Investing and choosing the right plays in European Big Oil isn't always cut and dry. The supermajors all have vastly different business profiles with different gives and takes, but as the recent market rout hasAre you an investor looking for quality research within the oil and gas industry? Energy Investing Authority is the source. While commodity prices are up and so too are shareholder dividends, it can be easy to chase yield and buy the wrong firms. Income investors cannot afford those mistakes.Deep-dive ...

The Trump Administration has escalated its crackdown on Venezuela’s oil and gas industry, revoking key licenses for international energy majors, including Shell plc (SHEL) , BP plc (BP) and Chevron Corporation (CVX) . These licenses had previously allowed operations in offshore Venezuelan gas fields and the export of resources to neighboring Trinidad and Tobago.The move affects two major gas projects — Shell’s involvement in the Dragon gas field and BP’s role in the Cocuina-Manakin project. Both projects we ...

Shell plc (SHEL) , the British energy giant, has hired Stena Drilling for work offshore Suriname. The energy giant has awarded a contract to Stena Drilling, via its subsidiaries KE STP Company and BG International Limited Suriname Branch, for the Stena DrillMAX drillship. This drillship is a Mobile Offshore Drilling Unit, commonly used for exploration and production activities in offshore environments.Shell's drilling campaign is anticipated to commence in the second half of this year. Stena Drilling has me ...

Core Insights - The ongoing U.S.-China trade war is significantly impacting oil prices, with WTI crude dropping below $60 per barrel and Brent crude falling around $62, marking the lowest levels since the pandemic [1][2] - The cumulative U.S. tariffs on China have reached 104%, raising recession fears and negatively affecting oil demand outlook, with Goldman Sachs and JPMorgan increasing recession probabilities to 45% and 60% respectively [2][3] - Major oil companies like ExxonMobil, Chevron, and Shell have seen significant stock declines, with ExxonMobil down 15.3%, Chevron down 18.7%, and Shell down 18.2% since the tariff announcement, indicating the sector's vulnerability to trade-related economic concerns [4] Oil Market Dynamics - OPEC+ has announced a production increase of 411,000 barrels per day, adding pressure to an already softening demand environment, which may force companies to reevaluate capital spending plans [6] - The mismatch between supply and demand is leading traders to expect oil prices to settle in a lower range, limiting upside potential for energy equities [7] - Integrated energy firms face challenges as upstream profitability is threatened by low oil prices, while downstream operations may benefit from cheaper crude [10][12] Strategic Implications - The current low oil price environment may align with broader economic strategies aimed at stimulating domestic manufacturing by lowering input costs, despite the negative impact on oil producers [9] - Companies may focus on cost discipline, delaying capital-intensive projects and optimizing operations to protect margins in this challenging environment [12] - The geopolitical landscape and potential supply-side interventions from OPEC+ will be critical factors influencing future market conditions [11][12]

智通财经4月9日电，据报道，美国撤销BP和壳牌在委内瑞拉水域的项目许可。 ...

SLB (SLB) , a global oilfield services firm, has announced a collaboration with the British energy giant Shell plc (SHEL) . Under this partnership, SLB will deploy the Petrel subsurface software across Shell’s global asset base. The Petrel subsurface software, developed by SLB, is a powerful tool for exploration and production that enables its users to analyze subsurface data and gain more information about the reservoir.The software will be aimed at enhancing Shell’s digital competencies. The adoption of t ...

Core Viewpoint - Shell plc has revised its liquefied natural gas (LNG) production outlook for Q1 2025 due to severe weather disruptions and unexpected maintenance issues in Australia [1][2]. LNG Production Outlook - The updated LNG output is projected to be between 6.4-6.8 million metric tons, down from the previous estimate of 6.6-7.2 million tons, indicating challenges in maintaining production levels [2]. - Adverse weather conditions, particularly cyclones, and unplanned maintenance have significantly disrupted operations, especially at the Prelude floating LNG facility in Western Australia [3][4]. Integrated Gas Division - The outlook for the integrated gas division has also been adjusted, with expected output now in the range of 910,000-950,000 barrels of oil equivalent per day (boe/d), reduced from 930,000-990,000 boe/d [6]. - The reduction is linked to unplanned maintenance in Australia, but proactive measures have helped control the impact on overall financial performance [6][7]. Exploration and Speciality Products - Shell anticipates a $100 million exploration write-off in Q1 2025, indicating potential challenges in exploration and project development [8]. - The marketing business, particularly in speciality products and services, is expected to face headwinds, with lower results anticipated due to current market dynamics [9]. Upstream Oil and Gas Output - The upstream oil and gas output estimate has been revised to a range of 1.79-1.89 million boe/d, slightly down from the previous guidance of 1.75-1.95 million boe/d, reflecting ongoing operational challenges [11]. Strategic Response - Shell's recent updates demonstrate its efforts to navigate operational challenges while maintaining its position in the global energy sector, highlighting the dynamic nature of the energy market [12]. - The company's ability to adapt its strategies in response to setbacks will be crucial for sustaining long-term growth and success [12][13].

Shell plc’s (SHEL) subsidiary Shell Offshore Inc. has awarded a significant contract to offshore engineering and services player Subsea 7 S.A. (SUBCY) for its Sparta deepwater development, located in the U.S. Gulf of Mexico. The project is centered at Garden Banks block 959, off Louisiana's southeastern coast, where waters reach depths of up to 1,635 meters.The contract, classified as “sizeable,” will be valued between $50 million and $150 million and will involve transportation and installation of a floati ...

Core Insights - The company provides an updated outlook for Q1 2025, with expectations subject to finalization of results to be published on May 2, 2025 [1] Integrated Gas - Adjusted EBITDA for Integrated Gas shows production expected to be between 910 - 950 kboe/d, slightly up from 905 kboe/d in Q4 2024, impacted by unplanned maintenance [2] - LNG liquefaction volumes are projected to decrease to 6.4 - 6.8 MT from 7.1 MT due to weather impacts and maintenance [2] - Underlying operating expenses (opex) are expected to be between 0.9 - 1.1 billion [2] Upstream - Adjusted EBITDA for Upstream indicates production expected to range from 1,790 - 1,890 kboe/d, down from 1,859 kboe/d in Q4 2024 [4] - Underlying opex is forecasted to be between 2.1 - 2.7 billion [4] - Pre-tax depreciation is expected to be between 1.9 - 2.5 billion, while the taxation charge is projected to be between 2.4 - 3.2 billion [4][5] Marketing - Adjusted EBITDA for Marketing shows sales volumes expected to be between 2,500 - 2,900 kb/d, down from 2,795 kb/d [6] - Underlying opex is anticipated to be between 2.3 - 2.7 billion [6] - Pre-tax depreciation is projected to be between 0.5 - 0.7 billion, with a taxation charge expected to be between 0.2 - 0.5 billion [6] Chemicals and Products - The indicative refining margin is expected to increase from $5.5/bbl in Q4 2024 to $6.2/bbl in Q1 2025 [10] - Chemicals sub-segment adjusted earnings are expected to be in line with Q4 2024 at $126/tonne [10] - Refinery utilization is projected to be between 83% - 87%, up from 76% [10] Renewables and Energy Solutions - Adjusted earnings for Renewables and Energy Solutions are expected to remain at (0.3) billion [11] Corporate - Adjusted earnings for Corporate are projected to be between (0.6) - (0.4) billion, down from (0.4) billion in Q4 2024 [12] Shell Group - Cash flow from operating activities (CFFO) indicates tax paid expected to be between 2.5 - 3.3 billion, down from 2.9 billion [13] - Working capital is expected to range from (5) to 0 billion, including approximately 0.5 billion of deferred German Mineral Oil Taxes settlements [13] - The Q1 2025 net debt movement will reflect a ~$1.5 billion increase related to loan facilities from the SPDC sale [14] Other Considerations - The share of profit/loss from joint ventures and associates in Q1 2025 is expected to be around $0.2 billion, with exploration well write-offs anticipated at $0.1 billion [5] - Trading & Optimization results are expected to align with Q4 2024 despite a higher non-cash impact from expiring hedge contracts [3]

Company Performance - Shell's stock closed at $72.72, reflecting a -0.45% change from the previous day, underperforming the S&P 500 which gained 0.67% [1] - Over the past month, Shell's shares increased by 10.35%, outperforming the Oils-Energy sector's gain of 3.06% and the S&P 500's loss of 5.28% [1] Upcoming Earnings - Shell is expected to report earnings of $1.65 per share, indicating a year-over-year decline of 30.67%, with projected revenue of $79.72 billion, a 6.72% increase from the previous year [2] - For the entire fiscal year, earnings are estimated at $7.22 per share and revenue at $305.26 billion, reflecting changes of -3.99% and +5.62% respectively from the prior year [3] Analyst Estimates and Valuation - Recent adjustments to analyst estimates for Shell indicate evolving short-term business trends, with positive revisions suggesting optimism about the company's profitability [3] - The Zacks Rank system, which reflects estimate changes, currently ranks Shell at 3 (Hold), with a Forward P/E ratio of 10.12, higher than the industry average of 8.47 [5] - Shell's PEG ratio stands at 1.64, compared to the industry average of 1.39, indicating a premium valuation [6] Industry Context - The Oil and Gas - Integrated - International industry, part of the Oils-Energy sector, holds a Zacks Industry Rank of 140, placing it in the bottom 44% of over 250 industries [7] - Historically, the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]