| BG Deal May Leave Shell’s Arctic Ambitions In Limbo | |
| | |
|
But, the Arctic may be downgraded on the list of priorities now that Shell has moved to spend $70 billion to take over a major liquefied natural gas (LNG) player. Shell’s CEO Ben van Beurden said that the combined Shell-BG will need to sell off $30 billion in assets over the next three years in order to right-size the company, according to Alaska Public Radio. “We plan to undertake a portfolio review to assess which assets should stay in the enlarged group, and which positions would be better owned by others,” van Beurden said at a conference on April 8. The Arctic could possibly get the ax.
Related: Latest EIA Predictions Should Be Taken With More Than A Pinch Of Salt The point of buying BG was to make a big play on LNG over the long-term. Shell will become one of the most important LNG exporters in the world if the deal goes through. With LNG prices down due to an onslaught of new supply – JKM prices in Asia are less than half of what they were a year ago – LNG is not exactly in a boom market right now. But Shell thinks that natural gas is the future, and LNG will be around for the long haul. LNG may even provide steady and more profitable returns than oil. As Alaska Public Radio reported, the BG purchase could come at the expense of oil. Shell’s CFO confirmed that the company will spend less on conventional drilling. That would make sense. Now that Shell has to come up with $70 billion to take over another major producer, spending billions more on the Arctic, with its harsh conditions and unfriendly press, would seem to be a steep and unnecessary price. Shell is trying to transform itself into a natural gas giant, and sees its future more in gas than oil. The Arctic fits awkwardly into that vision. “So yes, you will see some changes in the priorities that we have communicated or implied in recent times as well,” van Beurden said. That sounds a lot like it is reconsidering its ambitious plans for the Arctic. By Nick Cunningham Of Oilprice.com
More Top Reads From Oilprice.com:
|
|
|
Royal Dutch Shell
|
|
|
CODE : RDSA.AS |
ISIN : US7802592060 |
|
| |
ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Royal Dutch Shell est une société de production minière de pétrole basée au Pays-Bas. Royal Dutch Shell est cotée au Pays-Bas, au Royaume-Uni, aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 187,4 milliards €UR (214,0 milliards US$, 191,9 milliards €). La valeur de son action a atteint son plus haut niveau récent le 24 mai 2018 à 31,38 €UR, et son plus bas niveau récent le 30 octobre 2020 à 10,10 €UR. Royal Dutch Shell possède 8 222 179 840 actions en circulation. |