Going down…?

14 03 2014

Shell-SplatAndHorns (square)Oh boy……  the oil industry sure seems to be in a mess.  Remember Steven Kopits’ presentation?  The one where he announced Shell had to borrow money to pay its shareholders’ dividends?  Remember Shell pulling out of Australia..?  Well, it gets worse…

Shell Cuts Americas Spending by 20%, Extends Refinery Sales

Royal Dutch Shell Plc (RDSA) plans to lower spending in the Americas by a fifth as Europe’s largest oil producer focuses on more profitable operations.

It’s “not acceptable” that Shell, now deploying about 36 percent or $80 billion of its capital in North America, has been losing money, Chief Executive Officer Ben van Beurden said.

royal-dutch-shell-net-income-net-income_chartbuilder-1Shell expects to reduce capital investment in upstream operations, or exploration and production, in the Americas by 20 percent this year and North American resource spending by the same proportion, the company said today in a presentation.

“That leaves us with about $10 billion in total for the upstream Americas and about $4 billion for the shale,” Chief Financial Officer Simon Henry said. “Some of that does include Argentina and Canada. It’s not all in America.”

Van Beurden has pledged to shrink spending costs this year and speed up asset sales including refineries after The Hague-based company issued its first profit warning in a decade. He also scrapped targets for cash flow, delayed drilling off Alaska and promised to restructure shale operations in North America.

“Upstream Americas profitability has been impacted by losses in resources plays such as shales,” Shell said today in a statement. “The company intends to drive hard choices on capital allocation for selective growth and divestment of non-strategic positions.”

Now……  you can’t tell me this isn’t going to impact the “great big complex society”…….