October 25th, 2006:

By CHIP CUMMINS
October 24, 2006; Page A2

With crude prices falling and oil-field costs on the rise, major oil companies have a big problem: sustaining their phenomenal profit growth.

Exxon Mobil Corp., Royal Dutch Shell PLC and BP PLC have all relied on big oil-price jumps to fuel a streak of handsome earnings gains and, in many cases, record quarterly profits in recent years. The three companies reported combined earnings of about $25 billion in the second quarter; in the third quarter of last year, they earned about $25.4 billion. read more

Jeremy Warner’s Outlook
WEdnesday 25 October 2006

We have become so used to the spectacle of ever-more eye popping profits from the oil majors that it comes as quite a shock to see BP report that in underlying terms they actually fell in the third quarter, the first time this has happened in ages.

This column warned a couple of months back that the party for oil profits had already reached its drunken end game, and that thereafter it was likely to be all down hill. Lord Browne, BP’s chief executive, echoed these sentiments yesterday by saying that the trading environment is now notably weaker than it has been for the past five quarters. read more

Guardian Headline: High taxes and low crude prices push down BP profits

· Hurricanes, fire and leaks contribute to poor results
· Industry faces bleaker outlook, says Lord Browne

Terry Macalister
Wednesday October 25, 2006
The Guardian

BP signalled an end to record oil company profits yesterday with lower underlying third-quarter results and warnings about a “more difficult trading environment” as crude prices fell and taxes went up.

Lord Browne, BP’s chief executive, also said production had been hit by high-profile problems in the US but dismissed any concerns about his legacy being tarnished before he stood down in 2008. read more

Headline: Macho ado about Anglo’s choice of a woman CEO

Extract headline: Oil and airspace
Published: Oct 25, 2006
Nils Pratley

So, did Lord Browne choose to quash the market chat, written up here yesterday, about a mega-merger between BP and Shell? No he did not. “Looking at it from 50,000 feet, there are an awful lot of players here dealing with a lot of small pieces,” he said.

It wasn’t a comment about Shell or BP, just about the oil industry in general, but as a way of encouraging gossip it could hardly be bettered. read more

By: Saeed Shah, 
Published: Oct 25, 2006

BP warned that the boom times for the oil industry were over yesterday as it revealed profits and production growth had stalled in the past three months.

The oil giant also reported that the impact of an explosion at its Texas refinery last year had cost the company $1.4bn (pounds 747m) so far in lost profits – in addition to the $1.6bn it is putting aside to settle legal claims over the blast, which killed 15 workers.

Reporting quarterly profits, BP’s chief executive, Lord Browne, said: “Overall the trading environment is now weaker than it has been for the last five quarters. Of particular note is the significant reduction of global gas prices in the face of significant supplies, along with weak demand. read more

Oct 25, 2006

Madam, – The Irish Times is the only national newspaper providing a detailed chronicle of the unfolding and complex Corrib gas controversy. This is an indictment of Irish print media. It is also a reflection of the fourth estate’s lazy response to corporate spin.

Moreover, it clearly exposes the damning depoliticisation of our nation. People should be screaming for answers regarding the disgraceful sell-off of natural resources by successive Fianna Fáil ministers – despite Terry Nolan’s efforts to absolve government responsibilities (Opinion, October 21st.) read more

Oct 25, 2006

Consultants should be appointed to re-examine the location of the controversial Corrib gas terminal, argue Leo Corcoran and Brian Coyle

Sometime before October 2000, Enterpise Energy Ireland (EEI) and the minister for the Marine and Natural Resources agreed to locate the gas processing terminal for the Corrib gas project in Bellanaboy. It is on a site surrounded by blanket bog, within the catchment of the primary water supply for the entire Erris region, located directly across from an established community. This resulted in a production pipeline carrying unprocessed gas running 9km (5.6 miles) inland parallel to another established community, and traversing the Broadhaven Bay Special Area of Conservation, all in breach of the code of practice. read more

Last Update: 12:42 AM ET Oct 25, 2006

SURGUT, Russia (MarketWatch) — Russia’s Minister for Natural Resources Tuesday called for amendments to existing oil and gas field development licenses that would bring clear development terms and timeframes for exploration and production.

In a meeting with state environmental regulators and prosecutors, Yuri Trutnev called for more coordination in monitoring and enforcing compliance with licensing agreements by oil and gas companies. “We will ask the companies for changes in their licenses,” Trutnev said. read more

Oct 25, 2006
Lorna Siggins, Marine Correspondent

A compromise solution to the Corrib gas dispute which might involve relocating the gas terminal has been endorsed by Green Party leader Trevor Sargent and Fianna Fail Mayo councillor Frank Chambers.

Both public representatives have criticised last week’s comments by Minister for the Marine Noel Dempsey about the Shell to Sea campaign, which they have described as “very unhelpful”.

The Green Party leader was speaking after a fact-finding visit to north Mayo over the last 48 hours, during which he met representatives of Shell E&P Ireland, Shell to Sea and Mayo County Council. read more

EXTRACTS RELEVANT TO ROYAL DUTCH SHELL

Nezavisimaya Gazeta

5. Sergey Kulikov article says that Royal Dutch Shell has agreed to take part in the development of the Shtokman gas field as a contractor. Experts believe that Gazprom will sign a contract with Royal Dutch Shell in return for its concessions in the Sakhalin-2 project, p 4.

Vedomosti

3. Vera Surzhenko report says Royal Dutch Shell is trying to repair relations with Gazprom spoiled in the Sakhalin-2 row. Shell has agreed to become a contractor in developing the Shtockman gas field, p B3. read more

RBC, 25.10.2006, Moscow 09:27:52.Russian Natural Resources Minister Yury Trutnev will hold a meeting in Yuzhno-Sakhalinsk on ecological and environmental safety issues during the implementation of the Sakhalin-2 project. As expected, the meeting will be attended by representatives of federal agencies for environmental, subsurface resources and technical regulation, and the General Prosecutor’s Office.

It is also expected that the preliminary results of environmental watchdog Rosprirodnadzor’s comprehensive inspection for observance of environmental legislation under the Sakhalin-2 project launched on September 26 will be drawn up at this time.
  read more

By Ed Crooks, Energy Editor: Published: October 25 2006 03:00 | Last updated: October 25 2006 03:00

A falling oil price is likely to set off further consolidation of the oil and gas industry, Lord Browne, BP’s chief executive, said yesterday, as he warned of a “more difficult trading environment” ahead.

He was speaking asBP reported third-quarter results showing a decline of about 11 per cent in underlying replacement cost profit.

Lord Browne also confirmed that he expected this year’s production to be about 3.95m barrels of oil equivalent per day, down from last year’s 4.014m. read more

By Alison Maitland: Published: October 25 2006 03:00 | Last updated: October 25 2006 03:00

It is just like the proverbial London bus.

You wait ages for the next female FTSE chief executive to come along and then suddenly there are three of them.

For nine long years, Dame Marjorie Scardino of Pearson, owner of the FT, was the solitary woman heading a FTSE 100 company until the promotion of Drax, the electricity generator headed by Dorothy Thompson, to the blue chip index in June this year.

Cynthia Carroll’s appointment yesterday as head of Anglo American means that two of the three women now running FTSE 100 businesses are American – and that two of the three are at the topof traditionally male-dominated heavy industrial companies. read more

24/10/2006 – 18:27:04

Trust needs to be built between giant oil company Shell and protestors in Co Mayo, Green Party leader Trevor Sargent said tonight.

Calling for fresh talks to try to resolve the ongoing controversy over the Corrib gas terminal, he said a lot of issues had to be discussed.

Over the last two days Mr Sargent has held talks with representatives from both Shell and campaign group Shell to Sea, who want work on the €200m terminal stopped.

He said campaigners were concerned that they had no evidence Shell were implementing a new route for the 9km high-pressure pipeline that would run to the terminal. read more

by James A. Leach

Shell Oil is trying to steal local peoples land.

Shell dumping Toxic Waste into ocean. Other unsafe and dangerous practices.

Shell Oil and Statoil are planning to:

Take land from local residents and build a high pressure gas pipeline that will go past their houses:

The pressure inside the pipeline will be up to four times greater than that of the biggest Bord Gais pipelines. The pipeline will be going through boggy land with a history of landslides.

CONSTRUCT A GAS REFINERY ON UNSTABLE BOG: read more

October 25, 2006

SHELL is at the centre of buyout moves and merger speculation after unveiling plans to spend $C7.7 billion ($9 billion) simplifying its North American business.

This was seen by some as a step towards a £230 billion ($570 billion) mega-merger with BP.

The Anglo-Dutch oil group has also had its name linked with Premier Oil, although most industry experts rule out Shell being the unnamed company in takeover talks with the exploration firm.

Shell said on Monday it would buy the 22 per cent it did not own in Shell Canada, which is independently managed. It is quoted on the Toronto stock exchange and heavily involved with oil sands production in Alberta. read more