January 4th, 2007:

Crude-oil futures tumbled nearly 5% to settle at less than $56 on the New York Mercantile Exchange, continuing their worst two-day selloff since December 2004.

Here is Thursday’s roundup of oil and energy news:

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SELLOFF MAY SIGNAL SLOWDOWN: The brutal selloff in crude oil, copper and other commodities in recent days may be a signal that market participants expect a slowdown in the global economy, “likely one of considerable magnitude,” MarketWatch reports. Then again, the terrified flight of speculators from commodity markets isn’t helping much, either, Market Beat points out. read more

Thu Jan 4, 2007 11:56am ET

HOUSTON, Jan 4 (Reuters) – A big maintenance turnaround will reduce operations at Deer Park Refining Co. in Texas for a month, starting next week, Shell Oil Co. (RDSa.L: Quote, Profile , Research) said Thursday.

Plans are to shut down a 270,000-barrel-a-day distiller, a 67,000-barrel selective hydrocracker and an 85,000-barrel delayed coker, Shell said, confirming trade reports.

The work involving 19 process units is to begin Wednesday and continue into mid-February, Shell said. Replacement of four coker drums and regular upkeep are planned. read more

By Dum-ale Tanee
The Coordinator, MOSOP Kansas City Chapter, U.S.A
(Movement for the Survival of Ogoni People)

It has been a little bit over 50 years since the discovery of oil in commercial quantity in the Niger Delta; the region has yet to witness any development despite multi-billion dollar revenues that have been ruthlessly extracted and plundered. All efforts to peacefully and genuinely resolve the issue as initiated by various groups in the region have often been ignored by the Nigerian authority and the oil companies.
 
As Ogoni people all over the world mark the 14th anniversary of “Ogoni Day” this week January 4, 2007, the day that over 300,000 Ogonis took to the street to non-violently protest government neglect and Shell’s environmental practices in the region, this year’s event is being used to reiterate their total commitment to the struggle. It is also used to reiterate their position as contained in the Ogoni Bill of Rights (OBR) as well as their total opposition to the return of Shell to Ogoni. read more

Sakhalin Island, a bleak strip off the Pacific Coast of Siberia, was a penal colony under the tsar and the Soviets. Now, it’s marketed for tourists, hardy ones at least. With its nasty weather and isolation, Sakhalin seems a most unlikely spot where one of the key conflicts of the 21st century would show itself.

But offshore there are big natural-gas and oil fields. A consortium led by Royal Dutch Shell has spent years working to develop the Sakhalin 2 field, but late last month, Shell sold its majority share. It didn’t do it willingly, but only after months of threats from the Kremlin. The lead company will now be Gazprom, the gas giant backed by the Russian government. read more

Jan. 04, 2007

Europe may block the expansion of Russian business if Moscow creates obstacles for European investors, German Chancellor Angela Merkel said in an interview with the Associated Press.

Germany became the chair of the European Union on January 1.

Merkel told the AP that she thinks Russia has a legal right to more access to western European markets, but that access should be based on the principle of mutuality. If the Russians creates obstacles to European investment, they shouldn’t object to responsive measures, she added. read more

January 04, 2007 

On this January 04, 2007 NUOS International, USA (NATIONAL UNION OF OGONI STUDENTS) is delighted to celebrate a special day set aside by the UN in recognition of the rights of all indigenous peoples around the world. 

We send our greetings and solidarity to all those struggling for their rights and freedom, and especially to the Ogoni people and other exploited tribes of the Niger Delta region of Nigeria in their quest for justice from the oppressive powers of Nigeria’s rulers and the trans-national oil companies operating in Nigeria’s Delta who fund them.  read more

Long-awaited Gorgon’Petronet agreement could see 2.5m tonnes per year shipped to Kochi, writes Tony Gray, Lloyds List
Published: Jan 04, 2007

AUSTRALIA is poised to become a major exporter of liquefied natural gas to India, with partners in the Gorgon project lining up a long-term deal reported to be worth $12.5bn.

India’s petroleum secretary MS Srinivasan said a 25-year deal would be signed in the next two months.

The contract for 2.5m tonnes a year would be channelled through Petronet LNG, a company promoted by Oil and Natural Gas Corp, Indian Oil Corp, GAIL (India), and Bharat Petroleum Corp. read more

Published: Jan 04, 2007

Shell’s V-Power petrol will be a premium commodity at Summernats this year after trouble struck the company’s Sydney refinery this week.

There has been a shortage of V-Power, the unleaded premium petrol formerly known as Optimax, across parts of both the ACT and NSW.

A Shell spokeswoman said yesterday a special delivery of V-Power petrol had been made to four stations near EPIC to accommodate the requirements of motoring enthusiasts.

Summernats 20 organiser Chic Henry said the northern suburbs had been given a top priority because of the high-octane event. read more

There remain plenty of opportunities in the UK North Sea and operators expect a lot more activity this year, along with several new challenges, writes Martyn Wingrove, Lloyds List
Published: Jan 04, 2007

THIS year is expected to be another positive one for offshore activity in the UK North Sea with new fields coming on stream, more exploration wells drilled and another group of developments being sanctioned.

Last year was a promising but challenging year for the British oil industry as operators have discovered more fields and approved new projects, but achievements were countered by rising oilfield costs and tougher weather conditions. read more

Companies stories from Europe, the US and Asia over the Christmas period, listed by publication date.

(Energy company extracts)

Tuesday December 19: Statoil and Hydro, Norway’s two national oil groups, are to merge to create the world’s biggest offshore operator in a $29bn deal.

Friday December 22: Gazprom agrees to pay $7.45bn for majority control of Sakhalin 2, the $20bn oil and gas project led by Royal Dutch Shell, cementing the Kremlin’s grip on the country’s energy resources. read more

Published: January 4 2007 02:00 | Last updated: January 4 2007 02:00

*Sibir Energy

Amid growing hostility from the Kremlin towards the the international super-majors active in Russia, Aim’s largest independent exploration and production company offers investors an alternative way of gaining exposure to the country’s oil wealth.

Henry Cameron, chief executive, is a lawyer with years of experience in Russia and took control of Pentex Oil, the precursor to Sibir, in the late 1980s.

He appears to have learned his lessons since losing control of Sibir’s last big asset – the South Proiobskoe field in western Siberia – to Roman Abramovich, who has since sold his Sibneft oil company to Gazprom, the Russian energy giant. Sibir is still fighting that case through the courts. read more

Published: January 4 2007 02:00 | Last updated: January 4 2007 02:00

Russia’s international reputation has suffered a series of blows over the past year.

Controversy over the poisoning of a former intelligence officer in London, several high-profile assassinations in Russia, a raft of energy disputes with neighbours and moves by the Kremlin to take control of domestic energy resources have rattled the international community. None of this has seemed to bother investors in Russian shares, though. read more

ABUJA (Reuters) – A Nigerian militant group said on Wednesday it had seized $545,000 sent by Italian oil firm Agip to obtain the release of four foreign workers kidnapped on December 7 but had kept the men hostage.

Eni, Agip’s parent company, said it was working with the Nigerian authorities and the Italian foreign ministry to secure the release of the hostages and had no direct contact with any other parties.

The Movement for the Emancipation of the Niger Delta (MEND), which wants four prisoners from the Niger Delta freed in exchange for the three Italians and one Lebanese, said Agip had sent middlemen with cash to persuade MEND guards to let them go. read more

Canada Takes On Projects
Unpopular With Americans
By NORVAL SCOTT
January 4, 2007; Page A10

Saint John, New Brunswick

The oil and natural-gas industry is increasingly looking to Canada as a home for big energy projects Americans don’t want in their backyards.
 
A patch of coniferous forest near here, on Canada’s Atlantic coastline, represents both the promise and the challenges of that approach. The land, owned by closely held Canadian energy company Irving Oil, is earmarked for the possible construction of a 300,000-barrel-a-day crude-oil refinery that would cost $5 billion to $7 billion — the first new refinery in the U.S. or Canada in more than 25 years. Irving hopes a refinery, if it chooses to build one, would be operational by 2013. read more

Crude-oil futures slumped to a six-week low below $59 a barrel on the New York Mercantile Exchange amid continued forecasts for mild winter weather in the U.S. Northeast.

Here is Wednesday’s roundup of oil and energy news:

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EXXON’S CAMPAIGN: Exxon Mobil gave $16 million to 43 ideological groups between 1998 and 2005 in a coordinated effort to mislead the public by discrediting the science behind global warming, the Union of Concerned Scientists asserted. The report mirrors similar claims by Britain’s leading scientific academy, the Royal Society, which last September wrote the oil company asking it to halt support for groups that “misrepresented the science of climate change.” read more