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April, 2006:

THE NEW YORK TIMES: Shell to Reopen Platform in Gulf

Shell to Reopen Platform in Gulf

By JAD MOUAWAD
Published: April 21, 2006

Eight months after Hurricane Katrina shattered American oil output in the Gulf of Mexico, the largest producer in the region, Royal Dutch Shell, said yesterday that it had completed repairs on its Mars platform and would resume production ahead of schedule.

Mars, the biggest offshore structure in the gulf, was among the hardest hit by the storm that struck on Aug. 29. Production should start up again next month, Shell said, and the Mars platform is expected to return to producing 140,000 barrels of oil and natural gas a day, its level before the storm, by the end of June. Initially, the company estimated that repairs might last well into the second half of the year. read more

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The Moscow Times: Shell Seals Japanese Sale

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Shell Seals Japanese Sale

Royal Dutch Shell's Sakhalin-2 project agreed to sell as much as 210,000 tons per year of liquefied natural gas to Hiroshima Gas over a 20-year period, helping the Japanese utility diversify its sources of the fuel.

The agreement sets the terms for sales under an earlier accord signed last May, Sakhalin Energy Investments, the operator of the Sakhalin project in the Far East, said Thursday in an e-mailed statement. (Bloomberg)

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WWF: WWF calls for suspension of Shell project

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WWF calls for suspension of Shell project

There are fewer than 100 western gray whales (Eschrictius robustus) remaining.
© WWF-Canon / Michel Terrettaz
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Sakhalin Environment Watch protest march: “Say No to EBRD Financing”
© Sakhalin Environment Watch

21 Apr 2006

London, UK – The European Bank for Reconstruction and Development (EBRD) should not fund Shell's proposed construction of the largest hydrocarbon construction project in the world in Russia's Far East without improved mitigation measures, says WWF. The EBRD’s consultation on the whether to fund the Sakhalin II oil and gas project closes today.

A recent review by some of the world’s leading whale experts concluded that Shell has provided no convincing evidence that the project is not harming the 100 remaining western gray whales. With only two months to go before offshore pipeline construction starts, the scientists reviewed the proposed mitigation measures and concluded that they could not be confident there would be no significant impact on the whales. read more

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Houston Chronicle: Energy Leaders Note Chinese Developments Underway

(BW) While US Points the Finger, China Gets Busy — Energy Leaders Note Chinese Developments Underway in World Energy Magazine

By Business Editors(c) 2006 Business Wire

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–>

HOUSTON–(BUSINESS WIRE)–April 20, 2006–Given limited amount of supplies in certain geographical areas, and that the impact of emissions on the environment will eventually affect us all, World Energy Magazine presents numerous references by world energy leaders to the fact that growing demand will only be met by “extending knowledge and applying technology.” BP p.l.c., Royal Dutch Shell p.l.c. and GE Oil & Gas CEOs refer to China as a place where solutions are already underway. To get up to speed read these articles now at www.worldenergysource.com.

BP p.l.c. CEO Lord Browne of Madingley reports on his visit to Beijing, that a “process of transition” is already beginning. “It was clear,” Browne noted, “…that there is no sense of complacency in China.” He was “struck,” he said, “by the amount of work being done on these issues,” referring to improving energy efficiency, coal options, and nuclear experiments, such as the experimental reactor being developed at Tsinghua University. China's desire for knowledge is “very powerful,” he states. Further, he offers, China's supply security will come from “links between the Chinese state companies and the private sector” as well as China's developing “…involvement in the international trading market.” Jeroen van der Veer adds in his article, that while science and technology is the essential first step, “Delivering Technology” is the challenge. read more

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Forbes/AFX News Limited: Shell sees Gulf of Mexico Mars platform onstream by end-May

AFX News Limited
Shell sees Gulf of Mexico Mars platform onstream by end-May 04.20.2006, 10:57 AM

LONDON (AFX) – Royal Dutch Shell PLC said its Mars platform in the Gulf of Mexico, which was damaged by Hurricane Katrina last year, will be operational by the end of next month, ahead of previous schedules.

[email protected]

 
afp/bam

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OilOnline: Shell and ExxonMobil boost UK Energy Supply

Shell and ExxonMobil boost UK Energy Supply

By: OilOnline

Thursday, April 20, 2006

 

Shell U.K. Limited, on behalf of itself and co-venturer Esso Exploration and Production UK Limited (an ExxonMobil subsidiary), announced an increase in gas supply to the UK with the commencement of gas production from the Cutter field in the southern North Sea. The Cutter development will use wind and solar technologies in the production of natural gas.

 

The design of the Cutter field Trident Monotower installation is based on the construction of offshore wind turbines and therefore rests on a single leg. The lower construction and maintenance costs – the fabrication cost alone is around 40% of that of traditional platforms – of the unmanned Monotower platform, compared to conventional designs, enables the access and recovery of small pockets of resources that previously would have been deemed uneconomical. read more

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MarketWatch: Sakhalin Energy signs LNG supply deal with Hiroshima Gas

MarketWatch: Sakhalin Energy signs LNG supply deal with Hiroshima Gas

6:20 AM ET Apr 20, 2006

MOSCOW (MarketWatch) — Sakhalin Energy, the Royal Dutch Shell PLC-led (RDSB.LN) consortium developing the Sakhalin-2 project off the coast of Russia's Far East, said Thursday it has signed a deal to sell 210,000 metric tons of liquefied natural gas a year to Hiroshima Gas Co. (9535.TO).

The deal is to run for 20 years.

The company said the deal is the first to involve a use of a small LNG carrier. Hiroshima Gas is planning to use a newly built ice-class LNG vessel with a capacity of some 20,000 cubic meters to transport the LNG to its own regassification facilities at Hatsukaichi. read more

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Globe & Mail (Canada): Shell planning, timing brings major project in under budget

Shell planning, timing brings major project in under budget

Senior executives credit close monitoring and early intervention as key factors

PATRICK BRETHOUR

CALGARY — In a sector short of everything from concrete to carpenters, Shell Canada Ltd. has pulled off an increasingly rare feat with its $400-million project to retool its Edmonton and Montreal refineries — coming in under budget.

Good timing played a big part in that accomplishment, an important one for Shell after it overspent by billions in building its Athabasca Oil Sands Project earlier in the decade.

“Let me be very honest. We were very fortunate in getting these projects built when we did. I'm glad we didn't leave it even six months later,” said David Weston, senior vice-president of oil products for Shell Canada. The project wrapped up construction in December. read more

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Toronto Star: Shell Canada, Fort McKay band sign oilsands deal

Shell Canada, Fort McKay band sign oilsands deal Apr. 19, 2006. 06:10 PM CANADIAN PRESS CALGARY — Shell Canada Ltd. (TSX: SHC) has signed an agreement with the Fort McKay First Nation to acquire oilsands leases through an exchange of options. The deal, announced Wednesday, involves Shell's Lease 90 and Fort McKay oilsands lands received as part of the band's treaty land-claim settlement.   The land will be leased to Shell for potential incorporation into the Athabasca oilsands project. Lease development models remain under review and financial details were not released Wednesday. “A lease of Fort McKay First Nation's land will be an excellent addition to our long-term business plan,” said Clive Mather, Shell Canada's CEO. “While additional work with government is still to be done, this agreement has the potential to return real value to both Shell and Fort McKay for many years to come.”   The Fort McKay First Nation — about 65 kilometres north of Fort McMurray — will be entitled to royalty payments on production and an option to acquire and work with Shell on the development of Lease 90. Chief Jim Boucher said his community is “excited about the possibility of becoming an oilsands developer in our own right.”   The Athabasca oilsands project consists of the Muskeg River Mine, about 75 kilometres north of Fort McMurray, and the Scotford upgrader, near Fort Saskatchewan, northeast of Edmonton.   The oilsands development is a joint venture among Shell Canada, with 60 per cent, Chevron Canada, with 20 per cent, and Western Oil Sands LP (TSX: WTO), with 20 per cent. Shell Canada's shares closed up 18 cents to $45.84 on the Toronto Stock Exchange.
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Daily Telegraph: Database: Energy

Energy

Apache Corp, an American oil and gas company that specialises in tapping older fields, is to buy BP's wells in the shallow waters off the Gulf of Mexico for $1.3bn in cash.

Vanco Energy, an American-based oil-exploration company, won a bid for licences to pump oil and natural gas in Ukraine's part of the Black Sea, seeing off competition from Exxon Mobil and Royal Dutch Shell, the Ukrainian government said.

• Royal Dutch Shell has built a natural gas platform in the North Sea that uses only wind and solar power and will supply as much as 1pc of Britain's needs for the next 15 years. read more

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Lloyds List: Industry is bunkered as new rules cause confusion

Industry is bunkered as new rules cause confusion
That is the message to come out of the recent Aracon bunkering conference in Antwerp, writes Helen Hill
Lloyds List; Apr 20, 2006

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Attending the recent Aracon bunkering conference in Antwerp, vague memories of a certain Spice Girls song came to mind 'I'll tell you what I want, what I really, really want.' read more

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RIA Novosti: Sakhalin Energy signs LNG deal with Japan

Sakhalin Energy signs LNG deal with Japan

10:52 20/ 04/ 2006
 

MOSCOW, April 20 (RIA Novosti) – Sakhalin Energy, the operator for the massive Sakhalin II project, signed a contract Thursday with a leading Japanese firm to supply 210,000 metric tons of liquefied natural gas annually for the next 20 years.

The deal with Hiroshima Gas, a leading Japanese producer and supplier of natural gas and LNG, says deliveries will be carried out using small vessels with ice-breaking capability to transport about 20,000 cubic meters of LNG each.

Sakhalin Energy, owned by Royal Dutch/Shell (55%) and Japan's Mitsui (25%) and Mitsubishi (20%), is developing two vast offshore fields off the island of Sakhalin in Russia's Far East that hold estimated recoverable reserves of 150 million metric tons of oil and 500 billion cubic meters of gas. It is also building Russia's first liquefied gas plant on Sakhalin with a designed capacity of 9.6 million tons a year. read more

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Lloyds List: Energy Briefing

Energy Briefing
Martyn Wingrove
Lloyds List; Apr 20, 2006

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Manati gathers pace

PETROBRAS and Norse Energy have accelerated development on the Manati gas project off Brazil by bringing in a second jack-up rig. read more

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AP Worldstream: Militants say exploded car bomb at military base in Nigerian oil hub

Militants say exploded car bomb at military base in Nigerian oil hub
DULUE MBACHU
AP Worldstream; Apr 20, 2006

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Ethnic militants fighting government forces in Nigeria's southern oil region said they exploded a car bomb at a military base in the city of Port Harcourt, the main hub of the country's oil industry. read more

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Irish Times: Shell raises prices as oil breaks record

Shell raises prices as oil breaks record
Irish Times; Apr 20, 2006

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One of the Republic's biggest oil companies increased fuel charges yesterday as crude prices hit new highs on international markets, writes Meg Shreve and Barry O'Halloran read more

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Lloyds Lists: Oil giants seek ban on ONGC and Reliance in Indian round

Oil giants seek ban on ONGC and Reliance in Indian round

Aggressive bidding deters multinationals, writes Shirish Nadkarni in Mumbai
Lloyds List; Apr 20, 2006

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MULTINATIONAL oil giants Shell, Exxon and British Petroleum have sought a ban on bidding by India's state-run Oil ' Natural Gas Corp and the privately owned Reliance Industries for fresh oil and gas blocks tenders on the sub-continent. read more

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Financial Times: Extras play role in ratcheting up remuneration as executive pay packages increase by 11%

Extras play role in ratcheting up remuneration as executive pay packages increase by 11%

By Kate Burgess
Published: April 20 2006 03:00 | Last updated: April 20 2006 03:00

Investors leafing through the pile of remuneration reports and voting forms ahead of annual meetings will find that basic pay packets haven't grown nearly as much as bonus and incentive schemes.

//

It is still early in the season but already some institutional shareholders have spotted a trend of “ratcheting” up overall executive remuneration where the double-digit rises are from extras rather than salary. read more

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Financial Times: BP admits 30% cost overrun on Baku pipeline

BP admits 30% cost overrun on Baku pipelineBy Carola Hoyosand Thomas Catan
Published: April 20 2006 03:00 | Last updated: April 20 2006 03:00

BP has admitted the Baku-Ceyhan oil pipeline project it manages will cost 30 per cent more than the energy group first expected.

//

David Woodward, head of BP Azerbaijan, yesterday said the 1,768 km (1,099 mile) pipeline, which is about six months late, would cost $3.9bn (£2.18bn) rather than $2.95bn. read more

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Financial Times: Gazprom issues threat to EU gas supply

Gazprom issues threat to EU gas supplyBy Neil Buckley and Arkady Ostrovsky in Moscow
Published: April 19 2006 19:33 | Last updated: April 19 2006 19:33

gazpromGazprom, Russia’s state-controlled gas monopoly, on Wednesday told European Union countries not to block its international ambitions, warning that it could redirect supplies to other markets.

//

In a statement after a meeting between Alexei Miller, Gazprom’s chief executive, and EU ambassadors, the company said: “It is necessary to note that attempts to limit Gazprom’s activities in the European market and politicise questions of gas supply, which in fact are of an entirely economic nature, will not lead to good results.” read more

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Forbes/AFX News Limited: Mitsubishi Corp to invest up to 1.8 trln yen for energy projects – report

 

AFX News Limited

Mitsubishi Corp to invest up to 1.8 trln yen for energy projects – report

04.19.2006, 09:21 PM

 

TOKYO (AFX) – Mitsubishi Corp will spend 1.5-1.8 trln yen from this year to 2009 to fund existing gas and coal projects, the Nihon Keizai Shimbun reported without citing sources.

 

Major trading firms have been increasing their investments to take advantage of soaring prices for natural gas and other resources, the business daily said, adding the amount of Mitsubishi's investment marks a sharp increase from the 800 bln yen it initially projected for the years to March 2004 to 2007. read more

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ic Scotland.co.uk: Warned over gas pipeline protests

Scottish News

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Warned over gas pipeline protests

 

Security measures have been increased at two Scottish companies amid fears they could be targeted by protesters opposed to their work on a gas pipeline in Ireland.

Staff at Technip and Transocean, who are contracted by oil giant Shell, were briefed after both companies were mentioned on a website supporting the cause of five men jailed over their opposition to the project.

The men, known as the Rossport Five, were imprisoned for 94 days last year after they broke an injunction banning them from protesting against the high-pressure pipeline being built by Shell from the Corrib gasfield to an onshore refinery at Bellanboy in County Mayo.

 
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Lloyds List: India gets in on the act with pipeline talks

India gets in on the act with pipeline talks

Petronet mulls shipping subsidiary, writes Shirish Nadkarni
Lloyds List; Apr 19, 2006

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INDIA has started buying natural gas from Qatar and has initiated talks to build pipelines to bring it from Iran, Turkmenistan, Bangladesh and Myanmar. read more

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Lloyds List: World's largest LNG project clings to shores of Russian Arctic

World's largest LNG project clings to shores of Russian Arctic

Sakhalin II could export from the middle of 2008, writes Bruce McMichael
Lloyds List; Apr 19, 2006

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Russia's LNG production industry clings to the very edges of the country with the huge Sakhalin II project lying on the eastern seaboard and Shtokman nestling above the Arctic Circle in the north-west close to Norway. read more

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Financial Times: 'Bid' exposes UK's double standards in its dealings with foreign investors

Main page content:

'Bid' exposes UK's double standards in its dealings with foreign investorsBy Eugene G Zhukov
Published: April 19 2006 03:00 | Last updated: April 19 2006 03:00

From Mr Eugenue G. Zhukov.

//

Sir, I found Jean Eaglesham's report “Centrica threat led to rethink on mergers” (April 17) fascinating. I am far from being a specialist in UK government's affairs, but I found the fact that the Department of Trade and Industry has had to hold eight meetings to discuss possible ways to block a non-existing bid by Russia's Gazprom for UK's Centrica to be quite revealing in itself. The UK, which has built up a very solid reputation for being open and fair in dealing with foreign investors, is in danger of exposing itself to charges of double standards. read more

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Financial Times: Initiative to expand university links gets £27m lift

Initiative to expand university links gets £27m liftBy Miranda Green,Political Correspondent
Published: April 19 2006 03:00 | Last updated: April 19 2006 03:00

A fresh drive to build links with overseas universities was launched yesterday with £27m of funding from the government, the British Council and businesses.

//

BP, BAE systems, GlaxoSmithKline and Shell have each contributed £1m to the second wave of the prime minister's initiative for international education, which aims to bring another 100,000 students to the UK and build partnerships between universities here and abroad. read more

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The Independent: Shell pioneers solar-powered gas

Shell pioneers solar-powered gas

By Michael Harrison, Business Editor

Published: 19 April 2006

The world's first gas platform powered solely by wind and solar energy has begun production, in a breakthrough for the offshore industry in low-cost exploitation of marginal fields.

Royal Dutch Shell will announce today that it has begun pumping gas from its Cutter platform in the UK southern North Sea. The tiny platform, powered by two wind turbines and a pair of solar panels, cost £80m to develop and is expected to produce gas at the rate of some 3 million cubic feet a day for the next 15 years. read more

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BREITBART.COM/ASSOCIATED PRESS: Oil Prices Settle at Record, Above $71

Oil Prices Settle at Record, Above $71Apr 18 3:26 PM US/Eastern Email this story

By BRAD FOSSAP Business Writer

WASHINGTON

Oil prices settled at a new high above $71 a barrel Tuesday as supply threats around the world overshadowed a new report from OPEC forecasting weakening global demand.

There was no fresh catalyst for Tuesday's buying, but analysts said the market psychology would likely remain bullish until there is some resolution to a variety of geopolitical uncertainties, particularly the West's nuclear dispute with Iran and output disruptions in Nigeria.

Global Insight oil analyst Kevin Lindemer said the slowing consumption growth and swelling inventories of crude oil in the United States would typically help pull down prices, but “all of that is getting swamped right now by Iran and Nigeria.” read more

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OIL & GAS JOURNAL: "Definitive Report on Oil Company Management and Ethics"

World’s Most Sustainable and Ethical Oil Companies – 2006

A new report about Ethics, Sustainability, Corporate Governance, Transparency and Corporate Social Responsibility of the major worldwide oil companies, is available from The Oil & Gas Journal Online Research Center. The report is by Management & Excellence S.A., the prestigious research and rating company.

This report makes an in-depth comparison of the business practices of 15 of the major worldwide oil companies. This is the third in-depth study measuring oil companies’ compliance with over 280 key areas of sustainability, corporate governance, ethics, social responsibility and transparency by the Madrid-based ethics research and rating company Management & Excellence S.A.

The study uses the M&E Facts Only method consisting of a list of 280 internationally recognized standards in sustainability, corporate governance, social responsibility and ethics, customized for the oil industry. M&E surveyed all companies included and researched public information services to determine actual point-by point compliance with these standards. All percentages in the report refer to the number of points with which a company complies out of a total of over 280.

The report provides a true comparison for evaluating the business practices of these major oil companies.

THIS REPORT PROVIDES THE LATEST INFORMATION ABOUT THE TRENDS AND MOVEMENTS OF COMPANIES IN THE OIL INDUSTRY, IN FIVE (5) AREAS ANALYZED; SUSTAINABILITY, CORPORATE GOVERNANCE, ETHICS, SOCIAL RESPONSIBILITY, AND TRANSPARENCY.

This report is a must for evaluating the future for these companies and the industry.


Product No. M&E2006 Price: $6,000 US (5000 Euros) *
To Order:
Phone: 1.800.752.9764
or 1.918.831.9421
E-mail:
[email protected]
For More Information:
E-mail:
[email protected]
Phone 1.918.831.9488

To order online go to the OGJ Online Research Center web sitewww.ogjresearch.com
*Contact OGJ Online Research Center for Customized Reports

 

Following is a summary of the results of this study –A press release issued by Management & Excellence, S.A.

PRESS RELEASEShell Again Most Sustainable Oil Company in 2006Brazil’s Petrobras Moves to 2nd; Exxon Drops to 9th Place; Four of Top-5 Are European

 

Madrid, 22 February 2006: Shell tops the list of the worlds most sustainable and ethical oil companies for the third year running. In the 2006 study Shell achieves the highest score of any oil company ever, achieving 89.01%. This is the result of the third in-depth study measuring oil companies’ compliance with over 280 key areas of sustainability, corporate governance, ethics, social responsibility and transparency by the Madrid-based ethics research and rating company Management & Excellence S.A.

Shell was able to substantially improve its already strong 2005 performance of 82% even though this year’s study covered roughly twice as many areas as the 2005 study, thus adapting to higher benchmarks in sustainability in the oil business. Shell subscribes to no fewer than 12 codes of human rights and its board met a record 29 times in 2004. By comparison, top-rated BP’s board only met 8 times. The company offers grievance channels for its personnel in over 50 countries and is implementing 120 biodiversity projects worldwide. No oil company studied was as transparent as Shell: the company publishes 13 separate reports on topics ranging from environmental impact assessment to animal testing.

 

Ranking

1

Shell

89,01%

2

BP

83,52%

Petrobras

83,52%

4

Statoil

83,15%

5

Total

76,19%

6

Norsk-Hydro

73,26%

Repsol

73,26%

8

Chevron

72,53%

9

ExxonMobil

68,13%

10

Conoco

66,30%

11

Pemex

62,64%

12

ENI

62,27%

13

Lukoil

58,61%

14

Gazprom

35,90%

15

Petronas

20,15%

  read more

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Reuters: Nigeria to build highway, create jobs in oil delta

Nigeria to build highway, create jobs in oil delta
18 Apr 2006 16:05:30 GMTSource: Reuters

By Camillus Eboh
ABUJA, April 18 (Reuters) – Nigeria will build a $1.8 billion highway and create 20,000 new jobs to address a crisis in the Niger Delta, where militant attacks have halted a quarter of oil output, President Olusegun Obasanjo said on Tuesday.
A mediator appointed by the militants, whose four-month campaign of sabotage and kidnapping has shut down 550,000 barrels a day of crude exports, dismissed the proposals as insufficient to end the crisis.
Obasanjo announced the measures, which also include dredging of the River Niger, at the inaugural meeting of a new council designed to speed development in the delta states, which pump almost all Nigeria's oil but where most people live in poverty.
“We have a wonderful opportunity for a new beginning,” Obasanjo told delegates in the presidential villa, adding that the government of the world's eighth largest oil exporter had made mistakes.
Obasanjo listed a series of projects to be undertaken by the federal government — including a $1.8 billion East-West highway and 20,000 new jobs in the military, police, state oil company, and teaching — and called on state governors to come up with plans of their own for the next council meeting on July 18.
“The announcement from Abuja is not exciting enough to compel a positive response,” Oronto Douglas, an activist nominated by the Movement for the Emancipation of the Niger Delta (MEND) to mediate with the government, told Reuters.
“The struggle has gone beyond just development,” he added.
MEND has demanded greater local control over oil revenues, the release of two jailed leaders from the delta and compensation for oil spills from Royal Dutch Shell <RDSa.L>.
The demands were echoed by the Ijaw National Congress, a lobby group representing the largest tribe in the vast wetlands region, in a statement published over the weekend.
BOYCOTT
Many prominent delta activists stayed away from the Abuja meeting, dismissing it as a “jamboree”.
MEND has been threatening another attack on the oil industry since February, but has yet to carry it out. The group released the last of its foreign oil worker hostages at the end of March.
Obasanjo insisted the council should come up with concrete measures with detailed timelines. Saying the region's problems were not tribal, he called on governors to deal with armed groups in their states.
“You cannot carry weapons in one hand and expect that you will have a warm handshake with the other hand,” Obasanjo said.
Many inhabitants of the delta, a region almost the size of England dominated by mangrove-lined creeks, feel cheated out of the huge riches being extracted from their ancestral lands.
Their bitterness against government and Western oil companies fuels insecurity in a region awash with small arms and riven by internecine conflict.
Analysts say the conflict is linked to elections next year, when various zones are vying for the ruling party ticket.
Oil is Nigeria's economic lifeline and the government is keen for the main operator, Royal Dutch Shell, to resume production from areas it abandoned after the militant attacks.
Shell is reluctant to return to the oilfields until violence eases. The prolonged loss of high-quality Nigerian crude, most of it pumped by Shell, has helped push world oil prices towards new highs. read more

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Reuters: Shell yet to assess Nigerian oilfield, output shut

Shell yet to assess Nigerian oilfield, output shut

Tue Apr 18, 2006 11:33 AM GMT

 

LONDON (Reuters) – Royal Dutch Shell has yet to carry out an assessment of an offshore oilfield in Nigeria, a step required before it can restart output shut since February following rebel attacks, a spokeswoman said on Tuesday.

 

“There is no change,” the spokeswoman said, adding she could not say when the assessment would take place.

 

Shell previously said it hoped the appraisal of the EA field, which pumps 115,000 barrels per day (bpd), could take place last week. read more

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Globe & Mail (Canada): Husky follows Shell in trying to squeeze oil from hard rock

Husky follows Shell in trying to squeeze oil from hard rock

Calgary firm pays $10-million for limestone leases

PATRICK BRETHOUR

CALGARYHusky Energy Inc., saying it is aiming for a “dominant position” in the oil sands, is boosting its bet that it can wring crude out of limestone.

The Calgary-based integrated energy company said yesterday it has spent $10-million to acquire leases 95 kilometres west of Fort McMurray, in an area where the oil sands become oil rocks — where bitumen is trapped in limestone rather than clay.

Husky already had substantial holdings of what is technically known as carbonate in its Saleski leases. Saleski holds about 16.8 billion barrels of original bitumen in place, one of the most expansive measures of the potential of an oil reservoir. The new leases, adjacent to Saleski, contain another 2.7 billion barrels of bitumen in place. All told, the Saleski properties hold more than half of Husky's oil sands potential. read more

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Convenience Store News: Shell Stations Pump Out News

Shell Stations Pump Out News

NEW YORK — Shell gas stations in Los Angeles will be giving out more than just gas at the pumps. NBC Universal Television Stations made a deal with Los Angeles-based VST Media Network to show national and local news, weather and entertainment news on daylight-viewable 17-inch screens with stereo speakers, reported Brandweek Magazine .

The programming will currently reach 17 Shell gas stations in Los Angeles with plans by VST to have 500 stations in L.A., San Francisco and San Diego by the end of the year, according to the report. Terms of the deal were not disclosed. read more

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THE WALL STREET JOURNAL: Oil Settles Above $70 a Barrel, Despite Inventories at 8-Year High

Oil Settles Above $70 a Barrel,
Despite Inventories at 8-Year High

By BHUSHAN BAHREE in New York and ANN DAVIS in HoustonApril 18, 2006; Page A1

Crude oil closed above $70 a barrel for the first time, highlighting a phenomenon reshaping the petroleum world: Investment flows into oil futures are supplanting nitty-gritty supply-and-demand data as prime drivers of prices.

In contrast to past bull markets in crude, this year's run-up has occurred even though oil inventories in the U.S., the world's largest market, have swelled to their highest levels in nearly eight years. read more

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The Independent: Nestlé looks set to swallow up McCartney range of frozen meals

Nestlé looks set to swallow up McCartney range of frozen meals

By Matthew Beard

Published: 17 April 2006

Devotees of ethical consumerism were dismayed when The Body Shop was sold last month to a company part-owned by Nestlé.

They may now have further food for thought following reports that the company set up by the vegetarian trailblazer Linda McCartney is also about to be swallowed up by the Swiss food giant, which is named today among a top 10 of “unethical” multinational companies.

The late wife of Sir Paul McCartney popularised a meat-free diet in the 1980s through her best-selling cookbooks, and in 1991 launched her eponymous range of frozen meals. read more

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Belfast Telegraph: "Ethical Consumerism"

Nestlé looks set to swallow up McCartney range of frozen meals
Belfast Telegraph; Apr 17, 2006

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Devotees of ethical consumerism were dismayed when The Body Shop was sold last month to a company part-owned by Nestlé. read more

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Lloyds List: Statoil envisages Barents gas pipe link

Statoil envisages Barents gas pipe link

Oil giant studies options for transporting energy to Europe as it seeks access to Russia's Shtokman field, writes Martyn Wingrove
Lloyds List; Apr 18, 2006

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STATOIL has conceptual plans to build a gas pipeline from the Barents Sea to existing infrastructure in the Norwegian Sea. read more

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Asia Pulse: INT'L OIL GIANTS SEEK EXCLUSION OF INDIA'S ONGC, RIL FROM NELP VI

INT'L OIL GIANTS SEEK EXCLUSION OF INDIA'S ONGC, RIL FROM NELP VI
Asia Pulse; Apr 18, 2006

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NEW DELHI, April 18 Asia Pulse – Oil giants Shell, Exxon and BP have sought a ban on bidding by India's Oil and Natural Gas Corp (ONGC) (BSE:500312) and Reliance Industries Ltd (RIL) (BSE:500325) for fresh oil and gas blocks put on tender in the sixth round of the New Exploration Licensing Policy (NELP). read more

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Jackson News-Tribune (WY USA): Report: Venezuela Took Land From Oil Cos.

Report: Venezuela Took Land From Oil Cos.

Staff and agencies
17 April, 2006

CARACAS, Venezuela – Venezuela reclaimed more than 10,700 square miles in potential drilling acreage from private oil companies last month by requiring them to join new state-controlled joint ventures, a newspaper reported Monday.

Under the new terms, PDVSA took at least a 60 percent stake in each field, hiked taxes and royalties, and took back drilling acreage that it claimed the companies had failed to invest in.

Unnamed foreign companies received a total of $900 million in “investment bonds” for use in new joint ventures to develop the oil acreage that was seized, El Tiempo said on its Web site.

Oil companies such as Chevron Corp., Brazil‘s Petrobras, and Royal Dutch Shell PLC lost oil acreage to PDVSA during the contract negotiations.

Venezuela is a founding member of OPEC and was the fourth-largest supplier of U.S. oil imports in 2005.


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Daily Independent (Nigeria): Shell Laments Blockade To Ogoni Spill Sites

Shell Laments Blockade To Ogoni Spill Sites

By Odudu Okpongete

Senior Correspondent,

Port Harcourt 

Oil multinational, Shell, has lamented inability to access its facilities located in Ogoniland, Rivers State, to clean up the March 24, 2006 spill in its Bomu Well-2, claiming that its workers on inspection were attacked by community youths.

The company also denied allegations that it ordered the manhandling of two youths of Ban-Ogoi, who reportedly escorted foreign journalists and human rights activists to a controversial power plant site constructed by it as alleged by the Movement for the Survival of the Ogoni People (MOSOP). read more

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Financial Information Service (Novosibirsk Russia): Japan Starts Building Gas Tanker for Sakhalin-2

17.04.06  Japan Starts Building Gas Tanker for Sakhalin-2

   
   
   VLADIVOSTOK, April 17. /FIS/. The ceremony dedicated to the startup of the construction of the first gas tanker by joint order of Sovkomflot and Japan's vessel owner NYK was held in Nagasaki. The ice-class tanker of the deadweight of 71.2 thousand tons will be named 'Grand Elena.'

The ship is intended for the transportation of liquefied natural gas (LNG) from the oil and gas terminal currently constructed in Aniva Bay (southern extremity of Sakhalin) under Sakhalin-2 project. Startup of Russian LNG transportation is to begin in 2008.

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New Europe: Gazprom holds LNG talks with Mitsubishi

Gazprom CEO Alexei Miller discussed current liquefied natural gas (LNG) supplies and new LNG projects with Yorihiko Kojima, the CEO of Mitsubishi Corp., last Tuesday, Gazprom said.

The two discussed Mitsubishi’s proposals on cooperation to implement oil and gas projects in Russia, including the Shtokman gas condensate field and the Baltic LNG project.

Mitsubishi is a party to the Sakhalin-2 LNG project, which calls for the construction of Russia’s first and the world’s biggest LNG plant. Gazprom is negotiating a role in the Sakhalin-2 project with Royal Dutch Shell. read more

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THE NEW YORK TIMES: Oil Up Near $70 as Funds Flow in, Iran Rumbles On

Oil Up Near $70 as Funds Flow in, Iran Rumbles On

By REUTERS Published: April 17, 2006

Filed at 3:52 a.m. ET

Skip to next paragraph Reuters

SINGAPORE (Reuters) – Oil leapt to $70 a barrel for the first time in seven and a half months on Monday, extending strong gains made last week as tension mounted between Iran and the West over Tehran's nuclear ambitions.

U.S. May crude (CLc1) oil futures traded 53 cents up at $69.85 a barrel by 0742 GMT, having hit $70 earlier, its highest since Hurricane Katrina battered the U.S. Gulf Coast in late August last year to send U.S. prices to a record-high of read more

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BBC Monitoring Service: Nigeria: Ogoni rights group accuses oil giant Shell of breaching peace talks

Nigeria: Ogoni rights group accuses oil giant Shell of breaching peace talks
BBC Monitoring Service – United Kingdom; Apr 17, 2006


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Text of report by Kelvin Ebiri entitled “Mosop warns Shell” published by Nigerian newspaper The Guardian website on 16 April read more

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The Times: An energy industry sapped of manpower

The Times April 17, 2006

An energy industry sapped of manpower

By Carl Mortished

A staffing crisis is crippling the oil and gas sector

AN ACUTE shortage of skills in the oil and gas industry has become a crisis, a problem as serious as the shortage of rigs and equipment and one that is forcing companies to absorb huge salary increases to keep projects running.

The dearth of qualified professionals — reservoir engineers, geophysicists and project designers — is so acute that oil and gas projects are being delayed, putting at risk expectations of future production and delivery of fuel.

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Alarm bells are ringing in the United States, where contractors working on major liquefied natural gas (LNG) projects are complaining of labour and equipment shortages. According to Wood Mackenzie, a six-month delay to all the LNG projects under construction would leave the US with a potential gas shortfall of two billion cubic feet per day in the winter of 2008-09.

“The industry is in a people crisis,” said Dennis Proctor, chief executive of Hunting, a British oil services company that sells drilling and well technology to leading oil companies. “I have seen salaries double in a year.” read more

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THe Times: BP set to pay record price for drillship

BP set to pay record price for drillship

By Carl Mortished

BP HAS agreed to pay more than $500,000 a day to secure the continued use of a drillship in the Gulf of Mexico. The price, a record rate for an oceangoing rig, shows how rapidly oil exploration costs are rising as the search for new fields hots up.

From December next year, BP will pay a day rate of $520,000 (£297,000) to charter the Discoverer Enterprise, almost three times more than it pays at present for the use of the ship.

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The surge in price reflects a desperation among oil explorers to retain control of scarce resources, essential if the companies are to meet their own oil production targets. A shortage of drilling rigs is delaying exploration programmes in the North Sea while a surge in drilling activity in the Middle East is driving up the costs offshore of Texas and Louisiana as the newly rich state-owned oil companies of the Gulf compete with US multinationals for the latest technology.

Shortages in labour and equipment are causing concern that the scheduling of major projects will be affected and badly needed additions to global hydrocarbon output will be delayed, further increasing the upward pressure on oil and gas prices. read more

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The Sunday Times: Keeping Britain warm with gas turned down

The Sunday Times April 16, 2006

Keeping Britain warm with gas turned down

We need to end our reliance on gas. The energy review will decide how it is to be done, writes Tracey Boles

WHEN Russia turned off the gas supply to Ukraine in January, Brian Wilson’s first thought was: “Our chickens have come home to roost.” The former energy minister had always thought it was wrong to make Britain dependent on gas. Now everyone could see the folly of the policy.

Wilson, minister for energy and construction from May 2002 until June 2003, said: “Being very dependent on one fuel is a security-of-supply issue. And even if supply is maintained, our control over price is limited.”

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The stand-off between Moscow and Kiev over new terms on Ukraine’s gas contracts did not last long. But the problems with Britain’s dependence on gas go on. Erratic supplies from the Continent during the winter and high wholesale prices have sent energy bills soaring.

The touch-and-go nature of gas supplies was one reason the government decided to tear up its energy policy and launch a review in December. The consultation on the review closed last week.

But whatever the outcome, there is a risk that Britain’s energy bills will continue to climb, particularly if investment in new infrastructure and cutting-edge technologies takes place against rising demand for energy. read more

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THE INDEPENDENT: Offshore wind farms blown off schedule by two years

Offshore wind farms blown off schedule by two years

By Tim Webb

Published: 16 April 2006

More than half of the first phase of the UK's offshore wind farms will be built two years late, at the earliest. Developers are also warning that the second phase of much larger projects is unlikely to go ahead without government support, threatening Tony Blair's target for producing more energy from renewable sources .

The looming crisis faced by the wind industry comes as ministers begin drafting the second Energy Review in three years. Consultation for the latest review closed on Friday. The first one favoured renewable forms of energy, primarily wind power. read more

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The Observer: It pays to be one of the top 10…

It pays to be one of the top 10…

… it can mean £27,000 a day. An exclusive survey for The Observer charts the rises in the benefits packages enjoyed by the heads of the UK's largest companies. Heather Connon reports

Sunday April 16, 2006
The Observer

The chief executives of Britain's 10 largest companies received salary and benefits packages worth an average of £6.5m last year, according to a detailed analysis of their remuneration prepared exclusively for The Observer. This was 11 per cent ahead of the total for the previous year.

Prepared for The Observer by consultancy Independent Remuneration Solutions (IRS), it is one of the only surveys to include all components of directors' pay – pensions, options and other share schemes as well as salary and bonuses. The 10 companies are worth £750m in total, equal to half the value of all FTSE 100 companies, and are used by remuneration consultants as a bellwether on which to base other companies' pay and perks packages. read more

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The Observer: Big Mac tops 'unethical' poll: Perceived least ethical firms: 3. Shell

Big Mac tops 'unethical' poll

McDonald's beats Nike to unwelcome accolade in new survey that reveals UK consumers' concerns about the things they buy

Conal Walsh
Sunday April 16, 2006
The Observer

British consumers believe that McDonald's is the least ethical of high-profile corporations, according to a new survey.

The unwanted accolade follows sustained criticism of the burger giant's unhealthy fare and provides further evidence that McDonald's – for years the most successful retail brand in the world – is increasingly out of step with a body-conscious society.

McDonald's tops the poll ahead of other 'bogeyman' companies such as Shell and Nestle, according to the Ethical Index compiled by market research firm The Fraser Consultancy. Based on a survey of more than 1,300 consumers, it is the first to rank UK and overseas brands according to their 'ethical profile'. read more

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THE NEW YORK TIMES: Editorial: Blood and Oil

Editorial

Blood and Oil

Published: April 16, 2006

Just as things seemed to be calming down in the delta region of Nigeria after a spate of kidnappings and insurgent attacks, the militant group calling itself the Movement for the Emancipation of the Niger Delta — MEND — announced last week to all who would listen that it was planning new violence against oil facilities in the region. Apparently unconcerned about tipping its hand to the authorities, MEND even gave a date for the start of its new campaign: April 25.

The guerrillas could not have hoped for a better reaction. Crude oil prices immediately jumped on the news, hitting $70 a barrel, as new fears about a supply squeeze hit the global oil market. Adding to the concern is that the latest message, sent to various news organizations, seems a lot angrier and more violent than previous missives. The references to endless buckets of blood sounded more like an Al Qaeda rant than a threat from oil-market saboteurs. read more

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