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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.”

Legal Case: White House Argues Against Considering Climate Change on Energy Projects

Just over a month before the United Nations convenes on September 23 in New York City to discuss climate change and activists gather for a week of action, the Obama White House Council on Environmental Quality (CEQ) argued it does not have to offer guidance to federal agencies it coordinates with to consider climate change impacts for energy decisions.

It came just a few weeks before a leaked draft copy of the Intergovernmental Panel on Climate Change's (IPCC) latest assessment said climate disruption could cause “severe, pervasive and irreversible impacts for people and ecosystems.”

Initially filed as a February 2008 petition to CEQ by the International Center for Technology Assessment, the Sierra Club and the Natural Resources Defense Council (NRDC) when George W. Bush still served as President, it had been stalled for years. 

Six and a half years later and another term into the Obama Administration, however, things have finally moved forward. Or backwards, depending on who you ask. 

NEPA and CEQ

The initial February 2008 legal petition issued by the plaintiffs was rather simple: the White House's Council for Environmental Quality (CEQ) should provide guidance to federal agencies it coordinates with to weigh climate change impacts when utilizing the National Environmental Policy Act (NEPA) on energy policy decisions. 

A legal process completely skirted in recent prominent tar sands pipeline cases by both TransCanada and Enbridge, NEPA is referred to by legal scholars as the “Magna Carta” of environmental law.

Magna Carta; Photo Credit: Wikimedia Commons

CEQ oversees major tenets of environmental, energy and climate policy. It often serves as the final arbiter on many major legislative pushes proposed by Congress and federal agencies much in the same way the White House's Office of Information and Regulatory Affairs (OIRA) does for regulatory policy. 

Oil Companies Gambling Billions of Dollars Ignoring Global Warming Realities

Companies like Shell Oil really need to give their eyes a rub and see that a world with serious constraints on greenhouse gas emissions is not a possible future, but an eventual reality.

Right now, oil companies are investing billions in long term plays in very carbon intensive fuels, like Canada's oil sands, while at the same time there are more and more signs that strict regulations on such operations are on the near horizon.

You don't need to look much further than the years of delays on the Keystone XL pipeline to see that governments are starting to second guess these big cash layouts on climate-risky projects. 

Or take for instance, the federal court ruling last week that halted a proposed coal mining operation in Colorado stating that the “social costs” of contributions the mine would make to worsening impacts of climate change in the future were not taken into consideration.

This ruling on the grounds of future social costs should be a 'canary in the coal mine' wake-up call for companies still considering investing big dollars in long-term carbon-intensive projects.

New "Frackademia" Report Co-Written by "Converted Climate Skeptic" Richard Muller

The conservative UK-based Centre for Policy Studies recently published a study on the climate change impacts of hydraulic fracturing (“fracking”) for shale gas. The skinny: it's yet another case study of “frackademia,” and the co-authors have a financial stake in the upstart Chinese fracking industry.

Titled “Why Every Serious Environmentalist Should Favour Fracking“ and co-authored by Richard Muller and his daughter Elizabeth “Liz” Muller, it concludes that fracking's climate change impacts are benign, dismissing many scientific studies coming to contrary conclusions.

In an interview with DeSmogBlog, Richard Muller — a self-proclaimed “converted skeptic” on climate change — said he and Liz had originally thought of putting together this study “about two years ago.”

“We quickly realized that natural gas could be a very big player,” he said. “The reasons had to do with China and the goal of the paper is to get the environmentalists to recognize that they need to support responsible fracking.

The ongoing debate over fracking in the UK served as the impetus behind the Centre for Policy Studies — a non-profit co-founded by former right-wing British Prime Minister Margaret Thatcher in 1974 — hosting this report on its website, according to Richard Muller.

“They asked for it because some environmentalists are currently opposing fracking in the UK, and they wanted us to share our perspective that fracking is not only essential for human health but its support can be justified for humanitarian purposes,” he said. 

This isn't the first time Liz Muller has unapologetically sung the praises of fracking and promoted bringing the practice to China. In April, she penned an op-ed in The New York Times titled, “China Must Exploit Its Shale Gas.” 

Big Oil PR Pros, Lobbyists Dominate EDF Fracking Climate Study Steering Committee

Alongside releasing its controversial findings on fugitive methane emissions caused by hydraulic fracturing (“fracking”) on September 16, University of Texas-Austin also unveiled an industry-stacked Steering Committee roster for the study it conducted in concert with Environmental Defense Fund (EDF).

Stacked with former and current oil industry lobbyists, policy professionals and business executives, the Steering Committee is proof positive of the conflicts of interest evident in the roster of people and funding behind the “frackademia” study.

Only two out of the 11 members of the Steering Committee besides lead author and UT-Austin Professor David Allen have a science background relevant to onshore fracking. 

That study found fugitive methane emissions at the well pad to be 2%-4% lower than discovered by the non-industry funded groundbreaking April 2011 Cornell University study co-authored by Anthony Ingraffea and Robert Howarth.

The Cornell study concluded fracking is worse for the climate than coal combustion when measured over its entire lifecycle. 

Webster's Dictionary defines a Steering Committee as “a committee, especially of a deliberative or legislative body, that prepares the agenda of a session.”

In the case of the EDF study - based on the oddly rosy findings - it seems plausible the industry-stacked Committee drove the report in a direction beneficial to oil industry profits rather than science.  

Shell Wriggles Free Of Oil Spill Liability In Nigeria, But Case Is Far From Closed

A Dutch court acquitted oil giant Shell of allegations regarding oil contamination in Nigeria. Reported earlier in The Guardian, the court ruled in favor of the company for 4 counts of polluting land and waterways in the African country, but was held accountable on a fifth count.

The suit was put forward by Friends of the Earth alongside four Nigerian farmers in the areas of Goi, Ogoniland, Bayelsa and Akwa Ibom. They claimed oil pollution from leaky, unsafe oil pipelines devastated livelihoods of local citizens and farmers in the area. Elder Friday Akpan had 47 catfish farms destroyed from previous oil spills:

“The fishes died completely. I was confused because it left me completely empty,” Akpan added. “I did not have some money to pay school fees for my twelve children, and nothing to allow me to earn my livelihood again. Debts I had borrowed I could not repay. There was nothing for me. I was finished.”

The plaintiffs pushed for a hearing in the Netherlands over Nigeria. They hoped it would be strategically more advantageous to hold trial in the country of the company's headquarters versus taking there chances in a Nigerian court where often times the oil companies have more power than the government. Additionally, the Netherlands would more likely properly enforce any damages awarded by the court.

“Shell is a very stubborn company, and in Nigeria, in some situations, it is more powerful than the Nigerian government,” said Prince Chima Williams, head the legal affairs department at the Environmental Rights Action group.

Locking in Dirty Energy Demand: GE Signs Deal with Clean Energy Fuels for Gas-Powered Vehicles

On November 13, Clean Energy Fuels (CEF) signed a deal with General Electric (GE) to purchase its natural gas vehicle fueling assets in an effort to expand what it describes as “America’s Natural Gas Highway.”

CEF is owned on a 20.8 percent basis by T. Boone Pickens, energy magnate and owner of the hedge fund, BP Capital. Andrew Littlefair, President and CEO of CEFdescribed the deal as one of the “most significant milestones in Clean Energy’s history.”

The deal, “will enable trucks to operate [on natural gas] coast to coast and border to border.”

Forbes dug into the nuts-and-bolts of the deal:

Shell Not Arctic Ready, Spoofed By Honest Ad Campaign

The news of Royal-Dutch Shell's recent decision to hold off on Arctic drilling until next season offers some relief to those keeping track of the company's shoddy performance in Alaska to date. Shell advertised their position as “Arctic Ready,” suggesting their out of date drill rigs, their non-existent disaster spill response, and their technical know-how were 'ready' to take on the temperamental Arctic.  

But within the first few months of establishing their northern operations, Shell suffered several embarrassing mishaps, demonstrating just how unfit they were to take on some of the most dangerous drilling conditions in the world.
 
The company's aging fleet got a late start in the short drilling season when the Noble Discoverer was occupied by Xena, The Warrior Princess, delaying its voyage to Alaska from New Zealand. Peter Velez, Shell's head of Arctic Emergency Response admitted the company had not considered the cost of spills or other disasters like a well blow out, saying the chances of something like that occurring are “very, very small.” Shell's Arctic Challenger was deemed unsafe by the US Coast Guard, while it sat leaking hydraulic fluid into a Washington state port, just before the Noble Discoverer nearly ran aground in an Alaskan bay

Climate SOS Ends with Shale Gas Outrage, Autumn Begins with Global Frackdown

Global grassroots activism is heating up alongside a scarily ever-warming climate.

Since the beginning of 2012, we've seen the Arab Spring, the Wisconsin Uprising, the Tar Sands Action, and the ongoing Keystone XL Blockade. In the climate justice movement, some have referred to the recently passed summer as the Climate Summer of Solidarity (SOS).

The SOS closed with an action organized by Protecting Our Waters called Shale Gas Outrage, which took place in the heart of the global fracking boom, Philadelphia, PA, home of the Marcellus Shale basin. Outrage was warranted, given that this year's Shale Gas Insight unfolded in the City of Brotherly Love. Insight was sponsored by Chesapeake Energy, Chevron, Range Resources, EOG Resources, Aqua America (who stands to profit off of water as a scarce resource via fracking), and many others.

Speakers at the pre-march rally included the likes of “Gasland” Producer and Director Josh Fox, author and ecologist Sandra Steingraber, environmental journalist and activist Bill McKibben and Food and Water Watch Executive Director Wenonah Hauter; former Pittsburgh City Council member and writer of the ordinance that banned fracking in the city, Doug Shields, as well as members of the Pennsylvania community whose livelihoods have been deeply affected at the hands of the shale gas fracking industry. 

Upon the rally's completion, activists zig-zagged up and down Philly's streets, making stops at the Obama for President campaign headquarters and Governor Tom Corbett's campaign headquaters.   

TransCanada's Latest Extreme Energy Export Pipelines in the U.S. and Canada

TransCanada was once in the limelight and targeted for its Keystone XL pipeline project. Now, with few eyes watching, it is pushing along two key pipeline projects that would bring two respective forms of what energy geopolitics scholar Michael Klare calls “extreme energy” to lucrative export markets.

Pipeline one: the southern segment of the originally proposed TransCanada Keystone XL tar sands pipeline, popularly referred to as the Cushing Extension, but officially referred to as either the Gulf Coast Project or the Cushing Marketlink pipeline. This pipeline will carry tar sands crude, or “dilbit,” extracted from Alberta, Canada's Athabasca oil sands project southward first to Cushing, Oklahoma, and then to Port Arthur, Texas, where it will be shipped off to global export markets.

While the northern Alberta-to-Cushing segment has been punted until after election season by President Barack Obama's U.S. State Department, the Cushing-Port Arthur segment has been rammed through in a secrective manner by various Obama regulatory agencies, as pointed out recently by Friends of the Earth-U.S. (FOE-U.S.). 

FOE-U.S. explained in a long blog post published on June 5, well worth reading in its entirity,

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