Shell Profits Record Angers Stakeholders

Anglo-Dutch oil firm Royal Dutch Shell has reported record annual profits of $27.56bn (£13.9bn).

The record figures have made British corporate history, which are equivalent to more than £1.5m an hour and come at the end of a three-month period when crude prices have averaged over $90 a barrel.

Much of the rise in profits has been attributed to rising oil prices, which currently stand at about $91 a barrel compared with $57 this time last year.

Meanwhile, some unions have objected to the level of Shell's profits at a time when consumers and businesses are struggling to cope with the effects of these high oil prices.

Unite's Joint General Secretary Tony Woodley described the level of profits in the oil industry as, "quite frankly obscene".

"Shell shareholders are doing very nicely whilst the rest of us, the stakeholders, are paying the price and struggling," he said.

However, oil companies have stressed that little of their profits come from petrol forecourts, with the majority of the price paid at the pump already going straight to the government.

Jeroen van der Veer, Chief Executive of Royal Dutch Shell, described the performance as "satisfactory" and admitted that overall production for the year had actually dropped 2%.

He added: "We made good progress in 2007, launched new projects upstream and downstream, and achieved exploration successes."


Related UK National News Stories
Click here for the latest headlines.

29 April 2008
Profits Soar At BP And Shell
Oil giants Royal Dutch Shell and BP have made massive combined profits of more than £7 billion over the last three months. The companies continue to benefit from higher oil and gas prices. BP reported first quarter profits of £3.32 billion and Shell recorded profits of £3.92 billion.
15 November 2013
Green Light For £4bn Investment In 140m Barrel Oil Field Development
EnQuest, the largest UK independent oil company in the UK North Sea, has given its go-ahead for a £4bn investment in the 140m barrel oil field Kraken development.
02 February 2006
Shell reports biggest ever UK profits
Oil company Royal Dutch Shell have reported the largest ever profits recorded for a UK-listed firm. The firm reported earnings of $22.94 billion (£12.96 billion) - the equivalent of nearly £1.5 million every hour. The figures were up almost a third on last year's profit of $17.9 billion (£9.8 billion).
14 May 2004
Crude oil prices hit record high
The price of crude oil, boosted by security fears and ever increasing demand from the US and China, has reached another record high – today hitting $41.50 per barrel at the New York Stock Exchange. The price of Brent crude oil in London has also jumped, surging to $38.40 – levels not achieved since the first Gulf War raged in 1990.
11 June 2008
Unite Urges Oil Giant To "Stop Sitting On Its Hands"
Unite the union has urged oil giants Shell to stop sitting on its hands and act to avert the four day strike by tanker drivers set to begin this Friday, 13 June. Unite Assistant General Secretary Len McCluskey said: "Only Shell sets the terms of this contract and only it can solve this dispute.