Royal Dutch Shell (RDS-B)

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The Company consists of the upstream businesses of Exploration & Production and Gas & Power and the downstream businesses of Oil Products and Chemicals. It also has interests in other industry segments such as Renewables and Hydrogen.

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Avatar jimdcraig (< 20) Submitted: 1/25/08 7:57 AM : Start Price: $71.56 RDS-B Score: -10.51

Shell is a dinosaur. It lacks the access to resources of the National Oil Companies and cannot compete with the cost structure of the independents. The National Oil Companies don't need the Shells anymore to develop their fields, they just call Halliburton or Schlumberger. The majority of Shell income still comes from fields discovered decades ago. Furthermore Shell's internal structures make it less entrepreneurial and nimble than its competitors..........

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Avatar dejonese (76.11) Submitted: 4/15/08 3:14 PM

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They have the lowest reserve renewal ratio... but guess who has the most patents for alternative energy from all the oil companies??
Also, shell has tried and tested a method for extracting oil from oil shale at an average cost of $30-40. They have exclusive rights to the biggest oil shale resources right here in the US!!! As long as a barrel of oil is above $40, I'd say their renewal strategy looks darn good.
Also, they are still buying back shares and trading at the lowest p/b, p/s, and p/e of any major oil co's.
As for the clumsy, corporate structure... absolutely agree - but that hasn't stopped GE, has it??

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Royal Dutch Shell (RDS-B)

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