Posts on ‘October 10th, 2008’

Relieved: LondonLad: While it is true that oil is traded as a commodity on various markets it is also true that the oil companies have been heavy speculators in those markets. That fact has been know for a long time.

LondonLad: The biggest oil price fixers in the UK in order of “fixing” are: 1. UK Government (at a healthy 60%) - FACT 2. New York and London Stock Market traders (non-oil company traders) – FACT 3. Companies that buy up cargo loads of oil and store it offshore for the price to rise then sell at vast profits – FACT 4. Shell, BP, Statoil et. al. – ALLEDGEDLY Lets face it, as with the LIBOR scandal, it takes more than one or two companies to fix the price of a product.

Relieved: LondonLad: Correct me if I am wrong, but I seem to recall RDS having the same problem over price fixing in the Phillipines. In the States this alleged price fixing activity could be prosecuted under Federal conspiracy and Racketeering statutes (i.e., engaging in organized crime), among others. People would/could go to jail for a very, very long time if convicted of such activity.

LondonLad: Interesting to see on the ITV website that they state : “The price of petrol at UK pumps has increased significantly since 2004, but the majority of that is down to tax.” Most people should be aware the biggest thieves with regard to oil price “fixing” are the UK Government – 60% tax at the pump AND that does not include the tax at the wellhead of the North Sea. Cameron et al are hiding nicely behind this tabloid story. REPLY BY JOHN: Musaint, you are bunching ITN, BBC News, Channel4News, Sky News, Bloomberg, Dow Jones, The Telegraph, The Guardian, USA Today, The New York Times etc all under the your "tabloid" banner. Seems rather unfair to me. You are right about UK governments, past and present.

LondonLad: Well here we go again!! Oil price fixing and all the little add-ons and innuendos again by the Donovans. Strongly recommend that it’s best to read some of the UK newspapers for a more sensible write up and debate on the oil price fixing. Biggest price fixers? – the London and NY (non-oil company) traders. Why do you have to interweave so many aspects on Shell that you’ve been discussing over the last month or so, most of which are conjecture or alleged? “Royal Dutch Shell was built on price fixing” – bit of a sweeping and unfounded statement I would say. Well “Relieved” I thought you knew all there is to know about Shell as your ingrained negativeness must be based on knowledge of the company, i.e. its Business Principles. Clearly not. REPLY BY JOHN: Hello Musaint, I can recommend some reading material to you so you know the facts. Start off with A HISTORY OF ROYAL DUTCH SHELL, volumes 1, 2 & 3. This vast work was written by eminent historians paid by Shell. When you have read it all, as I have, let me know and I will direct you to further credible, verifiable, reference source information providing more proof confirming what I have stated. The whole evil enterprise was built on price-fixing.

Relieved: Could some current senior manager from RDS tell us what the company's business principles (really) are ???

Outsider: In the same way that LIBOR is used to set interest rates around the world, the price of crude set by Platts is used to determine the value of oil globally. No surprise if oil companies were using similar tactics to their friends in the banking sector.

Relieved: LondonLad: Given that you agree that RDS management is responsible for their conduct and decisions, then I take it you agree they should be held responsible for what appears to be (according to 'Washington Observer') a not so subtle attempt at espionage (under USA law and perhaps the Official State Secrets Act - UK). Correct ?

Relieved: To LondonLad: Someday you may know my story, but for now it is not appropriate for me to comment. FYI - I did not retire from Shell. I was not so foolish as to hang around that long. Better opportunities beckoned, and there are better opportunities in this world than working for RDS. Believe me, it is a big wide world out there, with lots of better opportunities than working for RDS.

Super Dragon: Dear Voser, You have made an impact to Shell. However there are still lots to be done. Put an Asian in the Excom. The old Western business model and management style is outdated. So do Shell a favor before you leave.