Big Oil on Edge as U.S. Requires Disclosure

[kristopher]

Big Oil on Edge as U.S. Requires Disclosure
China's Big Three and other U.S.-listed oil giants may have to share financial data from global projects with stock investors
By special correspondent Zhang Tao in Washington and staff reporter Wang Xiaocong 04.19.2012 16:41

(Washington D.C.)–An intense lobbying campaign is under way as U.S. authorities prepare to implement what are supposed to be investor-friendly laws designed to clarify the global operations of listed oil companies.

Officials at the U.S. Securities and Exchange Commission have been a campaign focus while they work out details of Section 1504, a part of the Dodd-Frank Wall Street Reform Act signed into law in 2010 in an attempt to prevent future global financial crises.

Oil companies, critics of the companies' secretive behavior and other special interest groups have been pressuring the SEC over the law's application. Energy giants such as ExxonMobil are lobbying against financial disclosure rules for fear they would lose competitive advantages, while non-governmental organizations such as Global Witness and billionaire investor George Soros say they want as much transparency as possible.

Because the measure covers all oil companies listed on U.S. stock markets, the rules would apply equally to American and foreign companies, including China's state-owned, Big Three oil concerns – China National Petroleum Corp. (CNPC), China Petroleum & Chemical Corp. (Sinopec), and China National Offshore Oil Corp. (CNOOC).

American subsidiaries of each of the Big Three ...

http://english.caixin.com/2012-04-19/100381963.html

Why Gas in China Is More Expensive Than in the U.S.
Drivers in China are feeling the pinch when they fill up their tanks, prompting some to wonder why fuel is sometimes cheaper abroad


(Beijing) – Chen Weidong works at China National Offshore Oil Corporation. When he bought a compact car in 2004, it cost 180 yuan to fill up. Now he pays 400 yuan.

Many of Beijing's 5 million car owners are feeling similar pain at the pump. On March 20, 2012, after the National Development and Reform Commission (NDRC) once again raised the price of refined oil, retail prices rose to records for China. On April 10 in Beijing, 93 octane gas was 8.33 yuan per liter, 97 octane was 8.87 yuan and diesel was 8.31 yuan.

In May 2009 the NDRC enacted a new mechanism to regulate oil prices. This linked China's prices to those for three varieties, namely Brent (United Kingdom), Cinta (Indonesia) and Dubai (United Arab Emirates). When the average price changes for these three exceeds 4 percent in 22 straight days, China will raise or lower the domestic oil prices accordingly.

Since international oil prices have been rising since 2000 and more than half of Chinese oil consumption depends on imports, it is natural China is paying more. But does it make sense that China's oil prices are higher than those in the U.S.?

...

Chem365.net analyst Wang Jintao said that on March 22, 2012, when the retail price of 93 octane in Beijing was 8.33 yuan per liter, a liter of similar gas cost the equivalent of 6.82 yuan in New York, 12.06 yuan in Tokyo and 14.39 yuan in London....

http://english.caixin.com/2012-04-10/100377943.html

[tooeyeten]

1. Exposure is good for the soul n/t