September 14th, 2006:

Associated Press
September 13, 2006 5:58 p.m.

LAGOS, Nigeria — Oil workers’ unions launched a three-day strike Wednesday over worsening security in Nigeria’s oil-rich region as Chevron confirmed the death of a subcontractor in the restive southern area.

The country’s two biggest petroleum industry unions had called the action to protest the death of another worker, killed three weeks ago in a shoot-out between government forces and militants amid rising violence in the Niger Delta. It began Wednesday, with both company and union officials saying staff were staying home although disagreeing over the impact on oil exports. read more

THE WALL STREET JOURNAL ONLINE
September 13, 2006 5:22 p.m.

Crude-oil futures broke a seven-session losing streak, finishing at more than $64 a barrel on the New York Mercantile Exchange. The bounce came despite a government report of a bigger-than-expected build in oil distillates. Here is Wednesday’s roundup of oil and energy news.

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EL NIÑO RETURNS: El Niño conditions have developed and are likely to continue into early 2007, according to U.S. government climate forecasters. The phenomenon, which involves the warmth of waters in the Pacific Ocean, can have an impact on energy demand and crop forecasts, as it affects rainfall in Southeast Asia and winter temperatures in the U.S. and Canada. read more

By GREG WALTERS
September 13, 2006

MOSCOW — Rising environmental scrutiny of the international oil consortium Sakhalin Energy Ltd. is related to a $10 billion cost increase at the project, which will eat into the Russian government’s share of profits, Minister of Natural Resources Yuri Trutnev said.

The announcement follows recent threats by Russia’s environmental watchdog, Rosprirodnadzor, to shut down crude-oil production at the site and halt work on developing gas production because of environmental infractions. read more

A WALL STREET JOURNAL NEWS ROUNDUP
September 14, 2006; Page A10

BRUSSELS — The European Union’s executive fined 14 companies a total of €266.7 million ($338.5 million) for fixing prices of bitumen, a material used in road construction.

Oil company Royal Dutch Shell PLC was hit with the biggest fine, €108 million, as a repeat offender, while French counterpart Total SA was fined €20.3 million. BP PLC got full immunity for cooperating in the probe, escaping a €30.8 million fine.

“We should not have attended these meetings and we regret our involvement in this case,” said President-Director Rein Willems of Shell Nederland BV. Regulators found eight suppliers and six purchasers participated in a cartel in the Netherlands from 1994 to 2002. read more

(The EC said that Shell was the lead player in the bitumen cartel)

THE ARTICLE

BBC News: EU fines cartel over bitumen fix

By Theo Leggett
Europe business reporter

The European Commission has fined some of the region’s top oil firms including Shell and Total for their role in a cartel that fixed the price of bitumen.

In all the companies were fined $338m (£180m; 266.7m euros), with Shell getting the largest penalty of $137m.

The fines were based on the size of the companies, the extent to which they were involved, and whether or not they had previously broken competition law. read more

RAF CASERT, Brussels September 14 2006
 
ROYAL Dutch Shell was among 14 companies fined §267m (£180m) by the European Union yesterday, following a ruling that they had run a cartel over eight years to fix the price of a key asphalt ingredient for Dutch road works projects.

The oil giant has to pay by far the highest fine – §108m – in the road bitumen investigation. In a statement, the European Commission said the company was an instigator, took the leadership in the cartel and was a repeat offender. read more