Shell Cuts Spending on US Shales

UK-based Royal Dutch Shell plans to scale back its operations in North America by 20%, in another sign that majors are struggling to profit from the US shale sector.

The London-based company said it has been impacted by losses in resources plays such as shales, while confirming its commitment to on-going exploration in liquids-rich shales.

“We’ve delivered industry-leading cash flow growth in recent years, and we want to pick up the pace again both on cash flow and returns, driven by financial performance, capital efficiency and project delivery. Shell’s dividend growth – expected to be some 4% for Q1 2014 – underscores that momentum and the potential for the future,” Ben van Beurden, Shell’s CEO, said on Thursday. 

Shell’s strategy will hinge on delivering near-term cash flow form “growth priorities,” such as deep-water and integrated gas projects. The company also confirmed the disposal of some downstream assets in Italy.