July 21st, 2007:

Heather Connon
Sunday July 22, 2007

Oil giant Royal Dutch Shell will this week report a record profit of about $13.7bn (£6.9bn) for the first half of the year – equal to more than £430 a second – as soaring oil prices have boosted its coffers.

The 10 per cent profit rise comes as motorists face paying more than £1 a litre for petrol – and, with Goldman Sachs warning this week that oil prices could rise to $95 a barrel compared with last week’s $77, prices could rise still further. read more

Alex Brett
Sunday July 22, 2007

British companies in Russia are on high alert as Anglo-Russian relations plunge to their lowest point since the end of the Cold War amid the fallout from the murder of Alexander Litvinenko in London last year.

Analysts say high-profile newcomers to the Russian market, such as Kingfisher and Marks and Spencer, which have both opened stores in Moscow, could find themselves targeted by far-right groups in Russia as sections of the country’s media take an increasingly hostile attitude to the British. read more

(Putin’s Russia is not playing by the Western rules it adopted after the collapse of the Soviet Union)

By Olga Craig
Last Updated: 12:04am BST 22/07/2007Page 1 of 3

If the stand-off between Britain and Russia has brought back memories of the Cold War, then that is just how Vladimir Putin wants it. Olga Craig investigates the ruthless tactics employed by the Kremlin as it attempts to restore the country’s faded might. 
 
The two pilots and their navigators had just brewed fresh coffee when the red phone rang in the corner of the crew room at RAF Leeming in North Yorkshire. The voice on the other end said a single word: “Scramble!” The instant they heard the order, just before dawn last Tuesday, the Quick Reaction Alert teams hauled on their bulky flight equipment and sprinted across the runway, coffee cups tumbling in their wake. Within minutes they were strapped into the cockpits of their Tornado F4 interceptors and set for take-off. read more

22/07/2007

Anyone who has ventured too close to the electric fence surrounding Boris Berezovsky’s sprawling mansion in Wentworth, Surrey, will know: the Russians are very much here.

The exiled tycoon is one of more than 300,000 Russians now living in Britain and, despite the apparent chill in relations between the two countries, the social and economic ties binding them have never been stronger.

At the end of the Cold War, there were just a few thousand Russians in Britain, many of whom did not stay longer than a few months. How times change. From billionaires to barbers, nannies to neurologists, Russians now permeate every sphere of our working life. read more

July 22, 2007

By David Budworth and Clare Francis

The high oil price is not only good news for the big exploration companies – silicon producers and coal miners could also benefit.

OIL has been one of the big investment surprises of 2007. At the start of the year, analysts thought it would fall back, but this month an international energy watchdog warned that a supply crunch could send prices soaring to record levels.

The price of crude has already leapt 25% since January, when it briefly dipped below $50 a barrel after mild weather in America and Europe convinced investors that demand would fall. That view was wide of the mark and the Paris-based International Energy Agency predicts a severe shortage over the next five years as China, India and other fast-developing countries consume more, while oil-producing nations supply less. read more

July 22, 2007
David Leppard and Mark Franchetti

THE senior British official was unequivocal. The murder of the former KGB man Alexander Litvinenko was “undeniably state-sponsored terrorism on Moscow’s part. That is the view at the highest levels of the British government”.

This official had access to the latest police and intelligence findings, and he was reflecting the views of senior Home Office counter-terrorism officials, Scotland Yard detectives and others with close knowledge of the murder investigation. All confirmed last week that they believe the plot to poison Litvinenko in London last year was ordered by the Russian secret service, the FSB. read more

By JAD MOUAWAD
July 22, 2007

Oil refineries across the country have been plagued by a record number of fires, power failures, leaks, spills and breakdowns this year, causing dozens of them to shut down temporarily or trim production. The disruptions are helping to drive gasoline prices to highs not seen since last summer’s records.

These mechanical breakdowns, which one analyst likened to an “invisible hurricane,” have created a bottleneck in domestic energy supplies, helping to push up gasoline prices 50 cents this year to well above $3 a gallon. A third of the country’s 150 refineries have reported disruptions to their operations since the beginning of the year, a record according to analysts. read more

Setbacks: Unrest in the Niger Delta has hammered output

Saturday 21 July 2007
By Sam Fleming

THE soaring price of crude will be of cold comfort for investors in BP and Royal Dutch Shell as the terrible twins of the oil industry unveil further production declines next week.

They are likely to admit to further setbacks at their upstream divisions when they announce earnings on Tuesday and Thursday, despite a rebound in the price of Brent crude.

BP suffered the biggest volume decline of any European oil major in the second quarter, according to Citigroup estimates. read more

July 20, 2007, 1:40PM EST text size: TT

With supply flagging, prices could reach exorbitant levels by fall, but experts say the world economy should be able to handle it
by Stanley Reed

Over the past few months, the oil markets have sharply changed course. After dipping below $60 per barrel in early 2007, prices have come roaring back. U.S. benchmark West Texas Intermediate (WTI) crude is now trading at $76.19 per barrel, its highest level since last August.

What’s even more striking is that the OPEC Basket, which is composed of heavier, lower-quality crude oils, hit an all-time peak of $73.23 per barrel on July 19. The OPEC Basket usually trades at a substantial discount to the Western marker crudes, Brent and WTI, but the differentials have narrowed as thirsty consumers in the U.S. and emerging markets push the pedal close to the floor. read more

By Vic Kolenc / El Paso Times
Article Launched: 07/21/2007 12:00:00 AM MDT

The United States is living on the “knife’s edge of a (energy) shortage,” but the country has plenty of energy sources for the future if Congress and other policymakers open more areas to oil drilling and provide incentives for developing other forms of energy.

That’s what John Hofmeister, 59, president of Houston-based Shell Oil Co., the U.S. arm of Royal Dutch Shell, told a group of El Paso business people Friday. Forbes ranks Royal Dutch Shell as the world’s third-largest company by revenues. read more

By Okello Oculi, The Nation (Kenya)

After underdeveloping the Niger Delta, the Nigerian government is building roads and bridges in the region – which is too late – as the people have learnt that kidnapping foreigners produces rapid results.

And, to end the problem once and for all, some Nigerians say corrupt Delta business people, council chairmen, MPs and contractors should be kidnapped as well.

On July 10, a workshop was organised in Abuja, Nigeria, to discuss the epidemic of kidnappings which have evolved from targeting oil-workers to seizing primary or kindergarten children either from inside classrooms or from inside cars taking them to school. read more

EXTRACT: Many of the so-called “mega-cap” stocks are on low valuations with high yields and strong balance sheets. We expect better performance from these companies, including Royal Bank of Scotland, GlaxoSmithKline and Royal Dutch Shell.

By Ellen Kelleher
Published: July 21 2007 03:00 | Last updated: July 21 2007 03:00

Simon Gergel has managed the Allianz RCM UK Equity Income Fund since May last year. The fund, which is benchmarked against the FTSE All-Share, aims to achieve high income as well as capital growth. Gergel is able to use a number of strategies to improve returns such as writing covered call options. read more

Two policemen stay on guard outside the British Embassy in downtown Moscow
 
By Russell Hotten, Industry Editor
Last Updated: 12:27am BST 21/07/2007  

Russia’s most powerful business lobby group has warned that British firms will fall out of favour with Moscow following the current diplomatic row, perhaps losing out on big contracts and facing tougher scrutiny from the tax and regulatory authorities.

Alexander Shokhin, president of the Union of Industrialists and Entrepreneurs (UIE), also said that if the dispute escalates, Russian firms intending to float in London could review their plans, while firms already on the Stock Exchange may switch to other bourses if politics demanded it. read more

Saturday 21 July 2007

Business in Brief

Royal Dutch Shell was ordered yesterday to cease its drilling operations in offshore Alaskan oilfields by a US federal appeals court. The Anglo-Dutch oil group is facing a legal challenge to its activities in the Beaufort Sea by a group of Alaskan native groups and environmentalists. They claim that Shell’s drilling plans are damaging the area and that impact studies conducted by the company are inadequate. The oil group had expected to start a controversial three-year programme next month with a small armada of ships drilling a dozen wells in the Beaufort Sea, 30 miles off the Alaska coast. (Robin Pagnamenta) read more

Vol. 12, No. 29  Week of July 22, 2007

Shell Canada’s 11.4 percent stake in the Mackenzie Gas Project is up for review now that Royal Dutch Shell has taken over the Canadian unit.

Adrian Loader, the “caretaker” president of Shell Canada to oversee integration of the Canadian operations into Royal Dutch Shell’s global business units, said July 17 there will be a sweeping review of all major projects on the table in Canada except for the first-phase expansion of the Athabasca oil sands complex. read more

NSB, Earth Justice appeal EPA permit; Shell remains firm on Beaufort plans

Alan Bailey
Vol. 12, No. 29  Week of July 22, 2007

Anyone who’s placed bets on whether or not Shell will drill any exploration wells in the Beaufort Sea this summer must be having some sleepless nights. In the latest twist in the “will they, won’t they” saga of the company’s plans to punch three holes into the Sivulliq prospect on the west side of Camden Bay, the North Slope Borough and Earth Justice have both appealed to the Environmental Appeals Board the granting of minor air quality permits for the Sivulliq drilling, Dan Meyer from U.S. Environmental Protection Agency’s Seattle office told Petroleum News on July 17. read more

By Bangkok Bureau
Last Update: 6:37 AM ET Jul 20, 2007

BANGKOK (MarketWatch) — A Thai unit of Royal Dutch Shell PLC plans to renovate its 570 retail gasoline service stations over the next three years at a cost of up to THB1.14 billion ($34 million).

The upgrade aims to boost sales and raise market share to 18% in two years from the current 16.2%, said Simon Hirst, general manager for retail sales and operations at Shell Company of Thailand Ltd.

The company will initially renovate 50 stations in the second half of this year, at a cost of over THB100 million, Hirst told reporters Friday. read more

By Karen Gullo and Tony Hopfinger

July 20 (Bloomberg) — Royal Dutch Shell Plc’s plan to drill the deepest offshore Alaskan oil well was halted by a court to allow consideration of the project’s effect on bowhead whales and other animals.

A federal appeals court in San Francisco yesterday ordered the company’s vessels to stop operating pending resolution of a request by environmental groups and Eskimo villages to require more research on their impact on marine wildlife. The court put on hold the U.S. Minerals Management Service’s approval of the plan and scheduled an Aug. 14 hearing. read more

The Associated Press
Published: July 20, 2007

ANCHORAGE, Alaska: Shell Oil has been ordered to halt its exploratory drilling program off the north coast of Alaska until a court hearing can be held on the possible environmental impact of the venture.

The order came Thursday from the U.S. Court of Appeals for the 9th Circuit.

The order comes after the U.S. Minerals Management Service in February approved Shell’s offshore exploration plan for the Beaufort Sea.

Shell spokesman Curtis Smith said Friday that company officials are obviously disappointed. read more