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Senators Call For End To Arctic Drilling As Shell Gets Permits To Begin Work In Chukchi Sea

Shell received the final permits it needed to begin drilling exploratory wells in the Chukchi Sea last Wednesday, but a group of Senators led by Oregon's Jeff Merkley is calling for a ban on Arctic drilling altogether.

According to the Associated Press, the permits are somewhat conditional: In granting the company the green light, the Department of the Interior said Shell can only drill the top sections of wells, or to about a depth of 1,300 feet, because critical emergency response gear, including a well-capping device in the event of a blowout or leak, will not be present for the foreseeable future.

Shell To Proceed With Arctic Drilling Despite Damaged Icebreaker Ship Carrying Critical Emergency Gear Heading To Portland For Repairs

Shell officials are still hoping to launch exploratory drilling this month at the company’s Burger prospect, 70 miles off the coast of Alaska in the Chukchi Sea, even though a key ship in its fleet was forced back to port before it had even left the harbor last week after a 3-foot-long gash was discovered in its hull.

The company has to send the MSV Fennica to Portland because Terminal 5 at the port of Seattle, where Shell’s two drilling rigs were stored before they departed for Alaska, is a cargo terminal that doesn’t allow heavy repairs.

It is expected to take several weeks to repair the Fennica, according to FuelFix. The trip to Portland alone will take more than a week, and the Fennica appears to still be in Unalaska in the Aleutian Islands right now. But Shell has already begun moving its fleet into place in the Chukchi Sea, and does not plan on waiting for the Fennica to return before commencing drilling activities.

Greenwash: Shell May Remove "Oil" From Name as it Moves to Tap Arctic, Gulf of Mexico

Shell Oil has announced it may take a page out of the BP “Beyond Petroleum” greenwashing book, rebranding itself as something other than an oil company for its United States-based unit.

Marvin Odum, director of Shell Oil's upstream subsidiary companies in the Americas, told Bloomberg the name Shell Oil “is a little old-fashioned, I’d say, and at one point we’ll probably do something about that” during a luncheon interview with Bloomberg News co-founder Matt Winkler (beginning at 8:22) at the recently-completed Shell-sponsored Toronto Global Forum.

“Oil,” said Odum, could at some point in the near future be removed from the name.

Shell’s Renewed Arctic Drilling Campaign Faces Yet Another Setback As Key Ship Forced Back To Port

Is Shell finally “Arctic Ready” after its doomed 2012 campaign? The company is set to begin drilling in the Arctic within the week, and it’s already not looking good.

The MSV Fennica, an icebreaker vessel bound for the Chukchi Sea, had barely left its berth in Dutch Harbor, Alaska last Friday when it had to immediately turn around. The crew discovered a 39-inch long, half-inch-wide breach in the Fennica’s hull, FuelFix reports.

Museum Workers’ Union Condemns Oil Sponsorship of British Cultural Institutions

Big Oil’s sponsorship of British museums and galleries must come to an end, argues the Public and Commercial Services Union (PCS) Culture Sector.

Delegates to the PCS annual conference in Brighton yesterday voted overwhelmingly to support a new union campaign calling for an end to oil sponsorship of the arts.

The union represents 5,000 workers in UK cultural institutions that have accepted money from BP or Shell, including Tate, the British Museum and National Gallery, the National Portrait Gallery, the Science Museum and the Natural History Museum.

Fight Over Shell's Arctic Drilling Escalates As Polar Pioneer Arrives and #ShellNo "Paddle in Seattle" Begins

shellno

Here we go. Shell's Polar Pioneer drilling rig is making its way through Puget Sound and will arrive later this afternoon at Terminal 5 in the Port of Seattle. You can watch the journey in real time if you want to follow along.

Is the Fracking Lobby Setting the EU Energy Agenda?

A European expert panel on unconventional hydrocarbons has been almost entirely taken over by the fracking industry reveals a new investigation by Friends of the Earth (FoE) Europe and the Corporate Europe Observatory (CEO).

The advisory group, set up by the European Commission, is tasked with assessing ongoing fracking projects in Europe along with the safety and appropriateness of other unconventional technologies. Of those not employed by the Commission, over 70 percent of the panel have financial ties to the fracking industry.

The panel’s five leading chairmen include two executives from shale firms Cuadrilla and ConocoPhillips, two officials from pro-shale ministries in the UK and Poland, and a director of IFP Energies nouvelles, who is also an advisor to the Shale Gas Europe lobby group.

Industry-Stacked Energy Department Committee: Shale Running Dry, Let's Exploit the Arctic

A report assembled by an industry-centric US Department of Energy committee recommends the nation start exploiting the Arctic due to oil and gas shale basins running dry. 

In the just-submitted report, first obtained by the Associated Press, the DOE's National Petroleum Council — many members of which are oil and gas industry executives — concludes that oil and gas obtained via hydraulic fracturing (“fracking”) will not last beyond the next decade or so, thus the time is ripe to raid the fragile Arctic to feed our fossil fuel addiction. 

The NPC just launched a website and executive summary of the report: Arctic Potential: Realizing the Promise of U.S. Oil and Gas Resources.

Confirming the thesis presented by the Post Carbon Institute in its two reports, “Drill Baby, Drill” and “Drilling Deeper,” the National Petroleum Council believes the shale boom does not have much more than a decade remaining.

The NPC report appears to largely gloss over the role of further fossil fuel dependence on climate change, or the potentially catastrophic consequences of an oil spill in the Arctic.

The first mention of climate change appears to refer to “concern about the future of the culture of the Arctic peoples and the environment in the face of changing climate and increased human activity,” but doesn't mention the role of fossil fuels in driving those changes. Instead, the report immediately pivots to focus on “increasing interest in the Arctic for tourist potential, and reductions in summer ice provide an increasing opportunity for marine traffic.”

ExxonMobil CEO Rex Tillerson, a National Petroleum Council member, chimed in on the study in an interview with the Associated Press.  

“There will come a time when all the resources that are supplying the world's economies today are going to go in decline,” remarked Tillerson. “This is will [sic] be what's needed next. If we start today it'll take 20, 30, 40 years for those to come on.”

The National Petroleum Council also deployed the energy poverty argument, utilized most recently by coal giant Peabody Energy in its “Advanced Energy For Life” public relations campaign, to make its case for Arctic drilling as a replacement for fracking.

“But global demand for oil, which affects prices of gasoline, diesel and other fuels everywhere, is expected to rise steadily in the coming decades — even as alternative energy use blossoms — because hundreds of millions of people are rising from poverty in developing regions and buying more cars, shipping more goods, and flying in airplanes more often,” reads the report. “In order to meet that demand and keep prices from soaring, new sources of oil must be developed, the council argues.”

Global Shale Fail: Oil Majors Leaving Fracking Fields Across Europe, Asia

With some analysts predicting the global price of oil to see another drop, many oil majors have deployed their parachutes and jumped from the hydraulic fracturing (“fracking”) projects rapidly nose-diving across the world.

As The Wall Street Journal recently reported, the unconvetional shale oil and gas boom is still predominantly U.S.-centric, likely to remain so for years to come.

“Chevron Corp., Exxon Mobil Corp. and Royal Dutch Shell PLC have packed up nearly all of their hydraulic fracturing wildcatting in Europe, Russia and China,” wrote The Wall Street Journal.

“Chevron halted its last European fracking operations in February when it pulled out of Romania. Shell said it is cutting world-wide shale spending by 30% in places including Turkey, Ukraine and Argentina. Exxon has pulled out of Poland and Hungary, and its German fracking operations are on hold.” 

Though the fracking boom has taken off in the U.S. like no other place on Earth, the U.S. actually possesses less than 10 percent of the world’s estimated shale reserves, according to The Journal.

Despite this resource allotment discrepency, the U.S. Energy Information Administration (EIA) recently revealed that only four countries in the world have produced fracked oil or gas at a commercial-scale: the United States, Canada, China and Argentina.

Global Shale Fail
Image Credit: U.S. Energy Information Administration

Shell, ENI Responsible for 550 Oil Spills In Nigeria Last Year

Late last year, it came to light that Shell had been warned repeatedly by its own staff that the Trans Niger Pipeline was at significant risk of failure well before a 2008 spill of 500,000 barrels of oil. It was also revealed that Shell had drastically understated the extent of the spill.

These revelations were made during the proceedings of a lawsuit brought by a group of 15,000 Nigerians over a second spill from the same pipeline and helped lead to a much heftier payment by the company to the Bodo community in the Niger Delta in compensation for the impacts of both spills.

It would appear that the company has still not managed to correct whatever problems are leading to its poor safety and environmental performance in Nigeria, however, as Shell was responsible for more than 200 oil spills in the country last year alone, according to a new report by Amnesty International.

As horrible as Shell’s record is, Italian oil giant ENI managed to outdo the Hague-based multinational oil and gas titan. ENI's operations caused nearly 350 spills last year even though it operates in a much smaller area, the report states.

“These figures are seriously alarming. ENI has clearly lost control over its operations in the Niger Delta. And despite all its promises, Shell has made no progress on tackling oil spills,” Audrey Gaughran, Amnesty International’s Global Issues Director, said in a statement.

“In any other country, this would be a national emergency. In Nigeria it appears to be standard operating procedure for the oil industry. The human cost is horrific — people living with pollution every day of their lives.”

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