Non commercial...going to be written off. Whats left in the operated funnel now ?
https://www.reuters.com/business/energy/shell-writes-down-namibia-oil-discovery-2025-01-08/
39 replies (most recent on top)
Chevon just announced their Namibia dry hole today
No soup for you.
they cancelled construction of the west hollow/STCH cafeteria right after just enough demolition occurred to close it and the starbucks for good. they have sat under plastic sheets for over 2 years.
the new “cafeteria” is literally tables set up under the stairs where you get served a 12$ ladle of soup.
if you think the woodcreek cafeteria is bad try west hollow. the senior LT may legitimately be trying to sabotage west hollow to force people out.
want to hear a story about the woodcreek cafeteria?
remember how they cancelled all services on friday for quite some time in 2024/25 to “save money”?
i overheard a higher up guy saying how pi---d some other higher up visiting from the UK was that the “canteen” wasn’t open that friday so an employee had to go basically be a door dasher for the team instead
so he goes into a meeting later and gretchen is there. and she asks the group why there isn’t lunch service on fridays. somebody says it saves “seven thousand”. and they say “7000 a what? a week, a month?” and they answer “a year”. so she and another guy pull out their GCCs and offer to split the 7k a year. next thing you know we get lunch on friday back.
can you believe these people want us to return to office yet cut service to save like 50$ a friday? surely even just two people going in friday makes more than 50$? how does this happen?
anyway feel free to call me a liar that’s fine. but you should at least know it’s plausible even if you don’t believe it or you’re way out of touch
Well, I think most thinking people acknowledge the French possess a certain measure of moral flexibility.
here we go again ..
TotalEnergies have a new billion-barrel discovery on its hands in Namibia
https://www.upstreamonline.com/exclusive/does-totalenergies-have-a-new-billion-barrel-discovery-on-its-hands-in-namibia-/2-1-1764520?utm_campaign=2025-01-15&utm_content=daily&utm_medium=email&utm_source=email_campaign&utm_term=upstream
Shell recently confirmed - its Namibia discoveries were uneconomical and wrote off $400M.
https://www.upstreamonline.com/exploration/orange-basin-bubble-bursts-as-shell-says-its-namibia-discoveries-are-uneconomic/2-1-1762537
While we’re at it maybe we can get them to turn the heat back on and résumé bathroom cleaning and resupply.
WCK Cafeteria is 2/5 on Yelp. Some solid feedback there. Surprised that hasn’t been addressed by leadership. We need to focus on what matters at the next townhall.
What’s your strategic plan for the Woodcreek cafeteria?
yeah that’s right. i’m in strategy and i told the leadership team to sell the permian to reduce our carbon footprint, do renewables instead, and not worry about making money hand over first
i also told them to turn off convent for the same reasons 😈
no .... other than prevailing prices ....
Your misguided and uninformed views are exactly the reason Shell leadership made the decision to exit .... I am guessing you work in Strategy ?
wake up and face the music
facts -
shell bought the permian at peak prices
shell sold the permian at bottom prices
others have made better economics on the same acreage and fields, in some cases the exact same wells
the results of the permian team su-ked, and this damaged the company, deal with it
Maybe you should have asked anyone that actually has a clue .....
The story is a bit more complicated than that ... and your nrs are off .....
what id like to know is how many times our senior leaders decided not to go forward with an asset because their pay depends on meeting carbon targets
Shell has spent the most on exploration out of the majors between 2014-2023. However they are 9th on the list for volumes discovered in that same time frame. Spent 2x more than BP/ENI/Exxon, find half the volumes…Tells you a lot about our exploration teams. This is data from Wood Mackenzie benchmarking.
did they get reshaped away yet or what? why do they even exist when we have ventures?
Game changer never amounted to anything
No doubt we’re dealing with a mental giant here!
exploration doesn’t help when you only act on 80% or higher certainty because you’re chickens who don’t understand placing multiple bets
true story - shell game changer averaged a 30% return one year and was excited. but, they got mocked because you’re supposed to place riskier bets, average much lower annual return, then do much better than 30% when you land a whale with your widely cast net. placing surer bets also means you’re late to the party so you pay more for less equity.
i can’t think of a better explanation of our culture and why we’re doomed. the only ways to get fired instead of laid off are to make a bad investment without being an EVP or being unsafe
and so employees behave accordingly
From what I have read Shell invested in exploration more heavily than competitors for the last decade.
yes it’s true
shell has zero in the pipeline now that “whale” is producing
zero long term thinking. i’d bet good money that we will see Shell continue to voluntarily shrink the portfolio to pad the stock each quarter and then get bought up. solid 15 years of leaders too chicken to make the gambles required to be in the energy industry have lead us here
RE: Permian - supposedly Conoco made the entire purchase price of the assets back in a single year of production as prices were way up.
RE: Shells operated funnel - it’s fu--ing empty. There is going to be a huge production shortfall hitting in the next year and there is nothing to arrest the decline. Pretty obvious what will happen - buy someone else’s discovered barrels, fail to grow organically and run it back once the production bump from the acquisition subsides.
You're spot on. Don't overlook his tenure as the Renewables director. He signed off on many of the large investments made.
Does the company that purchased Shell’s Permian assets have them performing better than Shell?
Won’t Wael take credit for our stock price?
ask anyone who worked in the permian and this is what they’ll tell you -
we ruined that acreage by skimping on fluids to save 1-200k$ a well.
penny smart, dollar stupid. one quarter at a time thinking. wrong incentives in place - we reward cost cutting as if that’s the same as value delivery. we also reward “saving someone’s time” as if it’s concrete value.
classic classic classic shell. awful culture for value delivery. we have a system for keeping jobs around and logging off at 3pm in the netherlands, not capital efficiency as 🐳 🦢 so desperately wishes.
event the smallest of well companies knows that you need to invest more in caring for wells, not less. shell would rather spend capital on stupid vanity projects in the netherlands that properly develop long term assets.
@hz+1jh49hfmd
Total has publicly stated that they expect to take FID by end 2025. If they back away from those statements, sure, but as of right now it appears commercial.
Mopane is a slam dunk for development due to higher resource density and much better reservoir - perm is 2 orders of magnitude higher than Graff/Jonker.
Wonder what that 8th or 9th well proposal looked like...any of those decision makers impacted by the reorg?
Just our luck to have the basin opening discovery and nothing to show for it but a bunch of non-comm holes. Meanwhile literally everyone else in Orange basin has had at least one commercial discovery (e.g. Venus, Mopane). Classic Shell
Another costly exploration failure and exit after Alaska. More incentive for an acquisition or merger.
Selling Permian and not doubling down back in 2019 when they had the chance was the stupidest costliest mistake of this century
What wins originating from others has Wawl taken credit for?
because this fail occurs during his tenure it will be a part of legacy
really simple stuff. optics.
honestly i don’t envy him. he’s stuck with a decade of stupid a-s dutch investments in terrible trends like offshore wind, green hydrogen, and overhiring thousands in india just because they were popular things to do
anyway, if you wish to delve into pure responsibility, you’re either in or you’re out. meaning, you must attribute both wins and losses to the guy. not dismiss the losses as somebody else but let him take credit for wins that aren’t him which he does constantly
Excellent rationalization. Scapegoating is easy. Scapegoating is fun.
Well ceos take credit for good things that happen that they have nothing to do with so might as well pin the bad stuff they had nothing to do with on them as well.
Regardless, Wael is a pathetic ceo and history will show that. He won’t care though as he’ll still get paid millions either way.
Curious about the logic that ties the Namibia outcome to Wael? He wasn’t in Upstream when Shell got into the venture. He wasn’t in Upstream when Shell decided its drilling investment in the venture. From what I can tell, all he has done is to relate to investors and the markets that there will be no return on the historical spend. He is obligated to do that once the company reaches that conclusion.
Wael is creating a he-l of a legacy. He’s really trying to become the most disliked CEO since Watts.
I’m just waiting for him to don a spacesuit at a town hall or coffee chat while his BA sings “we are the world”
Yet another Wael fail
Really racking up the losses for someone who “like winning”
The stock is down 1.4% YoU after all of his cuts to spending and employees
what a loser. can only cut cut cut.