Shell has reported an 11 per cent rise in profits for the first quarter, as the soaring price of oil outweighed the drag of lower US gas prices on its bottom line.

Controversial "fracking" for shale gas should only take place at least 600 metres down from aquifers used for water supplies, scientists said today.

South Sudan said today it had repulsed an attempt by the Sudanese army to retake the disputed oil-producing border area of Heglig, which the southern army seized earlier this week.

France's Total has pulled out of a £70m takeover punt at Aim-listed oil prospector Wessex Exploration. The oil giant was looking to gain a greater share of a huge field off the coast of French Guyana, in which it already has a 25 per cent stake – less than rivals Shell and Tullow.

The threat of a strike by fuel tanker drivers in a dispute over terms and conditions and safety standards came a step closer today when they voted overwhelmingly in favour of industrial action.

Lord Browne, the former BP chief executive, said Lancashire has the potential to be the capital of Europe's emerging shale gas industry, in a scenario he predicted could help to create as many as 50,000 jobs across the UK.

Lancashire could be Europe's centre for the controversial gas extraction technique

Shell is setting up shop in Kenya and Mozambique after agreeing to buy the East Africa-focused oil and gas company Cove Energy for nearly £1bn.

Environmental campaigners climbed to the roof of the National Gallery today to stage a protest against energy giant Shell.

The oil price soared to a nine-month high yesterday, threatening to derail the efforts of Europe's weakest nations to pull themselves out of the economic mire and stoking inflation fears at home.

Senior UN inspectors arrived in Tehran today for talks on Iran's disputed nuclear programme, a day after the Islamic state responded defiantly to tightened EU sanctions by halting oil sales to British and French companies.

Oil prices jumped to nearly 105 dollars a barrel - a nine-month high - in Asia today, after Iran said it halted crude exports to Britain and France in a dispute over its nuclear programme.

Economic View