Tree | Wonder if Shell would like an interest in the largest, cheapest and closest onshore gas fields in E Asia?? ********** Asia to Drive Natural Gas Demand Over Oil: Shell CEO
Published: Friday, 27 Jan 2012 | 6:09 AM ET
By: Rajeshni Naidu-Ghelani Despite natural gas prices falling to near 10-year lows last week, Royal Dutch Shell’s CEO Peter Voser says demand for gas will be much higher than oil in the long term with the Asia-Pacific region driving the sector’s growth. “I think you cannot travel around Asia at the moment without getting the question, ‘can you sell us some LNG (liquefied natural gas)?’” Voser told CNBC on the sidelines of the World Economic Forum in Davos. “The market (for natural gas) has actually started to dry out. We need new projects to come on stream and a few are coming on in the next few years. But that’s not sufficient, we need to invest further,” he said. Low demand and high inventory levels in the U.S. has deterred some companies from future investments, but according to Voser, America’s waning demand doesn’t reflect what is happening in the rest of the world. “If you’re talking about North American gas, clearly the current price levels are not sufficient to actually bring all the developments forward. You have seen a lot of companies starting to cut their production.” With oil [CLCV1 99.58 -0.12 (-0.12%) ] and gas [NGCV1 2.678 0.073 (+2.8%) ] production normally taking seven to eight years to come on stream, Voser says Shell [RDS.A 70.30 -1.24 (-1.73%) ] is sticking to its long-term strategy to produce more natural gas. “We produce more gas in 2012 now, 52 percent versus 48 percent oil,” he said. “Clearly Asia-Pacific, that’s going to be the driver.” |
Tree | Shell is flush with cash (as are the other SM’s) and sold 12% more LNG in 2011. Let them bring those billions to the front door. ********** Royal Dutch Shell today said that it has sold 18.83 million tonnes of LNG in 2011, 12% more than in 2010, reflecting the successful ramp-up of Qatargas 4 LNG during the year as well as higher volumes from Nigeria LNG and the Sakhalin II project.
Shell also said LNG sales volumes were at 4.84 million tonnes in fourth quarter, 10% higher than in the same quarter a year ago.
Financial Highlights
• Royal Dutch Shell’s fourth quarter 2011 earnings, on a current cost of supplies (CCS) basis, were $6.5 billion compared with $5.7 billion in the same quarter a year ago. Full year 2011 CCS earnings were $28.6 billion compared with $18.6 billion in 2010.
• Fourth quarter 2011 CCS earnings excluding identified items were $4.8 billion compared with $4.1 billion in the fourth quarter 2010, an increase of 18%. Full year 2011 CCS earnings excluding identified items were $24.7 billion compared with $18.1 billion in 2010.
• Basic CCS earnings per share excluding identified items for the fourth quarter 2011 increased by 16% versus the same quarter a year ago. Basic CCS earnings per share excluding identified items for the full year 2011 increased by 35% versus a year ago.
• Cash flow from operating activities was $6.5 billion for the fourth quarter 2011 and $36.8 billion for the full year. Excluding net working capital movements, cash flow from operating activities was $7.2 billion for the fourth quarter 2011 and $43.2 billion for the full year.
• Gearing was 13.1% at the end of 2011 versus 17.1% at the end of 2010.
• A fourth quarter 2011 dividend has been announced of $0.42 per ordinary share and $0.84 per American Depositary Share (ADS), unchanged from the US dollar dividend per share and per ADS for the same period in 2010.
• A first quarter 2012 dividend is expected to be declared at $0.43 per share and $0.86 per ADS, an increase of 2% compared with the first quarter 2011 US dollar dividend.
Royal Dutch Shell CEO Peter Voser commented:
“Our fourth quarter results were impacted by a sharp downturn in industry refining margins and North American natural gas prices. The global economy and energy markets are likely to see continued high volatility. Despite the near-term uncertainties, Shell’s focus remains on through-cycle investment for sustainable growth.
I am pleased with our delivery in 2011, focusing on improving our operating performance and ramping up our growth projects. We have made good progress with portfolio development during 2011, with new opportunities in global gas, liquids-rich shales and exploration, alongside some $7.5 billion of divestments as part of Shell’s drive for on-going capital efficiency and portfolio improvement.” |
