Posts from ‘January, 2009’

Shell and Exxon Mobil Corp. are preparing to keep their U.S. plants running in a walkout, using managers and other non-union employees to keep sites operating

Shell hopes there might be new opportunities in countries such as Iran because US president Barack Obama’s election is pursuing a less hard line with the country than George Bush. “Iran has some of the largest reserves of gas in the world,” said van der Veer.

SHELL E&P Ireland has initiated a new €5 million investment fund over three years in north Mayo as part of its commitment to the Corrib gas project. The Royal National Lifeboat Institution (RNLI) and Belmullet GAA are to be recipients of the first tranche of funding of €400,000 in total.

Further north lies Corrib, Co Mayo, which has an estimated value of anywhere between EUR6billion to EUR50billion. The field - which has been the scene of much controversy - is being developed by Shell, Marathon and Statoil.

On 19 January disturbing rumours over the Motiva Plant expansion in Port Arthur Texas were brought to our attention. Motiva Enterprises LLC is jointly owned by Saudi Refining and Shell.

Brinded said Shell had a "dreadful start" to this year after 10 contractors and one third party were killed in three incidents...

Exxon Mobil's strong financial position has fueled speculation that it might bid to acquire another sizable company. "They don't need a line of credit," Gheit said. "Exxon can theoretically acquire any of its rivals with 35 percent premium, and they can boost earnings per share, cash flow per share and stock valuation because of their ability to squeeze out costs."

Oil industry officials and air safety experts said Shell's decision is one of the rare instances when a major user or operator has temporarily halted flights of such a large number of the popular, 12-person choppers. The Sikorsky spokesman said Shell continues to use the models in other parts of the world.

Shell's decision to double its capex in recent years was largely forced on it to counter falling production and reserves which were the result of earlier underinvestment.

Shell gets tough on costs as oil prices bite

 Tom Bergin

Royal Dutch Shell has intensified its cost-cutting efforts in response to the collapse in oil prices and also plans to step up efforts to improve what it said was a “mixed” safety record.

Shell’s head of Exploration and Production Malcolm Brinded told employees in an email seen by Reuters that staff had to make “tough choices.”

“We simply need much higher sustainable savings this year and I ask for real actions from all of you …. Shed contractor staff, challenge requirements, eliminate consultancy work, reduce travel massively, cut overheads everywhere,” he said. read more

Fri Jan 30, 2009 7:36pm GMT

By Tom Bergin

LONDON (Reuters) – Royal Dutch Shell (RDSa.L) has intensified its cost-cutting efforts in response to the collapse in oil prices and also plans to step up efforts to improve what it said was a “mixed” safety record.

Shell’s head of Exploration and Production Malcolm Brinded told employees in an email seen by Reuters that staff had to make “tough choices.”

“We simply need much higher sustainable savings this year and I ask for real actions from all of you …. Shed contractor staff, challenge requirements, eliminate consultancy work, reduce travel massively, cut overheads everywhere,” he said. read more

The following leaked Shell internal emails contain candid admissions from Shell senior management not provided to shareholders in the Q4 financial results published on the same day. I have highlighted in bold examples of the candid admissions meant for Shell employees only. I supplied the leaked emails to Reuters who published an article after confirming the authenticity of both emails with Shell.

Credit Suisse analyst James Neale, in a note to investors, voiced concern that “the company’s return to growth will be short-lived in view of efforts by the company to slow final investment decisions on future growth projects due to current economic weakness, and in order to await lower future service costs.”

Although Shell said it would spend more this year than last, it has also postponed some decisions on major investments in the hope that costs may come down. These include Carmon Creek in Canada; Mars B, an oil project in the Gulf of Mexico; and the Pierce field in the U.K. Last year, it also announced it was putting off a decision to expand its Athabasca oil-sands development in northern Canada.

At last year's World Economic Forum, he was among those who saw no reason to panic about economic downturn. In the event, the onset of recession eroded oil demand, helping to pull the oil market down from a record of nearly $150 a barrel last July to around $40 now.