Royal Dutch Shell 3rd Quarter Loss - A peek into the future

[Daelak]

Royal Dutch Shell, the world's 4th largest company, has reported a loss of $6.1 billion dollars. Mainly due to the failure of finding large enough, economically viable oil reservoirs in the Northern Pacific Ocean.

In my view, this is a huge turning point for not just the oil industry, but for the entire global economy. The times we live in today will be regarded as the time where exploration and extraction of fossil fuels became a much more riskier and costlier investment that will bring a sea change to the entire energy, and in a couple decades, the way we even produce products and services derived from fossil fuels.

What do you think of the first indication of a market-based change?


Source:

http://www.marketwatch.com/story/roy...lts-2015-10-29

[Advo]

Or oil prices happen to be quite low at the moment (compared to the last few years) and it's depressing margins of most all oil-focused companies. Give it a year or three for prices to rebound and that 6.1b loss will be a 6.1b profit. The sky isn't falling yet.

[Daelak]

Or oil prices happen to be quite low at the moment (compared to the last few years) and it's depressing margins of most all oil-focused companies. Give it a year or three for prices to rebound and that 6.1b loss will be a 6.1b profit. The sky isn't falling yet.

It's becoming harder and harder to find reserves large enough to pour long term capital expenditures in. Now is the time for governments and companies alike to use this opportunity to shift R&D into alternative fuel and energy. This business model is unsustainable and will only cost more additional billions of misallocated capital on a resource that is destroying the habitation of the planet.

[Gamdwelf]

Yeah fuck oil.

[Deleted]

Isnt this happening because certain countries are flodding the market with oil right now to financially harm their "enemies"?

As soon as the damage is done and things will be balanced again, companies like Shell will make a profit again.