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Shell Oil Earns $8 Billion Profit After Failed Attempt To Drill In Arctic Ocean

Shell Oil Earns $8 Billion Profit After Failed Attempt To Drill In Arctic Ocean

Written by Ryan Koronowski

The Earth’s atmosphere will soon contain more than 400 parts per million of carbon dioxide for the first time in human history. In related news, another large oil company made billions of dollars selling the world more fossil fuels.

Royal Dutch Shell pulled in nearly $8 billion in profits for the first quarter of this year, a 3.5 percent jump from the same three months last year. The corporation is Europe’s largest oil and gas company. The higher profits were made possible, per the BBC, from “strong refining and trading performances” and higher natural gas prices in the United States. Shell is looking to double its share in the global gas business:

Shell now has about 7 percent of the world L.N.G. business, with ambitions to more than double that share through new projects and acquisitions. Last year, L.N.G. and related businesses earned Shell $9.4 billion of its $25.1 billion in profit.

CEO Peter Voser, who started as CEO in 2004, announced his retirement next year, and warned the industry of “significant” price volatility due to global instability. Here are some key facts on Shell from this quarter:

  • Shell raked in $7.95 billion in profits in Q1. Fox News focused on the fact that “net profits” were down from $8.74 billion to $8.18 billion from the first quarter of last year.
  • Bloomberg’s survey of 11 analysts predicted Shell would make just $6.4 billion.
  • Oil and gas production was up 2 percent from first quarter 2012, to 3.6 million barrels of oil equivalent per day.
  • The company has $17.6 billion in cash-on-hand.
  • Shell received a $200 million annual tax break in 2011.
  • Dividends increased 5 percent from first quarter 2012, while Shell spent half a billion dollars to buy back 16.1 million shares.
  • Outgoing CEO Voser’s pay package, when combined with a significant bonus from last year, totaled $6.7 million. Bonus stock shares add millions to the total package.
  • Shell spent over $2 million on lobbying in the first quarter of 2013. For context, Shell was the top lobbying spender of the oil and gas industry last year, totaling $14.4 million.

What does Shell have to look forward to this year? It will partner with the Abu Dhabi National Oil Company to develop the Bab gas field, which contains “sour gas, a poisonous and foul smelling product.” One thing it will not be doing is drilling in the Arctic Ocean. After spending about $5 billion on preparing to drill in such risky conditions, Shell suspended operations last year and announced it would not attempt to drill again in 2013. Other oil companies are starting to realize Arctic offshore drilling is a bad idea as well.

This post was originally published by Climate Progress.

 

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108 comments

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1:40AM PDT on May 23, 2013

Thanks for sharing this article.
Since a large number of our elected representatives refuse to work together for the greater public good, we must move from being disgusted & frustrated, to peaceful effective actions that can lead to real lasting change. I don’t have all the answers, but one clear effective action is for each of us to take all steps possible in order to stop consuming products with fossil fuel, and as a result lower demand and incentives that drive these activities.

3:54PM PDT on May 21, 2013

All too depressing - insane world where greed and destruction is rewarded and kindness and empathy is sneered at - God help us all...

7:30AM PDT on May 9, 2013

there is no end to their greed.

7:17AM PDT on May 8, 2013

Greed, greed and more greed. When will it end? When we have destroyed all our habitat? Very sad.

9:40PM PDT on May 7, 2013

DEMONS.......their gains will be their end

10:20AM PDT on May 7, 2013

There is no excuse for Shell to keep getting handouts!

9:27AM PDT on May 7, 2013

Shame!

8:10AM PDT on May 7, 2013

that's not right that they get all these tax breaks and the CEO makes so much money and that they have not yet realized how horribly wrong it would be and disastrous if they drilled in the Arctic. We need to shell out money to help the Arctic polar bear and figure out how to slow down ice melting or we will lose all the animals in the Arctic. This is the most important issue, not making billions of dollars and killing off the environment and animals so we can get our hands on more money. Its not right trying to destroy what god made because we are so greedy we need more and more money..its so disturbing..

7:59AM PDT on May 7, 2013

Doesn't sound like they need to drill anywhere else. Sounds like they have all the oil they need.

5:14AM PDT on May 7, 2013

Noted.....See Peggy M.

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