New Shell CEO: to cut investment in US by 20 per cent this year; abandoning some shale projects

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AMSTERDAM – Shell’s Chief Executive Officer Ben van Beurden says the company will cut capital spending in the U.S. by 20 per cent in 2014 after setbacks in its shale gas operations and in Alaska.

Speaking on a conference call with reporters, Van Beurden said Thursday that Shell plans to exit its investments in the Eagle Ford shale formations in Southern Texas, where the company took a $2.1 billion write-down last summer. Van Beurden didn’t rule out further charges.

Shell has mothballed plans to explore for oil in the Arctic circle off Alaska’s coast for at least a year, after spending $2 billion in 2011-2013 without payoff.

He said operations in Russia and in Ukraine — where Shell plans to explore for shale gas —have so far not been affected by political turmoil.

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