The defendants include Chevron, Exxon, BP, Shell Oil, ConocoPhillips and Tower Energy Corp., a California-based independent petroleum wholesaler, the report stated.
Click to continue reading “Ethanol Lawsuit Proceeds against Oil Companies”
News and information on Royal Dutch Shell Plc.
The defendants include Chevron, Exxon, BP, Shell Oil, ConocoPhillips and Tower Energy Corp., a California-based independent petroleum wholesaler, the report stated.
Click to continue reading “Ethanol Lawsuit Proceeds against Oil Companies”
Jeroen van der Veer, outgoing chief executive of Shell, was asked on CNBC’s The Leaders programme last night about his unexpected appointment to the top job there. Did he want it?
That is bad news for the oil companies, of course, and HSBC is predicting that cashflows at Shell, for one, will be negative for the next two years. As a result, its shares slid 44p to £16.11.
Click to continue reading “Predictions of slump in demand hits oil companies”
SFO chief Richard Alderman has visited the US to meet Department of Justice investigators who are probing BAE’s controversial multi-billion pound al-Yamamah arms deal with Saudi Arabia.
Click to continue reading “SFO investigators set to force BAE’s hand”

JANUARY 22, 2009, 10:24 AM
Consolidation in the oil and gas industries is just around the corner, according to Fadel Gheit, an oil analyst at Oppenheimer.
Oil prices are down more than 70 percent from last summer’s record high. The longer oil prices stay weak, Mr. Gheit said in a note to investors Thursday, the greater the chances of a major merger party in the energy sector.
The last time energy prices collapsed so violently was in 1998, when a barrel of crude traded for as low as $10. The shift caused many oil companies to leap into the arms of rivals and gave rise to the “super major” oil companies: ExxonMobil, ChevronTexaco,BP Amoco Arco, TotalFinaElf and ConocoPhillips.
“We believe low oil and gas prices are likely to trigger industry consolidation similar to that following the 1998 oil price crash,” Mr. Gheit wrote. “We do not rule out any combination even between major oil companies, after the necessary divestitures to win government approval.”
Merging an oil and gas company could yield major benefits for shareholders, many of whom are nursing losses because of the falling price of oil. “M&A activities can enhance operating and financial results, improve investment returns and boost shareholder value through cost savings from economies of scale and increased efficiency,” Mr. Gheit said.
Mergers in the oil and gas sector are typically very aggressive, with the smaller merger partner often experiencing 50 percent to 100 percent workforce reductions and 30 percent to 60 percent reductions in capital expenditures. The benefits of the merger are generally achieved within three years, Mr. Gheit said.
Take Exxon’s 1998 merger with Mobil. By 2001, the combined company had slashed 80,000 workers, equivalent to the entire workforce at Mobil when it was acquired. Meanwhile, the company’s return on capital employed soared to its current industry-leading level of 35 percent.
ExxonMobil may try to repeat that success this year. The Texas energy giant has $38 billion in cash and 2.9 billion treasury shares worth $232 billion, which it has built up over the years buying back its stock. That’s enough currency to buy any of its major rivals, such as Shell or BP, at a 30 percent premium, Mr. Gheit says.
That may not be so far fetched. Rex Tillerson, ExxonMobil’s chief executive, hinted at the company’s annual meeting last April that his company could use its treasury shares to do deals. At the time, oil was about $130 a barrel. If oil stays below $50 a barrel, Mr. Tillerson may be even more interested in reaching into his Texas-sized war chest.
– Cyrus Sanati
SAO PAULO, Brazil: Exxon has told Brazilian officials it discovered oil in deep water off Rio de Janeiro, near massive fields that could hold as much as 80 billion barrels of oil.
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Brazil’s state-run energy giant Petroleo Brasileiro SA (PBR), or Petrobras, as well as Royal Dutch Shell PLC (RDSA) and BP PLC (BP) have also been reported as keen to grab assets in the ethanol segment.
Click to continue reading “Mergers, Acquisitions Loom Over Brazil Sugar, Ethanol Indus”

The startling bill for just one month was run up as the energy giant called in the world’s largest pipelaying vessel, The Solitaire, and protesters took to the sea. The total cost of policing Corrib since 2003 is at least 13.5 million euro.
The Department of Justice defended the costs. “We are a sovereign state and we have a duty to protect people’s safety. If there was a peaceful protest there, things would be fine,” a spokesman for Justice Minister Dermot Ahern said.
Mr John Monaghan, spokesman for Pobal Chill Chomáin, said the meeting had revealed ‘a glimmer of hope’ and ‘the potential for the beginning of a process’. “All sides are now more appreciative of the complexities involved and of the primacy of community consent. We’ve also informed the ministers about the history of community distrust and why we could not participate in the forum,” said Mr Monaghan.
Click to continue reading “Ministers in talks with Corrib opponents”
MINISTER FOR Foreign Affairs Micheál Martin has said it is “extraordinary” that gas from the Corrib field off Co Mayo has not yet been brought onshore.
Click to continue reading “Corrib gas delay ‘extraordinary’ – Martin”