| Shell-BG Merger Clears First Regulatory Hurdle | |
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Related: Peak Oil: Myth Or Coming Reality? Many companies are postponing and even scrapping expensive projects, as well as shedding assets and jobs. Most recently, on June 16, Norway’s Statoil announced that it would be eliminating about 2,000 full- and part-time jobs by the end of 2016 to cut costs. Cost savings aside, though, because of its very size, Shell is expected to benefit mightily from the merger, even by spending $70 billion on BG, a mid-sized company whose stock lost 20 percent of its value during the slump in energy prices. Shell’s stock lost only 10 percent during that period, in part because it was somewhat insulated by its size and wealth. Shell also showed that it was aware that energy demand is beginning to shift from oil and coal, which emit large amounts of carbon, to gas, which burns more cleanly. But developing gas production facilities can be expensive and risky. Related: The Dark Side Of The Shale Bust Enter BG, whose specialty is gas and has some of the largest liquid natural gas (LNG) projects in the world. Once the deal is closed, Shell's $70 billion will have bought already-developed LNG and other gas facilities in countries around the world, including Australia, Brazil, East Africa, Egypt and Kazakhstan. Certainly Shell could have survived the current depression in oil prices without buying BG. But through the merger, Shell not only saves money, it also acquires a large, functioning gas business – all without spending a penny on exploration and development. By Andy Tully Of Oilprice.com More Top Reads From Oilprice.com:
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Royal Dutch Shell
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CODE : RDSA.AS |
ISIN : US7802592060 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Royal Dutch Shell is a oil producing company based in Netherlands. Royal Dutch Shell is listed in Germany, in Netherlands, in United Kingdom and in United States of America. Its market capitalisation is €UR 187.4 billions as of today (US$ 214.0 billions, € 191.9 billions). Its stock quote reached its highest recent level on May 24, 2018 at €UR 31.38, and its lowest recent point on October 30, 2020 at €UR 10.10. Royal Dutch Shell has 8 222 179 840 shares outstanding. |