NOVEMBER 2004 SHELL NEWS

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Monday 1 November, 2004

Compliance Reporter: Royal Dutch/Shell Merger Plan Called 'Inadequate': ““It is a timid, inadequate step forward," said attorney William Lerach, who in June sued executives and board members of the firms, demanding that they be held accountable for the huge fines and excessive bonuses resulting from repeated fraudulent claims of the companies' proven reserves.”: “They are proposing to go from a very bad, very dysfunctional corporate governance structure to a conventionally bad single corporate governance arrangement,” said Lerach.”

iwon.com/Dow Jones Newswires: Shell Delays Repairs To Mars Platform To 2005 1Q: “Repairs to the mammoth Mars oil and gas production platform in the Gulf of Mexico will be postponed from the originally scheduled date of this coming week until the first quarter of 2005, according to Shell Exploration & Production Co.”

THE WALL STREET JOURNAL/DOW JONES NEWSWIRES: Shell To Form Research Center To Boost Yields

THE WALL STREET JOURNAL/DOW JONES NEWSWIRES: Shell's Nigeria Crt Action Doesn't Target NLC Strike – Co: “Royal Dutch/Shell Group Monday denied it was trying to stop a nationwide strike planned Nov. 16 by Nigeria's leading union, that is threatening to target oil exports.”

BLOOMBERG: Netherlands Buys Gas Pipes From Exxon, Shell Venture (Update4): “Shell Chief Executive Jeroen van der Veer plans to sell assets worth as much as $12 billion, after the company admitted in January it had misled investors for six years about its oil and gas reserves.”

FORBES: Shell Try to Block Nigeria Oil Strike: “Federal Justice Abdullahi Mustapha in the commercial capital, Lagos, held only a brief hearing Monday on Shell's attempt to block the strike, postponing the case until Nov. 18. Mustapha rejected a request from Shell to forbid wildcat strikes or other union action in the interim.”: "Crude prices internationally hit an all-time intraday high of $55.67 on Oct. 26, driven up partly by fears of Nigerian supply disruptions..."

Daily Express (UK) Shell execs to win big bonuses: “The group's previous bonus scheme, now scrapped, was widely discredited because it was controversially linked to increases Shell made in booking reserves.”

Daily Express (UK): Shell reflects ups and downs of the oil trade: “At the start of the year, Shell was forced to reduce its proven oil reserves an incredible four times and agreed to pay more than £80million in penalties to settle inquiries by the regulators. Perhaps the most embarrassing episode came when Shell sold its stake in a 50/50 joint venture in an Indian oilfield to its partner Cairn Energy for a mere £4million — the field proved to have enough oil in it to increase Cairn's share price by 300 per cent and propel it into FTSE100.”

THE WALL STREET JOURNAL: Shell's Auditor Had Outside Support: ““KPMG and PricewaterhouseCoopers affiliates have been named in investor lawsuits alleging negligence and professional malpractice, among other charges.”: “In a sign the shake-up isn't likely to put the reserves issue fully behind the company, Shell also said last week that it may have to remove another big chunk of reserves from its books. That triggered Standard & Poor's to say Friday that it again was reviewing Shell's long-term double-A-plus credit rating.”

THE WALL STREET JOURNAL/DOW JONES NEWSWIRES: Data Providers Differ on Classing Shell Unification: “…the deal is a true merger -- or rather a mere internal restructuring -- has touched off a heated debate among investment bankers and data providers.”

THE WALL STREET JOURNAL/DOW JONES NEWSWIRES: Shell, Oil Unions Open Court Battle Over Nigeria Strike: “Oil giant Royal Dutch/Shell Group (RD, SC) Monday opened court action to try to block a strike targeting oil exports in the world's No. 7 crude exporter -but failed in a first-round bid to block any unrest by unions in the meantime.”

BARRONS’Online: Russia's Gazprom: the Big Ugly Duckling: WHAT'S THE LARGEST ENERGY COMPANY in the world? Guess Gazprom and you're right, but few American investors probably realize that. Not well-known here, the Russian state-controlled natural-gas monopoly has more hydrocarbon reserves than ExxonMobil, Royal Dutch Shell, British Petroleum, Total and Conoco Phillips put together.”

Financial Times: Revamped Shell set to boost executive pay: “Last week Malcolm Brinded, head of exploration and production at Shell, said the group could be forced to unbook a further 900m of its 14.35bn barrels of oil reserves, and left open the prospect of further revisions”

The Times (UK): Corporate hotshots may go down as well as up: The power 100: “A few short months ago, the chairmanship of Shell, the world-famous oil company, was one of the most desirable jobs going. The title bought status and influence, not to mention a bulging pay packet. That was before a large part of Shell’s oil and gas reserves mysteriously evaporated.”

Daily Telegraph (UK): Nigerian unions put Shell in dock: “Nigeria's union leaders yesterday declared embattled oil business Shell to be an "enemy of the Nigerian people" and called for protests against the company.”

Daily Mail (UK): Bonus bonanza for Shell bosses

The Times (UK): Shell gains £968m from sale of gas stake: “The sale comes amid soaring gas prices which have prompted increases in customers' bills and an inquiry by Ofgem, the UK energy regulator. Ofgem last month urged a European Commission investigation into whether gas companies had withheld supplies to Britain, exacerbating a supply squeeze caused by declining North Sea production.”

Financial Times: Nigerian unions aim to halt oil exports: “Mr Oshiomhole said the Federal High Court was due today to hear a case brought by Shell, which accounts for almost half the country's daily oil output, in an attempt to stop industrial action by its workers.”

AFX Asia (Focus): Shell and Esso to get 2.78 bln eur from Dutch govt in gas ops ownership rejig

AUSTRALIAN FINANCIAL REVIEW: Nigerian unions brand Shell as enemy: “Union leaders singled out Shell, Nigeria's largest petroleum producer, which they accused of planning to try to block the strike in the courts. "We have resolved to declare Shell an enemy of the Nigerian people," Adams Oshiomhole, leader of the main Nigeria Labour Congress, told reporters.”: “Shell officials could not immediately be reached for comment.”

USAToday: Nigerian unions declare Shell the 'enemy', call for strike: “LAGOS, Nigeria (AP) — Unions declared the top oil multinational here, Royal Dutch/Shell, "an enemy of the Nigerian people" on Sunday and called a Nov. 16 nationwide strike…”: “The threats in the world's No. 7 oil exporter — the source of one-fifth of U.S. oil imports — appeared likely to send new shocks through the global oil price market.”

BBC NEWS: Nigeria strike call targets Shell: “Adams Oshiomhole, leader of the NLC, told the BBC that this time the strike would be indefinite and total, and would affect both the production and export of crude oil. “Shell has decided to side with the government to oppress our people and to mix themselves into Nigerian internal politics”.

The Scotsman: Shell coy on bosses' performance-related pay: “Shell, which announced it was ditching its complex dual corporate structure last week in a partial bid to put its oil reserves scandal behind it, yesterday refused to confirm or deny it wanted to bring remuneration for its five executive directors in line with rivals such as BP.”

THE NEW YORK TIMES: Did Shell Merge? Big Banks Argue the Point: ”The huge corporate reorganization of the Royal Dutch/Shell Group is one of the year's largest financial transactions. But is it really a merger?”

Tuesday 2 November, 2004

THE NEW YORK TIMES: Crude Futures Hover Near $50 a Barrel: “In Nigeria, Oil giant Royal Dutch/Shell Group opened a court action Monday to try to block a strike targeting oil exports. It failed in a first-round bid to block wildcat strikes or other union action in the meantime. The case came one day after Nigeria's unions called the Nov. 16 strike over rising fuel prices and promised to target Shell. Purvin & Gertz oil analyst Ken Miller said the potential loss of production in Nigeria, which pumps the light, sweet crude most desired by refiners, is ``a real concern.''

THE TIMES (UK): THE POWER 100: SIR MARK MOODY-STUART, No. 2 IN “THE TIMES” LIST OF BRITAIN'S 100 MOST POWERFUL BUSINESS LEADERS

THE WALL STREET JOURNAL/DOW JONES NEWSWIRES: Nigeria Senate May Probe Natl Oil Co For Graft –Media: “…committee, which met Monday, threatened to hand Funsho Kupolokun, managing director of the corporation, over to the Economic and Financial Crimes Commission, if he fails to explain in a month how and why the money was used. “Reports say Kupolokun traveled to Ghana with some Shell Petroleum Development Co. of Nigeria staff, to borrow the extra $600 million.”: “Royal Dutch/Shell Group (SC, RD), which owns part of SPDC, was not immediately available for comment.”

THE WALL STREET JOURNAL: How Shell’s Move To Revamp Culture Ended in Scandal: “The root of the problem, however, goes significantly further back than Sir Philip's reign, which began in 2001”: “These deeper roots are significant because the company has yet to make a full break with its past. Mr. van der Veer is a longtime Shell executive who sat on the committee that received -- and dallied over -- warnings about the accounting problems.": " In addition to its ambitious plans to discover new oil and gas cheaply, Shell under Sir Mark was redefining how it counted existing reserves.": "Sir Mark Moody-Stuart, chairman from 1998 to 2001, remains on the board of Shell’s English parent… He declined to comment about reserves issues. And Shell still can't seem to get a handle on its reserves.”

Daily Express (UK): Shell slims down in £lbn gas pipeline sale: “OIL giant Shell is selling a gas pipeline business for nearly £1 billion as part of moves to focus on more profitable exploration and production.”: “The sell-off follows a series of shock downgrades to the company's oil reserves since January this year.”

Financial Times: ChevronTexaco looks back to the future: “Chevron is the only one of the six supermajors to have found more new oil than it has produced over the past four years.”: "We've got tremendous asset positions in key areas around the world," says Mr O'Reilly, shrugging off concerns expressed by some analysts that it lacks the strength in depth of rivals such as ExxonMobil, BP and the newly merged Shell group.

Asia Pulse: MITSUI TO BUY STAKE IN MEXICAN LNG TERMINAL FROM SHELL:  TOKYO, Nov 2 Asia Pulse - Mitsui & Co. (TSE:8031) has agreed with Royal Dutch/Shell Group to purchase a 25 per cent stake in a Mexican liquefied natural gas (LNG) import terminal project from the Anglo-Dutch oil company for about US$100 million…”

The Times (UK): Shell fights unions as strike call hits Nigeria: “SHELL locked horns in a legal battle with its main Nigerian unions yesterday in a dispute that risks embroiling the oil multinational in growing labour unrest in the troubled African country.”: “Shell’s court action against the two unions… drew a fiery response from Adams Oshiomhole, the NLC leader, who labelled Shell “an enemy of the people” and said: “Shell does not have the muscle to control our people, even if it controls our political leaders.”

The Guardian: Dutch state takes over gas network: “Shell has embarked on a programme to sell about £6bn worth of assets over two years as it seeks to rebuild investor confidence after the oil and gas reserves scandal.”

Daily Telegraph (UK): City diary: A word in their Shell-like. . .: “I phone to check whether Marcus Samuel Jr, son of the founder, was chief executive in the 1890s. "Well, on background. . ." begins the clueless PR, before concluding with an admission of ignorance. At Shell, even history lessons are off the record.”

Daily Telegraph (UK): Dutch pipe sale earns Shell £960m: “Shell, the Anglo-Dutch energy giant, yesterday put its troubles temporarily behind it with the news that it was netting €1.39billion (£967m) from the sale of its share of the Netherlands' gas pipeline networks.”

Financial Times: Royal Dutch/Shell's Dutch disposal: “Royal Dutch/Shell is selling its share in the Netherlands' domestic gas grid to the Dutch state for €1.39bn (£967m).”

Financial Times: Nigerian court refuses to ban Shell strike: “Royal Dutch/Shell yesterday failed to win a court order preventing industrial action by its workers in Nigeria.”

China Daily: Shell starts drilling to regain confidence: “BEIJING, Nov. 2 (Xinhuanet) -- Royal Dutch Shell Group, after uniting its parent companies and boards, must find the next generation of oil fields to rebuild reserves and gain investor trust, Chief Executive Jeroen van der Veer said in an interview.”: "Shell is having to run twice as fast to keep up with the Exxon Mobils and BPs of this world," said Fadel Gheit, a senior vice-president of oil and gas research at Oppenheimer & Co in New York. "They are putting in a lot more resources to get lower results. Most other companies are much more efficient.": “Shell said on Thursday it may have to write off another 900 million barrels of reserves, or 6.3 per cent of its holdings...": "That would be a fifth cut this year.”

Lloyds List: Last Word: By any other name...: “Royal Dutch/Shell's corporate changes are going to require a large volume of investment in new letter heads and logos just to remove a forward slash.”: “…van der Veer told delegates his company was ashamed of the reserves slashing and the scandal of over optimistic bookings in the past. He said his management had felt like naughty school boys being sent to the corner to think about what they had done before repenting. We guess the fines from the US and UK regulators were enough punishment for the group then.”

The Independent: Shell to sell Netherlands gas stake: “SHELL IS to raise just under pounds 1bn by selling its shareholding in the Netherlands gas transmission system.”: “Shell has embarked on a two-year programme to raise pounds 10bn-$12bn from asset sales.”

Wednesday 3 November, 2004

The Guardian: Companies' ethical reports branded ineffective: “Jeroem van der Veer, Shell's new chief executive, has no qualms about the current failings of most CSR reporting: "I still see too little willingness to talk about failures and too little input from credible, and sometimes critical, third parties". It's a moot point, and one that van der Veer is well placed to make after his company's oil reserves crisis earlier this year.”

Yahoo.com: Malaysia Shell To Award MYR385M Gas Drilling Contracts: “KUALA LUMPUR (Dow Jones)--Shell Malaysia Wednesday confirmed it will award five contracts later in the day worth a total MYR385 million ($101 million) for the upgrading of drilling facilities at key gas production sites.”

Yahoo: Shell Selects Trintech Technology to Enable Smart Card Acceptance at Petrol Stations in the UK and Ireland: “The Royal Dutch/Shell is a global group of energy and petrochemicals companies, operating in over 145 countries and employing more than 119,000 people.”

The Independent (UK): Shell grabs first post-2008 greenhouse gas deal: “The move was hailed by Shell as "an important milestone deal" ahead of the Kyoto Protocol to reduce greenhouse gas emissions, coming into effect in 2008. Emissions allocations have not been determined for the 2008-12 period.”

Lloyds List: Mitsui takes stake in Altamira LNG project: “LEADING Japanese trading house Mitsui ' Co is acquiring a 25% stake in Shell's Altamira liquefied natural gas terminal project on the east coast of Mexico.”

Lloyds List: Granatina becomes first ship to pocket green passport: “SHELL International's liquefied natural gas carrier Granatina has become the first vessel in the world to win a 'green passport' for full compliance with International Maritime Organization guidelines on ship recycling.”

Thursday 4 November, 2004

Newstatesmen 4 Nov 04: The business - Patrick Hosking on Shell's move to the Netherlands: The London head office of the UK half of the business, Shell Transport & Trading, is being disbanded.”: “…London will become a mere branch. The company's centre of gravity will shift further over the North Sea.”: “Last month, the company had to admit that it may have got its figures wrong for the fifth time in a year.”

BLOOMBERG: Shell, ChevronTexaco Are Accused of Fixing Gas Prices (Update1):  Shell Oil Co., ChevronTexaco Corp., and a unit of Saudi Aramco were sued by a group of gasoline dealers who claim the companies conspired to fix the price of fuel sold to about 20,000 service stations nationwide.”: “The suit in Manhattan federal court claims that in 1996, senior officers of Saudi Refining Inc., ``Shell and Texaco met and entered into an agreement to raise, fix, peg and stabilize the price of motor fuel sold to Shell and Texaco dealers.''

Houston Chronicle (Nov 4/04): Gas stations allege price fixing in suit: “Shell Oil, ChevronTexaco and a unit of Saudi Aramco were sued by gasoline dealers who claim the companies conspired to fix the price of fuel sold to about 20,000 service stations nationwide.”: Karyn Leonardi-Cattolica, a spokeswoman for Houston-based Shell, the U.S. arm of the Royal Dutch-Shell Group, had no immediate comment.”

THE WALL STREET JOURNAL (Posted Nov 4 04): UPDATE: Nigeria Union Grp Holds Rally Over Nov 16 Strike: “Nigerian labor leaders and activists vowed at a massive rally Wednesday to go ahead with a Nov. 16 general strike, while a tribal leader singled out Royal Dutch/Shell Group as a possible target of attack if workers cross picket lines.”

CBS MarketWatch (Nov 4/04): Shell sells 25% of stake in Mex LNG project to Mitsui

LEGAL WEEK (UK) (Nov 4 04): Trio of firms called in to advise on Shell restructuring: “It is widely expected that the position of global general counsel Beat Hess will not be altered and that he will be able to attend the meetings of the new solitary board. In May, Hess told Legal Week he was kept in the dark about the company’s looming crises over the booking of oil reserves and that he was pushing for greater visibility for lawyers at board level and a clear reporting structure in the legal function.”

Bernama (Nov 4 04): Shell To Invest Another RM12 Bln In Malaysia: Shell which has been operating in Malaysia for the last 114 years and invested over RM70 billion in the last four decades plans to invest another RM12 billion from 2004 to 2008, said Chairman of Shell Malaysia, Datuk Jon Chadwick.

autoindustry.co.uk (Nov 4 04): Black Circles signs Shell loyalty card deal

Friday 5 November, 2004

Planet Ark: Gas remains centrepiece in Shell China strategy: BEIJING –“Royal Dutch/Shell Group aims to become a major supplier of liquefied natural gas to China and gain a foothold in the country's booming oil refinery sector, a senior company official says.” (ShellNews.net) 5 Nov 04

CSNews: Shell Cuts Fuel Sales at 18 Ohio Stations: “Shell Oil has shut down gasoline sales at 18 Columbus-area stations operated by state Sen. Jeffrey Armbruster because of what it termed a "banking-related issue," reported the Columbus Dispatch.” (ShellNews.net posted 5 Nov 04)

ChannelNewsAsia: NEW YORK: Gas stations sue oil companies, claiming price-fixing: "Shell and Texaco met and entered into an agreement to raise, fix, peg and stabilize the price of motor fuel sold to Shell and Texaco dealers," the suit claimed.: “The suit seeks class action status, which would allow tens of thousands of other retailers to join in, they said. On June 1, a federal court in California allowed a similar case against the companies.” (ShellNews.net) 5 Nov 04)

Financial Times: Exxon rethinks natural gas delivery options: “Energy analysts say that if Sakhalin-1 converts to LNG it may have to strike a deal with the Shell-led project…”: “Julian Barnes at the Shell-led project, said: "I am not aware of any approach made by Sakhalin-1 to share our LNG plants. But we would be open to such a discussion if it would bring value to them [Exxon] and to us and our partners." (ShellNews.net) 5 Nov 04

Business Report (South Africa): Wayne Pearce ("new managing director of Shell & BP South African Petroleum Refineries") fuels up for the road ahead: “What are the key issues affecting the refinery industry worldwide?”: “Do other Shell refineries in the world have poor relations with communities living on their fencelines?”: “What was done to improve relations or minimise the impact of Shell refineries on residents?”: What is your comment on assertions by community leaders in South Africa that Shell has different standards for refineries it operates in developed countries and those in developing countries?" (ShellNews.net) 5 Nov 04

Saturday 6 November, 2004

Yahoo News: Shell-led Sakhalin signs Tokyo Electric LNG deal: "TOKYO, (Reuters) - Tokyo Electric Power Co, Japan's biggest utility, has signed a deal to buy 1.5 million tonnes a year of liquefied natural gas from a Shell-led project in Russia's Far East..." (ShellNews.net) Posted 6 Nov 04

Yahoo News: Shell to invest 200 million US dollars in Brazil next year, denies planning to exit country: “In an interview with financial daily Valor Economico, Shell Brasil President Aldo Castelli said Brazil is a key market for the group and is part of the investment and growth strategy of Shell.” (ShellNews.net) Posted 6 Nov 04

SuburbanChicagoNews.com: Kane sues Shell Pipeline; claims firm dumped polluted soil: “Kane County has jumped into the legal battle against Shell Pipeline Co., charging in a new lawsuit the company knew it had illegally dumped benzene-laced soil at Settler's Hill Landfill earlier this year but kept quiet to save money”: “…pointed out that Shell has managed to tie up court action relating to the tainted soil for years” (ShellNews.net) Posted 6 Nov 04

The Independent (UK): Oil giant to sell Caribbean network: “ROYAL DUTCH/SHELL Group has agreed to sell a network of 111 retail stations and 30 distribution depots in the Caribbean to the Sol Group, the Anglo- Dutch oil giant said yesterday” (ShellNews.net) 6 Nov 04

Daily Telegraph: Shell action: “The FSA said it was still considering whether to take action against Shell's directors over its reserves scandal.” (ShellNews.net) 6 Nov 04

Washington Post: Big Oil Companies Train Iraqi Workers Free: “In an internal Shell newsletter circulated earlier this year, Wolfgang Strobl, the company's projects director for exploration and production activities relating to Iraq, said Shell wanted to develop untapped oil and natural gas reserves in the country and work with the government to redevelop existing fields. Shell said Strobl was unavailable for comment.” (ShellNews.net) 6 Nov 04

Financial Times: Shell merger highlights rankings row: “The latest wrangle concerns Shell's move to merge its British and Dutch holding companies.” (ShellNews.net) 6 Nov 04

The Independent (UK): Oil giant to sell Caribbean network: “ROYAL DUTCH/SHELL Group has agreed to sell a network of 111 retail stations and 30 distribution depots in the Caribbean to the Sol Group, the Anglo- Dutch oil giant said yesterday” (ShellNews.net) 6 Nov 04

THE WALL STREET JOURNAL: Shell Signs Sale, Purchase Trademark License Deals: “Shell Group of Companies and the Sol Group, a petroleum affiliate of the Interamericana Trading Corp (ITC), Friday announced that they will sign a Sale and Purchase Agreement and a Trademark License Agreement relating to the divestment of Shell 's Oil Products businesses in Barbados, St. Lucia, Netherlands Antilles, St. Kitts & Nevis, British Virgin Islands, Anguilla, Grenada, St. Vincent, Antigua, Dominica, Belize, Guyana and Suriname, excluding the Aviation business.” (ShellNews.net) 6 Nov 04

Daily Telegraph: Shell action: “The FSA said it was still considering whether to take action against Shell's directors over its reserves scandal.” (ShellNews.net) 6 Nov 04

Houston Business Journal: Shell Oil president named Texas Business Woman of the Year: Shell Oil Co. President Lynn Elsenhans received the Texas Business Woman of the Year Award on Friday in Austin. Elsenhans was named to her current positions, president of Shell Oil Products U.S., and president of Shell Oil and country chair for Shell U.S. in June of 2003. (ShellNews.net) Posted 6 Nov 04

Washington Post: Big Oil Companies Train Iraqi Workers Free: “In an internal Shell newsletter circulated earlier this year, Wolfgang Strobl, the company's projects director for exploration and production activities relating to Iraq, said Shell wanted to develop untapped oil and natural gas reserves in the country and work with the government to redevelop existing fields. Shell said Strobl was unavailable for comment.” (ShellNews.net) 6 Nov 04

Financial Times: Shell merger highlights rankings row: “The latest wrangle concerns Shell's move to merge its British and Dutch holding companies.” (ShellNews.net) 6 Nov 04

THE WALL STREET JOURNAL: PdVSA Might Shun Partners On LNG Project: “Petroleos de Venezuela… officials have held drawn out discussions with Royal Dutch/Shell Group and Japan´s Mitsubishi Corp. hoping to jointly develop the offshore project which, government officials say, could help the Andean country cover its domestic natural gas needs and leave enough for exports.” (ShellNews.net) 6 Nov 04

Yahoo News: Shell and PanOcean discover second oil accumulation on their Awoun Permit in Gabon, West Africa: “The two discoveries are located eight kilometres to the north of the Total/Shell producing Avocette field and five kilometres to the northwest of the PanOcean's producing Obangue field.” (ShellNews.net) Posted 6 Nov 04

TheStarOnline (Malaysia): Petra gets RM600mil Shell job: “INTEGRATED oil and gas services provider Petra Perdana Bhd, through subsidiary Petra Resources Sdn Bhd, has received from Sabah Shell Petroleum Co Ltd and Sarawak Shell Bhd a Letter of Intent to award a contract to undertake major maintenance and retrofit services for their offshore facilities in east Malaysia.” (ShellNews.net) 6 Nov 04

Sunday 7 November, 2004

San Francisco Chronicle: Foreign oil firms step up to train workers in Iraq: There's no immediate payoff, but they're thinking long term: "We are interested in building long-term relationships with Iraqis and establishing a material and enduring presence in Iraq," Shell spokesman Simon Buerk said. (ShellNews.net) 7 Nov 04

Mail on Sunday (UK): Unilever plots £33bn colossus: “Two weeks ago, Royal Dutch and Shell Transport, which are separately listed in Amsterdam and London, announced they would merge to form a single company with a single management team under chief executive Jeroen van der Veer. Significantly, he is also a nonexecutive director at Unilever.”: “Unilever has not had the problems of Shell, but let's hope it doesn't come to that before the company decides to change and speed up its decision making processes.” (ShellNews.net) 7 Nov 04

THE BUSINESS (EU): Oil supply to peak sooner than we think, says BP scientist: “…points to oil production peaking between 2010 and 2020.”: “If true, it would mean demand outstripping supply much earlier than energy projections by ExxonMobil and Shell.”: "There's a certain degree of hesitancy for oil companies to go on the record and say, 'we are doing well with oil prices where they are now, but 10 years down the road things actually look pretty dire'." (ShellNews.net) 7 Nov 04

THE BUSINESS (EU): Gazprom tightens its grip: Western firms are wooing Russia s energy powerhouse: Turning the screw: Gazprom will soon be five times the size of the world's biggest private oil company, Exxon Mobil, and be able to dominate its competitors: “If it were a country, it would rank number three in terms of reserves after Saudi Arabia and Iran.”: “In October, Gazprom chairman Alexey Miller seemed to be on everybody's appointment lists, holding London meetings with BP's chief executive Lord Browne, Royal Dutch/Shell chief executive Jeroen van der Veer and Exxon Mobil president Rex Tillerson - all in one day.”: “RoyalDutch/Shell, Exxon Mobil and BP are all on the point of giving the Russian giant entry to their two respective projects on Sakhalin Island, even though theoretically they are under less pressure than BP at Kovykta.” (ShellNews.net) 7 Nov 04

Daily Mail (UK): Shell still waiting: “THE Financial Services Authority is still considering whether to take action against directors of oil giant Shell over the company's reserves overbooking scandal, according to the watchdog's boss Callum McCarthy.” (ShellNews.net) Posted 7 Nov 04

The Sunday Times (UK): Iranians and Chinese bid for Basell: “THE state-owned oil companies of Iran and China have been shortlisted to buy Shell’s Basell plastics business, which is expected to be sold next year.”: “The sale will be the first in a $10-$12 billion asset-disposal programme by Shell in the wake of a reserves overbooking scandal.” (ShellNews.net) 7 Nov 04

The Observer (UK): Shell plays a blinder: “Once again, you have to hand it to Shell for foresight, intuition and perspicacity. Alone among the world's big oil companies, Shell managed to end up on the losing side of the American election…”: “But then again, not very surprising for a company that manage to lose billions of dollars of its own oil reserves” (ShellNews.net) 7 Nov 04

The Sunday Times (UK): Do big stocks pose a threat to trackers? Some experts worry that funds that follow the UK market are too dependent on a few firms such as Shell.: “some are worried by the news that Royal Dutch/Shell, which is currently listed on the Dutch and UK stock exchanges, is planning to list solely in London” (ShellNews.net) 7 Nov 04

The Observer (UK): Banker in the tower of Babel: “European Bank for Reconstruction and Development”: “The EBRD is also embroiled in one of the world's most controversial gas and oil projects, the $10bn Sakhalin pipeline from Siberia to Japan, which threatens the survival of a rare breed of whales. Shell, the leader of the pipeline consortium, must undertake more research before the EBRD approves a loan. Though the project is likely to go ahead whatever the EBRD decides, a refusal to lend the money would be a huge credibility blow to Shell.” (ShellNews.net) 7 Nov 04

The Observer (UK): Payback time for USA Inc: The big donors by Oliver Morgan: “Corporate America - and corporate Britain, as the donations of BP, Shell, BAE Systems, Catterpillar and GSK show - bet right. The markets rose, pharmaceutical, oil and defence stocks all gained. So now it's payback time.” (ShellNews.net) 7 Nov 04

Ohio.com: Two companies owned by state senator file for bankruptcy: “The companies run stores and gas stations as part of relationships with Shell, True North Energy and Marathon.” (ShellNews.net) 7 Nov 04

Monday 8 November, 2004

THE WALL STREET JOURNAL: THE JOURNAL REPORT: WOMEN TO WATCH: In Line to Lead: “9. Linda Cook: Executive Director, Gas and Power, Royal Dutch/Shell Group”: In May, the twin boards of Royal Dutch/Shell Group tapped Linda Cook to fill out the company's top management team -- decimated earlier in the year by forced exits in the wake of the company's accounting scandal.”: "We know that reputation is not restored overnight, and it will only come through delivery of the commitments that we've made with respect to performance," says the 46-year-old Ms. Cook.: “She served in Canada just one year, surviving an embarrassing reduction in estimated reserves at the unit's once-promising gas fields off the coast of Nova Scotia. The reduction was unrelated to Shell's groupwide reserve accounting scandal. (ShellNews.net) 8 Nov 04

Business Report (South Africa): Expectations high for Royal Dutch/Shell: “Remember, the group's reserves have been restated several times this year, and this has resulted in fines of $150 million (R915 million at Friday's rate) for accounting inexactitudes.” (ShellNews.net) 8 Nov 04 

JapanCorp.Net: Mitsui Acquires Stake in Altamira LNG Terminal Project: “Tokyo (JCNN) - Shell Gas B.V. and Mitsui have announced that Mitsui will acquire a 25% equity participation in the LNG terminal in Altamira, Mexico, which is currently owned by Shell (75%) and Total (25%). (ShellNews.net) 8 Nov 04

The Guardian (UK): Revelation, chapter one: “In an environment of voluntarism, many companies will continue to produce statements, proclaiming "core values of honesty, integrity and respect for people". Yet that may not be the whole story. Christian Aid has drawn attention to the anti-social activities of Shell in Nigeria. The company's annual corporate social responsibility reports stayed silent.” (ShellNews.net) 8 Nov 04

The Guardian (UK): Forum filling: “corporate agenda social responsibility”: "Only binding legal measures will establish a general incentive for responsible corporate behaviour which matches their general incentive to be profitable." (ShellNews.net) 8 Nov 04

The Guardian: Nearly one percent: “The top 100 companies listed on the London stock exchange are collectively pushing towards the 1% mark for community involvement and good causes.”: “The biggest giver this year is GlaxoSmithKline, weighing in with £144m, followed by Shell with £57m and BP with £50m. The same three come in the same order with cash donations.” (ShellNews.net) 8 Nov 04

TERRA DAILY: Kazakhstan pursues oil dreams, despite warning signs: “Periodic minor oil spills and the mysterious appearance of dead seals and swans along the coast have come to symbolise tensions around Kazakhstan's effort to become a top oil producer -- an effort in which Western firms are key.”: “For firms such as ChevronTexaco, ExxonMobil, Shell and Total, Kazakhstan is an answer to growing demand and to uncertainties about traditional oil-producing nations.”: "(Kazakhstan) is beginning to show signs of Dutch disease -- what you want is a system of governance and accountability that forces the system to correct any mistakes," he said.” (ShellNews.net) Posted 8 Nov 04

Tuesday 9 November, 2004

Financial Times: 'Audit oil reserves' investors tell Shell: “Two leading activist investors in Royal Dutch/Shell, the scandal-hit oil group, have called on the company to set an example to the industry by providing an annual reserves statement signed off by an external auditor.” (ShellNews.net) 9 Nov 04

THE WALL STREET JOURNAL: Calpers Pressures Oil Companies For Independent Reserves Audits: “Shell, in response to its energy-accounting scandal, now relies on outside contractors to help review its tally, though it hasn't committed to a full-blown external reserves audit.” (ShellNews.net) 9 Nov 04

Vanguard (Nigeria): Gov Odili urges Shell to clean up 250 oil spills in Rivers: “The governor said the oil spills will do great harm to the environment…” (ShellNews.net) 9 Nov 04

rigzone.com: Shell Confirms E&P Investments of US$120mn in 2005: Anglo-Dutch oil company Shell will spend US$120mn on exploration and production in Brazil next year, part of US$200mn overall investment in the country, a company spokesperson told BNamericas, confirming local press reports. (ShellNews.net) 9 Nov 04

prnewswire.com: Shell Transport & Trading Company plc: Director Shareholding: Mr P R Voser, a Managing Director of the Company, has received a conditional award of 252,314 Ordinary shares of 25p each in The "Shell" Transport and Trading Company, p.l.c. under the shareholder approved Long-Term Incentive Plan of The Shell Petroleum Company Limited/Shell Petroleum N.V. (ShellNews.net) Posted 9 Nov 04

Asia Pulse: BRIEFING - ASIA ENERGY - NOV 9, 2004: SHELL'S FIRST ASPHALT FACILITY IN CHINA TO START PRODUCTION: “…the first production facility of Shell in China“ (ShellNews.net)

THE TIMES (UK): Nigeria tries to build new economy without oil, guns and corruption: “Nigerians are beginning to see that the solution to the crisis is not in the stuff Shell is pumping out of the ground.” (ShellNews.net) Posted 9 Nov 04

Wednesday 10 November, 2004

Washington Post: Priming the Public For Hydrogen Fuel: Benning Road Station Is First of Its Kind in U.S.: “Shell spent more than $2 million on the special Benning Road NE pump, which it will use to demonstrate hydrogen technology to lawmakers and staffers on Capitol Hill through a partnership with GM. (ShellNews.net) 10 Nov 04

THE WALL STREET JOURNAL: First US Hydrogen Refueling Station Opens Amid Protests (ShellNews.net) 10 Nov 04

AccountancyAge.com: Calls grow for external auditing of oil reserves (ShellNews.net) Posted 10 Nov 04
(Plus related AccountancyAge.com article: Shell fiasco haunts KPMG)

The Independent (UK): Shell urged to back external audits: “The call from California Public Employees' Retirement System (Calpers) yesterday follows Shell's disclosure that it may have to downgrade another 900 million barrels of proved reserves.” (ShellNews.net) 10 Nov 04

AP Worldstream: Report: Oil giant Shell to start retailing petrol, diesel in India by the year end: “After India deregulated its oil sector in April 2002, Shell obtained the government's license to build 2,000 oil gasoline stations in the country. All those wanting to enter the country's US$15 billion-a-year oil retail market have to meet government requirements, including a minimum 20-billion-rupee (US$435 million) investment in the country's petroleum sector.” (ShellNews.net) 10 Nov 04

THE NEW YORK TIMES: Floating Natural Gas Plant Is Proposed for L.I. Sound: “If approved and built, the $700 million gas transfer project would be one of the world's first such offshore operations, industry experts say.”: “The sponsor, Broadwater Energy, filed a letter with the Federal Energy Regulatory Commission yesterday to start the application. Broadwater is a partnership formed for the project by TransCanada Corporation of Calgary and Shell U.S. Gas and Power of Houston, an affiliate of Royal Dutch Shell.” (ShellNews.net) 10 Nov 04

Hindustan Times (India): Shell to begin LNG imports in India by early 2005: “Royal Dutch/Shell will start importing liquefied natural gas (LNG) in India in the first quarter of 2005, the head of the company's Indian operations, Vikram Mehta said on Wednesday.” (ShellNews.net) 10 Nov 04

The Guardian (UK): Shell urged to bring in auditors: “One of the largest US pension funds has called on Shell to commit to annual external audits of its oil and gas reserves.” (ShellNews.net) 10 Nov 04

CBC News (Canada): TransCanada and Shell plan US$700M LNG terminal in NY Long Island Sound: “Catherine Tanna, Shell Gas & Power's director for the Americas and Africa, said energy demand in North America is expected to increase substantially "and Shell believes LNG is an efficient, reliable and clean way to meet this demand." (ShellNews.net) Posted 10 Nov 04

allAfrica.com: Omiyi Explains Shell's Relocation to Port Harcourt: “Responding, Odili pleaded with Omiyi to properly clean up the over 250 oil spill cases most of which were attributed to the operations of Shell but applauded the company for its decision to relocate its headquarters to Port Harcourt.” (ShellNews.net) Posted 10 Nov 04

IndiaTimes: Tariffs to be reduced to Asean levels in Budget: “Prime Minister Manmohan Singh has assured multinational corporations that an independent Petroleum Regulatory Authority would be set up to provide a level playing field to them in the oil sector”: “…van der Veer had specifically suggested creation of a level playing field for multinational corporations in the oil sector.” (ShellNews.net) 10 Nov 04

Thursday 11 November, 2004

THE NEW YORK TIMES: Marathon Oil Reviews Oil, Gas Reserves: “Investors have been more focused on oil reserves in the wake of large writedowns this year by Royal Dutch/Shell and a number of smaller companies. The disclosure sent shares of Shell's two parent companies plunging and set off industrywide scrutiny over the way reserves are accounted for. The problems continue to plague Shell, which recently said it may have to further reduce its reserves tally.” (ShellNews.net) Posted 11 Nov 04

The Globe & Mail (Canada): Shell Canada nearing end to 7-year dispute (ShellNews.net) 11 Nov 04

THE WALL STREET JOURNAL: Shell: Only Half Of UK N Sea Oil, Gas Exploited So Far: “Royal Dutch/Shell Group strongly reaffirmed its long-term commitment to the maturing U.K. North Sea fields Thursday, saying there was at least 50% more oil and gas to be produced.” (ShellNews.net) 11 Nov 04

The Guardian (UK): Tomorrow's petrol is a gas: Shell's first US hydrogen station is open now, reports John Vidal. But will we all be filling up soon? “It was billed as the "team of dreams" when in 2003 Shell, the world's second's largest oil company, linked with General Motors (GM), the largest car maker, to invest up to a billion dollars over 10 years to develop the world's "hydrogen economy". Yesterday, in a small ceremony near Washington DC, one of the fruits of the relationship was shown off.!” (ShellNews.net) 11 Nov 04

LEGAL DIRECTOR (UK): Ready for change: “Speaking to Legal Week, Shell head of legal, Beat Hess, said that since the reserves crisis in April this year, the majority of changes he wanted to make to improve the position of lawyers within the company have now been made.”: The crisis will, however, have given the proposed reforms added impetus, given Shell’s public recognition in the wake of the scandal that its in-house lawyers needed a higher profile within the company.”: “UK head of legal Richard Wiseman said the corporate restructuring would only have a "small effect" on the company’s UK legal department as Hess was already based in The Hague along with the bulk of the company’s legal team.” (ShellNews.net) 11 Nov 04

THE WALL STREET JOURNAL: Shell Exec: Hydrogen Fuel Station In D.C. Is Just The Start: “The hydrogen fuel station for fuel-cell vehicles that opened Wednesday in Washington, D.C., is intended to bring the technology to the attention of lawmakers and show its usefulness and safety for retail use, said Jeremy Bentham, chief executive of Shell Hydrogen, part of the Royal Dutch/Shell Group of Companies”: “Bentham predicted 5 million to 10 million such vehicles could be on the road worldwide by 2020.” (ShellNews.net) Posted 11 Nov 04

Financial Times: Repsol pays Cortina €19m to go: “Royal Dutch/Shell, the energy group, paid Walter van de Vijver, its former head of exploration and production, €3.8m in severance earlier this year after the company was forced to cut its reserves estimates. ”(ShellNews.net) 11 Nov 04

Bangkok Post (Thailand): Firms urged to prepare for worst oil scenario: “…Asada Harinsuit, general manager for fuel market development of Shell in Thailand, noted that excess oil production capacity worldwide was only 1.5 million barrels per day, a fact that would keep prices under pressure through the first quarter of 2005.” (ShellNews.net) 11 Nov 04

Friday 12 November, 2004

Daily Telegraph: Sterling work on Shell's divi: "Lord Oxburgh has written a valedictory letter dated 2 Nov 04 to the shareholders of Shell.": "Sounds like an Ernie Wise composition… (One half of the late great British comedy duo, Morecambe & Wise, famous for the “plays what I wrote”. (ShellNews.net) 12 Nov 04

Acrobat Reader is needed to access the two files immediately below. Please be patient when downloading as the files contain multiple pages. (To download a FREE Acrobat Reader click on the adobe link): http://www.adobe.com/products/acrobat/readstep2.html)

File One: Click here to access letter from Lord Oxburgh dated 2 Nov 04 and associated 16 page document announcing the proposal (on 28 Oct 04) by Royal Dutch/Shell for one company, one board and one chief executive. This is the letter which amused The Telegraph "City diary" so much that it was the subject of features on two successive days, 11 & 12 November 04. If you are a Japanese or Canadian national, Royal Dutch/Shell does not want you to read this document.

File 2: Shell World Introduction and Article entitled "Going Forward" by Royal Dutch/Shell Group Chairman (now Chief Executive) Jeroen van der Veer: "We are all shocked and saddened by what has happened": "I do not underestimate the scale of the task of restoring credibility" (Shell World is an in-house magazine for Shell employees - relevant issue published by Shell May 04) (ShellNews.net) Posted 12 Nov 04

The Herald (Scotland): Shell pledges to keep investing in North Sea projects: “SHELL, the UK-Dutch petroleum company, celebrated the inauguration of its £300m Goldeneye project in the North Sea by sending a clear message that its plans a long future in UK waters.” (ShellNews.net) 12 Nov 04

The Scotsman: Botts scotches talk of North Sea retreat: “TOM Botts, the chief executive of Shell Expro in Europe, yesterday firmly scotched suggestions that the oil giant is preparing to retreat from the North Sea. It was revealed that the company is planning to invest $4 billion (£2.2bn) a year in its European operations, including the UK Continental Shelf, for at least the next ten years…” (ShellNews.net) 12 Nov 04

The Economist: The next scandal? In the wake of the Shell scandal, there are doubts about reserves at other firms: “THERE is something strange going on in this industry,” says Jeroen van der Veer, the boss of Royal Dutch/Shell. He suspects that his firm, far from being the nasty exception it has been portrayed as being, is merely the first to face a problem that is industry-wide.” (ShellNews.net) Posted 12 Nov 04

Two related archive articles from The Economist:

1. The Economist: Humiliation: A once proud firm, brought down by its own flaws, needs a thorough shake-up: "IT IS the corporate equivalent of a Shakespearean tragedy. For more than a century, Royal Dutch/Shell was one of the proudest and most admired companies in the world.": "Its old corporate slogan, “You can be sure of Shell”, seemed a mere statement of fact. Now it seems as if the opposite is the case.": "this week's gale of bad news has shattered the firm's credibility": "“I am becoming sick and tired about lying”, the striking phrase in an internal e-mail from Shell's second-ranking executive to its top-ranking one, has been broadcast to the wide world, and will now be associated with the company's name for years to come." (ShellNews.net) Reposted 12 Nov 04

2. The Economist: Royal Dutch/Shell: Sick and tired about lying: “I AM becoming sick and tired about lying.” Those are not words shareholders want to hear from a senior executive. They are certainly not words anybody ever expected from an heir-apparent at Royal Dutch/Shell, one of the world's largest—and until recently, one of its most admired—oil companies.”: “The report into how the phoney numbers emerged paints a picture of deception and backbiting at the top—and, despite ongoing board efforts to exonerate the new management, contains plenty to encourage shareholder lawsuits and, maybe, criminal prosecutions, not least in America, where jail may await. More senior Shell people may yet have to quit.” (ShellNews.net) Reposted 12 Nov 04

THE WALL STREET JOURNAL: Exit Yukos, Enter Conoco? “For oil multinationals eager to invest in Russia the lesson to be learned from the Yukos case is indeed a simple one: Stay out of politics and on the right side of the Kremlin -- and be sure to pay your taxes on time.” (ShellNews.net) 12 Nov 04

Financial Times: BASF in talks to sell its Basell venture: “Shell has said it favours an outright sale of the unit, valued by analysts at €2.5bn-€6bn.” (ShellNews.net) 12 Nov 04

Saturday 13 November, 2004

Daily Telegraph (UK): Shell will reward its investors: “Shell's shareholders will be rewarded with a dividend bonanza next year if they vote through the Anglo-Dutch company's restructuring plans in the spring.” (ShellNews.net) 13 Nov 04

THE TIMES (UK): Oil major commits to staying in UK for a decade: “SHELL has promised to maintain its North Sea oil operations for at least the next nine to ten years, a commitment intended to calm fears that the oil major will abandon the dwindling oil and gasfields of Britain.” (ShellNews.net) 13 Nov 04

THE TIMES (UK): Shell ready to face the heat in the Niger Delta: SHELL is battening down hatches and bracing itself for a bruising confrontation next week. Nothing out of the ordinary for the oil multinational, which over the past 11 months has become accustomed to high-volume vituperation. This time, however, the venue is Nigeria, not the City of London, and the subject is jobs, not vanishing oil reserves.”: "The question is: do we (Shell) live by our business principles.” (ShellNews.net) 13 Nov 04

Related Report on Nigeria: ShellNews.net: LEAKED SHELL CONFIDENTIAL INTERNAL REPORT ON SHELL’S ACTIVITIES IN NIGERIA: “PEACE AND SECURITY IN THE NIGER DELTA”.

allAfrica.com: PENGASSAN Accuses Shell of Flouting House Order: “...frowned at the management of Shell over their court injunction at the Federal High Court against the union despite an agreement reached by both parties on the 18th of October 2004...” (ShellNews.net) Posted 13 Nov 04

THE TIMES (UK): Finding a way out of the bunker: “It is a billion-dollar-a-year business, says Chris Finlayson, chairman of Shell in Nigeria. About 50,000 barrels are being siphoned daily from the web of pipes that link hundreds of wells to Shell’s terminals at Bonny and Forcados.” (ShellNews.net) 13 Nov 04

THE TIMES (UK): Need to Know: Global Business Briefing: “Shell is sending drill rigs towards the Atlantic to try to counter dwindling North Sea oil and gas production.” (ShellNews.net) 13 Nov 04

Daily Telegraph (UK): Honest John's Agony column: “Switch to - and stick with - Shell Optimax. It might cost more than the stuff you've been using, but there are valid reasons for that.” (ShellNews.net) 13 Nov 04

The Guardian: Bid talk sends ITnet soaring: “Desire Petroleum continued its rampant rise. The stock gained 4p to 61.5p - it started the year at 10p - on hopes the oil exploration firm, which has sites off the Falkland Islands, is poised to link-up with an oil major. Whispers around the City have hinted at Shell as a possible partner.” (ShellNews.net) 13 Nov 04

Daily Telegraph (UK): Tiof field holds key to Cairn: “Oil wild-catters, dedicated to sniffing out oil reserves in the world's most uninhabitable places, have had a gushing year. Cairn is the leader, having outwitted its rival, Shell, to strike black gold in India. The enormous find, plus the high oil price, catapulted Cairn into the FTSE 100.” (ShellNews.net) 13 Nov 04

Financial Times: Chilly quest for hot opportunities in oil fields (ShellNews.net) 13 Nov 04

Sunday 14 November, 2004

THE WALL STREET JOURNAL: Loony Training Fads Are New Form of Snake Oil: “Your page-one article "Changing Drill: How Shell 's Move to Revamp Culture Ended in Scandal" (Nov. 2) is indicative of the loony and devastating training fads and cultural initiatives I've seen in Fortune 500 companies over the past quarter-century…” (ShellNews.net) Posted 14 Nov 04 

THE RELATED ARTICLE:THE WALL STREET JOURNAL: How Shell’s Move To Revamp Culture Ended in Scandal: “The root of the problem, however, goes significantly further back than Sir Philip's reign, which began in 2001”: “These deeper roots are significant because the company has yet to make a full break with its past. Mr. van der Veer is a longtime Shell executive who sat on the committee that received -- and dallied over -- warnings about the accounting problems.": " In addition to its ambitious plans to discover new oil and gas cheaply, Shell under Sir Mark was redefining how it counted existing reserves.": "Sir Mark Moody-Stuart, chairman from 1998 to 2001, remains on the board of Shell’s English parent… He declined to comment about reserves issues. And Shell still can't seem to get a handle on its reserves." (ShellNews.net) 2 Nov 04

THE BUSINESS (EU): The Iceman Cometh: The Polar icecap is in retreat and the Artic Circle is ready to give up its hidden energy treasures: Frozen assets: the retreat of the Arctic polar cap is revealing the rest of the world’s oil and gas reserves, which big companies are keen to exploit as price increase make exploration in the harsh climate more cost effective (ShellNews.net) 14 Nov 04

Monday 15 November, 2004

BLOOMBERG: Shell Shifts Europe Oil Exploration to Northern, Deeper Waters: “Royal Dutch/Shell Group, the world's third-largest oil company, said it's looking to the North Atlantic Margin for its next big European oil and gas finds as it seeks to replace older, flagging North Sea reserves.” (ShellNews.net) 15 Nov 04

Barron’sOnline: The Gathering Storm: The dean of energy analysts sees a difficult future: “THE ENERGY CRISIS WE ARE IN today is entirely different from the temporary problems we experienced in 1973-74, 1979-86, 1990-91 and 2000”: “There could be a good deal of time wasted in recrimination while we seek to pin responsibility on culprits and conspirators and demons”: The great Shell Oil geophysicist, M. King Hubbert (1903-1989)… …predicted that the peak of U.S. oil production would occur in the early 1970s (and, despite considerable skepticism about his prediction, he was right on target).” (ShellNews.net) 15 Nov 04

THE WALL STREET JOURNAL: Australia's Oil Profile Rises: “SYDNEY, Australia -- Not long ago, Australia's oil and gas industry was stuck in neutral. The country's flagship oil and gas company, Woodside Petroleum Ltd., was locked in a nasty takeover battle with Royal Dutch/Shell Group…” (ShellNews.net) 15 Nov 04

THE TIMES (UK): QUOTE OF THE DAY: "There are enough stocks; there is no real alarm... Jeroen van der Veer..." (ShellNews.net) 15 Nov 04

THE INDEPENDENT (UK): Shell chief expects oil price to fall: “JEROEN VAN der Veer, the chief executive of the Royal Dutch/Shell oil giant, said yesterday he expected oil prices to decline over the next year as global demand slows. "In a year's time, prices will ease," he told the BBC's Breakfast with Frost. (ShellNews.net) 15 Nov 04

THE WALL STREET JOURNAL: UK PRESS: Oil Capacity "Close To" Demand Says Shell's CEO: Speaking on the BBC's Breakfast With Frost program, van der Veer said compared with last year, "stock levels in the world are pretty normal." And oil prices may come down, as capacity rises, he said. (ShellNews.net) Posted 15 Nov 04

BLOOMBERG: Crude Oil Futures Decline as U.S. Supplies Gain Before Winter: “Royal Dutch/Shell Group Chief Executive Officer Jeroen van der Veer said yesterday world supplies are plentiful and he expects oil prices to decline over the next year as global demand for crude slows.”: “``In a year's time, prices will ease,'' Van der Veer said in an interview on the British Broadcasting Corp.'s ``Breakfast with Frost'' program. ``At the moment, there are enough stocks. There is no real alarm.'' (ShellNews.net) 15 Nov 04

Related Transcript: ShellNews.net: BBC TV "BBC Breakfast with Frost": Transcript of Interview: Oil on troubled waters:  On Sunday, 14 November, 2004, Sir David interviewed Chief Executive of Shell, Jeroen Van Der Veer.: “By developing new sources of oil in Russia and even Iraq, Shell hopes to shake off the bad press it received earlier this year when it emerged that it exaggerated, hugely exaggerated, the extent of its oil reserves by 20%.”: “First of all the big scandal as it were, earlier this year, which led to your having to take over the reins as it were. There are still three possible actions against Shell being considered, aren't there? (Sun 14 Nov 04)

Greenleft.org (Australia): Shell poisons Corio Bay: “The Shell oil refinery in Geelong has once again been caught out polluting Corio Bay.”: “Clifton Springs — across the bay from Shell — has one of the highest asthma rates in the world, but these big companies don’t care how many people, fish, waterways, trees or whatever they poison, as long as they can take home their massive profits. (ShellNews.net) 15 Nov 04

Tuesday 16 November, 2004

BBC2 TV "Newsnight": Can Shell placate environmental critics? “Hilton Kelley claims Port Arthur has been "devastated by pollution". "We had a great community one time," says Hilton Kelley "Sandwich shops, taxi stands, nightclubs - we had all these things. Now it's devastated by pollution. "Many of the residents have died from cancer - kids have moved away - they no longer want to live here." Hilton, together with 1,200 residents of Port Arthur, has launched a class action lawsuit against Shell, claiming breach of environmental human rights. So what are the facts?” (ShellNews.net) Posted 16 Nov 04

Financial Times: Nigerian general strike suspended: “Nigeria's three leading oil companies - Royal Dutch/ Shell, ExxonMobil and ChevronTexaco - declined to comment on whether they were taking emergency action to safeguard an export industry that accounts for 10 per cent of US crude supplies.” (ShellNews.net) 16 Nov 04

Financial Times: Dividends set to rise at Shell: “The planned restructuring at Royal Dutch/Shell will lead to a jump in dividend payments for shareholders next year as the group moves from half-year to quarterly payments.”: “There had been pressure on Shell to streamline its complicated corporate structure following the mis-statement of its oil reserves this year.” (ShellNews.net) Posted 16 Nov 04

YahooBusinessNews: Australia's Woodside Petroleum signs cooperation agreement with Iraq: “Woodside Petroleum Ltd, majority owned by Royal Dutch Shell, said it has signed a two-year memorandum of cooperation with the Iraq Oil Ministry to evaluate potential oil and gas projects in the Kurdistan region in the north of the country.” (ShellNews.net) 16 Nov 04

THE WALL STREET JOURNAL: Australia's Woodside Petroleum Signs Iraq Deal: “Last month Shell, a 34% shareholder in Woodside, said that it will help develop Iraq's moribund natural gas sector. Shell and other oil majors are trying to secure Iraqi production contracts. The efforts have been hindered by continued instability in the wake of last year's U.S.-led overthrow of Saddam Hussein.” (ShellNews.net) 16 Nov 04

Casper Star-Tribune: Shell tests technology to coax oil out of rocks underground: “DENVER (AP) -- A stretch of private land 200 miles west of Denver is home to an ambitious research project that -- if successful -- could reduce the United States' dependence on foreign oil. Energy giant Shell Oil Co., which owns the property, is using it for an experimental technology to extract oil from shale formations.” (ShellNews.net) 16 Nov 04

PRNewswire: Shell Marine Products (US) Company Awarded Significant Department of Defense Contract (ShellNews.net) 16 Nov 04

newratings.com: Royal Dutch/Shell "hold" (ShellNews.net) Posted 16 Nov 04

The Boston Globe: Mass. franchisees hit Shell in lawsuit: They say company tried to drive them out of business: “The case, brought by eight Massachusetts franchisees, could affect agreements with thousands of Shell franchise owners across the country.”: “Greenberg, of the Boston law firm Greenberg Traurig, argued that Shell's goal was to drive independent operators out of business as part of a corporate strategy by the world's third-largest oil company to boost profits by increasing the number of company-owned and operated gas stations.” (ShellNews.net) 16 Nov 04

The Boston Herald: Shell tried to shutter indy pumps, lawyer says: “A long-awaited trial, expected to last about three weeks, began with plaintiffs' attorney Gary R. Greenberg arguing before a federal jury in opening statements that Shell was jacking up rents and wholesale gas prices in an attempt to take over dealers' stations.” (ShellNews.net) 16 Nov 04

YahooBusinessNews: Shell to supply clean coal technology to China's Shenhua, Ningxia Coal Group: "Shell said it believes it is important for China's energy future for the country to process and burn coal in a cleaner, more environmentally sustainable way.China, the world's second-largest oil consumer after the US, has been a net importer of oil for the last 10 years as domestic supplies fail to keep up with soaring demand. The country's fast-growing economy is driving a rapid rise in energy consumption." (ShellNews.net) 16 Nov 04

Wednesday 17 November, 2004

BLOOMBERG: Enbridge to Buy Shell's Gulf Pipelines for $613 Mln (Update1): “Canada's second- largest pipeline company, agreed to buy Shell Gas Transmission LLC for $613 million to gain pipelines in the Gulf of Mexico for the first time.”: “Royal Dutch/Shell, based in London and The Hague, plans to sell as much as $12 billion of assets in two years to fund investments and return cash to shareholders.” (ShellNews.net) 17 Nov 04

National Post (Canadian Press): Enbridge paying US$613M for Shell natural gas pipelines in Gulf of Mexico: “CALGARY (CP) - Energy distributor Enbridge Inc. is getting bigger with a $613-million-US purchase of Shell Gas Transmission and its natural gas pipeline network in the Gulf of Mexico.” (ShellNews.net) 17 Nov 04

Financial Times: Woodside pulls out of $5.15bn Timor Sea gas project: “Royal Dutch/Shell, which has a 34 per cent stake in Woodside, also has a 26 per cent stake in the Sunrise project, while Conoco Phillips has a 30 per cent share. The remainder is held by Osaka Gas.” (ShellNews.net) 17 Nov 04

THE WALL STREET JOURNAL: Shell Denies Trying To Drive Dealers Out Of Business: “Proceedings of a lawsuit filed against Royal Dutch/Shell Group (RD, SC) by Shell service station owners in Massachusetts started Monday in a U.S. District Court in Boston.” (ShellNews.net) Posted 17 Nov 04

THE WALL STREET JOURNAL: Shell China Units Buy 75% Stake In Shanghai Pioneer: “BEIJING -- Royal Dutch/Shell Group's two units in China have jointly acquired a 75% stake in Shanghai Pioneer Road Service Company Limited, Shell said Wednesday.” (ShellNews.net) 17 Nov 04

THE WALL STREET JOURNAL: Australia's Oil Profile Gets a Boost: “SYDNEY, Australia -- Not long ago, Australia's oil-and-gas industry was stuck in neutral.”: “Today, the world looks a lot different Down Under.”: "All this activity is raising Australia's profile at a critical juncture. At a time when much of the world's oil and gas reserves are in politically unstable and unpredictable countries, Australia is becoming an especially reliable source of energy, with lots of potential for expansion. (ShellNews.net) 17 Nov 04

THE WALL STREET JOURNAL: ExxonMobil: To Focus On Exporting Sakhalin-1 Gas Via Pipe: “However, the consortium is yet to conclude any gas sales agreements to export its gas via pipeline and is lagging behind the Sakhalin Energy Investment Co. Ltd. project, led by Shell which is well on its way to selling out all of its gas as LNG.”: “ The Shell-led Sakhalin-2 project, which is valued around $10-$12 billion, has focused on selling its gas in the form of LNG to customers in Japan and is in discussions with Korean and Chinese companies.” (ShellNews.net) 17 Nov 04

THE WALL STREET JOURNAL: Sakhalin-2 CEO: Cost Overruns Not Serious;1st Cargo End-07: “LONDON -- Cost overruns at the Sakhalin-2 project led by Shell won't have a long-term impact on the massive oil and gas development, with the first shipment of liquified natural gas on schedule for delivery in three years time, the operator said Tuesday. Posted 17 Nov 04

AFX Europe (Focus): Shell China units acquire 75 pct stake in Shanghai asphalt plant: “Shell China Holding and Shell (China) acquired the 75 pct stake from Australia's Pioneer Road Services Pty Ltd, which is 50 pct owned by Shell Australia.” (ShellNews.net) 17 Nov 04

Thursday 18 November, 2004

Daily Telegraph (UK): Fifty lessons: when a good decision goes bad: “David Varney chairman of HM Revenue and Customs”: “I was a managing director of Shell UK and was part of the board that made the decision to dump the oil platform Brent Spar in the North Atlantic.”: “…I was asked to manage the retreat, and spent the next three weeks leading a handpicked team of people inside Shell to pick our way through how to get out of the mess we'd got ourselves into.” (ShellNews.net) 18 Nov 04

THE TIMES (UK): Russia's Gazprom wants 10% of UK gas sales by 2010: GAZPROM, the giant Russian utility, has launched a campaign to secure control of a tenth of Britain’s gas market within five years.”: “The world’s largest gas company is squaring off against Britain’s traditional gas producers, notably BP, Total and Shell…” (ShellNews.net) 18 Nov 04

Financial Times: Impasse halts Sunrise project: “Woodside Petroleum, Australia's biggest oil and gas producer, said yesterday it would halt its investment in the A$6.6bn (US$5.1bn) Sunrise project in the Timor Sea following the breakdown of talks between Australia and East Timor over how to split the revenues.”: ”Royal Dutch/Shell, which has a 34 per cent stake in Woodside, also has a 26 per cent stake in Sunrise…” (ShellNews.net) 18 Nov 04

THE TIMES (UK): Spanish win $2bn project in Algeria: “Beating off competition from BP, Shell, Total and ENI, the Spanish won the $2 billion (£1.1 billion) tender for Gassi Touil, a 30-year project to produce gas from the Sahara and freeze it for export.” (ShellNews.net) 18 Nov 04

Friends of the Earth: Are corporations psychopaths? That's the fascinating hypothesis of The Corporation, a powerful new documentary shedding light on the pivotal role of the corporation in the modern world.: “The film reveals that according to US law, corporations are defined as people. And bizarrely enough, if the corporation were a person it would fit all the World Health Organisation's criteria for psychopaths, including reckless disregard for others, repeated lying and inability to experience guilt.": "...activists descend on the home of Mark Moody-Stuart, then Shell chairman, who ends up calming them down with tea and biscuits" (ShellNews.net) Posted 18 Nov 04

Houston Chronicle: Shell unloading gas pipelines in the Gulf: Enbridge to pay $613 million for high-return area: “Included in the purchase are Shell's 50 percent interest in the Stingray pipeline, 80 percent interest in Garden Banks, 50 percent in the Nautilus pipeline, 100 percent of Mississippi Canyon, and 33.3 percent interest in the Destin line.” (ShellNews.net) 18 Nov 04

The Reveille Online: Shell Co. donates to University: Coastal research lab to be built: “The University Department of Coast and Environment recently received $300,000 in donations from Shell Co. to establish a coastal environmental modeling lab.”: “The Shell donation allows researchers to take ideas about how the coast works, put them into computer code, run the code on high-powered machines and receive visual results.” (ShellNews.net) Posted 18 Nov 04

Friday 19 November, 2004

Yahoo!: Shell says considering developing gas field in north China with PetroChina (ShellNews.net) 19 Nov 04

Canadian Press: Shell Canada boosts capital spending by 60%, spreads cash across country: “CALGARY - Shell Canada plans to raise its capital spending next year by more than 60 per cent to $1.8 billion, spreading the cash across Canada and the energy company's diverse array of assets.”: “it is 78 per cent owned by Royal Dutch/Shell, one of the world's biggest oil companies, headquartered in London and the Netherlands.”  (ShellNews.net) Posted 19 Nov 04

THE WALL STREET JOURNAL: Shell Canada Announces C$1.8B Capital Expenditure Program For 2005: “Shell Canada Ltd plans C$1.8 billion of capital and exploration spending in 2005, up more than 60% from 2004 levels. (ShellNews.net) Posted 19 Nov 04

iWonMoney.com/Dow Jones Newswires: Shell Sells Stakes In Distrigas, Fluxys To Suez: “U.K. oil giant Shell Trading & Transport Co. PLC has sold its stakes in Belgian gas distributor Distrigas SA and gas transporter Fluxys, French utilities giant Suez announced Thursday. (ShellNews.net Posted 19 Nov 04

YahooNews/BusinessWeek Online: Commentary: Oil: What's Russia Really Sitting On?: “This year investors in the oil industry have been shaken by the revelation that Royal Dutch/Shell Group overstated its proven reserves by at least 23%, some 4.5 billion barrels, with more possible downgrades to come. There's growing disquiet that other major oil companies may also have inflated reserves. But there's one place -- Russia -- where reserve estimates just seem to go up and up.” (ShellNews.net) Posted 19 Nov 04

Saturday 20 November, 2004

Yahoo! News: Shell Canada not ruling out accessing Alaskan gas through Mackenzie line: “Shell Canada still believes that a $7-billion plan to build a natural gas pipeline down the Mackenzie Delta in the Northwest Territories could eventually be used to access much larger deposits of gas westwards in neighbouring Alaska.” (ShellNews.net) Posted 20 Nov 04

Reuters: ANALYSIS: Shell Ripe for Woodside Stake Sale to CNOOC: “Shell's $3.5 billion stake in Australia's top oil firm, Woodside, could be up for grabs, and bankers see China's CNOOC as a likely buyer in a deal sweetened by more access for Shell to Chinese natural gas markets. Royal Dutch/Shell has said it wants to raise up to $12 billion from asset sales over the next two years to focus on major exploration and production projects -- part of its bid to recover investor confidence knocked by January's scandal over inflated reserves bookings.” (ShellNews.net) Posted 20 Nov 04

The Globe & Mail (Canada): Higher oil prices mean expanded activities for Shell: “The head of Shell Canada Ltd. says a "step up" in the long-term outlook for oil prices means that the Calgary energy giant can expand its activities in unconventional areas such as coal bed methane”: “The expectation of higher commodity prices, along with the ability to drive down unit costs, will propel billions of investment, as much as $4-billion (Canadian), in Shell's oil sands projects through to the end of this decade, Mr. Mather said.” (ShellNews.net) 20 Nov 04

allAfrica.com: PENGASSAN, NUPENG Ask Court to Dismiss Shell Suit: “THE Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the National Union of Petroleum and Natural Gas Workers (NUPENG) have asked a Federal High Court sitting in Lagos, to dismiss the suits brought against them by Shell Petroleum Development Company…”: “Shell is seeking to restrain its workers, under the aegis of PENGASSAN and NUPENG from embarking on a strike action…” (ShellNews.net) Posted 20 Nov 04

LegalWeek.com: Shell completes adviser overhaul: “Oil giant Shell has completed a review of its advisers, appointing a new panel for legal work globally.”: “In addition Cravath Swaine & Moore and De Brauw Blackstone Westbroek are currently working alongside Slaughters on Shell’s £100bn restructuring that will combine The Netherlands-based Royal Dutch and UK-based Shell to create Royal Dutch Shell.”: “The review, which started in April, was led by Shell legal services co-ordinator Clive Grant and UK legal head Richard Wiseman.” (ShellNews.net) 20 Nov 04

Daily Telegraph (UK): Tension rises as China scours the globe for energy: Increased car usage in China is creating a high demand for petrol. “China's insatiable demand for energy is prompting fears of financial and diplomatic collisions around the globe as it seeks reliable supplies of oil from as far away as Brazil and Sudan.”: "China's wider aggression to secure oil and gas was the greatest threat to its international standing in the next decade.": " An intrusion into Japanese territorial waters by a Chinese nuclear submarine last week and a trade deal with Brazil are the latest apparently unconnected consequences of China's soaring economic growth.": "But even before the incident the People's Daily, the government mouthpiece, had commented that competition over the East China Sea between the two countries was "only a prelude of the game between China and Japan in the arena of international energy". (ShellNews.net) Posted 20 Nov 04

THE INDEPENDENT (UK): Private Investor: I'm holding out for a psychological breakthrough: “…I also note that Shell is up again, now at 440p or so, and thus actually delivering some decent returns for me. The markets seem to have taken to the restructuring plan quite well, and next year Shell will pay out, if this makes any sense, five-quarters-worth of dividends in the nine months between March and December. Not quite as dodgy as it sounds, I hope.” (ShellNews.net) 20 Nov 04

THE TIMES (UK): You could be off the scent with trackers: INVESTMENT: “RISING oil prices and the company restructuring at Shell mean that just two shares — BP and Shell — will make up nearly 20 per cent of the FTSE 100 index next year…" (ShellNews.net) 20 Nov 04

THE TIMES (UK): SHARE OF THE MONTH UPDATE: “There may be volatility in the price of oil, and contradictory projections of demand and supply, but oil stocks are an insurance premium against geopolitical risk. Moreover, the restructured Shell, ENI, Schlumberger and Premier Oil have strong cashflow and pay healthy dividends.” (ShellNews.net) 20 Nov 04

The Guardian (UK): Yukos under the hammer at $8.6bn: Russia sets up cut-price auction of oil group's main unit and raises tax bill to $30bn: “Yukos' core shareholder Group Menatep has threatened any potential buyer with "a lifetime of litigation". Last night a BP spokesman ruled out bidding, while Royal Dutch Shell refused to comment.” (ShellNews.net) 20 Nov 04

THE TIMES (UK): Oil majors cannot spurn Yukos morsels: “LIKE beetles scurrying for cover after a stone is lifted, the oil companies of the West feigned disinterest yesterday in the $8 billion (£4.3 billion) fire sale by the Russian tax ministry of Yuganskneftegaz, the main oil production subsidiary of Yukos.”: “BP, Shell and ExxonMobil either deny interest or decline to comment on the Yugansk sale. Nonetheless, each will scrutinise the assets. With their North Sea and North American wells depleting, they cannot ignore the 1 million daily barrels of crude:” (ShellNews.net) 20 Nov 04

Yahoo! News: Shell Canada Ups 3rd-Party Evaluation of Reserves: “Shell Canada Ltd. is stepping up third-party evaluation of oil and gas reserves following the reporting scandal at its parent, but has no plans to have outside experts pore over all the data, the company's chief executive said on Friday.” (ShellNews.net) 20Nov 04

THE NEW YORK TIMES: Russia Accused of Theft as YUKOS Oil Auction Set: “Oil majors, such as BP and Shell, are actively investing in Russia, one of the last places in the world where major oil reserves are still up for grabs. But investors doubted oil majors would bid for Yugansk. ``The idea that a foreign company will buy Yugansk is a joke,'' said Martin Taylor, hedge fund manager at London-based Thames River Capital, which manages $5.5 billion of assets. Officials and sources at firms, such as BP, Shell, Total, ChevronTexaco and LUKOIL, said they were very unlikely to bid. But one senior Western investment banking source said he did not exclude a joint bid by a Russian and a foreign company.” (ShellNews.net) Posted 20 Nov 04