April 10th, 2008:

Bloomberg: New York’s Paterson Rejects Long Island Gas Terminal (Update2)

By Daniel Whitten

April 10 (Bloomberg) — New York Governor David Paterson rejected a plan by TransCanada Corp. and Royal Dutch Shell Plc to build a liquefied-natural-gas terminal in Long Island Sound.

The project shouldn’t go forward because of the environmental damage it would cause, Paterson said today. “We must accept the challenge of developing comprehensive alternatives to meet the growing demand for energy on Long Island and throughout the state,” he said in a statement. read more

THE WALL STREET JOURNAL: Shocked, Shocked: Biofuels Are Bad, Saudis Say

Posted by Keith Johnson
April 10, 2008, 3:13 pm

Here’s a dog-bites-man moment: The Saudi Arabian oil minister says biofuels are a bad idea. Speaking at an oil-industry conference in Paris, Ali al-Naimi joined the steadily growing anti-biofuel chorus. Reuters reports:

“Let’s be realistic, ethanol and biofuels will not contribute to the protection of the global environment by reducing (carbon dioxide) emissions, they will not increase energy security, nor will they reduce dependency on fossil fuels to any appreciable degree,” Ali al-Naimi told an oil conference. “Biofuels are not the solution,” he added. read more

Financial Times: Beijing signs two big LNG deals with Qatar

By Carola Hoyos in London and Richard McGregor in Beijing
Published: April 11 2008 03:00 | Last updated: April 11 2008 03:00

China yesterday signed two multibillion-dollar long-term deals to buy liquefied natural gas from Qatar, marking a milestone in Asia’s evolution as the hottest market for the fuel.

PetroChina struck a deal to buy 3m tonnes of LNG a year over 25 years from 2011 with Qatar and Royal Dutch Shell, its partner. Analysts said the deal could could be worth as much as $60bn (£30.4bn). read more

THE NEW YORK TIMES: Gas Plant in L.I. Sound Is Rejected

By ANTHONY DePALMA
Published: April 11, 2008

In his first major policy decision on the environment, Gov. David A. Paterson on Thursday blocked the nation’s first floating liquefied natural gas plant, which had been proposed for Long Island Sound. Moving ahead on the $700 million plant, he said, would put a large section of the Sound off limits to boaters and would not guarantee low-cost gas for Long Island.

“One of my goals as governor is to protect Long Island Sound,” Mr. Paterson said at Sunken Meadow State Park, on Long Island. “Shame on us if we can’t develop a responsible energy policy without sacrificing one of our greatest natural and economic resources.” read more

Prince Bandar, named in the judgment as the man behind what it characterised as an attempt to pervert the course of justice. Photograph: Martin Argles/Guardian

The Guardian: Ministers under pressure to reopen BAE corruption probe

Related article:

Halt to BAE corruption probe ‘unlawful’: BAE supplied Tornados to the Saudis and they transferred oil to Shell and BP

Landmark high court ruling says decision to drop inquiry unlawful

David Leigh , Friday April 11 2008

Pressure was mounting last night on the government to allow the reopening of the criminal investigation into secret payments by arms company BAE to Saudi Arabia following a high court judgment that made clear the inquiry should never have been dropped. read more

Lord Browne and Tony Hayward

Daily Telegraph: BP and its bosses sued over alleged bribery of officials

By James Quinn
Last Updated: 12:31am BST 11/04/2008

Hayward and Browne named in action that claims millions of dollars were handed out in return for licences. James Quinn reports

British oil giant BP, Tony Hayward and Lord Browne of Madingley have been named in a multi-million dollar lawsuit involving allegations of bribery of government officials in Kazakhstan.

The company and its current and former chief executives are just three of the defendants named in a wide-ranging lawsuit alleging that money changed hands to win oil and gas licences in the former Soviet state. Other defendants include BG Group and chief executive Frank Chapman, as well as Norway’s Statoil and its chief executive, Helge Lund. read more

Vanguard (Nigeria): Irate community chases out Shell officials  

Written by Emma Arubi    
Friday, 11 April 2008 

OFFICIALS of Shell Petroleum Development Company, SPDC-West, were yesterday at Uzere, Isoko South Council of Delta state chased out of the community by the entire people for unfulfilled promises even as they gave the oil giant a 21-days ultimatum to complete a six years cottage hospital and ten years epileptic water projects or have their operations shut down.

The SPDC team led by Mr. Yemi Awolola, the Community Inter Face Coordinator, Land Area, West, had gone to the oil rich community for this year’s SPDC organized “People’s Parliament” where lectures on various topic of mutual benefit would have been delivered. read more

Forbes.com: China’s CNPC, Qatar Petroleum, Shell sign 25-yr LNG supply deal

Thomson Financial News
04.10.08, 11:52 PM ET

BEIJING (XFN-ASIA) – China National Petroleum Corp (CNPC), the parent of PetroChina, said it has signed an agreement with Qatar Petroleum and Royal Dutch Shell for a 25-year LNG supply deal.

CNPC will purchase 3 mln tons of LNG per year from the Qatargas 4 LNG project, in which Qatar Petroleum holds 70 pct and Shell 30 pct.

The deal, signed yesterday, was witnessed by Chinese Premier Wen Jiabao and Qatar Prime Minister Sheikh Hamad bin Jassem al-Thani, the company said in a statement posted on its website. read more

Reuters: Shell says many issues to solve on Nigeria funding

Thu Apr 10, 2008 9:42am EDT

LONDON, April 10 (Reuters) – Royal Dutch Shell Plc (RDSa.L: Quote, Profile, Research) and Nigeria are making progress on resolving funding problems involving oil and gas joint ventures with the state oil company, but many problems remain, the oil major said on Thursday.

“We’ve made progress with the main principals, but there’s still an awful lot of important aspects to be resolved,” Malcolm Brinded, head of exploration and production, told reporters at a briefing in Paris. read more

April 10th, 2008 06:47

Commenting as a long-term UBS employee, I can tell you the Americanization was not greeted without strong resistance within the bank. Disappointingly however, the US business units quickly gained an unassailable level of political power thanks to the massive, but risky profits they were able to make. Anyone who stood in their way did not survive long within the bank. And trust me, questions were raised strongly within the European divisions until there were few left with the courage to stand up. The risk was blindingly obvious for a long long time, but there was simply too much money being made and regulatory staff raising concerns learned rather quickly to shut their mouths. Personally, I believe the US divisions should be ruthlessly cut and UBS should return to a more trustworthy and honorable path, but the fact is, EU and APAC staff will suffer significantly in any layoffs (in fact they have already) as the US teams use this as an opportunity to to consolidate their power through token local layoffs and targeted EU dismissals. read more

10 Apr 2008

Qatargas, Shell and PetroChina today signed binding sales and purchase agreements that will lead to the long-term supply of liquefied natural gas (LNG) originating from The State of Qatar to the rapidly growing Chinese market. 

The agreements were signed in Beijing by His Excellency Abdullah bin Hamad Al-Attiyah, Deputy Prime Minister and Minister of Energy and Industry of Qatar, Mr. Jiang Jiemin, President of China National Petroleum Corporation and Chairman of PetroChina Company Ltd and Ms. Linda Cook, Executive Director of Royal Dutch Shell plc. read more

Reuters: Shell, Total eye Mexico oil law changes keenly

Thu Apr 10, 2008 7:38am EDT
By Tom Bergin and Marie Maitre

LONDON, April 10 (Reuters) – European oil majors Royal Dutch Shell Plc (RDSa.L: Quote, Profile, Research) and Total SA (TOTF.PA: Quote, Profile, Research) said they were keenly watching proposed legal changes in Mexico that could pave the way for investment by foreign companies in oil production.

Shell’s head of exploration and production, Malcolm Brinded, said the fact the legal changes may not go so far as to allow foreign companies to book reserves would not be a deterrent, as Shell was more focussed on profit than reserves bookings. read more

Daily Telegraph: IMF warns of global recession

There is now a one-in-four chance of a global recession, the International Monetary Fund has warned, as it slashed its expectations for economic growth across the Western world.

By Edmund Conway in Washington
Last Updated: 1:22am BST 10/04/2008
  
The IMF confirmed that Britain faces growth of 1.6pc this year – well below the Chancellor’s forecasts
 
As well as becoming the first major international institution to declare that the US faces a recession this year, the Washington-based fund warned in unusually explicit terms that the euro is now overvalued, while the Japanese yen and Chinese renminbi are both undervalued. read more

Yale Daily News: Conn. AG threatens to sue NY over gas pipeline

Samuel Breidbart
Staff Reporter
Published Tuesday, April 8, 2008

Connecticut Attorney General Richard Blumenthal LAW ’73 on Monday threatened New York with legal if the state decides to go ahead with construction of a liquefied-natural-gas pipeline in the Long Island Sound.

With a decision from New York Gov. David Paterson on the proposed Broadwater Energy gas terminal due later this week, several Connecticut officials, including Blumenthal, gathered in Stony Creek, Conn. yesterday to reiterate their own stance: Broadwater must be defeated. read more

WFSB.com Channel 3 Eye Witness News: N.Y. Anticipated To Block Broadwater

Connecticut AG: Decision Means Broadwater Must Be Rejected

POSTED: 9:39 pm EDT April 9, 2008
UPDATED: 11:17 pm EDT April 9, 2008

HARTFORD, Conn. — An anticipated decision by New York’s governor may likely sink a years-long proposal to build a liquefied natural gas terminal in Long Island Sound.

A published report on the Web site of Newsday Wednesday evening cited sources close to Gov. David Paterson as saying that he will announce Thursday afternoon his opposition to the Broadwater LNG Terminal proposal — a stance Connecticut officials have strenuously supported. read more

Houston Chronicle: Firms clamor to get in on pipeline project

Enbridge and Royal Dutch Shell express interest in North Slope work

By TOM FOWLER
Copyright 2008 Houston Chronicle
April 9, 2008, 10:46PM

The team effort by BP and ConocoPhillips to build a long-envisioned natural gas pipeline from Alaska’s North Slope has others in the industry wanting to play too.

Enbridge Inc., the No. 2 pipeline company in Canada, said Wednesday it too has discussed joining the 1,700-mile pipeline project, which would carry natural gas to markets in the lower 48 states. read more

Bloomberg: Walking Away From AAA, UPS Indicator, Level 3 Meaning: Timshel

Commentary by David Wilson

April 10 (Bloomberg) — AAA bond ratings are increasingly scarce among publicly traded companies, and it’s hard to blame them for shunning the designation.

Only half a dozen companies worldwide have the highest possible rating from Standard & Poor’s and Moody’s Investors Service, whose scale peaks at Aaa. Toyota Motor Corp., Japan’s largest auto manufacturer, is the sole non-U.S. company to have this distinction. read more

Reuters: Chevron says profit should top 4th-quarter levels

Wed Apr 9, 2008 6:18pm

NEW YORK (Reuters) – Chevron Corp (CVX.N: Quote, Profile, Research) should post higher first-quarter earnings than the previous quarter as record oil prices outweighed weak margins from refining and marketing, according to a report issued by the second-largest U.S. oil company on Wednesday.

Chevron said its oil and gas production in January and February was 2.61 million barrels of oil equivalent per day, basically flat with the fourth quarter, as higher international natural gas output offset shortfalls for oil. read more

April 09, 2008 11:27 AM Eastern Daylight Time  

IRVING, Texas–(BUSINESS WIRE)–Exxon Mobil Corporation (NYSE:XOM) announced today a donation of $10 million to anti-malaria efforts through the “Idol Gives Back” episode of the FOX-TV show American Idol, which airs tonight.

“We have a proud history of supporting the battle against malaria,” said Rex W. Tillerson, chairman and chief executive officer.

“ExxonMobil has thousands of workers in Africa, is one of the largest direct foreign investors in the continent, and knows very well the devastating impact of malaria and the need for action. We are pleased to support Idol Gives Back, which raises money to fight malaria and also helps to increase public awareness of this major health issue.” read more

2NewsKTUU.com (Alaska): Some already question BP-Conoco plan

by Sean Doogan
Wednesday, April 9, 2008

ANCHORAGE, Alaska – The new gas line proposal from BP and Conoco Phillips has only been out for one day.  Already an article in a London newspaper is questioning the plan.

The Denali Plan calls for a 2,000 mile pipe to run 4 billion cubic feet of natural gas from Prudhoe Bay to Alberta, Canada.

The proposed pipe would only be extended to the Lower 48 from Canada if, in the company’s words, it is “required.” read more

CNNMoney.com: Exxon Mobil To Join BP, ConocoPhillips Pipeline
 
April 08, 2008: 02:41 PM EST
DOW JONES NEWSWIRES

Exxon Mobil Corp. (XOM) spokeswoman Margaret Ross confirmed that the oil major was invited to participate in the new BP PLC (BP) and ConocoPhillips (COP) Denali natural gas pipeline in Alaska.

“ExxonMobil was only made aware of the ConocoPhillips-BP plan a few days prior to the announcement,” she said. “We need to better understand their approach to ensure that it will lead to a commercially viable development on a cost and schedule basis that will deliver maximum benefits to the State of Alaska, the producers and consumers in the United States and Canada.” read more

Reuters: RLPC-TNK-BP seeks $750 mln syndicated loan-bankers

Wed Apr 9, 2008 8:13am EDT

LONDON, April 9 (Reuters) – Russian oil firm TNK-BP, half-owned by BP (BP.L: Quote, Profile, Research) is looking to secure a $750 million, three-year syndicated loan for general corporate purposes, banking sources said.

The company’s last loan was a $600 million, 30-month term loan that signed in November 2007. That deal paid a margin of 75 basis points over LIBOR.

A banker said pricing on the new deal is likely to be around 150 bps, reflecting current market conditions. There is also expected to be a large mandated lead arranger (MLA) group to minimise underwriting and market risk and to lessen the amount needed to sell in wider syndication. read more

Reuters: UPDATE 1-Russian regions claim $170 bln from Total-paper

Thu Apr 10, 2008 3:21am

(Adds response from Total CEO)

PARIS, April 10 (Reuters) – Russian regions are claiming up to $170 billion from oil group Total (TOTF.PA: Quote, Profile, Research) in a legal case going back to the tumultous expansion at Elf Aquitaine, now part of Total, the Le Figaro newspaper said on Thursday.

The newspaper said a legal probe had been opened to study complaints by Volgorad and Saratov, filed in 2006.

The two regions alleged they did not get enough profits from a revenue-sharing contract dating back to a 1990 deal between former French president Francois Mitterrand and Russia’s Boris Yeltsin. read more

Reuters: Total CEO sees oil supply lagging demand-paper

Thu Apr 10, 2008 2:47am EDT

PARIS, April 10 (Reuters) – Oil prices are likely to remain high as production is not keeping up with strong demand, the chief executive of French oil major Total (TOTF.PA: Quote, Profile, Research) told a French newspaper.

“The real subject of worry today is that there is a strong demand and a supply that is not following,” Christophe de Margerie told Liberation in an interview published on Thursday. read more

THE WALL STREET JOURNAL: Gasoline Hits Record High at Pump Despite Demand Decrease

By ANA CAMPOY
April 10, 2008

Americans are cutting back on driving as they feel the pinch from high oil prices and a soft economy, but crude’s rise is preventing the price at the pump from falling.

On Wednesday, after the federal government reported a sharp drop in crude inventories, the price of a barrel of crude oil on the New York Mercantile Exchange rose $2.37, or 2.2%, to finish at $110.87 a barrel. This boosted the wholesale price of gasoline by 0.9% to $2.77 a gallon on the exchange. read more

THE WALL STREET JOURNAL: Mexico Allure to Big Oil Uncertain

By JOHN LYONS and NEIL KING JR.
April 10, 2008; Page A10

Mexico’s effort to nudge open the doors of its ailing oil industry to foreigners may not be enough to attract the big international oil companies it needs to reverse the country’s slumping crude production.
 
Like other big oil producers, including Kuwait and Iraq, Mexico is betting it can entice major oil companies to hire out their muscle and expertise without offering them a clear prospect for big profits. But so far the majors have remained leery of such arrangements, even though many of the world’s most promising oil fields remain off-limits to them. read more

Financial Times: UK banks seek more BoE borrowing

By Norma Cohen and Jane Croft in London and Michael Mackenzie in New York
Published: April 10 2008 03:00 | Last updated: April 10 2008 07:41

The Bank of England fears that the credit crisis has entered a new and more serious phase as British banks on Wednesday took steps to increase their borrowing facilities with the central bank to insulate themselves from another lending panic.

UK banks asked to increase sharply the reserves they hold on deposit at the Bank this month to the highest ever level amid concerns that the instability of the banking system could suddenly leave them desperate for cash. They fear another bank crisis – akin to the collapse of US investment bank Bear Stearns – could see the market seize up. read more

The Guardian: We are in the worst financial crisis since Depression, says IMF

Governments will have to pay for more bailouts, says Fund as it slashes growth forecasts and warns of global recession

Heather Stewart
Thursday April 10 2008

The US mortgage crisis has spiralled into “the largest financial shock since the Great Depression” and there is a one-in-four chance that it will cause a full-blown global recession, the International Monetary Fund warned yesterday.

As finance ministers and central bankers arrived in Washington to discuss ways of tackling the crisis, the IMF warned, in its twice-yearly World Economic Outlook, that governments might be forced to step in with more public bailouts of troubled banks and cash-strapped homeowners before the crisis was over. read more

Daily Telegraph: The UK needs to rethink its ‘romantic’ energy policy or face disaster

By Ambrose Evans-Pritchard
Last Updated: 1:40am BST 10/04/2008

Wulf Bernotat, head of German power giant e.on, tells Ambrose Evans-Pritchard why the UK needs a policy rethink

Puffing on a Sumatran Nobel cigar, Germany’s energy baron Wulf Bernotat has a few words of friendly warning for Britain: face up to the harsh realities of the global power crunch, or face strategic disaster.
 
“The UK is in a very bad situation. Roughly 40pc of its power is from coal, and 20pc from nuclear. It all needs to be replaced. But is anybody in the British Government out there making the case for clean coal? I don’t see anybody,” he said, speaking over a capuccino in Madrid. read more

Daily Telegraph: Shell warns Europe on CO2 permits

By Roland Gribben
Last Updated: 1:09am BST 10/04/2008

Shell has threatened to halt investment in Europe if the EU pushes ahead with contentious plans to charge for carbon emission permits as part of a €60bn (£48bn) climate change programme.

Christian Baime, a Shell France director, delivered the warning at a debate organised by the European Parliament. He expressed concern that any move to auction permits would be costly and added: “It’s impossible. So there will be no more investments by Shell in Europe.” read more

The Times: Royal Dutch Shell threatens to quit Europe over carbon-charging proposals

April 10, 2008
Robin Pagnamenta, Energy and Environment Editor

Royal Dutch Shell, the world’s second-largest oil company, threatened yesterday to stop investing in Europe if it is forced to pay for emissions permits that have previously been free.

Christian Balme, a Shell France director, told the European Parliament that if the EU moved towards a system in which emission quotas were auctioned, it would destroy Shell’s profitability in Europe. read more