Shell Share Discussion Threads

[florenceorbis] 25/9/2018 13:57

hell CEO says $80 oil supports energy infrastructure investment, even as steel quotas raise costs

Royal Dutch Shell CEO Ben van Beurden says $80 oil is not "unreasonable" and will help fuel spending on oil and gas infrastructure after a period of underinvestment.
The Trump administration's steel quotas are beginning to impede some of Shell's construction projects in the United States, van Beurden said.
Shell has not yet canceled any construction due to the trade barriers, and it is driving down the cost of its offshore projects.

Tom DiChristopher | @tdichristopher
Published 1 Hour Ago CNBC.com









Ben van Beurden, Shell CEO
Mary Catherine Wellons | CNBC
Ben van Beurden, Shell CEO

The Trump administration's steel quotas present a challenge to building new oil and gas infrastructure in the United States, but rising crude prices help fuel investment, Royal Dutch Shell CEO Ben van Beurden tells CNBC.

International benchmark Brent crude hit a nearly four-year high above $81 a barrel on Monday as the market braces for U.S. sanctions on Iran that threaten to wipe about 1 million barrels a day off the market. Brent's multiyear high came after OPEC, Russia and other oil producers declined to boost output to tackle rising prices.

While van Beurden says the market is not running out of oil, he believes supplies are getting tight as crude stockpiles fall to normal levels after several years of oversupply and as oil producers get closer to pumping at maximum capacity.

Oil buyers typically lament rising prices, but van Beurden says $80 oil is not "unreasonable" and could benefit the market in the long run.

"I think we need to have slightly elevated prices, to bring new supply on, which is going to be the main challenge," van Beurden said in an interview with CNBC's Brian Sullivan.

"We should be able to balance the market at that sort of oil price level, but of course bringing on new production is not a short-term event," he said. "It takes years to bring on new production."

Energy companies sharply pulled back capital spending in recent years during a prolonged oil price downturn. The lack of investment has raised concerns about supply shortfalls that will lead to another cycle of boom and bust for oil prices.

Van Beurden said the Trump administration's decision to impose tariffs on steel and aluminum imports are "generally not a good thing."

According to the CEO, quotas limiting imports of steel from Brazil, South Korea and Argentina are beginning to impede some of Shell's construction projects in the United States. However, he said the trade barriers have not forced Shell to cancel any future investments yet.

Shell is a major player in the U.S. Gulf of Mexico, where oil and gas companies spend billions on deepwater drilling infrastructure.

"We think we probably had the largest foreign direct investment in the country," van Beurden said. "I'm very, very acutely aware that the president appreciates us for that and doesn't want to harm, in that sense, our continued investments in the U.S. as well."

Shell has been able to drive down the cost of its offshore projects by as much as 70 percent by slimming down projects and focusing on tapping the most attractive parts of oil and gas reserves, van Beurden said. The company is now building a portfolio of projects that can break even when oil prices are as low as $40 a barrel, he said.

Tom DiChristopher CNBC
Tom DiChristopher

[waldron] 25/9/2018 10:10

AWAITING RDSB TO ARRIVE IN THE 2675 to 2775p in the meantime

[mr woodentop] 25/9/2018 10:02

Iran's biggest customers for oil as i understand it are china and india.

The US is currently engaged in a trade war with china and India is currently having problems with petrol prices being high. With an election next year it is likely that Modi will act to keep petrol prices down.

In neither China's or india's case can i see any reason for them to stop using Iranian oil which is now cheaper anyway as the threat of sanctions loom.

Therefore my question is why does everyone expect the oil price to rise significantly?

I hope it does as RDSB is one of my bigger holdings but my guess is it will not really alter given the above.

[imperial3] 25/9/2018 09:28

Has Woodford noticed?!

[waldron] 25/9/2018 09:15

GETTING BETTER ALL THE TIME

[2hoggy] 25/9/2018 08:32

Is this a real breakout to where it should be?

[fjgooner] 25/9/2018 07:39

Luckily I keep track of these sorts of things so just looking back this is what I found when we were last at these levels in terms of crude and LNG prices.

Also noticed how much weaker sterling was against the dollar.

So on that basis we should be pushing £29 per rdsb share by now as far as I can determine.

23/05 --- 27.385 @ 78.89 --- 71.48 --- 2.933 --- 1.336
22/05 --- 28.265 @ 80.37 --- 72.75 --- 2.893 --- 1.3437
21/05 --- 28.41 @ 78.84 --- 71.98 --- 2.813 --- 1.342

FJ

[xxxxxy] 24/9/2018 22:12

JP Morgan: Expect Brent Oil To Reach $90 On Iran Sanctions

JP Morgan expects Brent Crude to hit $85 a barrel over the next six months—with a spike to $90 likely—as the investment bank raised its oil price projections to reflect expectations of more Iranian oil barrels coming off the market when U.S. sanctions on Iran return in early November.

[waldron] 24/9/2018 18:23

Total
55.53 +1.15%


Engie
12.46 -1.27%

Orange
13.7 -0.47%

FTSE 100
7,458.41 -0.42%
Dow Jones
26,567.31 -0.66%
CAC 40
5,476.17 -0.33%
Nikkei 225
23,869.93 +0.82%
SBF 120
4,384.35 -0.29%
EuroStoxx 50
3,410.44 -0.59%
DAX Index
12,350.82 -0.64%

Brent Crude Oil NYMEX 80.86 +2.71%
Gasoline NYMEX 2.04 +2.05%
Natural Gas NYMEX 3.03 +1.65%


BP
570.1 +0.55%



Shell A
2,594.5 +1.01%


Shell B
2,632 +0.63%


WHAT A DIFFERENCE A DAY MAKES

PREMIUM DOWN TO 37.50p

[sarkasm] 24/9/2018 14:06

ENERGYVOICE


Oil & Gas
BP, Shell, Equinor, Total form ‘human rights’ joint force

Written by David McPhee - 24/09/2018 1:23 pm

A woman engineer working for Shell represents the culture shift that is taking place in workplaces across the UK
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The chiefs of BP, Shell, Equinor and Total are to join forces in an attempt to highlight suppliers who respect the human rights of their workforce.

Announced today, the agreement will see the oil firms look to “create a collaborative approach to human rights supplier assessments in the energy industry”.

The joint agreement would attempt to make it easier for firms who have a proven track record of good human rights practice to promote it.

But the firms also added that the agreement does not include “collaboration on selection of suppliers, which continues to remain the independent decision of each participant”.

A spokesman of Equinor said in a statement: “Participating companies recognise the importance of working with suppliers that respect human rights, in line with the UN Guiding Principles on Business and Human Rights, including the fundamental conventions of the International Labour Organization (ILO), and that care for their people.

“The objective of this initiative is to create an industry framework for human rights supplier assessments. Results of conducted assessments will be shared with the participating companies through an independent third party. Work is currently ongoing to establish the assessment criteria and sharing mechanism.”

[quepassa] 24/9/2018 08:17

Dealer talk that we could see the return of $100 barrel oil again.

See this fascinating article dated today on Bloomberg:-

hXXps://www.bloomberg.com/news/articles/2018-09-24/major-traders-see-return-of-100-oil-due-to-u-s-iran-sanctions


Oil stocks set to benefit and maybe soar.


ALL IMO. DYOR.
QP

[fjgooner] 23/9/2018 21:41

Crude pricing data is looking good as we approach quarter end.

2018Q2
Highest: 80.50 Lowest: 66.69 Difference: 13.81 Average: 74.97

2018Q3 to date with 1 week to go
Highest: 80.13 Lowest: 70.30 Difference: 9.83 Average: 75.34

FJ :)

[waldron] 23/9/2018 11:44

Total
54.9 +0.29%


Engie
12.62 +1.73%

Orange
13.765 +0.95%



BP
567 +2.07%


Shell A
2,568.5 +2.17%


Shell B
2,615.5 +2.47%

wow, what a difference being away 10 working days makes

rdsb back nicely in the 2575 to 2675p BOX

THE PREMIUM UP at 47p

[fjgooner] 22/9/2018 12:52

I should add from my own experience of using Microsoft Azure in a PaaS (Platform as a Service) context and the Visual Studio Pro IDE, this really does free architects and developers to concentrate on the core issues rather than on commissioning infrastructure or plumbing in tedious connection boilerplate code.

To the uninitiated this may not seem like a big deal, but trust me, it is a huge advantage.

Of course you have to pay Microsoft accordingly on a sliding scale of usage - but against that you partially offset on-premises cost of ownership.

It is great to see Shell embrace the Azure cloud model.

[fjgooner] 22/9/2018 12:25

Shell partners with Microsoft to accelerate offshore innovation
By Talal Husseini

Shell Global Solutions has announced a partnership with Microsoft to accelerate industry transformation and offshore innovation in its upstream and downstream businesses.

Under the deal, Shell will use Microsoft Azure’s C3 Internet of Things (IoT) software platform to drive efficiencies in all sectors, from drilling and extraction to employee empowerment and safety.

Using artificial intelligence (AI) and machine learning applications, the oil giant hopes to create substantial economic value across its entire business, and improve operational performance.

Shell executive vice-president for technology and CTO Yuri Sebregts said in a press release: “Digital technologies are core to our strategy to strengthen our position as a leading energy company. Our collaboration with Microsoft gives us a solid digital platform to make our core business more effective and efficient and supports our ambition to provide more and cleaner energy solutions through technology.”

Shell’s offshore innovation projects

Shell has been a core driver of digital innovation throughout the years, and has worked on projects such as subsea robotics in the 1970s and the development of RAM to process big data offshore in the 1980s.

The oil giant already uses some Microsoft tools to enhance productivity among its employees.

C3 IoT chairman and CEO Thomas M Siebel said: “Shell is demonstrating AI and IoT leadership in selecting C3 IoT and Azure for the Shell AI Platform. This will enable Shell to rapidly realise the vision of digital transformation across all lines of business, including upstream, midstream, retail and finance.”

Microsoft Worldwide Commercial Business executive vice-president Judson Althoff said: “As one of the energy sector’s largest and most prominent players, Shell’s wide-scale adoption of AI, machine learning and IoT technologies sets an example of how digital transformation can help the industry address resource challenges, improve asset performance and promote safety.”

Shell is also a reference customer for Microsoft Azure’s DevTest Labs, which provides developers with self-service access to virtual development environments.

Shell claimed that using DevTest Labs in collaboration with Microsoft Visual Studio Team Services has reduced the time it takes to set up software builds by 80%, according to Computer Weekly.

Shell IT chief technology officer said in a blog post last month: “In the past, our people would wait for days, if not longer, to get help creating VM [virtual machine] environments. They had no direct control over the process.

“Now, with the approach based on DevTest Labs, people can create and change their own setups on the fly. That gives them more versatility, more freedom, and more value to the company.”

[maywillow] 21/9/2018 07:55

ricas
Shell ‘in talks’ to sell $1.3bn in Gulf Coast assets

Written by Bloomberg - 21/09/2018 7:10 am

A monitor displays Royal Dutch Shell Plc signage on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Monday, Oct. 2, 2017. Photographer: Michael Nagle/Bloomberg
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Royal Dutch Shell Plc, shedding assets to pay for its takeover of BG Group Plc, is in talks to sell its interest in a Gulf of Mexico oilfield to Focus Oil, according to people familiar with the matter.

The deal could value Shell’s stake in the Caesar Tonga field at about $1.3 billion, said the people, who asked to not be identified because the matter isn’t public. A deal hasn’t been completed and negotiations could still fall apart, they said.

Shell has a 22.5 percent working interest in Caesar Tonga, with the rest owned by companies including field operator Anadarko Petroleum Corp., Equinor ASA and Chevron Corp., according to company filings.

A sale could further Shell’s efforts to dispose of mature assets to free up cash for shareholder returns and to improve growth prospects, as well as help pay down debt after it spent more than $50 billion buying BG Group in 2016. Shell said it would divest $30 billion in assets to pay for that deal. When it released its second-quarter results in July, it said it was about $2.5 billion away from achieving that goal.

Shell declined to comment. Houston-based Focus Oil and Anadarko didn’t immediately respond to requests for comment.

Caesar Tonga consists of three separate discoveries in the southern Green Canyon portion of the gulf that were made from 2003 to 2007, according to information from energy consultant Wood Mackenzie Ltd. Production began in 2012, with Anadarko estimating at the time that the field held as much as 400 million barrels of oil equivalent in resources.

Focus Oil was founded in 2015 and is led by Chief Executive Officer Brady Rodgers, who previously worked as an engineer and energy banker. The company focuses on deep-water resources and targets “the top 50 oil fields for acquisition, the crown jewels of major oil company portfolios,” according to its website.

[fjgooner] 20/9/2018 18:11

LNG prices are looking pretty strong today.