Mexico



Very usefull links



PW
Bookstore





News links

AP

AFP

Aljazeera

Dow Jones

Oil price

Reuters

Bloomberg

Views and News
from
Norway

 

 

 

 

CERAWeek: U.S. steel tariff could affect Shell's Vito project in Gulf of Mexico project decision -exec


 

By Ron Bousso

HOUSTON
Petroleumworld 03 08 2018

A potential tariff on U.S. steel imports could affect Royal Dutch Shell's plans to go ahead with a major oil field development in the Gulf of Mexico, a company executive said on Wednesday.

Wael Sawan, who heads Shell's deepwater operations, said President Donald Trump's intention to slap up to 25 percent tariffs on imported steel and aluminium could materially impact the value of the Vito development off the Louisiana coast, one of a handful of projects Shell is planning to greenlight this year.

U.S. Energy Secretary Rick Perry said on Wednesday he was “not sure” if Trump had made up his mind about levying the steel tariffs.

Shell has in recent years set a strict ceiling on costs of projects, which all have to generate profit at oil prices of $40 a barrel.

The cost of oil and gas projects, which require huge amounts of raw material including steel and cement, could rise by 25 to 50 percent in some cases if a tariff is imposed, Sawan told Reuters in an interview at the CERAWeek by IHS Markit conference in Houston.

“We are trying to grapple with the implications of the tax changes, which are positive, but also the implications of the steel tariffs or what might come out,” he said.

“I'm hopeful within the next few weeks as we understand more, we will have a better understanding of the economics that impact the decision and timing.”

Shell is expected to make a number of final investment decisions on projects as the sector emerges from a three-year downturn that saw a sharp drop in investments.


Story by Ron Bousso; Editing by David Gregorio from Reuters.

reuters.com /
03 07 2018

We invite all our readers to share with us
their views and comments about this article.


Write to editor@petroleumworld.com

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels

 

 

TOP

Contact: editor@petroleumworld.com,

Editor & Publisher:Elio Ohep/
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2016, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2017, Petroleumworld ™  / Elio Ohep - All rights reservedThis site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.