|Bid||N/A x N/A|
|Ask||N/A x N/A|
|Day's Range||19.23 - 19.37|
|52 Week Range||10.93 - 21.75|
|Beta (5Y Monthly)||1.00|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||0.69 (3.81%)|
|Ex-Dividend Date||May 13, 2021|
|1y Target Est||N/A|
(Bloomberg) -- North America’s biggest petroleum pipeline is in a race against time to overcome a paralyzing cyberattacks as gas station supplies dwindled and North Carolina declared a state of emergency with cars lining up for fuel.Colonial Pipeline said it’s manually operating a segment of the pipeline running from North Carolina to Maryland and expects to substantially restore all service by the weekend. The pledge may not come fast enough to avert immediate shortages in the southeast, where gas station employees are already reporting lines for fuel. Stations in Asheville, North Carolina, are out of fuel and lines are forming at outlets that still have supplies. David Marcos, an employee at a Royal Dutch Shell Plc-owner station in the city said they ran out of gasoline and diesel earlier on MondayThe Marathon gas station in Elizabethtown, North Carolina, had roughly two dozen cars waiting to fuel up, said Channs Arnett, an employee there. The stations in town are all packed, Arnett said over the phone, where the door bell chimes from people entering could be heard every other minute. The conduit has been shut down since late Friday, prompting frenzied moves by traders and retailers to secure alternative supplies. On Monday, the Federal Bureau of Investigation pointed the finger at a ransomware gang known as DarkSide. The pipeline hasn’t suffered any physical damage and no fuel shortages have been detected, a White House official said.Colonial Chief Executive Officer Joe Blount and a top lieutenant assured Deputy Energy Secretary David Turk and state-level officials on Monday that the company has complete operational control of the pipeline and won’t restart shipments until the ransomware has been neutralized.Bases, RefineriesIn an 18-minute virtual meeting, Blount said shortages may develop in some markets but said Colonial is working with refiners, marketers and retailers to prevent those, according to a person involved with the meeting who wasn’t authorized to speak publicly about the discussion.The pipeline serves 90 U.S. military installations and 26 oil refineries, the person said. Meanwhile, President Joe Biden said Russia has “some responsibility” to address the attack.Emergency shipments of gasoline and diesel from Texas already are on the way to Atlanta and other southeast cities via trucks, and at least two Gulf Coast refineries began trimming output amid expectations that supplies will begin backing up in the nation’s oil-refining nexus. Airlines flying out of Philadelphia International Airport are burning through jet-fuel reserves and will need to locate new supplies “soon,” a spokeswoman said.READ: How a Key U.S. Pipeline Got Knocked Out by Hackers: QuickTakeGovernment officials haven’t advised Colonial on whether it ought to pay the ransom, Deputy National Security Adviser for Cyber and Emerging Technologies Anne Neuberger said during a briefing.New York PricesThe national average retail gasoline price rose to $2.967 a gallon on Monday, a 2.4% increase from Friday, according to AAA. The premium for wholesale gasoline in the New York area expanded to its widest in three months.The attack came just as the nation’s energy industry was preparing to meet stronger fuel demand from summer travel. Americans are once again commuting to the office and booking flights after a year in lockdown. Depending on the duration of the disruption, retail prices could spike, further stoking fears of inflation as commodity prices rally worldwide.DarkSide said in a post on the dark web that it wasn’t to blame and hinted that an affiliate group may have been behind the attack. The group promised to do a better job of screening customers that buy its malware.Gasoline futures that initially surged as much as 4.2% in overnight trading surrendered most of those gains on Monday.Learn more about how emergency powers can counter fuel-supply disruptions.Convenience-store chains in places like Atlanta and Savannah, Georgia, began clamoring for emergency fuel deliveries on Friday afternoon, said Steve Boyd, senior managing director at Houston-based distributor Sun Coast Resources Inc.Water-Borne SuppliesLandlocked cities face the greatest danger of fuel shortages compared with those with access to water-borne deliveries, Boyd said. If the pipeline remains down for many more days, he’s anticipating a “massive surge” in orders. Sun Coast, which operates about 900 trucks, has delivered emergency supplies during 75 major storms over the past 15 years, including during hurricanes Harvey and Irma in 2017.Gasoline for June delivery settled little changed at $2.1334 a gallon in New York. Futures prices have gained more than 50% this year, helped by the recovery from the worst effects of the pandemic.Tankers BookedPrior to Colonial’s Monday statement, traders were seeking vessels to deliver fuel to coastal terminals. Four vessels were provisionally chartered to send diesel or gasoline from Europe to the U.S. Atlantic Coast, according to Danish oil-product tanker company Torm A/S.Some tankers are also being secured to temporarily store gasoline along the Gulf Coast, according to market participants who asked not to be identified because the information isn’t public. Meanwhile, Total SE scaled back activity in a key unit at its Port Arthur, Texas, refinery because of the Colonial shutdown, according to a person familiar with operations. Citgo Petroleum Corp. took similar measures at its Lake Charles, La., plant.Increased SecurityColonial halted all operations on its system late Friday after suffering a ransomware attack that affected some of its IT systems.The event is just the latest example of critical infrastructure being targeted by ransomware. Hackers are increasingly attempting to infiltrate essential services such as electric grids and hospitals. The escalating threats prompted the White House to respond last month with a plan to increase security at utilities and their suppliers. Pipelines are a specific concern because of the central role they play in the U.S. economy.“It’s an all-hands-on-deck effort right now,” said U.S. Commerce Secretary Gina Raimondo. “We are working closely with the company, state and local officials to make sure that they get back up to normal operations as quickly as possible and there aren’t disruptions in supply.”The White House pulled together an inter-agency task force to address the breach, including exploring options for lessening its impact, according to an official. Biden can invoke an array of emergency powers to ensure supplies keep flowing to big cities and airports along the East Coast.Rules EasedSome rules curbing domestic transportation of fuel have been eased to help deal with any shortages. That doesn’t extend to waiving Jones Act, a measure that would allow foreign tankers to help shuffle more petroleum products between U.S. ports.Colonial has the capacity to send about 2.5 million barrels (105 million gallons) a day from Houston as far as North Carolina, and another 900,000 barrels a day to New York.Extortion FeeRansomware cases involve hackers seeding networks with malicious software that encrypts the data and leaves the machines locked until the victims pay the extortion fee. This would be the biggest attack of its kind on a U.S. fuel pipeline.With gasoline inventories ample, pump prices weren’t expected to tick much higher until Memorial Day at the end of May, which is traditionally viewed as the start of the U.S. summer driving season. If the pipeline doesn’t restart soon it will accelerate the move higher.“Atlanta will be one of the earlier sore spots, along with eastern Tennessee, and perhaps the Carolinas,” said Patrick DeHaan, head of petroleum analysis at GasBuddy.The Northeast can secure gasoline shipments from Europe but it will come at an increasing cost the longer the pipeline stays shut. The fuel’s premium to crude in northwest Europe had jumped by more than 5% in intra-day trading earlier on Monday but was still down week-on-week.In the meantime, fuel producers including Marathon Petroleum Corp. are weighing alternatives for how to ship their products to the Northeast.One potential route is the Kinder Morgan-operated Plantation Pipeline, even though it only extends as far north Washington D.C. and has a capacity of 720,000 barrels a day, far short of Colonial’s. Kinder said Sunday it’s working with customers to accommodate additional barrels during Colonial’s outage, and that Plantation is deferring where possible any non-essential maintenance that might otherwise reduce flow rates.While all of the major segments of Colonial’s system remain offline, some smaller so-called laterals connecting specific fuel terminals to delivery points are in service, the company said earlier.Inventories offer minimal cover, ClearView Energy Partners said in a research note. Tankers leaving Rotterdam could take up to 14 days to make the trip to the New York Harbor. The Midwest could theoretically send some of its supplies to the East Coast via rail and barge, but the region’s inventories are tighter than in previous years, ClearView said.“The Colonial outage comes at a critical juncture for the recovering U.S. economy: the start of the summer driving season,” ClearView said. “We therefore think lawmakers could begin a ‘blame game’ immediately, and a sustained disruption that leads to a significant pump price spike could increase prospects of domestic policy interventions.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
According to Dutch broadcaster NOS, the Dutch government will grant Royal Dutch Shell (RDS.A) and its group about $2.4 billion in subsidies for a climate change project. In January, Shell, Exxon (XOM), Air Liquide, and Air Products sought the government's support for their project to reduce the Netherlands’ carbon footprint. The project encompasses capturing and storing carbon dioxide from industrial operations in the Rotterdam port area instead of letting it go into the atmosphere. The government has granted their request. The government money will compensate these companies for the extra costs they incur in the carbon capture project. Factories around the Rotterdam port pay to be allowed to release carbon dioxide from their operations. Shell and its group will capture the greenhouse gases and then store them in an empty gas field in the North Sea. Since the cost of storing the gas may rise faster than the fees the factories currently pay for the emissions, the government subsidy will make up the difference. The captured carbon will be transported through the infrastructure provided by the Port of Rotterdam, to be stored in offshore empty gas fields. The project is expected to begin operations in 2024 and will aim to capture and store 2.5 megatons of carbon gas every year. The project will contribute to the Netherlands' commitment to curb climate change. According to a Reuters report, by 2030, the country aims to have cut its greenhouse gas emissions by 55% from the 1990 level. (See Royal Dutch Shell stock analysis on TipRanks) This clears the most important hurdle for the project, which is set to become operational in 2024. It is expected to reduce emissions in the industrial cluster surrounding Europe’s largest seaport by around 10%. Evercore ISI analyst Stephen Richardson reiterated a Hold rating on Shell stock. The analyst did not assign it a price target. Consensus among analysts on Wall Street is a Moderate Buy based on 4 Buy and 2 Hold ratings. The average analyst price target of $48.38 implies 18.32% upside potential to current price levels. RDS.A scores a 7 out of 10 on TipRanks’ Smart Score rating system, indicating that it is likely to align with market performance. Related News:AAM To Secure $5 Million Funding As 1Q Results ImpressGoPro Transition Pays Off Delivers Revenue And Profit Growth in 1QNikola Inks LOI With TTS To Supply 100 Trucks More recent articles from Smarter Analyst: Cigna’s Earnings Beat Expectations, 2021 Outlook Raised Nikola’s 1Q Loss Widens, Management Upbeat About The Future AAM To Secure $5 Million Funding As 1Q Results Impress Cameco Posts Better-Than-Expected Results In 1Q; Shares Soar 8%
(Bloomberg) -- Royal Dutch Shell Plc’s head expects clean energy to make up half of the company’s energy mix “somewhere in the next decade.”“If we do not make that type of process by the middle of next decade, we have a problem not just as a company but as a society,” Chief Executive Officer Ben van Beurden said in an interview with AXIOS on HBO.Like its European peers, the Anglo-Dutch major has set itself an “ambition” to become a net-zero emissions energy company by the middle of this century. The feat involves producing less oil, more gas and renewables, as well as using technologies still in their infancy like hydrogen and carbon sequestration. Not everyone is convinced, with the energy giant set to clash with some shareholders on the matter at its annual general meeting later this month.“If you want to get rid of hydrocarbons in the mix, you have to do something about the use of it, not the production of it,” van Beurden said. Speaking on the challenges of the transition, the 63-year-old Dutchman also said that people want to see results straightaway, but “don’t expect that tomorrow we will stop selling diesel to trucks.”While Van Beurden welcomed the U.S. rejoining the Paris Climate Agreement, which seeks to limit global warming temperature increases to less than 2 degrees Celsius from pre-industrial levels, he questioned other policies. “What I also see is that the government is flirting with popular ideas that are clear, simple, and wrong, which is, ‘Let’s ban the production of oil and gas in our country.’”Van Beurden has previously criticized U.S. President Joe Biden’s policy to ban drilling on federal land, saying such restrictions will simply result in boosting oil imports. “Popular demand may well push you in the direction, but it is not smart policy.”“We will focus on the demand side, and then the supply side is a resultant of that,” he said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.