Shell also dropped its target to produce four million barrels of oil and gas a day by either 2017 or 2018. The company, which produced about three million barrels of oil equivalent a day in the past quarter, will instead focus on financial targets. Royal Dutch Shell wrote down the value of its North American shale assets by over $2 billion after tax after disappointing drilling results.
Tthe large oil companies are having troubles that in capitalizing on the U.S. shale boom. After a decline in natural-gas prices hit Shell's U.S. operations last year, the company said this past January that it was trying to move to shale resources that were richer in oil, rather than less-profitable gas.
Shell declined to give the location of the assets whose value was written down. In North America, the company's shale acreage is located in Texas, Ohio, Pennsylvania, Wyoming, Kansas, Colorado, California and British Columbia.
Excluding the one-time charges, Shell's profit was $4.6 billion, down 20% from a year earlier. Revenue fell 3.8% to $112.67 billion from $117.07 billion. (WSJ, 8/1/2013)