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BP: Big problems for oil giant
Michael Harrison in London and Andrew Buncombe, The Independent
BP says the initials stand for ‘Beyond Petroleum’. But as its environmental and regulatory troubles pile up, critics are starting to ask whether the company is suffering a deeper-seated malaise
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BP’s reputation as one of Britain’s biggest corporate success stories took a fresh battering yesterday after the oil giant confirmed that it is being investigated in the US for possible manipulation of the crude oil and petrol markets.
The latest inquiries follow hard on the heels of US grand jury investigations into oil spills in Alaska and last year’s Texas City refinery explosion, in which 15 workers died, and a separate inquiry by the US authorities into claims that BP attempted to rig the propane market.
(30 Aug 2006)
Thoughts from Shell
Richard T. Stuebi , Cleantech
Last week, Shell’s US President John Hofmeister came to Cleveland as part of a US tour to offer Shell’s perspectives on national energy security.
Hofmeister made some interesting comments at a private reception and at a luncheon at the City Club:
- World oil supply at 85 million barrels per day was barely exceeding world oil demand at 85 million barrels per day. Although he didn’t say so explicitly, Hofmeister certainly implied that the 85 million barrel per day production level was going to be very difficult to increase — certainly from existing production fields, and maybe even if all untapped opportunities were pursued. Is 85 million barrels per day as good as it gets? In other words, if you believe that “peak oil” production is rapidly approaching, his comments did little to dispel your belief.
- Oil prices are thus high for legitimate reasons, but oil prices are higher than Shell would like. Clearly, Shell feels the heat from the public and politicians for the huge profits that they are generating these days. Hofmeister claims that Shell would like to see oil prices in the $30-40/barrel range — enough to earn good profits, but not so high that customers complain so loudly (or — heaven forbid! — start consuming less fuel).
- World oil demand growth is being driven by China and India…and US SUVs. He indicated that the shift to SUVs caught the experts by surprise. This was the first time I’d ever heard an oil company executive almost “blame” US automakers and the public for being so gluttonous. This thought was further embellished later by noting that…
- It is “immoral” that the US consumes so much energy, far in excess of its world share of population
…All in all, an interesting and generally forward-looking set of comments for an oil company CEO to make.
(28 Aug 2006)
The podcast for Hofmeister’s talk is not yet up on the Podcast listing of the City Club site.
China to invest $5-billion (U.S) in Venezuelan oil
Reuters & Bloomberg via Globe & Mail
CARACAS — China will invest about $5-billion (U.S.) in energy projects in Venezuela by 2012 as part of a plan to boost the South American country’s oil output, Venezuela’s Energy Minister told state television yesterday.
Venezuelan President Hugo Chavez just completed a visit to China to sign co-operation accords as part of an effort to reduce Venezuela’s dependence on U.S. energy markets. Energy Minister Rafael Ramirez said China’s participation in Venezuelan energy ventures would “require in first instance around $5-billion in investment.”
He said Venezuela is seeking to become a “steady and stable” provider of oil to China, an effort that the United States has watched nervously as political relations between Caracas and Washington remain tense.
(29 Aug 2006)
