Shell unveils plans to “shape-up” with a shake-up
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IRJ Mar 16 - In the wake of seven declining profit-hitting years, Royal Dutch Shell, the oil and gas conglomerate, unveils new strategies to break the trend, shut up shop at its petrol stations and slash 2,000 jobs.
Speaking at Shell’s Annual Strategy Meeting, Peter Voser, CEO, said that the company had gotten, “too complicated and slower to respond than we’d like. So we’re shaping up.”
"Shell has been disadvantaged recently, due to our higher exposure to refining and natural gas, where margins are hard-wired to the economy," Voser says.
"The priorities are for a more competitive performance, for growth, and for sharper delivery of strategy. We have more to do to drive out cost and improve the operating performance in the company."
Aiming to generate surplus cashflow for 2012, the company has founded its new plans on a targeted output of 3.5 million bpd equivalent with the prediction that oil will trade at between US$50 and US$90 per barrel.
According to the latest reports, 35 per cent of the company’s petrol stations will get the axe, 2,000 jobs will go by 2011 and refining capacity will be reduced 15 per cent. In executing these plans, the company estimates that it will save one billion dollars this financial year.
Speaking at Shell’s Annual Strategy Meeting, Peter Voser, CEO, said that the company had gotten, “too complicated and slower to respond than we’d like. So we’re shaping up.”
"Shell has been disadvantaged recently, due to our higher exposure to refining and natural gas, where margins are hard-wired to the economy," Voser says.
"The priorities are for a more competitive performance, for growth, and for sharper delivery of strategy. We have more to do to drive out cost and improve the operating performance in the company."
Aiming to generate surplus cashflow for 2012, the company has founded its new plans on a targeted output of 3.5 million bpd equivalent with the prediction that oil will trade at between US$50 and US$90 per barrel.
According to the latest reports, 35 per cent of the company’s petrol stations will get the axe, 2,000 jobs will go by 2011 and refining capacity will be reduced 15 per cent. In executing these plans, the company estimates that it will save one billion dollars this financial year.
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