The Times: Outcry as Shell and BP make billions on back of price rises
Wednesday April 30, 2008
Robin Pagnamenta and David Robertson
Surging oil prices helped to boost profits at BP and Royal Dutch Shell to a combined record of £7.2 billion for the first quarter of the year.
Amid growing accusations of profiteering by big oil companies, it also emerged that BP had earned a one-off trading profit of $400 million (£203 million) by correctly betting on the direction of oil and gas prices.
The figures provoked an immediate outcry from campaign groups, which said it was a disgrace that at a time of increased public concern about climate change Shell and BP were earning their biggest profits, while compounding the problem of rising global carbon emissions.
A spokesman for the trade union Unite said that the profits were unacceptable and called for them to be used to improve pension provision for staff.
BP’s pre-tax profits surged 48 per cent in the first quarter to £3.3 billion while Shell increased its profits 12 per cent to a record £3.9 billion. The rising profits were driven by spiralling oil prices, which the companies have passed on to consumers in the form of higher petrol and diesel prices. Yesterday the price of crude oil was trading slightly below record highs of $120 a barrel.
Both Shell and BP’s figures were much higher than expected. Jason Kenney, an oil analyst at ING, described them as “blow-away numbers”.
Robin Oakley, from Greenpeace, said that said the results were “totally at odds” with the direction that both companies needed to go in.
Peter Voser, of Shell, whose total oil production rose from 3.509 million to 3.522 million barrels a day, said that the company was performing well but was increasingly having to explore in remote and costly areas such as the Arctic to tap new supplies. Such projects were driving up costs.
BP’s first-quarter result also beat expectations but production was flat at 3.913 million barrels a day. The company, which has a reputation as the industry’s leading trader, has started a restructuring programme to simplify management and cut costs.
BP also reported a large increase in profitability from its operations in the North Sea in the first quarter because of the high price of oil, rising 27 per cent to $923 million.
The price of petrol is continuing to rise this week because of supply concerns in Scotland, where the Grangemouth refinery was shut down for two days because of industrial action. The workers have now returned but it will take about three weeks to get the refinery, which produces 10 per cent of Britain’s petrol, back to full capacity.
The Automobile Association said that petrol prices had hit a national average of £1.098 a litre yesterday, equivalent to £4.99 a gallon.
Petrol is expected to pass the £5-a-gallon mark this week.
Exxon Mobil, the world’s largest company, will also report this week. It is expected to have made the highest quarterly corporate profits in history.
http://business.timesonline.co.uk/tol/business/industry_sectors/natural_resources/article3841903.ece
This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.
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: 
MORE DETAILS:
A head-cut image of Alfred Donovan (now deceased) appears courtesy of The Wall Street Journal.
