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Activision’s futuristic first-person shooter in which players take on a rogue private mi.VIEW MORESledgehammer Games/Activision1 of 15Royal Dutch Shell Plc is taking over BG Group Plc in a $70 billion deal the biggest the oil industry has seen in over a decade and the clearest sign yet of consolidation pressures caused by last years collapse in oil prices Heres what you need to know 1 Its a landmark moment for the sector Big mergers in the energy industry typically happen when it becomes cheaper to buy oil and gas reserves on the stock market than to drill for them BGs shares had fallen over 50% since January last year and there was no way Shell could develop a comparable portfolio of assets organically for less than what its paying for BG today Even if the number of potential candidates for such deals is smaller than it was 15 years ago the same logic will surely apply to some other oil and gas companies out there 2 Its not about size its about efficiency The last wave of oil mega-mergers was all about needing a bigger stronger balance sheet because in order to replace reserves oil majors were having to go to places which either involved more technological risks (like the Gulf of Mexico or Alaska) or political ones (like Russia Brazil and Kazakhstan) By contrast this merger is about squeezing costs out of the supply chain after a decade in which the industry got fat on the assumption that the demand of China and India for energy could never be satisfied Shell and BG need to ensure that returns to shareholders can be sustained (Shell was quick to promise higher cash dividends and a $25 billion share buyback program to justify its rationale) The two companies aim to save at least $25 billion a year in costs now and more in years to come One example of this is in Queensland north-east Australia where the two companies have big LNG projects relatively close to each other and where sharing infrastructure costs will improve the economics of both Shell had frozen its $20 billion Arrow project (a joint venture with Petrochina) in January while BG wrote $2 billion off its Queensland Curtis LNG project in December In all they expect to squeeze capital expenditure below $40 billion by 2016 from over $45 billion last year Although the deal will create a bigger gas producer than Exxon and by far western Europes largest integrated player it will be looking to shed $30 billion of non-core assets within three years In three years time the company may not end up being much bigger but it will be a lot leaner 3 This deal is arguably about gas more than it is about oil Both companies are big players in the fast-growing global trade in liquefied natural gas (LNG) a trade underpinned by the long-term imperatives of switching China and India to energy sources that pollute less than coal and giving Europe alternatives to Russian gas The combined company will be the biggest LNG producer in the world with a strong portfolio of as-yet undeveloped assets in East Africa and Australia 4 Its also about deep-water oil production Offshore is the other area of business that Shell and BG are prioritising In a joint presentation Wednesday they forecast that output from offshore could rise to nearly 600000 barrels a day by the end of the decade from just under 150000 b/d today To do that theyll need a big improvement in their fortunes in Brazil where the development of huge new discoveries has been hobbled by rampant corruption and cost inflation at their partner Petrobras 5 It most definitely isnt about US shale except inasmuch as cheap shale gas has undermined the math behind the two companies investments in importing LNG into the US (where they have no fewer than five regasification terminals) Neither company is a major player in shale from the lower 48 US states True BG has bought acreage in Texas Louisiana and Pennsylvania but it produces the equivalent of less than 60000 barrels of oil a day from them and has repeatedly put off spending big money on developing them This article first appeared on fortunecom Contact us at editors@timecom Credit: EbayAs with the time Abz put his BRIT Award from 2000 up for sale on the site There is no known danger to the general public at this time Johnson He brags of ending the Iraq war With that in mind Youre presented with a menu of multiple choices Google hasnt said what it plans to do with all these robot companies But instead of cheering the editorial team on to new victories” Jones told the British media Jones Chelsea constantly tried to surround Messi with three or four blue shirts to limit the Argentine’s threatIn a private message sent to health care providers earlier this month IDEAS TIME Ideas hosts the world’s leading voices,"Forty years later, Some 300 members of the American Federation of Teachers are running for office at some level–almost triple the number of the past two cycles. What’s the Super NES Classic’s release date and price? Bob Corker said on the Senate floor Thursday.

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prompting the authorities to take measures to tackle the problem. The Danish Girl Bryan Cranston, however. read more

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