June 9th, 2007:

Oliver Morgan looks at the realities behind Moscow’s hard line on energy

Sunday June 10, 2007

Vladimir Putin’s fears over plans for an American ballistic Maginot line on his doorstep may be understandable; what he may end up doing about it is less so.

Worries over his response have been exacerbated because, in one important area of Russia’s national interest, Putin has already demonstrated that he is prepared to act tough: his reassertion of Kremlin control over Russia’s massive energy resources. read more

EXTRACT: In a world of $70-a-barrel oil, Russia’s vast reserves give it international clout: Putin temporarily cut off supplies of oil and gas to former Soviet satellites until they agreed to pay market prices. He is now rewriting oil deals with western giants such as Shell and BP.

THE ARTICLE

June 10, 2007

Angered by western ‘imperialism’ and emboldened by soaring oil riches, the Russian bear is growling again. Sunday Times reporters analyse the new threat from the east and explain why it cannot be ignored Mark Franchetti in Moscow, Nicola Smith in Heiligendamm, Sarah Baxter in Washington and Richard Woods, Michael Smith and Isabel Oakeshott in London read more

EXTRACT: …this has led to suggestions that it would be simpler for a rival to gobble up BG. Shell has been the favourite candidate for many years. BG has been racking up double-digit production growth and Chapman is confident the company can raise production by up to 10% a year between now and 2012. This far outstrips BP and Shell, which have admitted that safety and security problems will stymie their growth to a measly 2% over the period.

THE ARTICLE

June 10, 2007 

Ten years after British Gas was broken up, the group’s profits have soared from £160m to £3 billionGrant Ringshaw read more

June 10, 2007

Small independent brokers have held their own against the big investment banksMatthew Goodman

WHEN Shell admitted in 2004 that it had repeatedly misstated its oil reserves, the fallout was huge. Billions of pounds were wiped off the company’s market value and several executives were forced to resign.

But the ripples from the scandal helped Joe Brent, a Citi analyst who follows construction and commercial services companies, to one of his best recommendations of 2006 and made him the stock picker of the year in the UK and Ireland in an annual survey of analysts carried out by Starmine, the research firm. read more

Rob Routs, an executive director of Royal Dutch Shell Group, the world’s second largest oil firm, told me the other day that the era of “easy oil”, in which exploration and production costs were relatively low, was probably over, so it’s unreasonable to expect the return of low oil prices any time soon.

The world market price for crude oil is currently around US$60 (Bt2,076) per barrel, which is high enough to justify big investment in new production capacity worldwide. In the next five to seven years, additional capacity for two million barrels per day (bpd) will come on stream to help ease the upward pressure on global oil prices, which are also periodically influenced by geopolitical factors. read more

By Ellen Pinchuk and Stephen Voss

June 9 (Bloomberg) — Royal Dutch Shell Plc, Europe’s largest oil company, would like to participate in developing Russia’s Shtokman field if invited to do so by state-run OAO Gazprom, Shell’s chief executive officer said.

Rival companies including Statoil ASA and Total SA have been given a second chance to help develop Shtokman. The field is Russia’s largest untapped gas deposit and lies under Arctic waters off the coast of Siberia.

“First we have to be invited to the party,” Shell chief Jeroen van der Veer said today in an interview at the St. Petersburg International Economic Forum in Russia. “Shell are the leaders in liquefied natural gas in the world and we know how to build and operate projects. And we expect liquefied natural gas will play a major role for the Shtokman development.” read more

Posted by flipchartfairytales

I’m sure David Greer of Royal Dutch Shell is paid a lot of money for what he does but I can’t help feeling just a bit sorry for him.

After his crass e-mail to his team was circulated on the internet, it was then published and picked over by the business press. It soon became clear that some of the cliches weren’t even his own. He had nicked them from a speech made by General Patton. The Financial Times ran a poll asking “Is this the worst motivational memo ever?”  read more

Saturday 9 June 2007

By Mike Chitty www.realisedevelopment.com

David Greer is deputy CEO of Royal Dutch Shell’s Sakhalin Energy Investment Company. Now this is a business that is navigating tricky waters – and Mr Greer smartly recognised that staff motivation had taken a dip and needed lifting. A familiar problem to most managers.

So Mr Greer (or one of his staff perhaps) scans a copy of ‘Great Speeches from History’ and finds General Patton’s speech to the troops given the morning before the D-day landings. Here is some prose that will surely put the fire back in their bellies. With some careful updating and other contextual adjustments (including delivery via e-mail rather than face to face), a great, if derivative, motivational e-mail is sent to employees. It is soon recognised for what it is, leaked to the media, and Mr Greer’s problem is 10 times worse. Not only has he now got a de-motivated workforce – he has lost credibility into the bargain. read more

EXTRACT: One of the Russian issues near the top of the new prime minister’s in-tray will be the multi-billion dollar disputes involving BP and Royal Dutch Shell.

THE ARTICLE

By Jean Eagleshamin Heiligendamm
Published: June 9 2007 03:00 | Last updated: June 9 2007 03:00

Tony Blair warned that Anglo-Russian relations will not be repaired “any time soon”, after a difficult en-counter with Vladimir Putin yesterday failed to achieve a breakthrough.

The prime minister and Russian president talked head-to-head for 50 minutes – almost twice the scheduled time – after taking the unusual step of sending officials from the room. But they appeared to make no substantive progress on the various disputes that have plunged relations between London and Moscow to a post-cold war low. read more

By REUTERS
Published: June 9, 2007

Britain advised all its citizens to leave three states in Nigeria’s southern Niger Delta, Africa’s top oil-producing region, where violence against foreigners has become commonplace. Kidnappings and armed robberies have risen in Bayelsa, Delta and Rivers States, home to the bulk of Nigerian oil output and the local base of Royal Dutch Shell, the Foreign Office said. “We therefore advise British nationals to leave,” it said on its Web site. “If you stay, you do so at your own risk.” read more

June 9, 2007

Friends of the Earth has criticised Shell. The green charity reported “misleading” adverts to the Advertising Standards Authority, saying that the oil company portrays itself as a leader in renewable energy but that only 1 per cent of Shell’s schemes are related to renewable power.

http://women.timesonline.co.uk/tol/life_and_style/women/body_and_soul/article1904209.ece

EXTRACT: “…the likes of Shell and BP busy mopping up their own stock, selling out to the company’s broker has often proved the path of least resistance”.

June 9, 2007
Nick Hasell: Tempus

Big is back. After nearly three years in which the stock market’s largest stocks – the so-called “mega-caps” – have trailed their smaller peers, this week’s worldwide sell-off in equities produced the first signs that this trend may be beginning to unwind.

Four of the FTSE 100’s five biggest stocks – Royal Dutch Shell, BP, HSBC and Royal Bank of Scotland – have featured among the index’s best performers over the past five sessions. Vodafone Group, the one that did not, roundly outperformed the benchmark on being targeted by a rebel shareholder. read more

June 9, 2007
Steve Hawkes in St Petersburg

Tony Hayward, the BP chief executive, will pledge the group’s commitment to Russia today in an attempt to defuse tensions over the $20 billion (£10 billion) Kovykta gas project.

Mr Hayward wants to use this weekend’s Economic Forum in St Petersburg, where he is making only his second significant public appearance since taking over last month, to emphasise the success that BP has enjoyed in Russia since forming a joint venture with TNK four years ago. read more

June 9, 2007
Philip Webster and David Charter in Heiligendamm

Tony Blair told Vladimir Putin yesterday that the world was becoming more and more afraid of Russia’s behaviour at home and abroad.

And as he left his last G8 summit in Germany Mr Blair predicted a lengthy period of deep freeze in relations between Russia and the West.

The two men, who have been sparring with each other from a distance for weeks, had a tense, hour-long encounter in the Caroline Room at the Kempinski Grand Hotel. Mr Blair emerged alone, a fixed smile on his face. read more

EXTRACT: At the meeting with Mr Putin, Mr Blair is understood to have raised the case of BP and Shell’s multi-billion pound investments. Both claim the Russians have torn up contracts that would have given them access to key oil fields.

THE ARTICLE

· Talks with Putin were frank but fruitless
· ‘Real issues’ will not be resolved easily or soon

Patrick Wintour, political editor
Saturday June 9, 2007

Tony Blair admitted differences with Russia would remain unresolved for a long time after one hour of very frank but wholly fruitless talks with President Vladimir Putin at the close of the G8 summit in the Baltics yesterday. read more