Shell's cost cutting continues with North Sea layoffs


Royal Dutch Shell (RDS.A, RDS.B) says it will cut ~250 jobs at its onshore North Sea oil operations by the end of this year as part of a business restructuring.

The cut is part of Shell's cost-cutting drive to boost revenue that will include the sale of $15B in assets around the world, including North Sea operations.

Shell's announcement follows a similar move in June by Chevron, which said it would cut ~225 jobs in its North Sea operations.

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Comments (2)
  • Degenerate Gambler
    , contributor
    Comments (1001) | Send Message
     
    This is how taxes work, cause and effect.

     

    UK raises taxes on companies drilling in the north sea = companies lay off employees in the north sea.

     

    Nice job UK gov't.
    12 Aug 2014, 02:18 PM Reply Like
  • retired358
    , contributor
    Comments (301) | Send Message
     
    Yes, one could consider this to be part of the reduction in costs and invested capital/assets.

     

    However, selling assets and reducing staff is the easy part. I don't see many announcements of new projects or acquisitions that provide a better return.

     

    Absent this, we should continue to see reductions in production, earnings, cash flow (before investments/capital expenditures) and reserves (the result of disposed assets - impacted by changes in prices on production and increases due to projects already in the pipeline/coming on-stream). One thing that should improve is ROI (due to the disposal of assets with lower ROI).
    12 Aug 2014, 02:32 PM Reply Like
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