Proposals to build and operate liquefied natural gas (LNG) terminals worldwide continue to face opposition from government officials, citizens and environmental groups. Read more…

The oil major beats forecasts, but expect it to find extra cost savings this year as the industry slims down. With oil prices down 60.0% over the year, Big Oil is seeing a corresponding drop in profitability. Royal Dutch Shell announced on Wednesday a 61.6% slide in first-quarter profits, to $3.5 billion, only a day after BPsaid its own quarterly profits had fallen by 64.0% over the year. But like its rivals, Shell is building up its defensiveness and cutting costs–it just remains to be seen by how much.

Venezuela announced plans Friday to slash salaries and spending at its state oil company in a bid to save cash for refinery upgrades and other projects as oil income falls.

Oil Minister Rafael Ramirez said Petroleos de Venezuela SA will cut “excess” costs by $11 billion, about a tenth of last year’s estimated spending, freezing wages for its 75,000 employees and reducing salaries for all top officials, including himself, by 20 percent.

Coal has seen better years. Arch Coal Chairman Steven Leer called 2008 a “transitional year” for the industry when the company reported last year’s earnings. The transition isn’t over and Arch management has been carefully keeping expectations low.

Crude-oil futures rose to trade above $43 a barrel Thursday, buoyed by a decline in gasoline inventories as well as an impending higher open on Wall Street.

Russia and Ukraine said Sunday they’ve reached a deal to resume the distribution of natural gas to Europe, ending a dispute that has disrupted the gas flow for about two weeks, hampering economic activity and leaving some people unable to heat their homes.

Under the agreement, Ukraine will get a 20% discount off European prices for Russian gas this year, and will pay European prices starting in 2010, reports said. Meanwhile, the transit fees Russia pays will remain unchanged from last year.

Dubai and Nigeria have signed a preliminary agreement worth $16 billion to develop oil and gas infrastructure in Africa’s top crude producer.

The deal will see Dubai World Corporation (DWC) wholly-owned by the emirate, investing in projects in the restive Niger Delta, which accounts for nearly all of Nigeria’s around two million barrels of crude per day.

ConocoPhillips announced late Friday it will cut 4%, or about 1,300 employees, from its payroll and slash capital spending this year to cope with falling oil prices and lower refining margins as a severe economic downturn saps global energy demand.
The company also warned it plans to take nearly $33 billion in non-cash, after-tax write downs in the fourth quarter to reflect the falling value of existing reserves and operations, including a $7.3 billion write-down of its stake in Russian oil company Lukoil.

Costs of restoring gas supplies will mostly likely come from European gas companies.

Who should pay for the cost of pumping gas through Ukraine? That’s been a major sticking point in resolving Europe’s gas crisis. Now, it seems that European gas companies will have to shoulder that responsibility, paying at least $800.0 million in additional costs.

Gold prices rebounded Friday as the dollar gave back some of its recent gains and fell against other major currencies. Energy prices slipped, while agriculture futures rose.

Gold, which investors often use as a hedge against inflation, tends to move inversely with the dollar. The greenback has gained strength in recent months as currencies around the world weakened due to the worsening economic outlook. But the dollar changed direction Friday, falling against the euro, British pound and Japanese yen in response to the U.S. government’s latest efforts to help prop up the ailing financial industry.