Shell’s Simon Henry says its not difficult to drill in the Arctic Seas
How reassuring.
According to a Bloomberg article, Simon Henry, a mathematician, accountant, and the Chief Financial Officer of Royal Dutch Shell Plc, has stated in relation to drilling for oil in Arctic seas, off Alaska –
“Its not that difficult to drill up there.”
The long term bean counter is also quoted as saying “Thirty years ago we went there and drilled several wells pretty quickly.”
His bold statements would have more weight if uttered by someone with expertise in offshore drilling.
Some might describe his comments as ill informed and even reckless, bearing in mind Shell’s recent shambles that heavily damaged the companies reputation.
As a finance man, did Simon Henry have any role in the decision to send a rig into stormy seas off Alaska in an effort to evade tax?
The one that ran aground and put lives at risk.
This extract from a US News & World Report article published in April 2014 is typical of many comments published on the subject:
Notably, in September 2012, a Royal Dutch Shell drilling rig ran aground in Alaska as workers attempted to tow it beyond the state’s waters. A Coast Guard report released Friday found that the Anglo-Dutch oil company decided to move the rig – and insisted on doing so through dangerous stormy weather – to avoid paying new Alaskan taxes. The report also detailed myriad safety issues.
Shell Executive David Lawrence of Alaska, paid the price for the debacle.
Simon Henry seems to think we have already forgotten about those dramatic events.
That would be another huge miscalculation on the part of Shell.
UK News Reports Royal Dutch Shell Quarterly Result
DAILY EXPRESS: Oil giant Shell floats as prices sink
Extracts
ROYAL Dutch Shell unleashed an industry-beating rise in quarterly profit yesterday, despite falling oil prices, and vowed to keep slashing less-lucrative projects.
Finance chief Simon Henry said: “It’s quite likely we’ll take a very close look at investment levels where we have flexibility if we see oil price weakness persisting.”
DAILY MAIL: Shell posts forecast-busting profit rise of 31pc despite slump in oil prices
Extracts
Shell has managed to weather the sharp drop in the price of oil since June, announcing forecast-busting results for the third quarter.
Oil and gas production slipped by 5 per cent compared with the same period last year due to the expiration of its licence in Abu Dhabi, as well as security impacts in Nigeria and divestments.
The oil major also announced that Charles Holliday, a board director since 2010 and former chairman of Bank of America, will take over from outgoing chairman Jorma Ollila in 2015. He will be the Dutch-based group’s first American chairman.
THE GUARDIAN: Shell appoints former Bank of America boss Charles Holliday as new chairman
Extract
The announcement came as Shell’s profit rose strongly in the third quarter year on year, but the company warned it had yet to feel the full effect of the falling oil price.
The Independent: Shell puts rival BP in the shade after profits jump despite fall in oil prices
Extracts
Although Shell beat City hopes, profits were down on the $6.1 billion seen in the April-June quarter due to the plunging oil price, which has plummeted by more than 20 per cent since the summer.
Oil and gas prices have continued to fall since the end of the quarter, threatening further revenue falls for Shell and its competitors.
Shell chief executive Ben van Beurden said: “The recent decline in oil prices is part of the volatility in our industry. It underlines the importance of our drive to get a tighter grip on performance management, keep a tight hold on costs and spending, and improve the balance between growth and returns.”
Shell Moerdijk Impact From Steam Leak
Styrene prices shot up following a steam leak at Shell’s steam crackers at Moerdijk in the Netherlands early this month.
Shell had to declare force majeure on ethylene and propylene at the unit which makes basic materials for the chemical industry and employs about eight hundred people.
The main repairs will last until at least the end of 2014, with some work not completed until an unspecified date in 2015.
The plant supplies steam to all the plants at the complex.
A Shell spokesman admitted that the steam leak resulted in flaring activity.
Extracts from related Wikipedia Styrene Article
“Styrene is regarded as a “hazardous chemical”, especially in case of eye contact, but also in case of skin contact, of ingestion and of inhalation, according to several sources. The International Agency for Research on Cancer considers styrene to be “possibly carcinogenic to humans”.
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