January 24th, 2007:

Judy Monchuk

CALGARY (CP) – Shell Canada Ltd. (TSX:SHC), whose parent firm is attempting a full takeover of the Calgary based company, laid out its longterm vision for Alberta oilsands development Wednesday including increasing refining capacity to 700,000 barrels a day by 2020.

The oilsands blueprint also includes plans to increase bitumen production to 770,000 barrels a day from 500,000 a day.

Shell CEO Clive Mather said a steady stream of expansion projects are planned throughout northern Alberta, beyond those earlier outlined for the Athabasca oil sands project, in which Shell holds a 60 per cent interest. It includes expansion of the Jackpine mine and an additional mine, Pierre River, on the west side of the Athabasca River. read more

Shell Canada has even more ambitious oil sands expansion plans than it previously disclosed.

Thursday, January 25, 2007

The company said Wednesday that it intends to increase output from its oil sands mining and in-situ recovery projects in northern Alberta to 770,000 b/d and upgrading capacity to 700,000 b/d. This compares with earlier projections in the 500,000 b/d range by 2010. Shell Canada did not give a date for accomplishing the new goal, but it likely would be no sooner than 2015 (IOD Jan.24,p1). read more

Thursday, January 25, 2007. Issue 3582. Page 1.
By Andrew McChesney
Staff Writer  

Michael Probst / AP
The World Economic Forum got under way Wednesday in Davos, Switzerland.
 
DAVOS, Switzerland — In a sharp reversal from the past few years, a high-powered Kremlin delegation led by First Deputy Prime Minister Dmitry Medvedev is at Davos this week to make the case for investing — and trusting — in Russia.

The lone minister representing the government last year at the World Economic Forum’s annual meeting of political and business leaders high in the Swiss Alps was Economic Development and Trade Minister German Gref. But he skipped out on the Russia dinner that is a Friday evening tradition at the annual event. read more

By Vitaliy Katsenelson, CFA

Royal Dutch Shell’s $7.5 billion sale to Gazprom may have been coerced by the Russian government. Vitaliy Katsenelson looks at the Sakhalin-2 sale and examines the long-term implications if Russia disregards Western investment.

I can’t say I was surprised to see that Royal Dutch Shell (NYSE: RDS.A) will be “selling” 50% plus one share of the Sakhalin-2 project to Gazprom for $7.5 billion. Several months ago, the Russian government wanted to take Royal Dutch Shell to court because it was ruining the environment. I suppose when the Russian government referred to the environment, it meant the economic environment, not Mother Nature. read more

Thursday, January 25, 2007

Surprise, surprise: The Kremlin has accused another foreign oil major of “environmental” violations that just might lead to the renegotiation of a billion-dollar contract signed under the previous regime in Moscow. One day, Western investors may realize that the incredible returns in Russia may be too good to be true.

This time, France’s Total stands accused of ecological harm at the Kharyaga oil field, a project in the Arctic in which it owns a 50% stake. (Norway’s Norsk Hydro owns 40% of the venture, with the rest belonging to a smaller Russian firm.) read more

Crude-oil futures rose to a two-week high of more than $55 a barrel Wednesday, reversing losses amid signs OPEC members are complying more with production cuts and as traders reassessed U.S. government inventory data.

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

* * *
CONOCOPHILLIPS PROFIT FALLS: ConocoPhillips, kicking off the fourth-quarter earnings season for major U.S. oil companies at a time of moderating energy prices, posted a 13% drop in profit, reflecting lower oil and gas sales revenue and narrower refining and marketing margins. The third-largest U.S. oil company by market capitalization reported net income of $3.2 billion for the fourth quarter, down from $3.68 billion a year earlier. read more

24.01.2007, 17.34
 
YUZHNO SAKHALINSK, January 24 (Itar-Tass) — Russia’s Sakhalin region will extract 14.5 million tonnes of oil and four billion cubic metres of natural gas in 2007.

Oil extraction in the offshore fields in the Sea of Okhotsk and on the island will exceed last year’s volume by nine million tonnes, according to the regional committee on natural resources and environmental protection.

Committee spokesman Vladimir Ko said the Sakhalin-1 project would produce 10.3 million tonnes of oil, and Sakhalin-1 will give more than two million tonnes, and about 2.2 million tonnes will be lifted on the island. read more

Last Update: 2:19 PM ET Jan 23, 2007

ROME (MarketWatch) — Italy’s antitrust watchdog Tuesday said it has started a probe into possible price-fixing by nine oil companies, including Eni SpA (E) and the Italian units of Royal Dutch Shell PLC (RDSA), Total SA (TOT) and Exxon Mobil Corp. (XOM).

The regulator said the nine companies could have taken part since the end of 2004 in sharing information for the setting of gasoline prices in Italy’s service station network, limiting competition and keeping prices at the pump at one of the highest levels in the European Union. read more

January 24, 2007 – 07:27 a.m.
(AP) – The 10 highest cartel fines the EU has levied against companies for price fixing:

1. Hoffmann La Roche AG, vitamins cartel, 2001: euro462 million

2. Siemens AG, power gear cartel, 2007: euro396.5 million

3. Eni SpA, synthetic rubber cartel, under appeal, 2006: euro272.25 million

4. Lafarge SA, plasterboard cartel, under appeal, 2002: euro249.6 million

5. BASF AG, vitamins cartel, 2001, reduced on court appeal: euro236.8 million

6. Total SA’s chemical unit Arkema, acrylic glass cartel, 2006: euro219.13 million read more

Shell and Motiva Seek to Bring Greater Diversity to Shell-Branded Retail Network

HOUSTON, Jan. 24 /PRNewswire/ — Shell Oil Products US (Shell) and Motiva Enterprises LLC (Motiva) along with the National Urban League, one of the nation’s oldest and largest African American community based organizations, today announced a collaborative effort to increase minority opportunities in the Shell retail network. This gives Shell and Motiva access to the National Urban League’s extensive network of qualified minority candidates who are seeking opportunities in the retail fuels  industry. read more

Claudia Cattaneo And Sean Silcoff
Wednesday, January 24, 2007
 
Minority shareholders of Shell Canada Ltd. are considering holding talks directly with the company’s London-based parent to get a better takeout price for their shares, sources said yesterday.

Royal Dutch Shell PLC, the Anglo-Dutch oil giant, increased its bid yesterday by 13% — to $45 a share, or $8.7-billion, up from $40 a share, or $7.7-billion offered in October — to buy the 22% of Shell Canada it doesn’t own. read more

By: Orla Hearns

PROTESTORS against the Corrib gas project in Bellanaboy say they have been left in genuine fear following the unprecedented physical clashes with gardai at the terminal site last Friday.

But the claims have been dismissed by Supt Joseph Gannon, Belmullet, who said last Friday’s events were another publicity stunt by the Shell to Sea campaign and its supporters.

Brothers, Pat and Martin O’Donnell, were referred to Mayo General Hospital with injuries last Friday, January 19, following the incident near the Bellanaboy terminal site. read more

AFX CNF
Published: Jan 24, 2007

VELOSI SECURES EUROPEAN SHELL CONTRACT: The Velosi Group, a provider of quality assurance and quality control services to a number of major national and multinational oil and gas companies, is pleased to announce that it has been awarded the Shell EP Europe Inspection and Expediting contract for a duration of three years. In a competitive bid process Velosi has been awarded this exclusive contract, effective from 1 January 2007.

Shell Exploration and Production in the UK, Nederlandse Aardolie Maatschappij (NAM) in the Netherlands, Norske Shell in Norway and Enterprise Oil Ireland have recently combined to form one European company, Shell EP Europe. The contract will cover work stemming from all four of these Shell operations. Velosi was previously awarded a contract in May 2003 with Shell UK Exploration and Production covering work for the main Shell operating centre in Aberdeen. This contract expired on 31 December 2006, those services now being included in this new contract. “This contract is a significant expansion of the one we previously held with Shell UK,” said Dr Nabil Abdul Jalil, Chief Executive of Velosi. “It reflects well on the work we have done for Shell to date and on our ability to deliver cost effective solutions on a global basis. The continuation of our relationship with Shell in Europe is an excellent platform from which we can become involved in further opportunities with Shell globally.” read more

Bernardo V. Lopez,
Published: Jan 24, 2007

Parts 1 and 2 of this series tackled the American initiative through Dick Cheney and gang to “encircle” Russia by bringing its former satellites into the NATO fold to access its energy resources. Part 3 tackles Russia’s response, an expansion of energy pipelines to service Eurasian countries, and America’s counter-response of “nuclear primacy,” based on an article by William Engdahl.

Russia ingeniously offers bread as a win-win formula, but America sadly wants bullets as a win-lose formula. Whereas Russia is offering its energy resources to the world, America wants it all. The hawks in Washington will bring down the planet because of their greed for oil and gas. Armageddon will be a series of regional energy wars polarizing the world into two large camps, culminating in World War III. read more

Published: Jan 24, 2007

ROYAL DUTCH SHELL has raised its bid for the 22 per cent of Shell Canada it does not own to C$8.7 billion (GBP3.7 billion) from C$7.7 billion. The bid price was accepted by the Shell Canada board but some of its shareholders insisted it was worth C$9.6 billion.

By Andy Critchlow

Jan. 24 (Bloomberg) — Abu Dhabi and partners including Exxon Mobil Corp. and Royal Dutch Shell Plc. plan to boost output from five onshore oil fields by 600,000 barrels a day as it seeks to increase its share of world supply.

Abu Dhabi Company for Onshore Oil Operations is seeking bids from consultants to manage projects that will raise onshore output to 1.8 million barrels a day from five existing oil fields by 2011, according to a copy of tender documents.

The fields, located southwest of Abu Dhabi city, earmarked for expansion are Ruwais, Bida al-Qemzan, Bab Thamama G and Thamama 2, Qusahwira and North East Bab Phase 2, according to the tender sent to prospective bidders this month and forwarded to Bloomberg. read more