Shell’s profits soar but output lower

Royal Dutch Shell has reported big profit increases – as did Norway’s Statoil and Spain’s Repsol.

But that was due to high oil prices and masked the impact of lower production of crude oil and gas.

Statoil said output fell 14 percent in the quarter while Repsol’s production was down 13 percent.

Shell’s net income rose 77 percent to almost 5.6 billion euros though that was boosted by sales of some assets.

Oil and gas production was down two percent partly due to warmer weather reducing European gas demand.

The lower production reflects the challenge for Western oil majors – how to grow while facing investment restrictions in the countries with the richest reserves, such as in the Middle East and Russia.

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