Royal Dutch Shell (RDS-B)
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.
Recs
The economic recovery will be anemic and probably W-shaped, forcing the oil and gas inventories to continue stock piling. Any short term strength in oil prices will be supported by a flight from a weakening dollar, not from fundamental supply/demand economics. The oil price will again fall (albeit how much is up for debate) hurting yet another quarter of company profits. I predict this will be a trend for Q4 2009 until Q2 or Q3 of 2010. After this unstable period of time, I would bet that supply/ demand economics will function correctly and oil prices will be reflective of thier true price and not due to the inherent instability of investor speculation.
Recs
Oil shale is a low grade crude that needs to be mixed with higher grade oil to make synthetic crude. Also the amount of energy used to get a barrel is enourmous. They have to also use about a 3 to 1 ratio in potable water to extract the oil. Potable water better used to supply water starved ares.
Shell is running out of oil, they have been, and have no new inventories, even after scurrying to buy every possible oil field avaliable.
BTW, Oil shale is only worth it when prices are way higher than this. Plus it cant be sold as Sweet or Brent Crude.
Oil from oil sands is like turning gold to lead.
Recs
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..........
Recs
These genocidal lunatics will be stopped.

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