Shell Australia cannot commit to refining operations

Royal Dutch Shell says it cannot commit to maintaining its Australian refining operations. When it comes a time for a major investment of hundreds of millions of dollars then there’s a decision to be made, do you invest it in an old sub-scale local refinery or do you invest it in a big modern refinery in India or Singapore or somewhere and import,” Shell Australias Chairman Russell Caplan said. Australia, which has seven refineries in the country owned by Shell, Caltex , Exxon Mobil and BP, has seen imports for petroleum refined products steadily rise since 2002 due to rising domestic energy demands and lower refining capacity. Shell Australia saw pre-tax earnings from its downstream operations rise toA$398 million (US$331.8 million) in 2006 from A$300 million (US$250.1 million) a year earlier, thanks to strong refining margins. (May 12, 2007)