January 31st, 2007:

By JULIANE VON REPPERT-BISMARCK
January 31, 2007 5:56 p.m.

BRUSSELS — The European Commission opened a second front in its fight against climate change with a call for binding rules that will force oil refiners to cut carbon-dioxide emissions from vehicle fuel 10% by 2020.

The commission is facing resistance from Europe’s auto industry and national governments over a plan to cut emissions from new cars. Now it is picking a potential fight with oil companies.

If endorsed by European Union governments, the law will take effect in 2011, EU officials said. The plan represents another step toward the commission’s goal to cut dependence on imported fossil fuels by increasing the use of biofuels and curb the economic impact of global warming. read more

Crude-oil futures surged to a new four-week high Wednesday after U.S. government data showed distillate inventories, which include heating oil, fell more than expected amid continued forecasts for cold U.S. weather.

Here is Wednesday’s roundup of oil and energy news:

* * *
CNOOC UNDER PRESSURE: Domestic production troubles are putting pressure on Cnooc to raid its multibillion-dollar war chest and make an acquisition, but potential targets are unlikely to come cheap despite the recent fall in oil prices. China’s largest offshore oil producer by output is facing a shrinking field of midsize companies that it could buy following a flurry of corporate activity globally in the past year. It may have to content itself with bidding for producing fields that come with neither the prestige it wants nor significant size, analysts say. read more

EXTRACT: An investigation of companies in which the foundation invests £16.8 billion led to accusations that it was profiting from firms whose activities contribute to the problems, such as poverty, debt and disease, that it was trying to solve.  IN EARLY January an investigation by the Los Angeles Times found that the foundation had invested over £254 million in oil companies such as Royal Dutch Shell, Exxon Mobil, Chevron and Total, whose practices are being blamed for causing health concerns in Nigeria; problems the Gates Foundation is contributing money to solve. read more

19:01 | 31/ 01/ 2007 

ST. PETERSBURG, January 31 (RIA Novosti) – A decision on whether to set up a state holding to oversee the development of Russia’s offshore oil and gas deposits could be made in the first three months of 2007, a deputy natural resources minister said Wednesday.

Russia has moved to tighten state control over its mineral resources in recent years, cutting foreign participation in the oil and gas sector. State-controlled giants Gazprom [RTS: GAZP] and Rosneft [RTS: ROSN] have been appointed to control all hydrocarbon deposits on the continental shelf. read more

January 31, 2007
Carl Mortished: European Briefing
 
Every morning as he brushes his teeth, a European oil company chief is reminded of the big question: is his business more like a tube of toothpaste or a glass of water?

If the latter, his job is to make money by being efficient, to keep the tap flowing, the water clean and the glass adequately replenished. 
 
A glass half-empty or half-full is the conventional view of integrated oil companies. These are utilities: there is plenty of oil and gas about and the job is to invest adequately, not overfilling the glass, in order to maximise the amount of money that flows from the taps and pipes. read more

Project a Joint Venture of Gazprom, Shell, Mitsui & Mitsubishi

LONDON, Jan. 31, 2007 (PRIME NEWSWIRE) (PRIMEZONE) — CO2 Tech (Pink Sheets:CTTD) President, Ms. Helga Schotten, today announced that CO2 Tech, a UK-based provider of cutting-edge, anti-global warming technology solutions announced that CO2 was commissioned to perform environmental effects monitoring and analysis and develop environmental solutions to the Sakhalin II Project, one of the largest new energy development projects in the world today.
 
Sakhalin II, one of the biggest new energy developments in the world, is a joint venture operated by Sakhalin Energy Investment Company Ltd. (SEIC) (owned by OAO Gazprom (Gazprom), Royal Dutch Shell plc (Shell), Mitsui & Co., Ltd. (Mitsui) and Mitsubishi Corporation (Mitsubishi)). Phase I of the project produces oil from an offshore platform, while Phase II includes two further offshore platforms, 1800 km of pipelines and Russia’s first LNG plant. Peak production is expected to reach 180,000 barrels per day, and 9.6 million tons of LNG per year. read more

05:49 AM CST on Wednesday, January 31, 2007

HOUSTON – At least 32 Shell Oil Co. workers were injured early Tuesday when a train collided with a bus carrying contract employees at the company’s Deer Park refinery.

The workers were taken to area hospitals for observation or treatment of injuries ranging from bumps and bruises to a possible hip dislocation, officials said. They said the bus was carrying contract workers to work sites from satellite parking areas and was crossing tracks inside the plant when it was hit by a Port Terminal Rail Authority train. read more

A SHEFFIELD man was released with a police caution after mounting a balcony protest at the Irish Embassy in London over plans for a gas pipeline.

The 26-year-old climbed on to the balcony of the ambassador’s office at the Embassy to protest against a controversial Shell gas pipeline in north Co Mayo.

He initially refused to leave but was eventually talked down by police.

A Scotland Yard spokesman said: “A 26-year-old male was questioned under Section 9 of the Criminal Law Act, 1977, for trespassing on a diplomatic premises. read more

By ALEX NICHOLSON 01.31.07, 7:13 AM ET  

The Russian government gave tentative approval Wednesday to long-awaited draft legislation that would restrict foreign companies’ access to oil and gas fields and mineral deposits that are deemed strategic.

The new regulations, which will also limit foreign access to over 40 sectors of the economy, such as military hardware, aviation and atomic energy, will for the first time clarify the rules under which foreigners will be allowed to invest in strategic Russian projects. read more

By Barbara Powell

Jan. 30 (Bloomberg) — A lone locomotive struck a van carrying Shell Oil Co. contract employees at a refinery near Houston, causing minor injuries to about a dozen workers.

The accident in Deer Park, Texas, occurred about 7:40 a.m on Shell property, company spokeswoman Emily Oberton said. As many as a dozen workers were taken to five hospitals and 20 more were evaluated at the scene by emergency medical personnel, she said.

The Port Terminal Railroad Association reported that a locomotive traveling at 10 miles per hour struck the van after it failed to stop at a railroad crossing, said Felicia Griffin, a spokeswoman for the Port of Houston Authority. There was no rail arm at the at-grade crossing, but there were stop signs, the railroad association said in a statement. read more

Jan 31 2007
David Williamson,
 
ONE of Russia’s most ambitious and controversial energy projects will use Welsh fire safety technology in a “seven-figure” link-up with Pontypool-based Flamgard.

Its products will protect staff extracting oil and gas in sub-zero temperatures on the island of Sakhalin, north of Japan.

The $20bn venture made headlines worldwide last month when Russia’s state-owned energy giant Gazprom wrested control of holding company Sakhalin Energy from Anglo-Dutch operator Shell. read more

By  Ian Talley: WASHINGTON

The U.S. government will likely investigate to see if Royal Dutch Shell’s (RDSA) upstream services agreement for a $4.3 billion liquefied natural gas project in southern Iran violates its sanctions laws, a State department spokesman said Monday.

The deal may become the next test case for the State Department, accused by the new Democrat-controlled Congress as having been too lax in applying laws that prohibit investment in Iran.

Current U.S. law bars companies from doing more than $20 million a year in business with Iran, and since the project is likely to exceed the parameters, State Department spokesman Scott McCormack said he “was sure” the government “will take a look at this particular deal.” read more

Ed Crooks, London
January 31, 2007

THE US authorities would “take a look at” a controversial agreement signed by Royal Dutch Shell which could ultimately lead to a multi-billion-dollar investment in Iran, a US State Department official said.

Shell and its partner, Repsol of Spain, have signed a service agreement with the Iranian Government to continue work on developing blocks 13 and 14 of the giant South Pars gas field, despite mounting international pressure over the country’s nuclear program. read more

By Stuart Hampson: Published: January 31 2007 02:00 | Last updated: January 31 2007 02:00

An invitation in 1992 to join a group of leaders from 25 big UK companies to look at the role of business in a changing world would normally have seemed instantly resistible. But the facts that the invitation came from the Royal Society of Arts, that Sir Anthony Cleaver of IBM was chairing the inquiry and that the list of other individuals who had already signed up was impressive all made me think again.I am glad I did. read more

By Graham Bowley
Published: January 31 2007 02:00 | Last updated: January 31 2007 02:00

The urge to predict the future goes back to the oracle in the temple at Delphi, to Nostradamus uttering his gnomic quatrains and to the Romans consulting the entrails of slaughtered bulls.

Today, those working in the “futurist” profession glean insights from more earthly sources, such as fringe newspapers, websites and newsletters; from human experts; and from the world around us – which in futurist parlance contains “memories of the future”. read more

31.01.2007 01:28

Press Release

Today, supporters for the Anti-Shell Campaign took their protest to the Irish Embassy. The action was to target the Irish State; Shell; Statoil and Marathon who are attempting to construct a dangerous and experimental onshore raw gas pipeline and refinery in County Mayo; a beautiful remote part of North West Ireland.

There is massive opposition to this proposed pipeline by the local community, Ireland and internationally. A campaign of direct action against this plan has been ongoing since 2005. read more

No injuries in incident as crews contain vapour to plant site

by Dave S. Clark
Wednesday January 31, 2007

Residents and businesses in northern Strathcona County were in lockdown on Sunday afternoon due to the release of an explosive chemical at the Shell Scotford Upgrader.

According to Erin Carrier, a spokesperson for Alberta Environment, the plant began leaking a chemical called polyethylbenzene. Beverlee Loat, spokesperson for Shell Chemical, said the leak was noticed at about 12:15 p.m.

Carrier said once the release was noticed, Shell enacted its emergency call out system, calling over 185 residents and businesses in the area and notifying them to stay inside in an internal room where there are no windows. Carrier said since the chemical is explosive, all precautions were taken. read more

31 Jan 2007
Firdaus Abdullah, Dennis Wong and Adrian David

KUCHING: For the second time in three months, a helicopter en route to an offshore oil facility has crashed into the sea, this time off Bintulu.

A 26-year-old technician remains missing while seven others and the Super Puma L2’s two pilots were rescued in choppy waters about 40km out in the South China Sea yesterday.

The high seas drama started when the transport helicopter, chartered by Petronas Carigali and operated by Malaysian Helicopter Services Sdn Bhd (MHS), crashed in bad weather on its way to the B18 platform in the Bayan Balingian oilfield. read more

KUCHING, Malaysia, (UPI) — A technician was missing after a helicopter carrying employees to offshore oil drilling platforms crashed Tuesday in the South China Sea off Malaysia.

Seven passengers and two pilots were rescued, the New Straits Times reported. The missing man was identified as Irwan Fasla Aini Salihin, a technician with a Petronas contractor.

The crash occurred in stormy weather with high winds and waves. The passenger might have failed to escape from the helicopter before it sank or have been swept away after getting out. read more

Nine people were injured and one remains missing after a helicopter carrying staff of Malaysian national oil company Petronas crashed in deep seas off the eastern state of Sarawak on Borneo, reports said Wednesday.

The Super Puma L2 helicopter, carrying 10 people including two pilots, was reported to have crashed Tuesday en route to an oil platform, the official Bernama news agency said.

Nine occupants on board the chopper survived the crash, but one passenger remains missing, the report said.

“When the helicopter crashed into the sea, seven of the workers and the pilots scrambled out before the it sank,” a source was quoted as saying by the Star daily. read more

· Green groups put firm’s damage bill at $20bn
· Record earning ‘should go to local communities’

Terry Macalister
Wednesday January 31, 2007

Record annual profits to be announced by Shell tomorrow should be used towards paying off a bill estimated at more than $20bn (£10bn) for the damage caused by its oil activities to local communities and the wider environment, according to an alliance of human rights and green groups including Friends of the Earth (FoE).

High crude prices mean the Anglo-Dutch oil company is expected to show earnings of $25bn, up 17%. It has left in its wake a legacy of oil spills, air pollution and residents who pay the price of its operations while gaining few of the financial benefits, claims a report today from the FoE-led Shell Accountability Campaign. read more

01/30/2007: Press Release from Global Community Monitor

New report about damage to the environment and communities caused by Shell

(CSRwire) SAN FRANCISCO, CA (USA) / AMSTERDAM (The Netherlands) / LONDON (UK) – January 31, 2007 – A new report, launched the day before oil giant Shell announces its 2006 annual profits (on 1 February 2007) calls on Shell to use the profits to begin cleaning up damage it has caused to communities and the environment. The report offers proposals and figures for where and how Shell should repair some of the damage it has caused in nine communities around the world. read more

Investment in Iran
Likely Exceeds Limit
Set by Sanctions Law
By IAN TALLEY
January 31, 2007

WASHINGTON — The U.S. will likely investigate whether Royal Dutch Shell PLC’s upstream services agreement for a $4.3 billion liquefied-natural-gas project in southern Iran violates its sanctions laws, a State Department spokesman said.

U.S. law bars companies from doing more than $20 million a year in business with Iran, and since the project is likely to exceed that, State Department spokesman Scott McCormack said he “was sure” the government “will take a look at this particular deal.” read more

January 30, 2007, 8:34 pm

Some prominent lawmakers want the Bush administration to get tough with European and Asian companies moving ahead with big investment deals in Iran’s lucrative oil and gas industry, the backbone of the country’s economy. Royal Dutch Shell and Spain’s Repsol are the latest companies to announce possible multi-billion dollar exploration deals in Iran — in their case a potential $4.3 billion liquefied-natural-gas project in the south of the country.

The State Department says it is looking into the proposed Shell-Repsol deal, which could run afoul of the Iran Freedom Support Act, a law that calls for sanctions against any companies investing over $20 million in Iran’s oil and gas industry. A similar law has been in place since the late 1990s, but neither the Clinton nor Bush administrations have sanctioned companies operating in Iran. read more

Crude-oil futures rose more than 5% to a three-week high of nearly $57 a barrel, boosted by colder U.S. weather and looming OPEC production cuts.

Here is Tuesday’s roundup of oil and energy news:

* * *
EMERGENCY GLOBAL-WARMING SESSION: United Nations Secretary-General Ban Ki Moon is planning an emergency meeting of world leaders in September to discuss global warming, the Financial Times reports. Among the discussions will be finding a successor treaty to the Kyoto protocol, due to expire in 2012. read more

Tuesday, January 30, 2007. Issue 3585. Page 1.
By Miriam Elder
Staff Writer

Recent partnership deals between Rosneft and Gazprom have paved the way for major shifts in the energy industry that will further squeeze out foreign oil majors while enabling a much-needed boost in production, analysts say.

The two state-owned companies have emerged from the dust of a failed merger that collapsed in May 2005 amid an acrimonious struggle over who would snatch up the main production unit of bankrupt Yukos, and now appear ready to put their feuding behind them. read more