November 6th, 2006:

Tuesday 7 November 2006

By Upstream staff

Two new pipelines across the Gulf from Iran may be needed to meet rapidly growing gas demand in the Middle East, a Shell executive said today.

“I could see a new trans-Gulf pipeline to Kuwait from Iran and another serving the United Arab Emirates (UAE) and Oman,” said Martin Trachsel, Shell’s vice president for gas and power in the Middle East Gulf.

The pipelines would need to have capacity of 1 billion to 2.5 billion cubic feet per day of gas to meet expected shortfalls in supplies by 2015, Trachsel told journalists on the sidelines of an industry event in London, Reuters said. read more

Crude-oil futures rose again Monday on the New York Mercantile Exchange, settling above $60 a barrel, boosted by attacks on Nigerian oil output.

Here’s Monday’s roundup of oil and energy news:

* * *
CHINA IN LINE FOR MORE OIL: China will be first in line for more crude-oil imports from Nigeria if output from Africa’s biggest producer swells to four million barrels a day within two years, said Nigerian oil minister Edmund Daukoru. Nigeria has been turning down buyers since February, when attacks by militants on oil installations in the Niger Delta started costing at least 500,000 barrels a day in production at any given time. The violence continued today, as armed protesters overran and shut down an oil facility operated by an Italian oil firm. read more

Tuesday November 7, 2006

The cash donation given by Royal Dutch Shell for community and environmental projects was £63.26m and not the £7.73m shown in the table, FTSE 100 give 0.79%, Giving List, page 2, yesterday.

http://www.guardian.co.uk/corrections/story/0,,1940992,00.html

By Ed Crooks, Energy Editor: Published: November 7 2006 02:00 | Last updated: November 7 2006 02:00

Royal Dutch Shell has announced the development of three oilfields in deep water off the coast of Brazil, an area seen as a potentially extremely important source of new oil supplies.

The company is putting in a floating production vessel with capacity to process 100,000 barrels of oil a day in a project which will push back the frontiers of technology.

The floating production, storage and offloading vessel, which will pump the oil into tankers without the need to take it onshore, will be moored in 1,780m of water – some of the deepest for this type of vessel anywhere in the world. read more

By paul taylor: Published: November 7 2006 02:00 | Last updated: November 7 2006 02:00

For most of the past 167 years, ever since Welsh scientist Sir William Robert Grove built the first fuel cell, they have been little more than laboratory curiosities or confined to military uses and the Nasa space programme.

But now it seems scientists are edging towards their goal of being able to produce practical, safe and low-cost fuel cells capable of powering everything from mobile phones and laptop PCs to electric vehicles. read more

Published: November 7 2006 02:00 | Last updated: November 7 2006 02:00

Back when ‘Dallas’ ruled the airwaves, Big Oil was a racy mix of big hats, bigger hair and even bigger money. J.R. Ewing would have been horrified to think of his business becoming more like a dull old utility.

Historically, upstream oil and gas – as opposed to downstream businesses such as refining and marketing – generated the sector’s highest returns on capital. Investments made in the 1970s and 1980s provided accessible reserves for conversion into cash. Relatively light, fixed tax regimes meant leverage to the oil price. read more

Nov. 6 – Armed protesters overran and shut down an oil facility operated by an Italian oil firm on Monday in the latest violence to hit Africa’s biggest crude producer, government officials and the oil company said.

The protesters invaded the Tebidaba oil pumping station run by Agip in southern Bayelsa State and forced workers to shut it down, said Joshua Benamesia, a security aide to the state governor. Agip is a subsidiary of Italian energy company ENI SpA.

“They shut down the place,” he said by phone from the state capital, Yenagoa. “They always have demands but we don’t have the details of what they want for now.” read more

POSTED: 1537 GMT (2337 HKT), November 6, 2006

YENAGOA, Nigeria (AP) — Armed protesters have overrun and shut down an oil facility operated by Italian oil firm Agip in the latest violence to hit Africa’s biggest crude producer, government officials and the oil company said Monday.

The protesters invaded the Tebidaba oil pumping station run by Agip in southern Bayelsa State and forced workers to shut it down, said Joshua Benamesia, a security aide to the state governor. Agip is a subsidiary of Italian energy company ENI SpA. read more

Monday November 6th 2006 

The Shell to Sea group is calling on the Government to set up an independent public tribunal to investigate the controversial Corrib gas project.

The group wants the inquiry to make recommendations on how best to develop the scheme in line with environmental and health and safety concerns, as well as the views of the local community.

Shell to Sea has been campaigning for some time against plans by Shell Ireland to build an onshore terminal and a contentious pipeline to bring gas onshore from the Corrib field. read more

Nobel perplexed at owners reluctance to seize a golden opportunity, writes Neville Smith, Lloyds List
Published: Nov 06, 2006

TRADING pollution emissions from ships is an opportunity to make and save money, the head of industry pressure group SEAat has said.

But Shell’s Cor Nobel said he was perplexed at shipowners’ reluctance to grab what appeared a golden opportunity.

‘I cannot believe it has taken so long to convince people to consider these instruments,’ he said. ‘Here is an opportunity to earn money and save money as well as resources.’ read more

By: JOHANN HARI, The Independent – United Kingdom
Published: Nov 06, 2006

The Stern warning that our frenetic burning of fossil fuels is unleashing Weather of Mass Destruction across the world has been slowly seeping into Britain’s mental atmosphere over the past week. On cue, the oil corporations have renewed their PR campaign to promote themselves as the solution rather than the petrol-scented problem. They pump out adverts looking like Greenpeace brochures, pledging to be “at the forefront of action against global warming.” read more

By: Lorna Siggins, Marine Correspondent
Published: Nov 06, 2006

North Mayo’s Shell to Sea campaign is due to announce an initiative today aimed at breaking the deadlock over the Corrib gas project.

It is understood that the proposal, which will be outlined by the campaign in Castlebar this afternoon, could allow for dialogue between objecting local communities, Shell E&P Ireland and the Government.

An attempt by a Government-appointed party, former Ictu secretary-general Peter Cassells, to reach a mediated settlement failed earlier this year, and differences between the local community and Shell have become increasingly bitter since the company resumed work at its terminal site five weeks ago. read more

By KEITH JOHNSON
November 6, 2006; Page C1

MADRID — Spanish-Argentine oil company Repsol YPF SA is an outlier among European oil companies.

Its international expansion has been a series of misadventures in Argentina, Bolivia and Venezuela. The recent slump in oil prices and the steady rise in costs are pinching its already weak profitability. On top of all that, it is having more trouble than its rivals replacing what it produces with fresh reserves of oil and natural gas.

So why has Repsol’s stock risen 16% in the past eight weeks? read more

Mon Nov 6, 2006 6:37 AM GMT

LONDON (Reuters) – Royal Dutch Shell was warned four years ago by one of its own officials of safety concerns over the Sakhalin-2 oil and gas project in Russia, the Guardian reported on Monday, quoting what it said were emails from him.

The internal messages sent to Engel van Spronsen, then technical director of the Shell-led Sakhalin Energy firm, voiced concerns about the size of the wells, drilling in an earthquake area and the project’s tight schedule, the newspaper said. read more

Mon Nov 6, 2006 3:16am ET

LONDON, Nov 6 (Reuters) – Shell International Finance BV, guaranteed by oil company Royal Dutch Shell (RDSa.L: Quote, Profile, Research), plans to sell a long 3-year dollar bond, an official at one of the banks managing the sale said on Monday.

The deal, which has a maturity date of January 2010, will be launched and priced early this week, he said.

The bond is expected to yield 31 to 33 basis points over U.S. Treasuries, he said. Morgan Stanley and UBS are joint lead managers. read more

LONDON (AFX) – Royal Dutch Shell PLC was warned more than four years ago by one of its own senior officials that he had major reservations about safety issues inside the troubled Sakhalin-2 development in eastern Russia, The Guardian reported.

Internal Shell emails, sent to the then technical director of the Shell-led Sakhalin Energy company, raise fears about the size of wells, drilling in an earthquake area, and an unforgiving schedule, the newspaper said.

One of the messages from Hans Bouman, asset manager for the NAM company, jointly owned by Shell and Esso, questions whether one division of Shell turned down the opportunity to develop Sakhalin because of its own concerns, The Guardian added. read more

Monday, November 06, 2006 – ©2005 IranMania.com 
 
LONDON, November 6 (IranMania) – The managing director of the Iranian Offshore Oil Company (IOOC) said that Royal Dutch Shell is planning to take part in the bid on the Master Development Plan (MDP) of an Iranian offshore gas field.

Mahmud Zirakchianzadeh told Mehr News Agency (MNA) that a number of Iranian and foreign companies, including Shell, have shown interest in participation of the MDP tender on the Persian Gulf Kish gas field.  read more

EXTRACT: Royal Dutch Shell Plc (RDSA LN): Europe’s second largest oil company may bid on the “Master Development Plan” for Iran’s offshore Kish gas field, the Iranian Oil Ministry said on one of its Web sites. The shares added 21 pence, or 1.2 percent, to 1,814 pence.

THE ARTICLE

By Scott Hamilton

Nov. 6 (Bloomberg) — The following stocks may rise or fall in U.K. and Irish markets today. Stock symbols are in parentheses and prices are from the market close on Friday.

The benchmark FTSE 100 Index was little changed at 6148.10 in London as 61 stocks dropped, 33 gained and 7 were unchanged. The FTSE All-Share Index was little changed at 3149.37. read more

Murray Armstrong
Monday November 6, 2006

The issue of corporate responsibility has moved up the political agenda and was the subject of a high-level seminar hosted by Gordon Brown at No 11 Downing Street last week as the Guardian today reveals that FTSE 100 companies are spending less on the issue.

The top 100 companies in the UK spent 0.79% of their pre-tax profits measuring and mitigating the social and environmental impacts of their businesses. The Guardian’s sixth annual social survey of stock market-listed companies, the Giving List, reveals today that the figure is down on last year’s 0.87%. The total amount invested in community responsibilities was £986m. read more

Only four of the world’s 10 largest companies have targets for reducing carbon dioxide. Sally Uren reports

Monday November 6, 2006

The 10 largest companies on the globe come from three sectors: oil, car manufacturing and retail. The oil companies are by far the greatest emitters of carbon dioxide, contributing more than 434m tonnes between them – 89% of the total emissions put out by the big 10. ExxonMobil is the greatest emitter by far. It is responsible for 138m tonnes of carbon dioxide per annum, the same as the emissions from 6m UK households. read more

It’s not enough simply to wear the badge of corporate responsibility. Business must accept that real change is the only response to the global crisis of sustainability

Jonathan Porritt
Monday November 6, 2006

The Campaign Against Arms Trade was understandably incensed when BAE announced that it would be launching a new range of environment-friendly weapons, including “lead free” bullets, rockets with reduced toxins and grenades that produce less smoke. There have even been experiments to see if explosives can be converted into manure. read more

Bad publicity seems to be an occupational hazard of the oil world. So what are companies doing to ensure that the publicity is unwarranted?

Terry Macalister
Monday November 6, 2006

Big oil companies have been working hard to shine their green credentials but moan that they are rarely given appropriate credit for the positive steps they do take.

As long as they make record profits from their oil and gas operations while continuing to invest relatively small sums of cash in renewable projects, they are unlikely to see much change. read more

Terry Macalister
Monday November 6, 2006

Shell was warned more than four years ago by one of its own senior officials that he had major reservations about safety issues inside the troubled Sakhalin-2 development in eastern Russia.

Internal Shell emails sent to the then technical director of the Shell-led Sakhalin Energy company raise fears about the size of wells, drilling in an earthquake area, and an unforgiving schedule.

One of the messages from Hans Bouman, asset manager for the NAM company, jointly owned by Shell and Esso, questions whether one division of Shell turned down the opportunity to develop Sakhalin because of its own concerns. read more