Royal Dutch Shell

Thu, 2011-11-17 12:28Steve Horn
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ExxonMobil and Shell Stamp Huge Oil and Gas Deals in Iraq

Just a few weeks after President Barack Obama announced U.S. troops are “leaving” the war-torn country, ExxonMobil and Shell each announced major new oil and gas production agreements in Iraq.

On November 12, ExxonMobil signed an oil production deal with the Kurdish Regional Government to drill in Iraqi Kurdistan, located in northern Iraq. This comes on top of an existing oil deal it landed in 2009, to drill for oil in the West Qurna Field, located in southern Iraq.

The New York Times explained both deals:

Exxon and its partners agreed to invest $50 billion over seven years to increase output by about two million barrels of oil per day there, at West Qurna Phase 1, bringing more new oil to market than the United States currently produces in the Gulf of Mexico. Margins, though, are low. Kurdistan offers more lucrative production-sharing agreements, allowing the company to earn a larger share of revenues and to count more of the crude on its books, which helps boost stock prices.

Days later on November 15, Royal Dutch Shell signed a $17 billion natural gas production deal with the Iraqi government. Shell will utilize the natural gas by-product from oil produced at the West Qurna Field, the Rumaila Field, and the Az Zubair Field, and transform it into a usable product. “Shell said it would sell the gas to electrical utilities in Iraq, but that it may also eventually export some,” explained The New York Times.

Thu, 2011-10-27 13:34Brendan DeMelle
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Massive Natural Gas Export Deal Inked by BG Group, So Much for Industry's "Domestic Energy" Claims

The natural gas industry's favorite public relations ploy about the necessity of hydraulic fracturing (fracking), the process through which “clean natural gas” is now procured, is that the patriotic gas industry is championing the shale gas boom for domestic consumption and for “national security purposes.” We now know definitively that this is pure propaganda.

Enter the smoking gun, a 20-year $8 billion agreement signed between BG Group, short for British Gas Group, and Houston-based Cheniere Energy.

The deal calls for BG Gas to export liquefied natural gas, or LNG (natural gas that has been converted temporarily to liquid form for ease of storage or transport), from Cheniere's Sabine Pass LNG export terminal, located on the Gulf Coast in Louisiana, out to the highly profitable global market, chiefly in Asia and Europe. 

Reuters referred to the deal as “a new chapter in the shale gas revolution that has redefined global markets.”

The Wall Street Journal reports that BG is thrilled that it will now be able to “buy gas comparatively cheaply and sell it for much higher prices in Europe and Asia.” The deal is just the beginning of a huge industry rush to export U.S. gas, according to the paper:

 Energy companies in the U.S., Canada and Australia are planning or have already begun building more than a dozen projects to liquefy and export natural gas as they seek to capitalize on growing demand for liquid-gas imports. Asia is the hottest market: its demand for liquefied gas is expected to grow 68% between 2010 and 2020, according to advisory firm Poten & Partners.

Fri, 2011-10-07 08:54Steve Horn
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In Throes of Keystone XL Controversy, Obama Admin OKs Alaska Offshore Drilling

With all eyes on the ongoing battle over whether or not the Obama Administration and the State Department will approve the disastrous Keystone XL pipeline, it was easy to lose another huge piece of news in the scuffle pertaining to the Obama White House. 

On October 3, the Obama Interior Department rubber stamped approval for offshore drilling in the Arctic off the northwest coast of Alaska in the Chibucki Sea. Reported the ​Wall Street Journal:

The Obama administration said Monday it was moving forward with oil-drilling leases off the coast of Alaska issued by the Bush administration in 2008, a victory for oil companies in the battle over Arctic Ocean drilling.

(Snip)

The Interior Department's decision is the latest example of the Obama administration siding with energy companies against environmentalists amid a weak economy. Last month, President Barack Obama withdrew proposed ozone-emission rules that businesses said would have killed jobs.

According to an Alaska Dispatch​ story, the area that received drilling approval is 2.8 million acres and companies bid $2.6 billion in an auction for drilling rights, with fossil fuel conglomerates Shell and ConocoPhillips leading the way. The Associated Press​ (AP) wrote, “Shell Gulf of Mexico Inc…spent $2.1 billion for the leases in 2008.” 

Fri, 2011-08-05 14:38TJ Scolnick
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U.N. Report On Niger Delta Calls For Billion Dollar Shell Oil Spill Clean-Up Fund

A new United Nations Environment Program (UNEP) report [pdf] discussing the environmental destruction in the Ogoniland region of the Niger Delta wetlands calls out Shell, and says that the contamination warrants emergency action and an initial $1 billion clean-up fund to pay for a sweeping environmental restoration which may take 30 years to complete.


According to the UNEP, this is the most detailed scientific study to date on any part of the Niger Delta. The survey team spent 14 months completing the study which involved site visits to more than 200 locations, a survey of 122 km of pipeline, reviews of more than 5,000 medical records and public meetings with more than 23,000 locals.

The Ogoniland region of the Niger Delta is filled with creeks, swamps, waterways and huge reserves of oil which have enabled Nigeria to become the world’s eighth largest oil exporter. Decades of exploitation by national and international corporations like Shell, however, have destroyed the region’s land and freshwater supplies, and have left residents in poverty.

Thu, 2011-08-04 14:11TJ Scolnick
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Shell Agrees To Pay Nigerians For 2008 and 2009 Oil Spills

In a historic move, oil giant Shell has agreed to take responsibility and to compensate Bodo fishing communities in the Ogoniland region of the Niger Delta wetlands after their homes and livelihoods were ravaged by destructive oil spills in 2008 and 2009.

The case is also significant due to the fact that Shell will face the music at home, i.e. in a British court rather than one in Nigeria. Environmental advocates have long called for western oil companies to face their claimants on home soil in order to ensure more media coverage and a larger payout to the affected residents.

Martyn Day, speaking for the 69,000 Bodo, said they are seeking “adequate compensation immediately.” This will likely amount to hundreds of millions of dollars in damages paid to people living in the Niger Delta, a region severely affected by poverty. Shell will likely also face additional litigation in the future.

Thu, 2011-07-21 11:30Carol Linnitt
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Shell Forced to Retract "Misleading" Fracking Adverts in South Africa

The gas industry has finally received the slap on the hand it deserves for parroting the outdated refrain: “there are no instances of documented water contamination from hydraulic fracturing.” In South Africa, the Advertising Standards Authority (ASA) ordered oil and gas giant Shell to withdraw claims about shale gas drilling, after the authority found the company guilty of propagating misleading information in several newspapers.

The Karoo region of South Africa has become an international target for unconventional gas producers since its vast shale gas deposits were discovered in recent years. The rush to drill created a wave of public concern, after reports of fracking disasters, including water contamination, well blow-outs and explosions, have become commonplace across America. The government has called for a delay in granting drilling permits until a full-scale study is completed to address mounting concerns.

Looking to sway public opinion, Shell published numerous full-page public relations adverts in local newspapers, claiming that hydraulic fracturing is used in 90% of gas wells and has never caused water contamination.

Thu, 2011-02-17 03:35Brendan DeMelle
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‘Energy In Depth’ Was Created By Major Oil and Gas Companies According to Industry Memo

Update 11:35am PST: IPAA link is broken again, so use this link to view the memo.

Update 9:48am PST: It looks like the IPAA link works again. Here is the original link. In case similar access issues arise, I will continue to host the document at DeSmogBlog.

*Update 9:03am PST: It appears IPAA may have removed the memo from its website today in the wake of this report, so I have attached it to this post as a PDF and updated the links in the post so the memo is available for the world to see.

DeSmogBlog has uncovered an industry memo revealing that ‘Energy In Depth’ is hardly comprised of the mom-and-pop “small, independent oil and natural gas producers” it claims to represent.  In fact, the industry memo we found, entitled “Hydraulic Fracturing Under Attack,” shows that Energy In Depth “would not be possible without the early financial commitments” of major oil and gas interests including BP, Halliburton, Chevron, Shell, XTO Energy (now owned by ExxonMobil), and several other huge oil and gas companies that provided significant funding early on and presumably still fund the group’s efforts.

According to the 2009 memo, Energy In Depth was orchestrated as a “major initiative to respond to…attacks” and to devise and circulate “coordinated messages” using “new communications tools that are becoming the pathway of choice in national political campaigns.”

Energy In Depth (EID) is featured in the news a lot these days, chiefly for attacking the Oscar-nominated documentary Gasland, but also for its extensive efforts to malign the excellent reporting done by ProPublica, the Associated Press and other outlets. EID seems to attack everyone who attempts to investigate the significant problems posed by hydraulic fracturing and other natural gas industry practices that have been shown to threaten public health and water quality across America.

Wed, 2011-01-19 11:06Chris Mooney
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Is Climate Denial Corporate Driven, or Ideological?

UPDATE: After posting this, I realized that the idea that climate denial is ideological, rather than corporate driven, is also the explicit and central argument of Oreskes and Conway, Merchants of Doubt. There was no intention to slight them–it’s just that I’d read Dunlap and McCright more recently, so their work was at the front of my mind. I’ve added a reference below, and my apologies to Oreskes and Conway.

Recently, I’ve been reading some research by Riley Dunlap, a sociologist at Oklahoma State University who collaborates frequently with Aaron McCright, another sociologist at Michigan State. Together, they’ve done penetrating work on the right wing resistance to climate change science in the US, and in particular, on the role of conservative think tanks in driving this resistance.

In a series of 2010 papers, however, I’m detecting a theme that runs contrary to what many often assume about the driving forces of climate denial. It is this: McCright & Dunlap argue that while corporate interests may once have seemed front-and-center in spurring resistance to climate science, at this point it’s becoming increasingly apparent that ideological motivations are actually the primary motivator. Or as they put it: “conservative movement opposition to climate science and policy has a firm ideological base that supersedes the obvious desire for corporate funding.”

Mon, 2011-01-17 13:47Brendan DeMelle
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Oil Supermajors Desperately Chasing a Tar Sands Pipe Dream

The six major oil companies that for decades enjoyed phenomenal profits and power over the world’s oil supply now find themselves fighting over the dirtiest and most dangerous oil left - Alberta’s climate-wrecking tar sands and the dangerous deepwater deposits in the Arctic, Gulf of Mexico and other difficult to reach areas. Geoff Dembicki reports today in The Tyee that the oil supermajors once known as the “Seven Sisters” now control a tiny fraction of the world’s dwindling oil reserves - just seven percent - while state-owned oil companies and national governments control 93 percent.

That shift in power has left the six Anglo-American oil majors sparring fiercely for control of the remaining dregs to feed our oil addiction.  Dembicki writes that:

“aggressive oil sands development appears to be one of the few viable growth strategies left for ExxonMobil, BP, Royal Dutch Shell, Total, ConocoPhillips and Chevron. These six energy giants are among the top-earning private companies on Earth. Yet their continued corporate existence, at least in its current form, is far from assured.”

In their race to the bottom, these six oil companies are all vying for control of Canada’s dirty tar sands. Dembicki notes that:

“all the supermajors own – or plan to develop – huge operations in Alberta’s oil sands. Canada is one of the few countries left on Earth offering unbridled private sector access to major known oil reserves (in this case, the planet’s second-largest).”

Thu, 2010-03-25 16:51Leslie Berliant
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Shell Oil Behind London Science Museum Decision to Take Anti-Science Stance on Global Warming?

The Times of London reports that the London Science Museum has decided to change its position from promoting understanding of the science of global warming to one that they deem “neutral” in their climate science gallery. And by neutral they mean a stance at odds with the widely accepted science on climate change.

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