Shell

CNG/LNG | Energy Companies | Industrywide Issues | M&A | Shell

It’s a Deal – BG Shareholders Approve Shell Buyout
January 29, 2016January 29, 2016

In the end, it wasn’t even close. Some 99.5% of BG Group’s shareholders voted to approve the sale/merger of the company with Shell at a meeting yesterday. Earlier this week 83% of Shell’s shareholders voted to approve the merger (see Shell Shareholders Vote in Favor of BG Buyout/Merger). As we’ve said from the beginning, this is an LNG love story–Shell wanted BG for its natural gas market share. The Shell/BG merger will create the world’s dominant LNG company, by far. The buyout/merger is, for Shell, it’s largest-ever acquisition. Just how big is this deal? The Shell/BG merger is the largest oil and gas deal since Exxon bought Mobil in 1999. The merger will be consummated on February 15. As we’ve previously noted, Shell plans to lay off 10,000 people across both companies once the merger is complete. Happy Valentine’s Day…
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Energy Companies | Industrywide Issues | Jobs | M&A | Shell

Shell Shareholders Vote in Favor of BG Buyout/Merger
January 28, 2016January 28, 2016

Shareholders in Shell just voted to cut 10,000 jobs. Well, not exactly. Shell’s shareholders voted yesterday to approve Shell’s plan to buy BG Group in a $69.7 billion megamerger. As we explained in April 2015 when the deal was first announced, this is a deal about LNG (see LNG Love Story: Shell Makes Play to Buy BG in $69.7B Megamerger). Why the snarky remark about voting to cut 10,000 jobs? Because last week that’s what Shell said they would do once the merger is approved. They plan to ax 10,000 jobs in Shell and at BG (see Shell to Cut 10,000 Jobs After Buying BG; Exiting Shale Drilling). One down, one to go. BG shareholders vote on the merger today. If they vote “yes” as is expected, the merger will be complete on Feb. 15. Expect the pink slips to appear in the mailbox starting Feb. 16. Happy Valentine’s Day…
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Energy Companies | Industrywide Issues | Jobs | M&A | Shell

Shell to Cut 10,000 Jobs After Buying BG; Exiting Shale Drilling
January 20, 2016January 20, 2016

In April 2015 MDN brought you the announcement that Shell was buying BG Group (the former British Gas) in a megamerger worth $69.7 billion (see LNG Love Story: Shell Makes Play to Buy BG in $69.7B Megamerger). As we alluded in the title of that post, the deal is all about LNG–liquefied natural gas. The merger will make Shell THE dominant player in LNG worldwide. The process to obtain regulatory approval in multiple countries has been long and arduous. Later this month, on Jan. 28, BG shareholders will cast a final vote on the plan. In an update issued this morning by Shell, the company says they expect to complete the BG transaction in the next few weeks, and after they do, there will be a total of 10,000 layoffs between the two companies. Don’t you just love mergers? Ax and hack away. Toss a few thousand jobs here and a few thousand jobs there. We know, times a tough. Companies must cut in order to stay in business. We just want to remind you that behind these abstract numbers are 10,000 real people with real families that depend on them. Shell also said they’re hightailing it out of shale…
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Anti-Drilling/Fossil Fuel | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Shell | Steuben County

NY Town Barred from Selling Water to Shell for PA Fracking
January 7, 2016January 7, 2016

In March 2012, the village board in Painted Post (Steuben County), NY voted to sell water to Shell for use in fracking operations across the border in Pennsylvania. The Susquehanna River Basin Commission (SRBC) gave its blessing to Painted Post to sell up to 1 million gallons of water day. But the decision didn’t sit well with power-hungry anti-drillers. The nutters from the radical Sierra Club sued to stop the deal in June 2012 (see Sierra Club Sues to Stop Water Sales in Steuben County, NY). A lower court ruled in favor of the radicals and struck down the deal. On appeal, a corrupt state appellate court has upheld the lower court’s ruling. Shell will have to find water from another source–not that they’re drilling any wells right now anyway…
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Beaver County | Belmont County | Energy Companies | Energy Services | Ethane | Industrywide Issues | Odebrecht | Ohio | Pennsylvania | Processing Plants | PTT Global | Shell | West Virginia | Wood County

Will 2016 be the Year *Somebody* Commits to Building a Cracker?
December 28, 2015December 28, 2015

Will somebody, somewhere PLEASE build the northeast an ethane cracker plant? Pretty please? We noticed a couple of stories that indicate 2016 is THE year that at least one company will likely pull the trigger on an FID–a Final Investment Decision to build an ethane cracker. But which company is likely to do it? Shell? PTT Global? Odebrecht? Leaving Odebrecht’s Parkersburg, WV proposed cracker aside for the moment (a project where we barely detect a pulse), both the Shell plant, planned for Beaver County, PA, and the PTT Global plant, planned for Belmont County, OH, have seen impressive signs of activity in 2015. Which of those two will likely say “yes” in 2016?…
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Allegheny County | Energy Companies | Industrywide Issues | Jobs | Pennsylvania | Shell

Shell Closing Pittsburgh Office, Moving 180 People to Houston, TX
December 2, 2015December 2, 2015

Shell is closing its Pittsburgh-area office and moving “most of” the 180 workers who worked there to its U.S. HQ in Houston, Texas–so says a Shell spokesperson. A few workers may remain and redeploy to various field offices that Shell intends to keep open–including a field office in Tioga County, PA where they have an active drilling program. Shell drilled just eight wells in PA this year, compared to 17 last year and 31 the year before that. Notice a pattern? Perhaps most importantly Shell stresses the office closure has nothing to do with the work on a proposed ethane cracker plant in Beaver County…
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Energy Companies | Shell

Shell Restructures Upstream into Conventional/Unconventional Units
November 5, 2015November 5, 2015

On Tuesday, Royal Dutch Shell held a “Management Day” event in London (another was planned for Wednesday in New York) in which Shell announced the company is restructuring its upstream (i.e. drilling) division. The newly configured upstream division will be split into an Unconventional Resources branch to oversee development of shale, tight natural gas and oil, and oilsands, and an Upstream International branch to oversee all conventional exploration. Nowhere in the presentation, a presentation which includes Shell’s strategies for midstream and downstream too, could we find a single mention of Shell’s potential ethane cracker project in Pennsylvania. There was also no mention of Shell’s Marcellus/Utica drilling program, although we found a single slide with a brief mention on it of northeast shale (see the slide below). Shell’s overall message, in essence, was this: “The ongoing low price of oil (and gas) is changing everything, and we’re making tough decisions in light of this new reality.” Below is Shell’s full Management Day announcement, which includes a description about dividing upstream so every part of it is more accountable to the bottom line, and a description of their efforts to buy BG–which consuming a lot of Shell’s energy and attention at the moment…
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BG Group | BP | Energy Companies | Equinor/Statoil | Reliance Industries | Shell | Total

10 Sell-Out Big Oil Companies Support Paris Global Warming Treaty
October 16, 2015October 16, 2015

Eight CEOs from the Gang of 10

In a repugnant and self-serving public relations stunt, the CEOs for 10 of the world’s largest oil and gas companies are pushing for “an effective climate change agreement to be reached at next month’s 21st session of the United Nations (UN) Conference of Parties to the UN Framework on Climate Change (COP21)” at the meeting being held in Paris in early December. That is, they’re pretending they believe in the total hoax that mankind is causing global warming and therefore all of the nations of the earth, including the United States, should give up their sovereignty to achieve something they have no control over–whether or not global average temps go up more than 2 degrees Celsius by the end of this century. Conveniently, most of us won’t be alive to see whether or not that ever happens. Fortunately none of the big oil companies signing this asinine statement are U.S.-based companies, although they all have serious (and large) operations in the U.S. Who are the Gang of 10?…
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Beaver County | Belmont County | Energy Companies | Ethane | Industrywide Issues | Ohio | Pennsylvania | Processing Plants | Shell

Expert Tells Utica Conference NE Will See “3 or 4” Cracker Plants
October 14, 2015October 14, 2015

An expert speaking at the Utica Summit III yesterday in Stark, OH said he believes the Marcellus/Utica region will see three, possibly four, ethane crackers built. Tom Gellrich of consulting firm TopLine Analytics, a company that “closely follows ethane markets,” said he thinks the first ethane cracker to get built will be the Shell cracker plant in Beaver County, PA…
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Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell

Shell Paying $69M to Move Water Plant for Cracker Project
October 7, 2015October 7, 2015

Shell is currently spending an undisclosed amount of money (millions of dollars) to build a bridge to a site they now own where they may one day build a $2-$3 billion ethane cracker plant in Beaver County, PA (see Shell Begins Building Bridge to PA Cracker Plant Site). Shell is also reportedly spending $80 million to clean up the site (see Shell Paying $80M to Clean Up PA Site for Ethane Cracker Plant). In yet one more positive sign that the project will happen, Shell is spending $69 million to move a water intake site and build a new water treatment site for Center Township–because the current water intake is on the site Shell owns–and Shell needs extra capacity for water treatment. You don’t spend hundreds of millions of dollars to walk away from a project, in our humble opinion…
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Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell

Shell Paying $80M to Clean Up PA Site for Ethane Cracker Plant
September 22, 2015September 22, 2015

Shell continues to work (and spend money) on a site in Beaver County, Pennsylvania that will one day hopefully be the home of an ethane cracker plant. The most recent positive sign that Shell will move forward with the project is that they are in the process of building a bridge over a highway for trucks to access the site as they work on site preparation and building (see Shell Begins Building Bridge to PA Cracker Plant Site). The newest evidence that Shell will move forward with the project is their plan to deal with leftover contamination at the site. The site is a former zinc smelter and there are high levels of very nasty stuff in the soil at the site, including lead, arsenic, cadmium and mercury. Shell plans to cover the site, locking in the nasty stuff–a project that will cost them $80 million and take two years to complete…
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Beaver County | Belmont County | Energy Companies | Energy Services | Ethane | Industrywide Issues | Ohio | Pennsylvania | Pipelines | Processing Plants | PTT Global | Shell

Marcellus/Utica Ethane Will Flow to 6 Crackers Being Built in SW
September 15, 2015September 15, 2015

While two, possibly three, major ethane cracker plant projects are being considered for the Marcellus/Utica region, there are six ethane crackers currently being built in the Gulf Coast region. The kicker? Marcellus and Utica Shale ethane will feed some of, perhaps portions for all of, those six cracker plants. It’s a shame, really. We could be reaping the rewards of a massive influx of jobs and investment not only by building an ethane cracker, but with the satellite businesses that will locate around it. Instead, much of that investment and those jobs are slipping away to the Gulf via NGL pipelines…
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Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell

Shell Begins Building Bridge to PA Cracker Plant Site
September 2, 2015September 2, 2015

Shell continues to act as if it has already made the decision to build a $2-$3 billion ethane cracker plant complex in Beaver County, PA, even though they continue to refuse to say they’ve made a decision. What’s our evidence? In June Shell finally purchased the land where the cracker will be built, the former Horsehead zinc smelter property in Potter that will be the primary location of the cracker plant IF it gets built (see Shell Buys Beaver County, PA Property for Future Cracker Plant). Also in June Shell received an air quality permit from the PA Dept. of Environmental Protection (see Shell Receives Air Quality Permit from PA DEP for Cracker Plant), a critical authorization for them to proceed. The latest evidence? Shell just began construction of a bridge to haul dirt over a major highway without disrupting traffic…
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Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell

Human Skulls & Bones Found at Shell PA Ethane Cracker Site
August 21, 2015August 21, 2015

Yes, despite oil prices in the basement and despite Shell’s announcement they are laying off 6,500 people worldwide and reducing spending by $7 billion *this year* (see Shell Lays Off 6,500 Worldwide – But Where?), despite all of that, Shell continues to work to prepare the future site of an ethane cracker plant in Monaca (Beaver County), PA. How do we know? In their digging at the site, workers for Shell have unearthed human skulls and other bones, likely from an old family cemetery that somebody long forgot about…
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Allegheny County | Energy Companies | Pennsylvania | Shell

Shell Lays Off 6,500 Worldwide – But Where?
August 11, 2015August 11, 2015

Shell recently announced that the company would reduce spending by $7 billion in 2015–a 20% cut from 2014 spending levels. Ouch. Even more painful, Shell said they are cutting more than 6,500 jobs globally (they employ 94,000) in preparation for a long period of low oil prices. How will Shell’s announcement affect their northeast drilling program (SWEPI) and the planned ethane cracker plant in Beaver County, PA? We don’t know. There are rumors circulating about Shell’s Pittsburgh office–but since we can’t verify those rumors, we won’t repeat them. As for the ethane cracker plant, there’s never a shortage of rumors that say it will, and won’t, get built. Here’s what is known…
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Air Quality | Anti-Drilling/Fossil Fuel | Beaver County | Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Regulation | Shell

Big Green Groups File to Block Shell Cracker Air Quality Permit
August 7, 2015August 7, 2015

Simply amazing. Two Big Green environmental groups–the Philadelphia-based Clean Air Council and the Washington, DC-based Environmental Integrity Project–are trying to scuttle the Shell ethane cracker in the Pittsburgh area that would bring thousands of new jobs and eventually pump something like $20 billion into the regional economy, with a ripple effect of jobs and prosperity for the entire tri-state region. The two groups have just filed an appeal with state regulators saying the PA Dept. of Environmental Protection (DEP) erred when granting an air quality permit that will allow the plant to operate (see Shell Receives Air Quality Permit from PA DEP for Cracker Plant). These two litigious Big Green groups hope to tie the whole matter up in court and “encourage” (scare) Shell away from its investment. It’s hard to put into words the depth of depravity of people who do disgusting things like this…
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