January 27th, 2008:

Oil group to post highest earnings by a British firm

RAC urges the chancellor to cancel rise in fuel duty

David Teather , Monday January 28 2008

Shell will be at the centre of a political storm this week when it posts profits of almost $27bn (£13.6bn), the highest earnings ever made by a British company.

The record-breaking profits, on the back of soaring oil prices, seem likely to stir fresh allegations of profiteering. The price of petrol has been increasing sharply, rising from 71p a litre five years ago to about 104p a litre today, according to the AA. read more

Monday 28 January 2008

LONDON BP and Shell have been accused of using environmentally friendly initiatives as window dressing by Tony Juniper, the departing director of Friends of the Earth (Lewis Smith writes).

Mr Juniper said that the heads of the oil companies were hamstrung by the need to maximise dividends to investors, and that companies must have as much of an obligation to protect the environment as they have to maximise dividends.

He said that Lord Browne of Madingley, when chief executive, had promised to take BP into a new era of sustainability with its Beyond Petroleum campaign, which Mr Juniper helped to initiate, yet it soon became clear that oil and gas exploration would soak up the majority of investment. read more

By Jeroen van der Veer
Remarks by Royal Dutch Shell CEO Jeroen van der Veer

Open Access Article Originally Published: January 27, 2008

By 2100, the world’s energy system will be radically different from today’s. Renewable energy like solar, wind, hydroelectricity, and biofuels will make up a large share of the energy mix, and nuclear energy, too, will have a place. Humans will have found ways of dealing with air pollution and greenhouse gas emissions. New technologies will have reduced the amount of energy needed to power buildings and vehicles. read more

By Joe Carroll

Jan. 27 (Bloomberg) — Eni SpA, the energy company stripped of control of the world’s biggest oil project earlier this month, got Alaska to agree to cut its tax rate on a state development to 5 percent if oil prices tumble.

Eni’s royalty payments to the state of Alaska for crude pumped from the Nikaitchuq field will drop from 12.5 percent, if oil falls below $42.64 a barrel, the state’s Department of Natural Resources said on its Web site late yesterday.

The lower rate will apply to a section of the oil field known as Schrader Bluff, which is the first area Eni plans to develop. Royalties will be tied to the price for Alaska North Slope crude sold on the U.S. West Coast, which last fell below the $42.64 threshold in February 2005. read more

Headline: POGC, Edison come to terms on developing SP Phase 12

Print Date : Sunday, January 27, 2008
Tehran Times Economic Desk

TEHRAN –- Iran’s Pars Oil and Gas Company (POGC) and Edison SpA, the second-largest energy company in Italy, agreed on the development of South Pars gas field Phase 12, the POGC managing director said here on Saturday.

Ali Vakili, quoted by Moj News Agency, added negotiations between the two sides will be finalized soon.

Among companies eager to invest in South Pars project, Edison is leading the field, said the official. read more

Richard Wachman 
Sunday January 27 2008

Oil giant Shell is this week expected to unveil the biggest profit by a British company when it posts earnings of about $26bn thanks to soaring oil prices in 2007.

The figures are expected to spark a political storm, but the ire of lobby groups representing motorists and road hauliers will be directed at the government rather than Shell, as by far the biggest components of petrol prices are fuel duties and VAT.

Sheila Ranger, acting director of the RAC Foundation, established in 1991 to champion the interests of motorists, says: ‘Petrol in Britain is cheap compared to the continent; what makes it expensive are the taxes. Nearly 70 per cent of the cost of a litre of petrol goes the government – it is unacceptable.’ read more

By William Lyons
Published Date: 27 January 2008

THE FTSE-100 restored much of its losses in a turbulent week that included a swingeing 0.75% cut in US interest rates and a package of tax cuts from George Bush. The index closed at 5,869, down just 0.55% over the week.

Sentiment will be tested over the coming days when the City’s full-year results season kicks off with figures from Royal Dutch Shell and AstraZeneca.

Royal Dutch Shell is expected to reveal full-year profits of more than £13.2bn on Thursday despite a tough end to 2007 for the oil major. read more