THE third quarter results announcements from Royal Dutch Shell and BP suggested directors of both companies feel they have taken appropriate steps in response to the crude price slump, which have included shedding hundreds of jobs in Aberdeen.
Shell’s chief financial officer, Simon Henry, paid tribute to the way workers and suppliers in the North Sea have responded to its efforts to boost profits.
After Shell and BP held their third quarter dividend payments, shareholders have reasons to be cheerful about the reform drive. The giants set great store by maintaining payouts to investors.
Workers in their North Sea operations and firms that supply the businesses may, however, regard the future with concern.
Spending is set to remain under intense pressure at both firms and ageing North Sea fields are unlikely to be at the front of the queue when investment funding is allocated.
With Mr Henry declining to rule out further job cuts and underlining Shell’s desire to sell some North Sea assets, his comments will bring scant comfort to those who fear the industry in the area is in a spiral of decline.
The UK Government may take satisfaction from the fact Shell booked a $100 million credit to reflect the benefits of tax cuts made in response to the oil price fall.
However, yesterday’s updates will likely fuel debate about whether the pain of the oil and gas industry downturn has been shared fairly among stakeholders.
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