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Shell Exiting from Countries

The Energy king Royal Dutch Shell recently announced that it might take an exit from 10 countries to sell oil and gas assets for over two years. Shell took over its rival BG Group recently and so after this expanded Shell Company, the policy is being reset to make higher cost than the previous ones.

Shell is also announcing an increase in the expected deal-related synergies, which will increase its savings by 30%. By exiting 10 countries, Shell would be cutting around 12, 500 jobs by the end of 2016. No matter how profitable it is for Shell to exit these countries, it is highly detrimental for the economies of the respective countries. A great setback would lie in the national economies of the countries by such a number of unemployment. It may give rise to other local social issues as well.

On the other hand, Shell policy makers believe that they would be capping their capital spending by 2020 and would be investing more in the compelling projects. This will drive down costs and sell non-core positions by reshaping Shell into a more focused and more resilient company with better growing free cash flow per share and returns.

Not to forget that Shell is one of the biggest oil companies in the world, existing from 10 countries will have a direct effect on the global oil market. Almost all the states connected with the global oil market would be bearing this effect mostly in a negative way.

Afreen is a young writer and visionary towards life predominantly. I believe that writing is similar to life; it inspires surprises and creates. Being a Literature Masters, I am passionate about viewing the world with literary spectacle. Solely in love with this beautiful part of Universe called Pakistan, I am creating words and ideas for CharchaGuru.

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Shell Exiting from Countries

The Energy king Royal Dutch Shell recently announced that it might take an exit from 10 countries to sell oil and gas assets for over two years. Shell took over its rival BG Group recently and so afte...