Forbes.com
Learn To Love Big Oil
Lionel Laurent, 07.03.08, 3:50 PM ET
LONDON –
Big Oil shares closed lower in Europe on Thursday, another sign that sentiment in the sector is turning despite record crude prices. But industry-watchers believe this is no time to bail out of the sector.
Royal Dutch Shell (nyse: RDSA – news –people )’s A-class shares slipped 0.2%, to 19.88 pounds ($39.41), in London on Thursday, even as crude oil hovered at $145 per barrel. Shares in BP (nyse: BP –news – people ) fell 0.3%, while France’sTotal (nyse: TOT – news – people ) lost 1.4%, to 51.53 euros ($80.88), in Paris.
Supply disruptions in uncertain countries like Russia and Nigeria are weighing on integrated oil stocks, along with the fear that energy inflation will hurt demand. But there is every chance the oil majors will get a boost as more projects come on-stream and production perks up.
“You really would want to stay invested in this,” said Peter Hutton, analyst with NCB Stockbrokers. He picked Royal Dutch Shell as the best way of staying on top of record oil prices, thanks to its exploration and production activities, even as costs soar and refining margins get crimped.
Shell, BP and Total shares have all fallen 7.2% to 8.6% over the past month, despite the upward direction for oil prices in the same period. BP’s troubles with its Russian joint venture TNK-BP and militant attacks on Shell sites in Nigeria have stoked supply fears, while higher prices at the pump suggest that overall demand could decline.
“There is a risk of demand destruction,” said Alexandre Weinberg, analyst with Petercam. “Consumption has already slipped in Germany and Japan.”
But Weinberg told Forbes.com that Shell in particular was well-positioned in the current environment, having invested heavily over the past four years in expanding production. He said energy projects in Russia, Mexico and Qatar had proven key to Shell’s expansion, and that he expected a strong set of second-quarter results at the end of July.
Shell and BP posted unexpectedly strong first-quarter profits this year, thanks to sharp cost-cutting and a good cash position. (See “The Time Is Right To Buy Big Oil”)
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: 
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A head-cut image of Alfred Donovan (now deceased) appears courtesy of The Wall Street Journal.
