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Posts from ‘July, 2009’

Big Oil Bets on Biofuels

At first glance, it might look like oil companies are pulling out of renewables. At the end of June, BP closed its alternative-energy headquarters. The oil company also has cut its alternative-energy budget and closed several solar factories in Spain. And that’s after Shell sold off most of its solar business at the end of 2007.

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Production Resumes at Shell’s EA Field in Nigeria – Source

LAGOS (Dow Jones)–Production at Royal Dutch Shell PLC’s (RDSB.LN) EA oil field in Nigeria has resumed after more than three years offline, an industry source told Dow Jones Newswires Tuesday.

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Shell gripe with The Wall Street Journal over royaldutchshellplc.com website?

A few minutes ago The Wall Street Journal published a corrected article originally published on July 17 under the headline: “Shell Email Leak Says US Convent Refinery Income Dismal -Blog”.

The Royal Dutch Shell Plc company website was identified as Royaldutchshellplc.com – the precise dotcom domain name for the unified company. Since Shell was unsuccessful in proceedings to seize the domain name from its owner and well-known Shell critic, 92 year old Alfred Donovan, this was a humiliating error for Shell.  It therefore seems reasonable to speculate that Shell raised the matter with The Wall Street Journal resulting in the correction of the embarrassing mistake.

If Shell was behind the correction, the intervention has backfired since the role of the royaldutchshellplc.com blog in the publication of an important leaked Shell internal email has been highlighted again with the publication of the corrected article.

Shell may wish to demand that the earlier Wall Street Journal article “Shell To Restructure, Merge Three Units” is corrected and republished on the same grounds.

THE CORRECTED ARTICLE

THE WALL STREET JOURNAL

CORRECT(7/17): Shell Email Leak:Convent Refinery Income Dismal

Tuesday, July 21, 2009, 6.53 A.M. ET

(“Shell Email Leak Says US Convent Refinery Income Dismal -Blog,” at 0647 GMT on July 17, misidentifies the Web site linked at the bottom of the article. The correct version follows:)

LONDON (Dow Jones)–Income performance at Motiva Enterprises LLC’s Convent refinery near Baton Rouge in Louisiana has been dismal since July 2008 and the company needs to cut costs to return to profitability, according to an internal email from part-owner Royal Dutch Shell PLC (RDSB) which was leaked to a blog critical of the company.

“We are getting our costs in line at Convent in order to become competitive in a tough business environment,” the email sent to Motiva staff by manager David Brignac said. “We are considering reductions in operator positions, but no final decisions have been made on operator staffing levels,” he writes in the email posted Friday on royaldutchshellplc.com.

Brignac denied that the company already has plans for a second round of layoffs at the refinery but says it is impossible to predict the future and, “whenever we as a business entity are not generating income, we are not in control of our own destiny.”

Some analysts expect Shell’s refining business to have made a loss in the second quarter because of low profit margins, weak demand and high stocks of transport fuels. New Chief Executive Peter Voser plans a major restructuring of the company, trimming back some unprofitable units. Earlier this month the company said it is considering selling or closing its 130,000 barrel a day refinery in Quebec, Canada.

Motiva is a joint venture between Shell and a subsidiary of state-owned Saudi Aramco. It operates nearly 7,700 gasoline stations, three refineries with combined capacity of 740,000 barrels per day and oil storage facilities.

Blog Web site: http://www.royaldutchshellplc.com

-By James Herron, Dow Jones Newswires; +44 (0)20 7842 9317; james.herron@dowjones.com

Nigerian President Urges Cooperation to Solve Conflict in Delta

BLOOMBERG.COM: Armed attacks targeting oil infrastructure in the delta, home to Nigeria’s oil industry, have shut plants operated by Royal Dutch Shell Plc, Chevron Corp. and Eni SpA, curbing production of the light, sweet variety of oil favored by U.S. refiners. Nigeria vies with Angola as Africa’s biggest oil producer and is the fifth-biggest source of U.S. oil imports.

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Corruption: Landmark cases flounder as crime team is purged

For its part, the EFCC said it was probing payments made by the oil companies Chevron and Royal Dutch Shell to MER Engineering, a company owned by Mr Ibori, purportedly for hiring houseboats to oil industry workers. Chevron said it believed it had complied with anti-corruption laws, while Shell said MER was on its list of contractors but declined to say what work the company had done.

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Co-operative gives £53,000 to Canadian Cree for tar sands lawsuit

Tar sands are a mixture of sand or clay and bitumen, which are either pumped from underground using steam or dug out in strip mines and which need pre-processing or “upgrading” before they can be refined. Shell is among the companies developing tar sands in Alberta, despite its extraction project losing $42m (£25.4m) in the first three months.

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U.S. oil refiners face major cuts, slow recovery

REUTERS: Mon Jul 20, 2009 3:16pm EDT: The latest company to fall victim to the recession is Shell, Europe’s largest oil company, which announced last week it is mulling staff cuts at its refineries and chemical plants in Texas, Louisiana and Alabama to cut costs. Among plants under the microscope are those Shell operates jointly with Saudi Aramco and a Deer Park, Texas, refinery operated with Mexican state oil company Pemex. Shell’s announcement came less than a week after the European oil major said it may shut or sell its 130,000-barrel-per-day refinery in Montreal, which it has operated since 1933.

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Is Shell the world’s biggest company due to merit or malevolence?

Except for the headline, senior officials of Royal Dutch Shell Plc including barrister Richard Wiseman, have had advance sight of the article below thereby giving Shell an opportunity to take issue with the veracity of the content, supply comment for publication with the article on an unedited basis, or seek an injunction to prevent publication. No such action has been taken.

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BP Seen Doing Better Than Shell In 2Q

THE WALL STREET JOURNAL: “Shell appears to be at the greatest risk of negative revisions in the run-in to 2Q results given its areas of operational exposures,” said Citigroup.

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Attacks Cripple Shell’s Niger Delta Operations

THE WALL STREET JOURNAL: IBADAN, Nigeria–Royal Dutch Shell PLC said Saturday it was operating its many facilities in the Niger Delta with a minimum staff following the frequent attacks on its facilities in the region by militants.

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