The Impact Of Oil Price Volatility On The Strategy Of Royal Shell Oil Plc

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Critical evaluation of the impact of oil price volatility on the strategy of ROYAL SHELL OIL PLC.

INTRODUCTION

Royal Shell plc incorporates a group of global energy and petrochemical companies with its headquarters in The Hague, the Netherlands and its parent company is the Royal Dutch Shell plc, which is incorporated in England and Wales. Its current CEO is Ben van Beurden.
Royal Shell Plc is chosen for this analysis because of its structured decision to balance growth with returns and its bold acquisition of BG Group, a major gas company, although it has the option of cutting spending in the current downturn of low oil price. The company’s long-term view in investing in low carbon energy – LNG and carbon capture storage indicates
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(Oil & Gas Majors: Fact Sheets, Carbon Tracker Initiative 2014).

STRATEGIC CHOICES MADE BY SHELL DURING THE FALL IN PRICE OF OIL IN 2014-2015
The fall in oil prices in 2014 is a part of the volatility that the oil and gas sector normally face. This has caused a critical selection on investment decisions as well has keeping track on cost so as not to bring about an unwanted increase.

INVESTMENT
Facilities to capture and store CO2 should be a key part of the global solution. Shell is focusing on projects so as to capture and safely store CO2 from a Canadian oil sands facility which is expected to be finished by the end of 2015. There is also a plan for carbon capture and storage (CCS) facility at the Peterhead gas-fired power plant in the UK.
Shell strategizes on further substantial growth once Gorgon, Prelude and other planned projects are on stream. Shell chases the trading and arbitrage activities in the global LNG portfolio, thereby adding more value to the bottom line in this important growth business.
Resources plays, such as shale oil and gas, are a theoretically substantial opening for the oil and gas industry globally. Shell looks to where value can be added in the industry as a whole. The Shell resources plays are controlled by North American gas and liquids-rich production.
Shell made plans on investing in economically-sound projects in key growth areas, such as deep water and LNG. There is also need
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