Energy Update

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* Australia imposes condition to prevent tax disputes (Adds government, Shell, BG comments)

PARIS, Dec 2 (Reuters) - European utilities executives meeting at the Paris Climate Conference know they are part of the problem. What they have not yet figured out is how to make money by being part of the solution to climate change.

CHENNAI, India, Dec 3 (Reuters) - Floods that have killed 210 people in southern India began to recede on Thursday, giving rescue teams a chance to evacuate thousands of residents stranded by the heaviest cloudburst in the city of Chennai in over a century.

Robert Perkins on how the supply response of US shale output to lower oil prices has garnered more than its fair share of news headlines over the last year.

Diplomatic fallout between Moscow and Ankara has seen trade between the two countries temporarily put on hold.

(Thu, 03 Dec 2015) Commercial crude oil inventories in Cushing, Oklahoma (located in PADD 2) and the U.S. Gulf Coast (PADD 3) totaled a record-high 309.4 million barrels as of the week ending November 27.

* China already expected to limit coal use, address air quality

SYDNEY/WELLINGTON, Dec 3 (Reuters) - Australian shares dropped 0.6 percent on Thursday with losses spread across the board, although energy stocks were hit hardest by another slide in oil prices.

MELBOURNE, Dec 3 (Reuters) - Royal Dutch Shell said on Thursday it had won approval from Australia's Foreign Investment Review Board for the company's proposed $70 billion takeover of BG Group Plc.

Dec 3 (Reuters) - U.S. crude prices were hovering just above $40 in early Asian trading on Thursday, after dropping more than 4 percent a day earlier, on an unexpected rise in U.S. stockpiles that is compounding a global supply glut.

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