January 19th, 2007:

Business comment

By Damian Reece, City Editor
Last Updated: 12:03am GMT 20/01/2007

Nancy Pelosi has wasted no time in setting out the Democrats’ agenda for business. As House Speaker, she has capped a feverish start to her time in the limelight by seeing through a Bill aimed fairly and squarely at Big Oil. Ending tax breaks, and slapping a new conservation fee on oil companies that refuse to renegotiate leases, is aimed at raising $14bn (£7bn) from oil companies over 10 years.

The measures still need to go before the Senate and the President but for energy company chief executives, the prospect is clear. The US is becoming a more hostile place to do business after years of benign oversight by the Republicans. That factor is just one more problem facing the industry which is once again having to learn how to cope with falling oil prices and production, not to mention greater scrutiny on safety. read more

(Nancy Pelosi, leader of the House of Representatives)

By David Litterick, in New York
Last Updated: 12:12am GMT 20/01/2007

Nancy Pelosi, leader of the House of Representatives, which wants to strip the oil industry of tax breaks and increase royalties
 
The oil industry faces a $14bn (£7.1bn) bill over the next 10 years after the US House of Representatives agreed on measures that would strip the industry of tax breaks and force it to make larger royalty payments.

The bill marks the end of an often vitriolic campaign against “big oil” by Democrat politicians, who have threatened the industry for years but only now have the power to do anything about it after their electoral victory last year. read more

Week of January 21, 2007
Alan Bailey

In a Jan. 12 letter to the Alaska Department of Natural Resources, Shell Exploration and Production Co. gave notice of its intent to carry out a research program, to investigate the feasibility of seismic data acquisition from floating ice in the Beaufort Sea. Shell plans to conduct the research between mid-March and mid-May 2007.

Although the company expects the research to take place entirely within the federal outer continental shelf, Shell has applied for a state geophysical permit, as a contingency against ice conditions forcing the work to be carried out closer to land. read more

The work is there and so are the jobs, say BP’s Borowski and Rees; the challenge is getting Alaskans to compete for them

Week of January 21, 2007
Amy Spittler

A recent Petroleum News interview with BP Exploration (Alaska)’s Florian Borowski, human resource manager for resource planning, and Dave Rees, technical resourcing specialist, provided an inside look at the company’s employment process and its perspective on the workforce situation in Alaska.

BP has 300 more employees in Alaska than it did two years ago. According to Borowski the company’s Alaska headquarters in midtown Anchorage is “busting at the seams.” Parking is an issue; 22 weekly flights to the North Slope are full, and once you get there the beds are all occupied and the offices are packed. read more

‘Private-sector economics’ at work, Prentice says

BY CLAUDIA CATTANEOCalgary Bureau Chief
Financial Post [email protected]

CALGARY • Ottawa is doing what it can to move the proposed Mackenzie natural-gas pipeline forward, but in the end the massive project has to make economic sense, the federal minister responsible for the project said yesterday.

Jim Prentice, the Minister of Indian Affairs and Northern Development, said Ottawa has made progress on several critical fronts, such as dealing with aboriginal land claims, wrestling with regulatory issues and putting forward a $500-million socio-economic fund. read more

19 January 207
Page 9

If there’s a link to climate change, we seem to have found it

The weather has no equal when it comes to topics of conversation. Golfing in Ontario in January, snowdrifts in Vancouver, bears not hibernating, birds not migrating and melting chunks of Canada’s Far North drifting off into the Arctic Ocean have been dominating public discourse.

Running a distant second is the price of gasoline, which only takes over from weather when passionate debate over climate change veers into a soporific discussion about carbon emissions credits trading. read more

BY MARIO TONEGUZZI

One of the city’s top business leaders is joining a Calgary Economic Development delegation on a trade mission to the United Kingdom next month to sing the praises of Calgary’s, and Alberta’s, economic juggernaut.

Clive Mather, Shell Canada Ltd. CEO, told the Herald his message overseas will be simple: The city and the province offer a wealth of opportunities in this current boom and into the future.

“As a major business here, it’s always good to spread the word — not only about the potential that we have here but also about the assistance that we need to help develop that,” said Mather. read more

January 19, 2007
Steve Hawkes
 
Russian authorities are planning an assault on BP in a move that will trigger fresh concerns about the company’s future in the country.
 
Gazprom will eventually win back control of the field for Mother Russia. The key question is what happens then.
 
The Natural Resources Ministry’s environmental agency has revealed that it is preparing to investigate the giant Kovykta gas field run by BP’s joint venture with TNK.

Oleg Mitvol, the agency’s deputy-head, said that documents would be submitted by the end of January with a full check launched “possibly in February or March”. read more

Friday 19 January 2007

We will publish in the near future detailed substantial comments, allegations and threats made behind the scenes by Shell lawyers about this website and its owners/operators, Alfred and John Donovan.

The relevant information will first be supplied to Shell management so that it has the opportunity to disassociate itself, update, or take issue with the authenticity of comments attributed to Shell lawyers (every single word was written by Shell lawyers).

The comments cover the background to the long drawn out acrimony between Shell and the Donovan’s which continues in the courts and on the Internet in 2007, despite a peace treaty entered into by all relevant parties in 1999. read more

Bill Condie,
19 January 2007

Oil and gas majors BP and Royal Dutch Shell are facing a huge new tax bill in the US after the first anti-big business salvo of the new Democratic-led House of Representatives

The House has voted to slash tax breaks and increase royalties in a move that would cost oil and gas companies $14bn (£7bn). The Democrats, who swept back into control of the US Congress last year, have vowed to create a tough new political climate for big business.

They say the oil companies do not contribute enough to the economy, and have profited from high prices at the expense of consumers. read more

Created: 19.01.2007 12:24 MSK (GMT +3), Updated: 12:24 MSK

Russian authorities have stepped up pressure on British-Russian oil venture TNK-BP, as the Natural Resources Ministry said it was launching checks into whether the company was fulfilling terms of use on Kovykta gas field, one of its biggest assets.

The move had been signaled by the Russian authorities last year, but comes amid speculation that Moscow may pressure BP PLC to cede some of its 50 percent stake in the joint venture, handing control to the Russian side, the article added. read more

Published: Jan 19, 2007

Hydrogen is the way to a cleaner world and a viable alternative that will help “repay” the clean air we are borrowing from future generations.

Shell Hydrogen LLC expects more than 750 million vehicles to be powered by hydrogen by 2050. Pana Ratanabanangkoon, its business development manager, is leading the company’s efforts to develop a hydrogen infrastructure in the state of California which is one of the most progressive places for hydrogen and alternative energy in the United States. read more

Published: Jan 19, 2007

Off-road drivers put their skills to good use when they volunteered for the Operation Tabangan humanitarian mission spearheaded by the Malampaya Foundation to bring relief goods to remote areas in typhoon- ravaged Bicol.

The mission was backed by a P5-million donation from Malampaya joint- venture partners Shell Philippines Exploration, Chevron and Philippine National Oil Co.-Exploration Corp. (PNOC-EC), in response to Energy Secretary Raphael P.M. Lotilla’s call on energy entities to help areas affected by the recent spate of typhoons. read more

Published: Jan 19, 2007

SYDNEY, Jan 19 Asia Pulse – The six equal participants in the massive North West Shelf (NWS) natural gas venture have signed a sales agreement with Korea Gas Corporation for the ongoing supply of liquified natural gas (LNG).

In a deal beginning in 2009, the participants in Australia’s largest resources project will supply Korea Gas with up to 0.5 million tonnes a year of LNG for seven years.

Korea Gas is an existing customer of NWS, having signed a contract in 2003 that ends in March 2010. read more

EXTRACT: At least Mr. Browne’s departure is less dramatic than that of his former Big Oil rival, Sir Philip Watts, who was defenestrated from the top job at Royal Dutch Shell in 2004. Significantly, however, Sir Philip, who was ousted for cooking the reserve books, was another great proponent of corporate social responsibility and sustainable development, the conceptual morasses into which so many well-meaning corporate executives have been lured.

THE ARTICLE

Published: Jan 19, 2007

Climate change can be injurious to both your career and your employees’ health. That conclusion emerged from a report this week by an independent panel into BP’s U.S. refinery operations. The report came just days after the announcement that BP’s chief executive, John Browne, would be stepping down 18 months early. This represents a stunning reversal for a man who just two years ago was rated by the Financial Times as the fifth most respected business leader in the world. read more

By Neil Buckley in Moscow and Ed Crooks in London
Published: January 19 2007 02:00 | Last updated: January 19 2007 02:00

Russia has stepped up pressure on TNK-BP, as the natural resources ministry said it was launching checks into whether the Anglo-Russian joint venture was fulfilling the licencing terms of one of its biggest assets.

The move had been signalled by the Russian authorities last year, but comes amid speculation that Moscow may pressure BP to cede some of its 50 per cent stake in the joint venture, handing control to the Russian side. read more

January 19, 2007; Page B4

Your Jan. 3 editorial “More Gas Blackmail” accurately summarizes the dangers that Europe faces due to its overwhelming dependence for gas on the Russian monopoly Gazprom. These dangers are no less pressing in the U.S., where the industry forecasts that the majority of our future gas shortfall will be met by Russian LNG.

President Putin’s insistence that Europeans can rely on Gazprom to honor its commitments is irrelevant in the face of recent experience. The costs of doing business with an unbridled monopolist being utilized as a central arm of Russian foreign policy has already been felt by Belarus, Ukraine, Shell and Moncrief Oil. read more

Crude-oil futures slumped to a new 20-month low, briefly trading below $50 a barrel on the New York Mercantile Exchange, after the Department of Energy said U.S. inventories rose much more than expected.

Here is Thursday’s roundup of oil and energy news:

* * *
IRAQ OIL LAW DRAFTED: Iraq’s long-awaited hydrocarbons law, which could attract huge investments from foreign oil companies, has been drafted and will be submitted to the cabinet for endorsement next week, the Oil Ministry said. The law is expected to encourage foreign oil companies to quickly modernize Iraq’s oil sector and meet the goal of doubling the current crude production of 2.5 million barrels per day by 2010. read more

Data Show First Drop
In Two Decades in West;
Crude Dips Below $50
By BHUSHAN BAHREE
January 19, 2007; Page A1

Mild winter weather has something to do with it. So does heavy selling by financial funds. But a largely overlooked factor in the recent plunge in oil prices may portend an end to the multiyear rise in crude: For the first time in years, the developed world is burning less of it.

Fresh data from the International Energy Agency show oil consumption in the 30 member countries of the Organization for Economic Cooperation and Development fell 0.6% in 2006. Though the decline appears small, it marks the first annual drop in more than 20 years among the OECD countries, which drain close to 60% of the 84.4 million barrels of oil used globally each day. Industrialized nations’ demand tiptoed into negative territory in 2002, but the dip was so slight that it registered as flat. read more

*(Dr John Huong may wish to take note of the allegations in this article in connection with the defence of the High Court action brought against him collectively by EIGHT Royal Dutch Shell companies for alleged defamation relating to articles posted under his name on this website: the next hearing takes place on 8th February 2007)

1. NEGLECT ON QC INSPECTORS IN BTIP TEAM 19-12-2006

In Jesus Name,

We, The SPDC Inspectors in BTIP sincerely wish all SPDC Management and Staff Merry Christmas and Prosperous 2007. read more

Drillers, Ethanol Makers Lead Pack
Of Stocks That Could Be Hit Hardest
By GREGORY ZUCKERMAN and ANN DAVIS
January 19, 2007; Page C1

•  The Issue: With crude-oil prices slipping, energy-company shares also have been hit.
 
•  What to Do: Investors must examine which companies will be hurt the most if oil stays down.
 
•  The Bottom Line: Analysts say some oil-company shares have held up but most are wary about some alternative fuels.

THE ARTICLE

Oil prices are sliding, and energy shares are skidding. read more

Friday, January 19, 2007. Issue 3578. Page 5.
The Associated Press

The Natural Resources Ministry’s environmental agency is preparing to probe the giant Kovykta natural gas field owned by TNK-BP, agency deputy head Oleg Mitvol said Thursday.

Mitvol said his representatives in the area had begun gathering data on the Kovykta field in eastern Siberia, which has gas reserves of over 2 trillion cubic meters.

Analysts have suggested that Kovykta could be the next foreign energy development to be taken over by state-controlled gas monopoly Gazprom. read more

Extracts from a Bloomberg article published under the headline: Corus, LSE, Pearson, St Ives, Tesco: U.K., Irish Equity Preview

By Scott Hamilton

Jan. 19 (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 yesterday.

The benchmark FTSE 100 Index added 5.80, or 0.1 percent, to 6210.30 in London as 55 stocks gained, 39 dropped and 7 were unchanged. The FTSE All-Share Index rose 3.71, or 0.1 percent, to 3215.62. read more

By Andrew Osborn in Moscow
Published: 19 January 2007

BP is to come under fresh pressure to relinquish control of one of its most valuable assets in Russia after Kremlin officials confirmed they would conduct an aggressive audit of the giant Kovykta natural gas field.

Inspectors allege that the field is under-exploited and that BP’s Anglo-Russian joint venture, TNK-BP, will fail to raise production to an agreed 9 billion cubic meters of gas this year. This is not the first time TNK-BP’s ownership of the asset has come under pressure; last September the Kremlin raised the possibility that it might revoke TNK-BP’s licence due to alleged environmental violations. read more

ANDREW WILLIS AND DAVID EBNER
From Friday’s Globe and Mail

TORONTO AND CALGARY — Royal Dutch Shell PLC is dangling the prospect of a 15-per-cent-plus bump in its $7.7-billion offer for oil patch subsidiary Shell Canada Ltd. if minority shareholders agree to support its takeover bid, according to institutional investor sources.

Frustrated in its attempts to drum up interest in a $40-a-share offer made in October, and fearing a nasty takeover battle, Royal Dutch has been quietly meeting with the biggest shareholders in its Calgary-based offspring in recent weeks. According to money managers in Toronto and Calgary, the parent company is holding out the promise of $46 to $48 a share if institutions agree to commit their shares. read more

New Delhi, Jan 18 (IANS) Global hydrocarbons major Shell is scaling up its research centre in Bangalore to bring it on par with its two other centres of excellence in the US and Netherlands, a company official said Thursday.

‘We will grow to 500 people by this year end and will be covering all technical aspects. The Shell Technology Institute will be a virtual reality centre,’ Bob Frith, president of Shell Technologies, said here.

The centre, which opened in September, currently has 200 employees. read more

By JAY AKASIE
Special to the Sun
January 19, 2007
 
Most crowds expect Jim Macias to be on the defensive these days. Oil prices are down some 33% and the theme of North American International Auto Show in Detroit earlier this month was making cars that are friendlier to the environment.

At Shell, where he is a manager in the company’s Fuel Technology Group, Mr. Macias is in charge of investigating which fuels will replace gasoline and developing ways to make them cheaper.

But so far, there’s nothing in the pipeline that he said will transform Shell or dramatically change the way the world’s vehicles are powered. read more

By Sarah Thompson

Jan. 19 (Bloomberg) — European stocks may drop, pushed lower by BP Plc and Royal Dutch Shell Plc, after crude oil plunged below $50 a barrel in New York.

SAP AG, Cap Gemini SA and Sage Group Plc are expected to pace a slide by technology shares after International Business Machines Corp., the world’s biggest computer-services company, reported hardware sales that trailed analyst estimates.

Futures on the Dow Jones Euro Stoxx 50, a benchmark for the 13 countries using the euro, fell 11 to 4143 at 7:40 a.m. in London. The U.K.’s FTSE 100 Index is seen dropping 9, according to CMC Markets in London. read more