voetstoets] 13/11/2017 10:31

Correction of error.

I sold RDSB at £ 22.45 which cost me 20.55

Voetstoets

[voetstoets] 13/11/2017 10:24

To FJGooner -from Voetstoets - [same fellow as Misca at LSE]

Your comments echo my views with accuracy - indeed precisely my thoughts.

It may amuse you but my portfolio was 150% in RDSB only [100% my own funds and a further 50% on borrowed money. When we had an earlier price surge, I sold the 50% at £2.45 as a cautionary reaction on the market, not the share]

Now I only hold one share, Shell, yet I do NOT reckon its a gamble [although it breaks all rules on diversification] for one simple reason.

It is that after the initial dividend risk [would Shell continue to pay its dividend - I said yes, Shell did so], there is nothing in circulation that possesses such a favourable risk/reward feel . My view is the upside is huge, the downside limited.

Now let the market itself tell us what it thinks !

All best

Voetstoets/Misca

[waldron] 13/11/2017 09:53

fjgooner
9 Nov '17 - 23:36 - 1400 of 1444 4 0
Ariane
9 Nov '17 - 17:00 - 1398

Re: FJGooner: I feel its a touch of all eggs in one basket

--------------

How dare you!

But, of course you are 100% right and I am ludicrously over-exposed in my portfolio to RDSB - currently to the tune of 100%.

Now, let me be clear - that is a moronic thing to do and I would never recommend anyone doing such a foolish thing. Please, don't do it.

In my defence though, I decided some time ago that Shell was the core target of my investment strategy within the energy sector of my portfolio.

At that time I was not mad. I researched the sector, its history, its geo-political context and Shell's space within that.

I then evaluated all other integrated energy companies in the US and Europe, and drew the conclusion that Shell had the broadest appeal in terms of history, dividend stability and social conscience.

Once centred on Shell, I have sourced and read dozens of books ( yes books, NOT links to web pages ) to develop an understanding that would otherwise only be attainable by employment within the sector. I probably went over the top, sourcing intra-industrial texts back to the 1960s - 3 more this week alone. And reading more general texts on the subject area and related issues.

Having said that occasionally some excellent content does crop up on the web - have a look at minutes 16 to 21 on here:



So I won't apologise for this sharp focus. But, equally, I would not recommend this behaviour to others. Such myopia as mine can go badly wrong if you don't react to negative events (if they happen).

Having said that my approach has made me rather rich (in pure monetary terms) and I leave my investments in RDSB with utter confidence.

Good luck whatever your approach. Investment takes thought. Thinking is good. And that is what makes this wonderful world of ours go round.

Off for the weekend now - have a good one.

FJ
:)

[waldron] 13/11/2017 09:49

Mon 13-11-2017 12:37 PM
British Petroleum seeking to boost recovery rates from Abu Dhabi oilfields to 60-70%

by Hatem Mohamed ABU DHABI, 13th November, 2017 (WAM) -- British Petroleum, BP, is planning to raise recovery rates from oilfields in Abu Dhabi to 60-70 percent from the current level of around 30-40 percent, according to a senior official at the British oil giant.

Speaking to reporters on the sidelines of the Abu Dhabi International Petroleum Exhibition and Conference, ADIPEC, which opens in the UAE capital today, Salem bin Ashoor, General Manager and Chief Representative of British Petroleum UAE, said, "We can see the opportunity in the long run to boost recovery rates from oilfields in Abu Dhabi to 60-70 percent."

"BP is a leader in deploying Enhanced Oil Recovery schemes and has developed several proprietary technologies, such as low salinity water injection to help recover more oil from reservoirs. Additionally, BP is a leader in water flood technology, a type of enhanced oil recovery."

The official added in statements to ADIPEC News that the British oil giant is "maximising recovery from some of the world’s largest reservoirs and from maturing fields such as in Azerbaijan, Iraq, Russia and the US.

On how much BP is betting on R&D and innovation, Bin Ashoor said that technology and innovation are key players in the oil and gas industry, particularly here in Abu Dhabi.

"We are working with ADNOC and our joint ventures to maximise resource discovery and recovery through the application of our global expertise and upstream technology. This includes the need for smart and tailored technology to maintain the plateau production rate in giant fields, such as enhanced oil recovery and technologies."
WAM/Hatem Mohamed/Esraa Ismail/Chris Moran

[voetstoets] 13/11/2017 09:46

Hi there FJGooner !

Could you repeat your detailed article somewhere here in ADVFN but now resend to LSE.

Reason is I cannot trace it here - it was sent by a colleague and the article was most worthy, so I wish to comment upon it.

Thanks

Misca

[waldron] 13/11/2017 09:30

2475p support seems to still be holding up well


looking good Lewis

[waldron] 13/11/2017 09:26

Shell raises US$1.7bn through sale of Woodside Petroleum stake
08:34 13 Nov 2017
The sale is part of a US$30bn non-core disposal programme currently being undertaken by the Anglo-Dutch oil giant
picture of Shell logo
Sale is part of a US$30bn debt reduction programme

Royal Dutch Shell PLC (LON:RDSB) has cut its holding in Woodside Petroleum to below 5% after the sale of another hefty chunk of the Australian oil group.

The sale is part of a US$30bn non-core disposal programme currently being undertaken by the Anglo-Dutch oil giant to shore up its cash position.

Shell has agreed with two investment banks to sell almost two-thirds (64%) of its stake and 8.5% of Woodside overall for A$31.10 per share to raise US$1.7bn (A$2.2bn).

Last Shell decided that due its reduced holding it was no longer having significant influence over Woodside and changed its stake from an associate holding to an investment.

Jessica Uhl, Shell’s Chief Financial Officer, said the sale was part of the ongoing plan to reshape Shell.

“Proceeds from the sale will contribute to reducing our net debt.”

The sale reduces Shell's stake in Woodside to 4.8% (from 13.28%) and it has agreed not to dispose of any more shares for ninety days after this sale completes.

[grupo] 13/11/2017 09:15

Royal Dutch Shell Shell further reduces its Interest in Woodside
13/11/2017 8:11am
UK Regulatory (RNS & others)


TIDMRDSA TIDMRDSB

SHELL FURTHER REDUCES ITS INTEREST IN WOODSIDE

The Hague, November 13, 2017. Royal Dutch Shell plc ("Shell") announces an
agreement to sell part of its stake in Woodside Petroleum Limited ("Woodside")
to equity investors.

Shell's subsidiary, Shell Energy Holdings Australia Limited ("SEHAL"), has
entered into an underwriting agreement with two investment banks, for the sale
of 71.6 million shares in Woodside, representing 64.0% of its interest in
Woodside and 8.5% of the issued capital in Woodside, at a price of A$31.10 per
share, resulting in total pre-tax proceeds of approximately $1.7 billion (A$2.2
billion). The sale is expected to complete on November 14, 2017.

Shell's Chief Financial Officer, Jessica Uhl, said "This sale is another step
towards the completion of our three-year $30 billion divestment programme,
which is an important part of our strategy to reshape Shell, to deliver a world
class investment case, and to strengthen our financial framework. Proceeds from
the sale will contribute to reducing our net debt."

Upon completion of the sale, SEHAL will continue to own a 4.8% interest in
Woodside. SEHAL has agreed that it will not dispose of any of its remaining
shares in Woodside for a minimum of 90 days from completion of the sell-down,
with limited customary exceptions.

Notes for editors

Outside of its interest in Woodside, Shell has the following interests in
Australia:

* QGC venture (Shell operated, majority interest);

* Arrow Energy (Shell 50% interest);

* Gorgon LNG (Shell 25% interest);

* North West Shelf (Shell 16.67% interest);

* Prelude FLNG project (Shell operated 67.5% interest);

* Browse Development venture (Shell 27% interest);

* Sunrise LNG joint venture (Shell 26.6% interest)

* Shell Energy Australia (Shell 100% interest)

Recent history of Shell's investment in Woodside:

In November 2010 Shell sold 10% of the issued capital of Woodside, retaining a
24.27% interest in Woodside. This interest was further diluted to 23.08%
because of Shell's decision not to participate in Woodside's dividend
re-investment programme.

In June 2014, Shell sold approximately 78.27 million shares in Woodside
representing 9.5% of Woodside's issued share capital, retaining an interest of
13.58%, This interest was further diluted to 13.28% because of Shell's decision
not to participate in Woodside's dividend re-investment programme.

During the second quarter 2016, Shell management concluded that a change in
Shell's level of involvement over Woodside's financial and operating policy
decisions resulted in Shell no longer having significant influence. Its
classification was therefore changed from an associate (carrying amount: $2,144
million) to an investment in securities (carrying amount at fair value: at
change in classification in Q2 2016 $2,442 million).

[imperial3] 13/11/2017 09:04

Thanks guys.