August 18th, 2006:

EXTRACTS: Industry insiders say the final rules may emerge just days before the December 11 deadline. But they are not banking on much more leniency that would pave the way for global majors such as BP Plc and Royal Dutch Shell to expand their fuel supply networks in the world’s most-populous nation.  Majors such as BP and Shell run hundreds of retail stations along the booming coast, but covet the freedom to move fuel between regional refineries, uniting Chinese operations with their dynamic global trading systems. read more

By JEANINE PREZIOSO and BERND RADOWITZ
August 18, 2006; Page A6

HOUSTON — Mexico received its first shipment of liquefied natural gas, marking the commissioning phase of the nation’s first LNG regasification plant.

The cargo was delivered from Royal Dutch Shell PLC’s Bonny liquefaction plant in Nigeria to the Altamira terminal on Mexico’s northeastern coast, Shell has a 50% stake in the terminal, and Total SA and Mitsui & Co each have 25% shares. Subsequent LNG cargos will be delivered by Shell, which owns 75% of the terminal’s capacity rights, while Total has a 25% capacity stake, Shell said. read more

THE WALL STREET JOURNAL ONLINE
August 17, 2006 5:18 p.m.

Crude-oil futures fell for the fourth straight day, losing nearly $2 a barrel to settle at $70.06 on the New York Mercantile Exchange, their lowest close since June 20. Oil has fallen more than $4 a barrel, or nearly 6%, this week after a cease-fire in the Middle East. Here is Thursday’s roundup of energy-related news:

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IRAQI FUEL SHORTAGE: Before the Iraq war began, U.S. officials hoped the country’s vast oil wealth would help to pay for its reconstruction. Instead, oil production has been disrupted by constant sabotage, corruption and aging refineries; as a result the country is suffering from a severe fuel shortage. Iraqi officials announced plans to double their spending on imported oil products. read more

• Royal Dutch Shell and ConocoPhillips hired tankers to carry crude oil from Asia to the US West Coast to cover a shortfall caused by the partial closure of the US’s largest field in Alaska at Prudhoe Bay.

• Excelerate Energy, a closely held company formed in 2004 to develop import terminals for liquefied natural gas, will start deliveries to a new UK terminal on December 18 as the demand for fuel peaks during the winter.

• E.on, the world’s largest utility, said the coming winter will be “challenging” for energy supply in the UK as North Sea reserves dwindle, raising the need to import more gas. read more

EXTRACT: Although Shell has sold out of a variety of its activities in Latin America and the Caribbean recently, Avaria affirmed the company’s intent to continue operations in Chile, Argentina, Brazil and Central America. – (BNamericas.com)

THE ARTICLE

(BNamericas.com) – Anglo-Dutch oil major Shell (NYSE: RDS-B) has started implementing its New Shell Fuel Economy Formula gasoline at Chilean service stations, the company said in a statement. Chile is the first country in the Americas to receive the gasoline as part of Shell’s global campaign to distribute the fuel. read more

Published: Aug 18, 2006

SYDNEY (XFN-ASIA) – Woodside Petroleum said it has applied to US government agencies to build and operate a proposed OceanWay liquefied natural gas project designed to bring Australian natural gas to California.

The company, 34 pct owned by the Royal Dutch Shell group, said applications were submitted to the US Coast Guard and the Maritime Administration for a deepwater port license and to the City of Los Angeles for a natural gas pipeline franchise.

The company is seeking approval to place two delivery buoys more than 32 kms offshore from Los Angeles International Airport (LAX) with dual undersea pipelines to deliver the natural gas to shore. read more

EXTRACT: Shell was fined £900,000 last year after two workers died on its Brent Bravo platform in the North Sea.

THE ARTICLE

By Andrew Taylor,Employment Correspondent
Published: August 18 2006 03:00 | Last updated: August 18 2006 03:00

Employers should face heavier fines for health and safety offences, ministers have been told.

Bill Callaghan, chairman of the Health and Safety Commission, has written to the Cabinet Office calling for “more training for judges and magistrates so that the level of fines . . . recognises the gravity of breaches and acts as an effective deterrent”. read more

EXTRACT: A total of 17 foreign oil employees have been taken by Nigerian rebels so far this month, with nine being released. The attacks have led Shell to reduce production from the nation by 0.5m barrels per day.

THE ARTICLE

By Michael Hunter

Published: August 18 2006 03:00 | Last updated: August 18 2006 03:00

Oil prices sank to two-month lows yesterday after the Organisation of the Petroleum Exporting Countries said it did not expect to reduce production for the rest of the year.

Nymex West Texas Intermediate for September delivery settled $1.83 lower at $70.06, its weakest level since June 26. ICE October Brent closed down $1.25 at $71.58 a barrel. read more

By JUDITH KOHLER
Associated Press Writer

DENVER (AP) — A federal agency believes there would be no significant environmental impacts from two experimental oil shale projects in northwestern Colorado that could lead to the commercial mining of oil from rocks.

The Bureau of Land Management released environmental assessments this week of projects by Shell Frontier Oil and Gas Inc. and Chevron USA in Rio Blanco County. The assessments, open to public comment until Sept. 18, said a potential drop in groundwater levels on the test sites proposed by Shell could adversely affect four endangered Colorado River fish. read more