Shell prepares for 'lower forever' oil prices after more than trebling quarterly profits
SHELL will continue with an efficiency drive to prepare for "lower forever" oil prices after more than trebling quarterly profits.
Shell is preparing for 'lower forever' oil prices
The oil giant has been driving down costs following last year's £35 billion acquisition of exploration heavyweight BG Group and is offloading $30 billion (£23 billion) of assets in the face of three years of depressed crude prices.
We have to have projects that are resilient in a world where oil has peaked
Shell Chief Executive Ben van Beurden said: "We have to have projects that are resilient in a world where oil has peaked.
"When it will happen we don't know, but that it will happen we are certain."
Ben van Beurden said they are not sure when it will happen
Despite a drop in oil and gas production from the previous three-month period, Shell's second-quarter earnings soared by 245 per cent from last year to $3.6 billion on the back of stronger chemicals and refining industry conditions.
Shell's European rivals Total and Statoil (STL.OL) also beat analyst forecasts on Thursday.
Shell's second-quarter earnings soared by 245 per cent from last year
Shell reiterated its plans to spend around $25 billion this year, at the lower end of its long-term range, but said it could cut further if needed.
Net income attributable to shareholders in the second quarter, based on a current cost of supplies and excluding exceptional items, rose 245 percent to $3.6 billion, topping a company-provided analyst consensus of $3.15 billion.