Shell Share Discussion Threads

[adrian j boris] 08/10/2021 20:07

Nigeria Looks To Boost Oil Production By 310% To 4 Million Bpd
By Charles Kennedy - Oct 08, 2021, 1:30 PM CDT

Nigeria, the largest oil producer and exporter in Africa, hopes that its newly adopted petroleum industry law will help it hike its oil production by 310 percent to 4 million barrels per day (bpd), Nigerian Petroleum Minister Timipre Sylva said this week.

Nigeria currently produces just below 1.3 million bpd, as per OPEC's latest official data. The African OPEC member is one of the OPEC producers that have struggled in recent months to pump as much oil as their quota under the OPEC+ deal allows, due to force majeure circumstances at pipelines carrying crude to export terminals.

The Petroleum Industry Act (PIA), which became law in August, will help Nigeria achieve its target to pump 4 million bpd, minister Sylva said at an energy conference, as carried by local outlet Premium Times.

The new law will also allow the country to increase its crude oil reserves from 37 billion barrels to 40 billion barrels, and to extract more gas, which it sees as a key fuel in the energy transition, the minister added.

"First is the Focus on Gas. For us, this is at the heart of the energy transition and represents the first step in the journey to renewables away from oil. Already, we have declared that gas is our transition fuel, and also represents a destination fuel, as we envisage that it will be part of our energy mix by 2050, given the vast resources that can be commercialized and utilized," Sylva said.

In the middle of August, Nigerian President Muhammadu Buhari signed the country's newly passed petroleum bill into law, marking the end of 20 years of efforts at Africa's top oil producer to overhaul its oil industry. The new petroleum act aims to attract more foreign capital to the country's oil sector, Nigeria says. The bill took two decades to be finalized, and hopes to overhaul the way Nigeria will share its oil resources with international oil companies as the country looks to attract new investment in oil and gas.

By Charles Kennedy for Oilprice.com

[tornado12] 08/10/2021 16:00

As I said in recent posts my target is 18-20 gbp range by end of year which means a solid recovery. It will be interesting to see how they will grow the DIVIs and to be honest, I would be in favor of combined base dividend with additional SPECIAL, based on YoY performance. The risk-Reward justifies a DIVI yield of 5% and we are currently a fair way off that mark... hoping for good progress here in 2022

[supermarky] 08/10/2021 15:35

there is pretty much a clear run up looking at the charts here. Its definitely on the rise. May have a few pull backs with profit taking but up up and away imo. I might top up if we get a little pull back

[supermarky] 08/10/2021 15:33

the only way is up baby

[waldron] 08/10/2021 14:20

LETS HOPE ANOTHER 8 to 10pc more

[pugugly] 08/10/2021 14:07

FT today - Hedgies been buying oilers in the last few months as felt to be undervalued - No indication as to how much longer they will continue adding before they decide to lock in profits.

[kkclimber56] 08/10/2021 11:24

I think there is a glimmer of hope that a hard winter and power cuts may put all the debate about being dependent on renewables to bed at least for the next couple of decades.

[loganair] 08/10/2021 11:16

To fullfill the power needs of just Devon with solar power will take 13,000 acres of land filled with solar panels or for wind will take 32,000 acres of wind turbines or just one, just a single small modular reactor.

[xxxxxy] 08/10/2021 10:47

East Riding8 Oct 2021 9:46AMAll legittimate costs related to renewables should be passed to the customers who legitimately want their energy from renewable sources. I want to opt out, thank you, as I am not interested to save the planet from a non existing problem.Our overexposure to gas is due to investments on windmills. Windmills require a back up that needs to quickly respond to wind changes.Gas power plants are the only capable to immediately respond to wind changes.As soon we abandon the wind folly, the better.. Daily Telegraph

[skinny] 08/10/2021 07:56

Paul Bogers, Shell VP Hydrogen, said: "Refhyne II is an important project for Shell as part of our drive towards developing and scaling our green hydrogen capabilities. It will contribute to our efforts to build markets for hydrogen and successively reduce costs, in line with our strategy to help our partners and customers decarbonise and move towards net-zero emissions."

[loganair] 08/10/2021 07:55

Shell bracing for a ‘wall of cash’, says AJ Bell:

Royal Dutch Shell (RDSA) is looking forward to an earnings bonanza as energy costs surge, says AJ Bell.

In a third quarter update, the oil giant intimated that ‘a wall of cash looks set to come the company’s way thanks to the recent surge in energy prices’, said analyst Russ Mould.

‘Like other large energy companies, Shell has pursued a more streamlined approach, slashing costs and spending, and selling non-core assets in recent years as it looks to put its finances on a sustainable footing,’ he said.

‘This means when prices rise a lot of the increase drops through to profit and cashflow.’

The oil major has pivoted to natural gas over the last decade, which has seen it benefit from wholesale gas prices hitting record highs.

‘The unpredictability of renewables suggests there may be a role for gas as countries look to wean themselves off higher emitting fuels like oil and coal,’ Mould added.

[xxxxxy] 08/10/2021 07:49

More energy pleaseOCTOBER 8, 2021 9 COMMENTSThe Business Secretary seeks to reassure us that the UK will have plenty of cheaper green energy in due course. That will be very welcome. It will need to work with or without the wind blowing and the sun shining.  He also needs to check we have enough energy for the next decade whilst we await completion of these investments. Presumably they will need battery and or hydrogen and or water power storage of wind power. Recent experience has shown electricity capacity is tight when  the wind does not blow. Current gyrations in a world gas market temporarily starved of enough gas is causing real problems for UK users and for some electricity generators.The truth is if you wish to have a steel, chemical, food, glass, cement, and other main process industries today you still need plenty of good value base energy from gas or some similar primary fuel. That is why Germany is busy negotiating to buy yet more quantities of Russian gas to keep her factories turning when she has little gas or oil of her own. It is also why she persists in mining yet more coal and  burning much of it despite the general advanced country agreement to phase it out quickly. That is how she maintains her status as Europe's leading industrial economy.The UK should be better placed. The UK has access to more gas and oil under its own geographical jurisdiction. The government now proudly tells us we produce half our own gas, but the figure needs to be higher. It is, after all, much greener to use our own gas down a relatively short pipe than to haul LNG half way round the world with all the extra fuel that takes to transform the gas and power the ship.Last month with little wind the UK had to restart three coal fired power stations. Thank goodness those had not been dismantled and knocked down as the others had, as they helped keep the lights on. The government needs to ensure we have enough reserve power to run. Maybe it needs to convert  more to biomass which can provide stable power whatever the weather.In due course we may have large scale battery or hydro or hydrogen storage of excess power generated by renewables on sunny or windy  days. We may have more reliable hydro systems. What we cannot rely on is imports in an energy short world. We should not  expect others to mine coal, burn gas and make things for us. The UK has to help find the acceptable energy and generate the necessary power, as we always used to. For many years we produced our own energy as an island of coal in a sea of oil and gas, with plenty of electricity capacity of a wide range of kinds.The government for this decade needs to factor into the figures the progressive closure of most of our nuclear power stations which today generate around 17% of our electricity. In  due course there may well  be ways of making steel, glass and cement that do not need so much gas, and ways of heating our homes without the gas boiler. In the meantime we need to make sure we can cover our needs.... John Redwood

[partenope] 08/10/2021 06:58

some commentary on yesterday's announcement. Alastair Osbourne in The Times

[johnwise] 07/10/2021 21:07

Moody’s: Oil Industry Must Spend $542 Billion To Avoid Supply Shock

Global annual upstream spending needs to increase by as much as 54 percent to $542 billion if the oil market is to avert the next supply shortage shock, Moody’s said in a report on Thursday carried by Bloomberg.



President Joe Biden moves towards shutting down the mining of fossil fuels in America as he signs executive orders to protect the environment he destroyed 70,000 jobs in 72 hours.
Video

Video: The truth about global warming


VIDEO: A Dearth of Carbon Dr. Patrick Moore

[partenope] 07/10/2021 16:45

from The Times today - Shell Energy losses grow in battle with cut-price rivals

[xxxxxy] 07/10/2021 13:49

Andy RoadKing24 Sep 2021 7:31AM
I think this worth reposting:
Imagine being frightened, poor, cold and hungry.
What happens in a once in every 25 year British winter with a 2ft blanket of snow covering the UK and much more snow in some areas from the Midlands up.
What happens when the snowfall is followed by a 4 to 6 week weather system high over the UK and temperatures are averaging -3 degree during the day and -10 at night and no wind to speak of.
What happens to all the electric ambulances, fire engines, snowploughs, lorries, trains, buses and cars trying to operate under these conditions.
How do we heat hospitals, schools, offices, factories, shops , warehouses, supermarkets and millions of homes with electric elements which are bigger versions of the elements you find in your kettle.
Imagine the chaos and panic as everyone suffers from no heating and power blackouts and tens of thousands of people dying because of the cold, no food and no access to health care.
All because of a new religion created by the Green Taliban aka Greta the goblin of doom and Extinction Rebellion and a bunch of clown politicians.
The problem is we will be taken down a dead end road doing immense damage to our wealth and freedoms (while we look at the rest of the world with their cheaper energy, warm homes, personal transport and lovely holidays in other countries) until we finally come to our senses. By which time the UK will resemble a cold wet version of Cuba.
.... Daily Telegraph

[the white house] 07/10/2021 12:03

Yup another decade, at least 6/1 a Lab majority illustrates your ignorance I had 56 bets on Boris, lovely jubbly

[husted] 07/10/2021 10:35

FT:Shell updates earnings guidance after volatile quarter

Oil major says Hurricane Ida damage takes toll but expects cash flow boost from higher margin gas and power trading


Royal Dutch Shell has updated earnings guidance after a volatile third quarter where it grappled with big swings in gas and power prices and a hurricane in the Gulf of Mexico.

In a trading update, Shell said the damage caused by Hurricane Ida in August would hit earnings by $400m but that cash flow from operations would be boosted by higher margin power and gas trading.

The new guidance provides a first indication of the effects of what is expected to be a volatile quarter for the oil and gas industry. Natural gas and electricity prices have surged around the world as supplies have failed to keep up with demand that has been boosted by big economies revving up after the pandemic.

On Wednesday, the price of LNG in Asia had its biggest one day increase on record, rising more than $16 to a new high of $56 per metric million British thermal unit, according to a price assessment by S&P Global Platts.

Shell, the world’s biggest seller of liquefied natural gas, said liquefaction was expected to be between 7 to 7.5m tonnes in the third quarter, the lowest level since 2016, “reflecting feedgas constraints and additional maintenance”.

In oil, the company said production was expected to be between 2m and 2.1m barrels of oil per day including impacts from Hurricane Ida.

“Given a number of outages in Shell’s LNG portfolio, we think some investors may have feared it was on the wrong side of a tight LNG market,” said Biraj Borkhataria, analyst at RBC Capital Markets.

“LNG volumes were worse than previously guided at 7-7.5m tonnes, however Shell notes that its trading performance is likely to be higher than the second quarter of 2022,” said Borkhataria. “While this could of course reverse in the coming quarters, it is nevertheless helpful and could lead headline gearing to fall faster than expected.”