How Will Shell’s Upstream Production Change In The Next Five Years?

+20.69%
Upside
40.11
Market
48.41
Trefis
RDSA: Royal Dutch Shell logo
RDSA
Royal Dutch Shell

Before the commodity downturn began in 2014, Royal Dutch Shell (NYSE:RDSA), one of the world’s largest integrated energy company, grew its production at a steady rate. However, the oil slump took a toll at the company’s price realizations, forcing it to restrict its capital expenditure, and in turn its production. As a result, Shell’s upstream production has remained flat over the last five years. As the outlook for commodity markets remains uncertain, we expect Shell’s upstream production to be weak even in the remaining half of 2016. However, as commodity prices recovery gradually, the oil and gas giant’s production is likely to pick up in the later years of this decade.

Shell-Q&A-11

Below, you can edit Shell’s Production trend and visualize its impact on the company’s revenues and profitability.

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Have more questions about Royal Dutch Shell (NYSE:RDSA)? See the links below:

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com

2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Royal Dutch Shell

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