| Shell Leaves Bab Sour Gas Development Amid Low Oil Price | |
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Many energy players are reducing their cost by postponing or abandoning projects to withstand plummeting oil prices. Royal Dutch Shell plc RDS.A is the latest to try the same tactic with its decision to move out from a natural gas development at Bab sour gas field in Abu Dhabi. The oil price slump, which has now lasted for more than a year, is now common knowledge. This is owing to plentiful supply of the commodity amid lackluster global demand. Following the event, the major energy firms are not being able to sell the commodities at attractive prices and hence have been forced to delay or quit many oil and gas projects. We can say that Shell’s decision is not an exception. In fact, Shell added that the Bab Gas Project does not suit its strategy in an unfavorable business scenario. Shell was selected as the partner of Abu Dhabi National Oil Co for operating the Bab field in 2013. Most importantly, Shell had a 40% interest in the onshore project. The field – located 90 miles southwest of Abu Dhabi – is one of the largest gas fields in the city and was expected to commercially sale gas by 2020. Shell is an integrated energy firm with a strong and diversified portfolio of development projects that offer attractive long-term opportunities. Predictably, the oil price slump has affected Royal Dutch Shell’s earnings and cash flows, in particular at its upstream unit. As a result, the company currently carries a Zacks Rank #5 (Strong Sell), implying that it will significantly underperform the broader U.S. equity market over the next one to three months. Meanwhile, some better-ranked players in the energy sector are Murphy USA Inc. MUSA, Braskem SA BAK and Boardwalk Pipeline Partners LP BWP. Each of these stocks sports a Zacks Rank #1 (Strong Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BOARDWALK PIPLN (BWP): Free Stock Analysis Report MURPHY USA INC (MUSA): Free Stock Analysis Report ROYAL DTCH SH-A (RDS.A): Free Stock Analysis Report BRASKEM SA (BAK): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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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. |