Perhaps Europe can now stop worrying quite so much about Russia and Algeria, its two biggest natural gas suppliers, becoming too chummy. When it comes to oil at least, Chakib Khelil, Algeria’s energy minister, made clear the two did not see eye to eye. “Of course we are disappointed,” he said today about Russia’s unwillingness to cut its production voluntarily. “Wouldn’t you be with your neighbour if you were cleaning in front of your house and he was pouring down dirt.” He dismissed Russia’s ideas of closer cooperation through a memorandum of understanding and revealed the true value of an Opec MOU. “We sign MOUs with anyone. In Opec, what counts is membership.”
Updated – More on gearing, production, renewables and Australian coal bed methane after the jump
Jeroen van der Veer has been setting out his core message: the world is in recession and this is “a difficult financial environment indeed,” but Shell is staying focused on the long term.
It is investing in projects to come on stream over the next few years that will lift Shell’s production by 2-3 per cent per year between now and 2012. Read more
Despite the US government’s determination to increase efficiency standards and become energy independent, hybrid cars sales in the US are falling at a ‘breakneck pace’ – even faster than overall car sales, reports the LA Times:
Last month, only 15,144 hybrids sold nationwide, down almost two-thirds from April, when the segment’s sales peaked and gas averaged $3.57 a gallon. That’s far larger than the drop in industry sales for the period and scarcely a better showing than January, when hybrid sales were at their lowest since early 2005.
Updated: Jeroen van der Veer has been setting out his core message: the world is in recession and this is “a difficult financial environment indeed,” but Shell is staying focused on the long term.
It is investing in projects to come on stream over the next few years that will lift Shell’s production by 2-3 per cent per year between now and 2012.
He highlighted two projects in Qatar, Pearl gas to liquids and QatarGas 4, due to finish construction around the end of 2010, as examples of Shell’s growing portfolio of “long life” assets, that can sustain a production for many years or even decades, rather than declining the way conventional oil fields do. Read more
Russia will next month cut by 4.8 per cent its crude oil export duty, Viennese analyst firm JBC Energy quotes an official from the country’s finance ministry as saying. That drops the duty to $15.09 per barrel and is a stick in the eye for Opec. The move to try to stimulate Russian oil exports in order to help its struggling oil companies comes just days after Russian officials gave Opec a long lecture about cooperation. If it wasn’t clear on Sunday that Russia had no intention – depsite its hour-long speech – of voluntarily cutting its oil production to help Opec boost prices, it is now.
Energy news from elsewhere:
- Petrobras sees world oil at $40-$50/bbl in 2009 (Reuters)
- Bidding begins on potential UK reactor sites (Platts)
- Colombia’s Ecopetrol buys stake in pipeline for $418m (CnnMoney)
- New generation of nuclear power stations ‘risk terrorist anarchy’ (Guardian) Read more
Energy news from the FT:
- Rio shareholder attacks proposed Chinalco deal
Largest institutional investors criticised the mining group $19.5bn deal
- Lombard:Rio and Chinalco dig in for a long war with investors
The only way to wring a compromise from Rio and Chinalco is to keep fighting
- Lex: Oil prices
Higher energy prices could choke off any global economic recovery
- Chinese aluminium group files for liquidation
Battling with foreign investors over a proposed $1.2bn debt restructuring
- RWE Npower to cut electricity bills
Last of the energy giants to cut its bills for UK customers Read more