Shell to bundle loss-making North American shale ops in restructure

|By:, SA News Editor

Royal Dutch Shell (RDS.A, RDS.B) says it is reorganizing its North American shale gas and oil operations into a single business in an attempt to turn around their performance after losing ~$3B last year, and warns of the possibility of further writedowns on the value of its shale assets if results fail to improve as it hopes.

Shell also says it is reducing overall North America capital spending including acquisitions by a further 20% this year.

The shale operations are one of Shell’s biggest headaches: They have ~$24B of capital invested in them, more than 10% of Shell’s total, yet their losses last year cancelled out all of Shell's profit from U.S. deepwater in the Gulf of Mexico and Canadian oil sands.