Shell dividend cut puts Big Oil investment case in focus. For Ben van Beurden, the decision to cut Royal Dutch Shell’s dividend for the first time since the 1940s was difficult but necessary to preserve the long-term health of the company he runs. Investors, however, are not all convinced. The oil supermajor is battling an unprecedented demand and price collapse triggered by coronavirus. But Shell is only too aware that the crisis is ushering in a “a new reality”. Economic uncertainty could last years, as could lower and less stable commodity prices, all as pressure mounts from investors and climate activists to divert funds away from fossil fuels. The $10bn it will save this year from the payout cut could help buffer the financial distress.
FT 1st May 2020 read more »
Shareholders are braced for a £35 billion cut to dividend income this year after Royal Dutch Shell stunned the market by cutting its payout for the first time since the Second World War. The Anglo-Dutch oil giant relinquished its crown as the FTSE 100’s richest source of dividends after slashing the first-quarter payment by two thirds due to the plunging oil price. Echoing dozens of listed companies, it described the cut as “prudent” given the cloud of uncertainty the Covid-19 pandemic has cast over the global economy.
Times 1st May 2020 read more »
Oil demand and prices could stay low until 2023, Royal Dutch Shell warned as the bleak outlook forced it to cut its dividend for the first time since the Second World War. The Anglo-Dutch oil giant’s boss, Ben van Beurden, said yesterday that slashing its shareholder payout from $15 billion to $5 billion a year was “the only sensible decision” it could take given the unprecedented uncertainty. “We have no idea really what could happen,” he admitted.
Times 1st May 2020 read more »
The coronavirus pandemic is sending shockwaves through the energy industry, with global carbon emissions to drop by almost ten per cent this year as a result of slumping energy demand. With planes grounded and factories shut, global demand for energy has plummeted. Even as the lockdowns gradually lift, the resulting economic slowdown will dampen energy demand for the year, according to the International Energy Agency (IEA).
iNews 30th April 2020 read more »
The age of diesel and petrol cars is ending. It’s time to do the same for fossil fuel heating. It’s hard to convince anyone in North America about the evils of gas furnaces (or boilers, as they are called in Europe where most people heat with hot water) when gas is so cheap and the industry has done such a good job of brainwashing us about how clean it is. And it is true that it is lower in CO2 emissions than any other fossil fuel. In the Netherlands they have a clear deadline for getting out of gas by 2050. According to our Dutch members this has greatly helped, and slightly complicated, the conversation with their citizens. Gone are the discussions about simply trying to make current systems more efficient and in their place is a clean slate of new and transformative options.
Tree Hugger 29th April 2020 read more »
Public lands across America, many of which remain closed to visitors due to the coronavirus pandemic, are being offered up to industry by the Trump administration. The Bureau of Land Management (BLM), part of the Department of Interior, is pushing ahead with plans to lease hundreds of thousands of acres of public lands to fossil-fuel and mining companies – despite recent steep declines in oil prices and a glut of supply. The Department of the Interior is led by David Bernhardt, a former oil and gas lobbyist.
Independent 30th April 2020 read more »
Guardian 30th April 2020 read more »