EXTRACT: Another worry is TNK-BP, BP’s Russian joint venture, with increased concerns that Russia might try to buy out the indigenous joint-venture partners through state-controlled Gazprom – doing to BP what it did to Royal Dutch Shell with Sakhalin.
THE ARTICLE
By James Quinn
Last Updated: 12:33am GMT 13/01/2007
BP faces another year of worries
If 2006 was BP’s annus horribilis, how will things turn out for the oil major in 2007?
Lord Browne of Madingley will be gone by the end of July, leaving BP’s head of exploration and production, Tony Hayward, as the new man in charge. Mr Hayward will be hoping for a less eventful year after the string of safety scares and oil spillages of the past 12 months. One thing that is certain is that there will be no repeat of the boardroom spat — between Lord Browne and chairman Peter Sutherland — that so undermined confidence in management last year.
The extent of BP’s horrid 2006 was evident in the share price, with a fall from highs last May of 720p to 546½p on Friday. Of course, the price of oil has also been falling but it should be noted that a share price drop has not been the fate of all oil majors.
So what does 2007 hold? Unfortunately for Mr Hayward there will be more of the same. High on BP’s list of possible nightmares is a report due this month, by former US Secretary of State James Baker, into the 2005 Texas City refinery fire in which 15 people were killed and scores more were injured. It is unlikely to make pleasant bedtime reading. There are a number of other reports also due, including one on the Alaskan oil spillage.
Another worry is TNK-BP, BP’s Russian joint venture, with increased concerns that Russia might try to buy out the indigenous joint-venture partners through state-controlled Gazprom – doing to BP what it did to Royal Dutch Shell with Sakhalin.
But perhaps the largest issue is now resolved: succession. There is nothing stock markets love more than blood running down Threadneedle Street as heads roll. When Mr Hayward said last month that resolving BP’s top down culture and obsession with cost-cutting would “have to start from the top of the organisation”, he struck a chord. His appointment and may be just the fillip BP needs. Investors have been waiting in the wings to buy this stock, which should be expected to move to recovery mode. Many analysts believe BP is undervalued, but would not be persuaded to buy it until remedial action was taken against the existing management, despite Lord Browne’s innumerable achievements. The recovery may be slow, but patience could be well rewarded.
Going long on BP could present a real opportunity. City Index is offering a March spread of 546.7-550.2p. The situation is the same with the oil price, with the same firm offering a March spread of $54.14-$54.24 for Brent Crude, against about $53 a barrel last night. A rising oil price will only underpin BP’s shares further.
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/01/13/ccbet13.xml
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Royal Dutch Shell conspired directly with Hitler, financed the Nazi Party, was anti-Semitic and sold out its own Dutch Jewish employees to the Nazis. Shell had a close relationship with the Nazis during and after the reign of Sir Henri Deterding, an ardent Nazi, and the founder and decades long leader of the Royal Dutch Shell Group. His burial ceremony, which had all the trappings of a state funeral, was held at his private estate in Mecklenburg, Germany. The spectacle (photographs below) included a funeral procession led by a horse drawn funeral hearse with senior Nazis officials and senior Royal Dutch Shell directors in attendance, Nazi salutes at the graveside, swastika banners on display and wreaths and personal tributes from Adolf Hitler and Reichsmarschall, Hermann Goring. Deterding was an honored associate and supporter of Hitler and a personal friend of Goring.
Deterding was the guest of Hitler during a four day summit meeting at Berchtesgaden. Sir Henri and Hitler both had ambitions on Russian oil fields. Only an honored personal guest would be rewarded with a private four day meeting at Hitler’s mountain top retreat.
IN JULY 2007, MR BILL CAMPBELL (ABOVE, A RETIRED GROUP AUDITOR OF SHELL INTERNATIONAL SENT AN EMAIL TO EVERY UK MP AND MEMBER OF THE HOUSE OF LORDS: 
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A head-cut image of Alfred Donovan (now deceased) appears courtesy of The Wall Street Journal.
