This article was originally published by GuruFocus on March 29, 2014
By Sarfaraz A. Khan. Research assistant: Gohar Yousuf
For the current fiscal year the Anglo-Dutch oil major Royal Dutch Shell (RDS.A) has decided to cut the upstream spending of its American business by 20%. The company will also implement job cuts as it restructures its American operations to make smaller “performance units.”
While some of the smaller energy companies have reported significant growth on the back of the U.S shale boom, the energy majors like Shell have struggled. Moreover, Shell’s recent quarterly performance was also far from satisfactory. The company is now selling assets and prioritizing investments in its lucrative low-cost gas and liquid rich shale acreage.