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Posts from ‘June, 2010’

Garage card scammer jailed

TheRegister

35,000 card details snaffled

By John Oates 23rd June 2010 12:37 GMT

Theogenes De Montford, 29, of Blandford Way, Hayes has been sentenced to four and a half years for his role in one of the UK’s biggest chip and pin scams.

The gang put card cloning equipment on pin entry handsets at petrol stations around the country.

De Montford was caught with 35,000 card details when arrested.

An amazing 7,000 of these came from one garage – a Shell garage on Bluebell Hill in Maidstone, Kent.

A spokesman for Shell UK said the impact of all card fraud, not just this gang’s, resulted in a 25 per cent drop in its business. Actual losses worked out at £725,000 between January and September, PA reports.

Garages are a favoured target for card scammers – customers are typically in a hurry and trust the big multinational branding.

De Montford pleaded guilty to conspiracy to defraud and conspiracy to possess articles for use in the course of fraud.

Three other gang members got three and a half years each last week.

SOURCE ARTICLE

UAE wants Shell for Shah after Conoco exit-sources

DUBAI, June 23 (Reuters) – The United Arab Emirates’ would like Royal Dutch Shell (RDSa.L) to step in as its partner at the $10 billion Shah gas project after U.S. major ConocoPhillips (COP.N) withdrew, industry sources in the UAE said on Wednesday.

Click to continue reading “UAE wants Shell for Shah after Conoco exit-sources”

Global gas demand to rise 25 pct by 2020 -Shell exec

REUTERS

June 24 (Reuters) – Global gas demand is still set to increase by one quarter by 2020, despite uncertainty about the recovery of industrial demand for the cleanest-burning hydrocarbon, a Royal Dutch Shell (RDSa.L) executive said on Thursday.

“Gas industry conditions remain tough. The recovery is still fragile,” De la Rey Venter, Shell’s global head of liquefied natural gas (LNG), told the National Oil Companies Congress in London.

“(But) global gas demand will rise by one quarter by 2020… Of all primary sources of energy, natural gas is clearly the most attractive hydrocarbon.”

De la Rey said Shell expected demand for LNG to double by 2020, compared to 2009 levels, with total global gas demand reaching 4.5 trillion cubic metres by 2030.

(Reporting by Daniel Fineren, editing by Anthony Barker)

REUTERS ARTICLE

Shell: Saudi Arabia May Benefit From LNG Imports

THE WALL STREET JOURNAL

JUNE 24, 2010

LONDON (Dow Jones)–Saudi Arabia, the world’s largest energy producer, may benefit from importing liquefied natural gas to boost domestic supply and maximize profits from oil exports, a Royal Dutch Shell PLC (RDSB) executive said Thursday.

“In an environment where much crude and fuel oil is being burnt up for power, there’s a strong case to bring in more gas and free up some of that [oil] for export,” De la Rey Venter, Shell’s global head of LNG, said at the National Oil Companies congress in London.

“I don’t know what the kingdom will decide.”

-By Angela Henshall, Dow Jones Newswires; +44 (0)20 7842 9285; angela.henshall@dowjones.com

(Lananh Nguyen in London contributed to this report.)

WSJ ARTICLE

Before Rig Explosion in Gulf, Scant Difference Between BP and Other Drillers on Safety

By MIKE SORAGHAN of Greenwire
Published: June 24, 2010

To look at the safety records of the offshore drilling companies before the Deepwater Horizon rig exploded and sank on April 20, there was little difference between BP America Inc. and its peers in the deep waters of the Gulf of Mexico.

According to a Greenwire analysis of Interior Department records, BP ranked a close third in penalties for safety violations. And statistics compiled on injuries and fires show that BP’s records were comparable to those of other deepwater drilling companies.

When U.S. District Judge Martin Feldman lifted the Obama administration’s moratorium on offshore drilling Tuesday, he suggested Interior Secretary Ken Salazar should have looked at the safety records of the other companies that were hit by the moratorium (E&ENews PM, June 22).

“The secretary’s determination that a six-month moratorium on issuance of new permits and on drilling by the thirty-three rigs is necessary does not seem to be fact-specific and refuses to take into measure the safety records of those others in the Gulf,” Feldman wrote in his preliminary injunction (pdf). In a footnote, he noted that Interior’s “blitz” inspection after the explosion found all 33 other rigs in deep water to be safe.

Industry executives and oil-state lawmakers have also questioned BP’s safety practices, seeking to cast the spill as an aberration. But before the “blitz” inspection, there was little to distinguish BP from the other drilling companies. In fact, the now-defunct Minerals Management Service had lauded BP’s safety record.

At the time of the spill, BP was a finalist for the agency’s SAFE award, along with Eni US Operating Co. and Exxon Mobil Corp. The ceremony at which the winner would have been chosen was postponed after the Deepwater Horizon disaster, which killed 11 and has allowed thousands of barrels a day of crude oil to gush from the seafloor into the Gulf.

The canceled event was also to include the presentation of an Offshore Leadership Award to a BP training manager. The award recognizes individuals whose “exceptional performance has raised the bar for safety achievement, improved environmental protection, enhanced resource recovery and conservation, or inspired innovation and outstanding performance by others.”

Transocean Ltd. also was lauded by MMS for safety, winning a SAFE award in 2008. On the day of the explosion, BP and Transocean employees were on the Transocean-owned rig to celebrate that seven years had passed without a major accident.

MMS, before Salazar dissolved it earlier this month, compiled records of civil fines paid since late 1997. Chevron U.S.A. paid the most, $2.1 million, according to the Greenwire analysis. Kerr-McGee Corp. and Anadarko Petroleum Corp., which have merged, came in second at $781,000. BP was a close third at $766,000.

Anadarko’s fines came mostly from its merger partner, Kerr-McGee, including a nearly $500,000 fine in which two subsurface safety valves were found leaking but were left in service without repair. One valve leaked for 186 days; the other leaked for 365 days.

Chevron’s fines included an $810,000 penalty after a “firewater” system was left inoperable for 81 days. BP was fined $190,000 after a fire broke out because of an improperly installed “diverter system” causing damage to property and the environment. Chevron spokeswoman Margaret Cooper said Chevron’s numbers are higher because the company has many more operations in the Gulf than other companies. She said that Chevron’s average total recordable incident rate from 2004 to 2008 was 0.53 recordable injuries per 200,000 hours worked, while the offshore energy industry average over the same time period was 0.93 incidents.

From 2004 to 2008, Chevron’s Gulf of Mexico average spill volume rate was seven times lower than the offshore energy industry’s average (OCS operators). The industry averaged 3.9 barrels per every million barrels produced. Chevron’s spill volume rate over the same time averaged 0.53 barrels for every million barrels produced. In 2009, Chevron spilled a total of 6.8 barrels (286 gallons).

In 2008, Chevron was awarded the MMS national Safety Award for Excellence and has been a finalist for this award several consecutive years. This April, Chevron won two additional MMS district safety awards.

During the same time span, Shell was fined $325,000 and Exxon Mobil was fined $280,000. ATP Oil & Gas Corp., in which Feldman has invested, was fined $35,000 for two incidents.

Last year, there were eight injuries at BP offshore work sites, according to Interior records. Chevron had nine; Exxon Mobil had three; ATP had four and Murphy Exploration & Production Co. had nine. Three companies were cited for “loss of well control,” including Stone Energy Corp., Murphy and LLOG Exploration Offshore Inc., but BP was not. BP had four fires, while Chevron had 15, Exxon had 14 and Kerr-McGee had two.

In his preliminary injunction Tuesday, Feldman found that the Obama administration had not provided adequate reasoning for the blanket drilling ban in deep water.

“What seems clear is that the federal government has been pressed by what happened on the Deepwater Horizon into an otherwise sweeping confirmation that all Gulf deepwater drilling activities put us all in a universal threat of irreparable harm,” Feldman wrote in his 22-page ruling.

“The blanket moratorium, with no parameters, seems to assume that because one rig failed and although no one yet fully knows why, all companies and rigs drilling new wells over 500 feet also universally present an imminent danger.”

The White House and environmental groups said they would appeal the ruling, and drillers indicated they would not send rigs back out until they had a clearer picture of the legal situation.

The administration’s order last month suspended drilling at 33 exploratory wells while an independent panel conducts a six-month study of offshore drilling safety.

Oil companies and Gulf state politicians have criticized the move, saying it will serve as an economic blow to an already struggling region. The legal challenge was filed by a group of offshore service companies that shuttle people and supplies to offshore drilling rigs.

Click here (pdf) to read the preliminary injunction from District Judge Feldman.

Copyright 2010 E&E Publishing. All Rights Reserved.

For more news on energy and the environment, visit www.greenwire.com.
Greenwire is published by Environment & Energy Publishing. Read More »

SOURCE ARTICLE

Russia’s oil exploration threatens gray whales

Postponing seismic work may help the whales recover, say scientists

BBC NEWS

Oil exploration plans in eastern Russia are a serious threat to gray whales in the area, say scientists with the International Whaling Commission (IWC).

The Rosneft company is due to begin a seismic survey around Sakhalin island within the next few weeks.

The IWC’s Scientific Committee is “extremely concerned” about the plans and is calling for a postponement.

The gray whale population is critically endangered, with only about 130 animals left and only 20 breeding females.

Russia says it is aware of the problem, but the company’s capacity to shift is limited for financial reasons.

Western Pacific gray whales (also known as grey whales) come to Sakhalin each summer to feed, and seismic survey work – which involves producing high-intensity sound pulses and studying reflections from rock strata under the sea floor – can seriously disrupt their feeding.

The small area where the whales congregate has shallow water, and scientists suspect this is where mothers teach their calves how to feed at the sea floor.

The IWC’s head of science, Greg Donovan, said the survey work was planned for the period “when there’s probably the highest density of gray whales and particularly mother-calf pairs.

“The Scientific Committee is requesting them to postpone the survey until next year, and to do it as early in the season as possible when there are as few whales there as possible,” he told BBC News.

“We actually made a similar recommendation to another company, Sakhalin Energy; they have followed that recommendation and this year, they are carrying out the survey with a very detailed mitigation plan as early in the season as possible.”

The mitigation plan includes a provision that testing must stop if mother-and-calf pairs appear in the area.

Energy balance

Russia’s IWC commissioner, Valentin Ilyashenko, said he accepted the scientists’ conclusions, but there might be a problem in following through on its recommendations.

“Our government and minister of natural resources know this problem… and this question was discussed maybe one month ago,” he said.

“From my information, it’s very difficult to start this work next year, because the work was planned last year and the money was in the budget for this year, and all equipment and the mothership is rented.

“It’s very difficult to change that work but in any case, I know that our scientists and the staff of our ministers is working with this problem with this company.”

The International Union for the Conservation of Nature (IUCN) has been working with companies including Sakhalin Energy to minimise the impact on gray whales.

But Rosneft, reportedly, has appeared less interested in the issue.

Justin Cooke, a member of the IUCN panel, said that if the planned tests go ahead, there was a risk that mothers with calves could be driven out of their feeding grounds.

“This could have a crucial impact on this critically endangered population,” he said.

“We have some evidence of a slow recovery, but that would be jeopardised by serious disruption in their feeding grounds.”

The population has to recover and expand, he said, if its survival is to be assured.

Going south

The western grays spend the winters in breeding grounds further south, where another issue threatening their survival is entrapment in fishing nets.

Japan is trying to reduce this bycatch in its fleet through an education programme.

Fishermen are not now allowed to sell gray whale meat, and are asked to report entanglements so that authorities can release the whales.

Since the programme’s introduction in 2008, there have been no reports of gray whales deaths through this mechanism.

This is one component of a comprehensive conservation plan drawn up by scientists from a number of countries and endorsed here by the IWC.

A key priority is to locate the breeding grounds, which are thought to be close to the Chinese coast – perhaps in a military zone.

Guide to whales (BBC)

Relief wells may not stop Deepwater Horizon oil leak

examiner.com: Experts agree BP oil well casing has failed: Relief wells may not stop Deepwater Horizon oil leak

June 23, 9:41 PMPolitical Spin ExaminerMaryann Tobin

There is an increasingly real possibility that we may never be able to stop the gushing hole left in the Gulf sea floor unleashed by the Deepwater Horizon.

Former president of Shell oil and founder of Citizens for Affordable Energy, John Hofmeister, told Hardball’s Chris Matthews that the casing that leads to the oil reservoir may be so badly damaged from wear under the extreme pressure, the relief wells will not be able to stop the flow.

Hofmeister said that once the relief wells reach the casing, they will inject cement that should solidify and permanently stop the leak. But if there is not enough casing intact to hold the cement and allow it to set, the last hope in stopping the gusher ends.

Oil industry expert Bob Cavnar agrees. In an interview with Keith Olbermann, Cavnar said ‘ there is real damage to the BOP.’ His advice to BP is to “Keep the well flowing as much as they can,” in order to keep the pressure off the ‘down hole.’

Cavnar also said he would not be surprised if the BOP fell over, unless BP installs supports to keep it upright, adding that it needs to be done right now.

Coast Guard Admiral Thad Allen confirmed evidence that Cavnar may be right. Allen said, “The riser package is now tilting 10 to12 degrees.”

SOURCE ARTICLE

COMMENT FROM A REAL EXPERT (i.e. not Hofmeister who is having a field day promoting his new book)

Within Shell, staff have been instructed not to comment on the BP blowout – since Shell use similar well designs, the same drilling equipment, and occasionally also make mistakes, it could quite easily have been a Shell well blowing out.

Of course, Hofmeister no longer works for Shell so he’s not constrained by their rules. However, to hear Hofmeister discussing well design will no doubt amuse many within Shell who were perhaps unaware of his technical credentials… Why were Hofmeister’s well design and blowout control skills not used while he was at Shell, instead of wasting his talents by assigning him to HR?

U.S. judge rules against White House on drilling ban

REUTERS

* A victory for drillers, White House to challenge ruling

* Interior Dept to issue new order for moratorium

* Offshore operators say they await appeal outcome

By Mary Rickard

NEW ORLEANS, June 22 (Reuters) – A U.S. judge ruled on Tuesday against the six-month moratorium that President Barack Obama’s administration imposed on deepwater drilling over the Gulf of Mexico oil spill, prompting officials to vow to appeal and retool the ban.

The order, in a New Orleans federal court, was a blow to the White House which had insisted a ban on offshore drilling below 500 feet (152 meters) would allow enough time to ensure other exploratory drilling was proceeding safely.

The White House swiftly pledged to appeal the ruling to the U.S. Court of Appeals for the Fifth Circuit in New Orleans and Interior Secretary Ken Salazar said he would quickly issue a new order for a moratorium.

“Continuing to drill at these depths without knowing what happened does not make any sense, and puts the safety of those involved … at a danger that the president does not believe we can afford,” said White House spokesman Robert Gibbs.

The ruling in the case, the oil industry’s first challenge to a moratorium that had halted operations of 33 offshore rigs, was a victory for big offshore energy producers like BP Plc. (BP.L)(BP.N), Chevron Corp (CVX.N) and Royal Dutch Shell (RDSa.L). They have considered relocating their giant drilling rigs to other basins like Brazil.

A suit was filed by Louisiana-based Hornbeck Offshore Services LLC (HOS.N) and was joined by more than a dozen companies involved in offshore drilling operations to reverse the drilling ban imposed by the U.S. Department of Interior.

The April 20 explosion of the Transocean LtdRIGN.S(RIG.N) Deepwater Horizon rig killed 11 people and caused the worst oil spill in U.S. history. The well is majority-owned by BP.

Deepwater drilling, newer than shallow-water drilling, is also riskier because the bit must bore through many more layers of rock and salt under more extreme pressures and temperatures.

“We see clear evidence every day, as oil spills from BP’s well, of the need for a pause on deepwater drilling,” Salazar said in a statement. “I will issue a new order in the coming days that eliminates any doubt that a moratorium is needed, appropriate, and within our authorities.”

That likely means more litigation and uncertainty for the industry, which could roil investors.

APPEAL AWAITED

Federal Judge Martin Feldman, appointed by former President Ronald Reagan in 1983, granted the drillers’ request for a preliminary injunction that prevents the ban from taking effect, saying that they would likely succeed in showing that the suspension was “arbitrary and capricious”.

“The court is unable to divine or fathom a relationship between the findings and the immense scope of the moratorium,” the judge wrote a day after hearing arguments in the case.

Environmental groups lambasted Feldman’s decision as a gift to Big Oil. “To open more drilling now would be to invite a second disaster of the same magnitude, or a third,” said Sierra Club executive director Michael Brune.

The Center for American Progress, headed by former President Bill Clinton’s White House chief of staff John Podesta, circulated public documents showing that he held shares in offshore rig owner Transocean Ltd in 2008.

The American Petroleum Institute, an oil industry lobbying group, applauded the ruling and said it means that “our industry and its people can get back to work.”

But big offshore operators like Shell said they would wait until the outcome of the appeal by the Obama administration before they restart drilling operations.

“We need to understand what the lower court’s decision was, and we’ll await the outcome of the appeal,” said Shell spokesman Bill Tanner.

“It would be very difficult to see someone start up an ultra deepwater operation with just one court’s ruling because there is so much at stake,” said Pierre Conner, an analyst with Capital One Southcoast in New Orleans.

Standard & Poor’s Equity Research analysts said legal battles over the moratorium are far from over and they “anticipate some rigs to leave the U.S. Gulf for international drilling regions given elevated domestic uncertainty.”

The moratorium on drilling in deep waters does not affect existing producing platforms but halts new development plans by the oil industry.

Wood Mackenzie, an energy consulting agency, previously estimated a six-month ban would delay 80,000 barrels a day in U.S. oil production that was expected in 2011. (Additional reporting by Patricia Zengerle, James Vicini, Jeremy Pelofsky and Deborah Zabarenko in Washington and Kristen Hays in Houston. Writing by Chris Baltimore; editing by Howard Goller and Chris Wilson)

SOURCE ARTICLE

US Gulf oil drilling ban overturned by federal judge

Rig drilling relief well in the Gulf of Mexico
A ban on drilling was imposed following the BP oil rig explosion

BBC NEWS

A US federal court judge has blocked President Barack Obama’s six-month moratorium on deep water oil drilling in the Gulf of Mexico.

The moratorium was put in place in the wake of the massive oil spill triggered by an explosion at a rig in April.

The judge said the lengthy ban was “invalid” and could not be justified, as the negative impact on local businesses was simply too great.

The White House said it would be appealing against the decision.

“An invalid agency decision to suspend drilling of wells in the depths over 500ft simply cannot justify the immeasurable effect on the plaintiffs, the local economy, the Gulf region and the critical present-day aspect of the availability of domestic energy in this country,” judge Martin Feldman said.

Energy needsThe decision to overturn the ban follows vocal protests by the oil industry.

Top executives from BP, Transocean and other oil firms have warned against over-regulating deep sea oil drilling.

Oil found in deep waters is needed because the world will need 45% more energy by the year 2030, BP’s chief of staff, Steve Westwell, told the World National Oil Companies Congress earlier on Tuesday.

Consequently, the world would need new reserves from “new frontiers”, he said.

Steven Newman, chief executive of Transocean, which owned and operated the destroyed Deepwater Horizon rig that blew up on 20 April, had attacked the US ban on deep water drilling.

“There are things the [US] administration could implement today that would allow the industry to go back to work tomorrow without an arbitrary six-month time limit,” Mr Newman said on the sidelines of the meeting in London a few hours before the ban was overturned by the judge.

A prolonged ban on deep water drilling would also “be a step back for energy security”, added Chevron executive Jay Pryor, suggesting it would “constrain supplies for world energy”.

Mr Westwell said BP would re-assess how it balanced risks, but he also insisted that the leak in the Gulf of Mexico would not lead to deep water production being halted.

It would be a mistake, he insisted, to create an environment in which investment in deep water would become impossible.

“The world does need the oil and the energy that is going to have to come from deep water production going forward,” he said.

“Therefore, the regulatory framework must still enable that to be a viable commercial position.”

And he said “BP will come through”, suggesting that most of the flow from the well in the Gulf should be staunched by August.

Steve Westwell BP’s chief of staff : The world does need the oil and the energy that is going to have to come from deep water production going forward

Newfoundland drilling continues

Global deepwater oil production

Pennsylvania votes to divest firms tied to Iran

Inquirer

PhillyDeals: Pa. House votes to divest firms tied to Iran

By Joseph N. DiStefano

The Pennsylvania House of Representatives voted unanimously Tuesday to make the state Treasury and pension funds dump stock worth more than $400 million in Royal Dutch Shell and dozens of other foreign companies.”If they want to do business with Pennsylvania’s pension funds, they’ll have to cut their ties to Iran,” the bill’s sponsor, Rep. Josh Shapiro, a Democrat who represents Abington and Upper Dublin, told me.

State pension funds would be barred from buying into companies that make significant investments in Iran and Sudan under the law, which Gov. Rendell is likely to sign once state lawyers review it, his spokesman, Gary Tuma, told me.

Pennsylvania’s pension funds resisted past

attempts to divest companies in Northern Ireland and South Africa amid concerns that politicizing the underfunded pension plans would hurt investment returns.

Indeed, Shapiro’s proposal “was met with very stiff oppositions from the pension funds and from their sympathizers” when he pressed it in his first term five years ago, Shapiro told me.

What made Harrisburg give in this time? “The different Jewish federations throughout the state” mobilized in support of the bill, said Matthew Handel, an executive at Shire Pharmaceuticals in suburban Philadelphia, who is chairman of the Pennsylvania Jewish Coalition.

The America-Israel Public Affairs Committee, which calls itself “America’s Pro-Israel Lobby,” joined to back the bill, said Robin Schatz, director of government affairs for the Jewish Federation of Greater Philadelphia.

The bill also got support, in its early stages, from members of the Darfur Coalition, a group of U.S. activists who oppose the national government in war-torn Sudan, Schatz added. She credited State Rep. Babette Josephs (D., Phila.) for bringing in the Darfur activists.

Why is Pennsylvania taking on the enemies of Israel, a foreign country?

“Foreign policy is clearly conducted on the banks of the Potomac,” by the State Department in Washington, Shapiro told me.

“But here on the banks of the Susquehanna, we can leverage $400 million worth of investments in a way that supports our allies, for example Israel, and isolates our enemies.”

The law would also force the sale of shares in Italy’s ENI, Russia’s Gazprom and Lukoil, France’s Total, China’s CNOOC, and industrial companies in South Korea, Taiwan and Thailand.

The bill won’t force the funds to sell stocks that are included in index funds, which account for a large proportion of the funds’ equity holdings, noted Robert Gentzel, spokesman for the State Employees’ Retirement System.

Shapiro says the groups that backed the bill want to “choke off foreign capital” supporting Iran, in hopes of stopping Iran’s nuclear weapons development that threatens Israel and other countries in that region.

He told me he agrees with remarks earlier this month in support of blockades against Israel’s enemies, by U.S. Sen. Charles Schumer (D., N.Y.).

According to Schumer’s speech, Israel’s blockade of the Palestinian Gaza territory “makes sense,” so long as “people [are] not starving to death,” because it seeks “to strangle them economically” until they agree “that a path of living with Israel and the Jews is a better way to go than a path of total and obdurate confrontation.”

Back in the market

The market for commercial mortgage-backed securities (CMBS) – bonds backed by loans on apartments, offices, stores, warehouses, hotels – stalled in the 2008 credit freeze.That’s one reason commercial real estate prices have collapsed and the private sector’s not building much.

“We’re starting to lead the market back,” Dan Sheehy, the Reading native who heads California-based Impact Community Capital L.L.C., told me, after pricing the main $235 million, AAA-rated portion of a $302 million CMBS, at a variable rate of 5.35 percent, or 2.25 percent over U.S. Treasuries.

The group was represented by Philadelphia lawyer David Forti and his colleagues at Dechert L.L.P. “Couldn’t have done it without them,” said Sheehy, who added he “spent four weeks on the road, going like the hammers of Hell,” pushing the deal to pension funds and other big investors to buy the bonds and help bring back the market.


Contact Joseph N. DiStefano at 215-854-5194 or JoeD@phillynews.com.