Shell benefits from record oil prices

Oil giant, Royal Dutch Shell, has announced a 71% rise in third-quarter profits, boosted by record oil prices.

Earlier this week, rival BP reported a 148% increase in third-quarter profits due to soaring oil prices.

The price of oil reached a high of $147 a barrel in July but is currently around $70 a barrel, due to fears that a global recession will cut demand for oil.

In the July to September period, Shell earned $10.9 billion (£6.6 billion), compared to $6.4 billion in the same period in 2007.

After the company stripped out over $2.8 billion (£1.7 billion) of exceptional gains from disposals and re-valued oil and gas contracts, the firm’s profits of $8 billion (£4.8 billion) still far exceeded analysts expectations.

However, despite the profit increase, both companies are under fire amid concern that oil companies are not passing on the benefits of lower oil prices to consumers who have been hit with soaring petrol costs.

As a result, Chancellor Alistair Darling said he wanted to see the cost of petrol slashed. On an interview with GMTV this morning, Mr Darling said people are entitled to see the benefit of that falling price reflected in what they actually pay when they fill up at the petrol pump.

Yesterday, Shell announced that chief financial officer, Peter Voser, is to replace current chief executive Jeroen van der Veer when he retires next summer.

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