Hearing on Shell plea set Jan. 17

Philippine Daily Inquirer: Monday, January 9th, 2012

The Court of Appeals has calendared for hearing a pending petition of Pilipinas Shell Petroleum Corp. questioning a Manila regional trial court’s resolution that ordered the Big Three oil companies to open their books of account to government audit amid allegations of price fixing.

In setting the hearing for Jan. 17, the appellate court cited the “far-reaching effects to the public” of Shell’s petition that seeks to void the April 27, 2009, order of Manila RTC Branch 26 Judge Silvino Pampilo.

“Considering the importance of the issues involved, its far-reaching effects on the public…this court deems it necessary to set the case hearing,” read a two-page resolution penned by Presiding Justice Andres Reyes.

The Court of Appeals said that conducting a formal inquiry on the matter would allow it to “make a more judicious evaluation of the pending incidents in the present action.”

In his order, Pampilo had granted a petition by the Social Justice Society (SJS) and directed Pilipinas Shell, Petron Corp. and Chevron Philippines Inc. to allow the government to scrutinize their books of account.

SJS and various sectors had accused the three major oil firms of forming a cartel and manipulating the prices of oil products which had skyrocketed. Marlon Ramos

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RELATED

Shell Price Fixing

Sir Henri Deterding, the Dutch oil baron, built the Royal Dutch Shell group on oil price fixing and cartel activity. The Glyn Roberts biography of Sir Henri contains several references to what is described as Sir Henri’s “moralizing references to honest trading” and to “sound business principles”. Deterding was in fact a hypocrite who, as the dictatorial leader of Shell, became an important financial supporter of Hitler and Nazi Germany, partly in a quest to build a cartel position in synthetic gasoline with Shell’s notorious cartel partner, I.G. Farben. Sir Henri was also intent on securing during his face-to-face discussions with Hitler, a monopoly for Royal Dutch and Shell Companies in respect of petrol distribution in Germany.

Shell price fixing and market manipulation activity has continued through the decades.

New York Times: “Shell to Pay $180 Million” (Price fixing case): 3 Jan 1987

New York Times: “California Oil Price-Fixing Case Settled”: 17 August 1991

New York Times: Settlement for Coral Power: 15 November 2003

Bloomberg: Shell, Unipetrol, Bayer Are Sued Over Rubber Cartel (Update2): 20 May 2008

May 20 (Bloomberg) — Cooper Tire & Rubber Co., the second- largest U.S. tiremaker, and 25 other companies sued Unipetrol AS, units of Royal Dutch Shell Plc, Bayer AG, and as many as 20 others over an alleged rubber cartel in Europe.

Unipetrol and units of Shell, Dow Chemical Co., Eni SpA and Trade-Stomil Sp were fined a total of 519 million euros ($813 million) in a 2006 European Union antitrust case over material used to make tires and shoes. The companies are appealing.

Reuters: EU fines “paraffin mafia” wax makers’ cartel: 1 October 2008

The Times: ‘Paraffin mafia’ comes unstuck after €676m fines: 2 October 2008

Guardian: ‘Paraffin mafia’ firms given £500m fines for price-fixing: 2 October 2008

Financial Times: Brussels fines paraffin wax cartel: 2 October 2008

The Wall Street Journal: Wax Price-Fixing Is Alleged: 2 October 2008

Financial Post (Canada): GREECE FINES BP, SHELL $80M FOR PRICE-FIXING: 26 November 2008

ChannelNewsAsia: Greece fines BP, Shell for price-fixing: 26 November 2008

International Herald Tribune: Greece: BP, Shell fined for competition breaches: 25 November 2008

Bloomberg: Chevron, Total, Exxon, Shell Fined on Air France Fuel: price fixing cartel: 4 Dec 2008 (Exxon Mobil Corp., Royal Dutch Shell PLC, Chevron fined 41.1 million euros ($52 million) by the French antitrust authority for fixing the price of fuel for certain Air France-KLM Group flights.)

Shell, Dow lose court challenge to EU antitrust fine: 13 July 2011: Reuters

Extracts

(Reuters) – Royal Dutch Shell (RDSa.L) and Dow Chemical (DOW.N) lost a court appeal on Wednesday against a fine levied by EU regulators five years ago for taking part in a cartel…

…the Court upheld the 160.88 million euro fine on the Royal Dutch Shell group.

Shell involvement in uranium price fixing cartel

NEWS HEADLINES FILE FOR ROYAL DUTCH SHELL RESERVES FRAUD (MARKET ABUSE)

By Emma Rowley

Separately, US rival ExxonMobil said quarterly earnings rose 41pc to $10.3bn as the high oil price offset falling production.

Published in the Business Section of the Telegraph on Friday 28 October 2011

MARK WILLIAMSON

28 Oct 2011

ROYAL Dutch Shell said it would curb investment in Europe where it expects the economy to stagnate, but made clear it would still spend in the North Sea.

Announcing bumper profits driven by high oil prices, the oil and gas giant said it will shift a growing share of its investment to places like Qatar, where the launch of huge projects will underpin growth for years.

Noting that Shell only devotes 15% of its investment to Europe, chief financial officer Simon Henry said the continent’s share will shrink amid concerns about the fallout from the debt crisis.

The day after European ministers finally agreed a plan to try to stabilise the eurozone, Mr Henry indicated Shell executives have been unimpressed by the response to the problems.

He told reporters: “Europe’s macroeconomic position can only recover and the sovereign debt crisis can only be addressed through underlying economic growth. We do not see the EU creating the conditions for that – in fact quite the opposite.

“Most moves by the [European] Commission one way or another tend to almost directly or indirectly reduce the competitiveness of European industry.”

Mr Henry said Shell had identified plenty of global opportunities to put its money to good use, including developing 20 major projects in countries such as Canada and Australia that will underpin growth for years. However, Shell still sees scope to invest in the North Sea.

Mr Henry noted Shell recently confirmed it will invest in the £4.5 billion BP-led Clair Ridge project west of Shetland, among the 20 growth projects he cited.

Earlier this year Shell approved plans for the £3bn redevelopment of the Schiehallion and Loyal fields, also west of Shetland.

In May, Shell’s chief executive Peter Voser told The Herald that it could remain in the North Sea for decades.

However, the firm told the Government that tax hikes in the Budget could jeopardise investment in smaller projects.

Shell said it will continue to dispose of non-core assets, although at a slower pace than in the past two years. Shell has already raised $6.2bn (£3.9bn) against a target of $5bn.

Richard Griffith, an oil and gas analyst at Evolution Securities, said Shell’s third quarter results showed the company is in a “sweet spot”.

Stripping out the effect of changes in inventories, the company doubled third quarter profits to $7.2bn, from $3.5bn in the same period last year.

Shell benefited from a 48% rise in oil prices – partly caused by unrest in the Middle East and Africa. Production increased by 2% annually, excluding asset sales, to 3.01 million barrels oil equivalent daily.

Upstream earnings increased 58% annually, to $5.4bn. Profits in the downstream business, which includes forecourt sales increased by 25% to $1.8bn.

Asked what respite Shell would provide to hard-pressed motorists, Mr Henry said: “We do a good job in getting the lowest cost fuel to customers. The Government is probably the first people you should call.”

Mr Henry said the Government takes two-thirds of the price of a litre, adding: “It is a volume business on which we make a very small margin.”

Mr Henry said Shell could not use the profits from its upstream business to subsidise the downstream.

The company announced an unchanged third quarter dividend of $0.42 per ordinary share.

Shares in Royal Dutch Shell closed up 27p at £22.80.

SOURCE ARTICLE

By STEVE HAWKES, Business Editor: Friday 28 October 2011

*£12.5bn cash in the bank

*90,000 staff around the world

*3m output in millions of barrels a day

SOARING oil and gas prices have sent profits surging to £49million a day at SHELL.

The energy giant made a whopping £4.5billion over the three months to October — DOUBLE the same period a year ago.

Yesterday’s figures come as drivers are being forced off the road by soaring petrol prices as the cost of oil hits record highs.

AA chiefs claim a quarter of motorists are cutting back.

AA president Edmund King said motorists “will not be pleased” to see oil giants making a killing.

But he insisted many now blame the Chancellor more than oil companies for the huge prices they pay at the pump.

Tax makes up 65 per cent of the average forecourt bill — the highest proportion of anywhere in Europe.

Mr King told Sun City: “We ask motorists who they blame for high fuel prices and they put the Government first.

“Duty is set to go up by another 3p to 4p per litre on January 1, but it’s already having a big effect on the economy. It’s vital the Government freezes duty or even cuts it. Record prices are driving motorists off the road.”

Shell once again insisted it hardly made a bean at the petrol pumps.

Three-quarters of the haul came from selling the crude oil pumped out of the ground around the world.

Chief exec Peter Voser also insisted the firm’s stonking results were good for Brits.

He said: “Our profits pay for Shell’s substantial investments in new energy projects.

“They ensure low-cost, reliable, energy supplies for our customers and create value for our shareholders.”

Experts said Shell was benefiting from its huge investment in new exploration projects in recent years.

One of the biggest boosts has come from controversial Tar Sands projects in Canada — where crude lies just below the Earth’s surface.

Shell is also cashing in on the boom in gas with sales of liquefied natural gas up 12 per cent following the opening of a huge plant in Qatar.

Just hours after Shell unveiled its results, American rival EXXON went even better — posting quarterly profits of an incredible £6.4billion.

Separately the European Commission sparked a row with the UK by calling for tougher safety laws in the North Sea. Brussels said the risk of a spill remained “unacceptably high”.

SOURCE ARTICLE

*from newspaper version of article

The oil giant handles budgets and projects of a size that would daunt nation states. The difference is that it need answer to no one … and it’s running a huge surplus

Posted by Terry Macalister Thursday 27 October 2011 13.08 BST The Guardian

What European leader would not want to swap places with Shell boss Peter Voser? He has just doubled the company’s profits in the third quarter, amassed $30bn (£18.7bn) of cash over the last nine months and is now buying back shares at the rate of $800m every three months for want to anything better to do with the money.

Voser has the advantage of having everything to gain from higher energy prices. The social and political fallout from rising fuel poverty and mutinous motorists rarely touches the parallel universe that is Shell Centre in London.

Are there any Shell-shaped worries, then? Well, one of them – in a wider world of growing unemployment, of course – is concern about wage inflation. Shell frets that there is so much activity in the energy sector that it is having to fork out more and more to secure project managers and petroleum engineers.

Voser also has the advantage over the likes of embattled Greek premier George Papandreou in that he can switch spending from one country to another. Unsurprisingly, Shell has not much confidence in Europe: only 15% of
the company’s investment is located this part of the world with 85% elsewhere – increasingly in high-growth Asia.

And how to deal with any worsening financial crisis in the eurozone? Well, the company has just sold its last UK refinery – Stanlow in Cheshire – and says it expects to further reduce its overall investment in Europe as time goes on. The bulk of Shell’s $30bn per annum capital expenditure is going elsewhere – in North America, the Middle East and Asia Pacific.

Also, unlike European political leaders, Voser does not have to worry about global warming or meeting carbon targets. Some of the company’s cash is being pumped into dirty tar sands production in Canada – which is pleasing the Ottawa government if not making any new friends in the environmental movement.

But Shell is also bulking up an already world-leading position in the cleaner gas
market, particularly the liquefied natural gas sector.

And even oil companies do have to make some tough decisions. The cost
of investing in a big scheme – say the Pearl gas-to-liquids project in Qatar, for example – is more than the final bill for building the Channel Tunnel singlehanded. It is unlikely Voser would get away with letting the costs for that scheme double to £10bn, as happened with the rail link.

One oil analyst described Shell as “ticking like a Swiss watch”. That might be true. But it also relies on $100-a-barrel oil prices – and if the sovereign debt crisis triggered a double-dip recession, we might hear the company squawking like a cuckoo clock.

SOURCE ARTICLE

By Eduard Gismatullin – Oct 27, 2011 8:25 AM GMT+0100

Royal Dutch Shell Plc, Europe’s biggest oil company, said third-quarter profit doubled as energy prices rose and it ramped up projects from Qatar to Canada.

Net income increased to $7 billion from $3.5 billion a year earlier, The Hague-based Shell said today in a statement. Excluding one-time items and inventory changes, earnings beat analyst estimates.

Chief Executive Officer Peter Voser is seeking to boost output with a $100 billion investment plan through 2014, including the Pearl gas-to-liquids and Qatargas 4 liquefied natural-gas projects and an upgrade at an oil-sands project in Alberta. Shell has sold about $6.2 billion of assets this year, exceeding a $5 billion target.

“We are making good progress against our targets, to deliver a more competitive performance,” Voser said in the statement.

Adjusted earnings of $7 billion compared with the $6.6 billion mean estimate of 12 analysts surveyed by Bloomberg.

Shell’s Class A shares in London rose as much as 2.6 percent and were at 2,305 pence as of 8:08 a.m. local time. The stock is up 7.7 percent this year.

Earlier this week, BP Plc also reported profit that beat analyst estimates and increased an asset sales target by 50 percent to $45 billion. Statoil ASA, Norway’s biggest energy producer, said today that output rose for the first quarter in five as earnings fell on higher taxes. Exxon Mobil Corp., the largest U.S. oil company, will report results later today.

LNG Sales

LNG sales volumes increased 12 percent to 4.76 million tons from the year-earlier quarter, Shell said.

Overall production fell 2 percent to 3.012 million barrels of oil equivalent a day. New fields contributed about 270,000 barrels of oil equivalent a day.

Shell’s cash flow benefited from a 33 percent gain in U.K. gas futures and a 46 percent increase in Brent oil prices from the year-earlier quarter.

Shell received its first contribution from a $12 billion biofuels joint venture with Cosan SA Industria & Comercio in Brazil, it said today. It was involved in two exploration discoveries in French Guiana and Australia. Shell also secured new exploration projects in the Americas, Tanzania and New Zealand.

Of the 31 analysts that cover Shell, 24 recommend buying the shares and seven have ‘hold’ ratings.

To contact the reporter on this story: Eduard Gismatullin in London at egismatullin@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net

SOURCE ARTICLE

(Reuters) – Royal Dutch Shell Plc (RDSa.L) reported a doubling in profits on Thursday thanks to higher oil prices, robust demand for gas and stronger refining margins, and said it would continue to sell off non-core assets.

Europe’s largest oil company by market value said it’s current cost of supply (CCS) net income was $7.2 billion, a 100 percent rise on the same period last year when non-cash accounting charges weighed on the result.

The underlying result was broadly in line with analysts forecasts.

The Hague-based group said its enormous investments in big new projects were paying off saying that while production fell 2 percent to 3.01 million barrels of oil equivalent (boepd), excluding the sale of fields, the underlying trend was upward.

Chief Executive Peter Voser also said in a statement that although Shell had already met its target of $5 billion of disposals this year, sales of “non-core” assets would continue.

Brent crude jumped 48 percent in the quarter compared to the same period last year, to average $113/barrel in the quarter.

The Japan earthquake earlier this year and subsequent shut down of nuclear plants has boosted demand for natural gas, especially liquefied natural gas, in which Shell is a market leader.

The company said LNG sales rose 12 percent, echoing buoyant LNG results reported by smaller rival BG Group on Tuesday.

Excluding one-offs, the result rose 42 percent to $7.0 billion, compared to an average forecast of $6.61 billion from a Reuters poll of nine analysts.

Exxon Mobil, the world’s largest publicly-traded oil company third-quarter net income is expected to jump 40 percent on last year to $10.26 billion, according to I/B/E/S estimates.

CCS earnings strip out unrealized gains or losses related to changes in the value of inventories, and as such are comparable with net income under U.S. accounting rules.

(Reporting by Tom Bergin; Editing by Greg Mahlich)

SOURCE ARTICLE

BUSINESS CHINA

11 Oct 2011

By John Donovan

We have been reporting for some time about Shell skullduggery in Nigeria, including:

• Shell’s sinister commercial relationship with militant leaders carrying out attacks against Shell employees and pipelines
• arming Nigerian police spies
• embedding Shell spies throughout the Nigerian government
• engaging in massive corruption

Our sources have included Wiki-leaks, a senior manager inside Shell Nigeria and a senior member of Shell Global Security.

Some related articles reporting on Shell’s shameful track record in Nigeria:

*ROYAL DUTCH SHELL NIGERIAN CORRUPTION SCANDAL
*WIKILEAKS: SHELL EMBEDDED SPIES IN NIGERIAN GOV
*Shell embedded spies in governments of Nigeria, Dubai and Iraq
*PDF ORIGINAL ARTICLE SHELL EMBEDDED SPIES IN NIGERIA
*SHELL SETTLES CLAIM FOR MURDER & TORTURE IN NIGERIA
*SHELL COMPLICITY IN NIGERIAN MURDER OF CIVILIANS
*UNLOVEABLE SHELL, THE GODDESS OF OIL
*CLEAN-UP FOR NIGER DELTA AND SHELL’S REPUTATION
*SHELL PAYS $10 MILLION CORRUPTION FINE TO NIGERIANS
*SHELL ACCEPTS LIABILITY FOR TWO OIL SPILLS IN NIGERIA

A recent Guardian article confirmed from its own sources our long standing allegation that Shell has fuelled violence in Nigeria by paying rival militant gangs.

It is interesting in the light of this confirmation to reflect on past events.

For example, an article published by Bloomberg in November 2008 under the headline:

“Nigerian Oil Pipe Fire Extinguished, 6 Workers Died, Shell Says“

The article mentions that “Nigerian oil production rate has suffered this year from militant attacks and oil theft“, thereby implying that the fire – the cause of which was unknown – may have resulted from sabotage by militants.

If this was the case, were the militants paid by Shell, bearing in mind that militant attacks were driving up the global price of oil, fortuitously generating billions of dollars in extra revenue for Shell?

Was Shell responsible for the deaths of its own employees?