Member access

4-Traders Homepage  >  Shares  >  Euronext Amsterdam  >  ROYAL DUTCH SHELL A    RDSA   GB00B03MLX29

ROYAL DUTCH SHELL A (RDSA)

400
SummaryQuotesChart AnalysisNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll news 

ROYAL DUTCH SHELLA : Shell Remains Committed To Natural Gas Strategy - CEO Voser

05/22/2012 | 08:51am US/Eastern

Royal Dutch Shell PLC (RDSB) believes rising natural gas demand will underpin its future profits, even though oil pricing still accounts for 80% of its margins, its Chief Executive Peter Voser said Tuesday.

The oil giant, which expects to produce more natural gas than crude oil for the first time this year, has invested heavily in gas assets in the U.S. and Australia. However, U.S. gas prices have fallen to decade-lows as new production techniques have resulted in a glut of supply from shale rock sources.

But despite this the long-term pricing outlook for natural gas remains strong, said Voser, as Asian-Pacific customers are increasingly switching from powering their industrial plants with oil to gas.

However "margins are driven 80% by the oil side," he said, referring to Shell's ability to transform gas into more valuable fuel products like diesel that sell at prices linked more closely to crude. The company, the world's largest shipper of liquefied natural gas, is also able to benefit from the difference in regional gas prices.

Voser also said Shell remains committed to the fully-integrated operating model, where a single oil company extracts, transports, refines and sells hydrocarbon products.

While some analysts have argued that major oil companies like Shell should sell off their refining businesses to better realize high commodity prices, Voser said the long-term outlook for the model was good.

"We will drive an integrated philosophy because that is where the future growth will lie," said Voser, who was addressing Shell's annual shareholder meeting.

-By Alexis Flynn, Dow Jones Newswires; +44 207 842 9471; alexis.flynn@dowjones.com

Latest news on ROYAL DUTCH SHELL A
5h ago ROYAL DUTCH SHELL A : *lbbw cuts shell price target to 2600 pence - 'buy'
6h ago ROYAL DUTCH SHELL A : Shell Loses N23 Billion Over Insecurity in Nigeria, Others
1d ago ROYAL DUTCH SHELL A : *s&p capital iq cuts shell b price target to 2293 pence - ..
1d ago ROYAL DUTCH SHELL A : Shell's $5.8bn Q3 Revenue Expected
1d ago ROYAL DUTCH SHELL A : Shell faces fresh hurdles on oil block divestment
1d ago HENGYI PETROCHEMICAL : postpones commissioning of Brunei refinery to late 2017
1d ago ROYAL DUTCH SHELL A : Third Quarter 2014 Results Announcement
1d ago ROYAL DUTCH SHELL A : MOGE says Myanmar would launch oil and gas auction in 2015
1d ago Algeria plans to launch new bidding round to offer oil and gas blocks
1d ago UK MIDDAY BRIEFING : Royal Dutch Shell Taps New Chairman, Lifts Profit
Advertisement
Chart
Duration : Period :
ROYAL DUTCH SHELL A Technical Analysis Chart | RDSA | GB00B03MLX29 | 4-Traders
Income Statement Evolution
More Financials
Dynamic quotes  
ON
| OFF