Royal Dutch Shell

Fossil Fuel Companies Dominate EU Meetings on Climate and Energy Policy, Report Shows

Big energy and fossil fuel companies are enjoying privileged access to the EU’s top climate policy decision makers in the run-up to December’s Paris climate conference a new report reveals.

The report by transparency research and campaign group Corporate Europe Observatory (CEO) looks at all meetings held by Commissioners Miguel Arias Cañete and Maros Šefčovič during their first year in office. In total, energy companies make up 30 per cent of all lobby encounters with the commissioners and their cabinets.

When it comes to discussing climate and energy policy, three-quarters of the European Commission’s encounters with the energy industry were with fossil fuel companies including BP, Statoil, and Shell.

Are Oil Giants Backing a Climate Solution That Will Never Happen?

Oil and gas giants are betting the shop on a carbon price being implemented in order to tackle climate change. But experts speaking at today's Economist Energy Summit in London agreed that an effective global carbon price just isn’t going to happen.

Last month ten major fossil fuel companies, including Shell, Total, BP, and Statoil, announced a joint climate declaration recognising the need to limit the global average temperature rise to 2C. In order to achieve this, a “widespread and effective pricing of carbon emissions” is needed alongside more gas and renewables, they argued.

But as Henry Tricks, energy and commodities editor at the Economist, put to executives at BP, Statoil and Total: “You’re all basing a lot of your future scenarios on the idea that there will be a carbon price. You’re calling for it, and yet most people don’t agree that it’s going to happen on a global scale. What is needed for it to happen?”

Worries Build Among Investors Over Oil and Gas Industry’s Exposure to Water and Climate Risks

When it comes to financial risks surrounding water, there is one industry that, according to a new report, is both among the most exposed to these risks and the least transparent to investors about them: the oil and gas industry.

This year, 1,073 of the world’s largest publicly listed companies faced requests from institutional investors concerned about the companies’ vulnerability to water-related risks that they disclose their plans for adapting and responding to issues like drought or water shortages.

Six Commitments Missing From the Oil and Gas Major’s Climate Declaration

Major fossil fuel companies have today released a Joint Collaborative Declaration under the Oil & Gas Climate Initiative (OGCI) recognising the need to limit global average temperature rise to 2⁰C. Launched in Paris this morning, they are calling for an “effective climate change agreement at COP21”.

In the declaration, ten oil and gas giants call for “widespread and effective pricing of carbon emissions”. Signatories include the CEOs of Total, Statoil, BP, Shell, BG Group, Saudi Aramco, Pemex, Sinopec, Eni, Reliance, and Repsol.

The companies also back natural gas as a cleaner alternative to coal and want to see more research and development into renewables and carbon capture and storage.  However, the declaration has been criticised for lacking concrete targets.

How Shell Lobbied to Stop EU Renewable Energy Targets

This has been cross-posted from Energydesk.

A group of the EU’s largest energy companies – including oil and gas giants Shell and Norway’s Statoil – formed an alliance to lobby against a new EU renewable target according to documents seen by Energydesk.

The lobbying group may surprise few, but comes after it was revealed that Shell started lobbying the EU two years earlier for a policy which favoured gas over renewables, claiming “Gas is good for Europe”.

That claim, however, came before the Ukraine crisis raised concerns about gas supply in EU countries.

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.

Revealed: UK Government Lobbied Big Oil to be Green Gas Leaders – Shell, BP ‘Not So Keen’

Big Oil made headlines has announced plans to become Big Gas. Speaking at the industry-sponsored World Gas Conference in Paris, companies including Shell, Total, BG Group, BP, and Chevron all stressed “the vital role of natural gas” in helping tackle climate change, write Kyla Mandel and Brendan Montague.

However, as documents obtained by DeSmog UK in a Freedom of Information (FOI) request reveal, Shell and BP failed to join the Climate and Clean Air Coalition (CCAC) Oil & Gas Methane Partnership – a UN-backed initiative to manage industry methane emissions – following lobbying by the UK Government for them to join as founding companies.

According to a 12 June 2014 briefing document drafted for then climate change minister Gregory Barker, ahead of a meeting with Shell executives, the government argued: “This Partnership provides industry with a good platform to demonstrate that gas is part of the low carbon solution, and to demonstrate their leadership to investors and consumers.”

Shell Faces Shareholder Backlash Over Arctic Drilling

ShellNo by Brendan DeMelle

Shell’s chief executive Ben van Beurden was grilled at the oil company's annual general meeting (AGM) today on its controversial plans to drill in the Arctic.

Pressure came from environmental activists, indigenous leaders and key institutional investors, including APG Asset Management and Dutch asset management firm Robeco, who all questioned the high risk, high cost of Arctic drilling.

Climate change remained a prominent theme throughout the five-hour meeting, culminating with shareholders voting nearly 99 percent in favour of a resolution that will force Shell to consider the possibility of a 2°C world in its forecasting.

Tar Sands Trade: Kuwait Buys Stake in Alberta As It Opens Own Heavy Oil Spigot

Chevron made waves in the business world when it announced its October 6 sale of 30-percent of its holdings in the Alberta-based Duvernay Shale basin to Kuwait Foreign Petroleum Exploration Company (KUFPEC) for $1.5 billion.

It marked the first North American purchase for the Kuwaiti state-owned oil company and yields KUFPEC 330,000 acres of Duvernay shale gas. Company CEO and the country's Crown Prince, Sheikh Nawaf Al-Ahmad Al-Jaber Al-Sabah, called it an “anchor project” that could spawn Kuwait's expansion into North America at-large. 

Kuwait's investment in the Duvernay, at face-value buying into Canada's hydraulic fracturing (“fracking”) revolution, was actually also an all-in bet on Alberta's tar sands. As explained in an October 7 article in Platts, the Duvernay serves as a key feedstock for condensate, a petroleum product made from gas used to dilute tar sands, allowing the product to move through pipelines. 

And while Kuwait — the small Gulf state sandwiched between Iraq and Saudi Arabia — has made a wager on Alberta's shale and tar sands, Big Oil may also soon make a big bet on Kuwait's homegrown tar sands resources.

“Kuwait has invited Britain’s BP, France’s Total, Royal Dutch Shell, ExxonMobil and Chevron, to bid for a so-called enhanced technical service agreement for the northern Ratqa heavy oilfield,” explained an October 2 article in Reuters. “It is the first time KOC will develop such a big heavy oil reservoir and the plan is to produce 60,000 bpd from Ratqa, which lies close to the Iraqi border [in northern Kuwait]…and then ramp it up to 120,000 bpd by 2025.”

In the past, Kuwait has said it hopes to learn how to extract tar sands from Alberta's petroleum engineers.

Obama Opened Floodgates for Offshore Fracking in Recent Gulf of Mexico Lease

In little-noticed news arising out of a recent Gulf of Mexico offshore oil and gas lease held by the U.S. Department of Interior's Bureau of Ocean Energy Management, the floodgates have opened for Gulf offshore hydraulic fracturing (“fracking”).

With 21.6 million acres auctioned off by the Obama Administration and 433,822 acres receiving bids, some press accounts have declared BP America — of 2010 Gulf of Mexico offshore oil spill infamy — a big winner of the auction. If true, fracking and the oil and gas services companies who perform it like Halliburton, Baker Hughes and Schlumberger came in a close second.

Gulf of Mexico Oil Lease Map August 2014
Map Credit: U.S. Bureau of Ocean Energy Management

On the day of the sale held at the Superdome in New Orleans, Louisiana, an Associated Press article explained that many of the purchased blocks sit in the Lower Tertiary basin, coined the “final frontier of oil exploration in the Gulf of Mexico” by industry analysts.

“The Lower Tertiary is an ancient layer of the earth's crust made of dense rock,” explained APTo access the mineral resources trapped within it, hydraulic fracturing activity is projected to grow in the western Gulf of Mexico by more than 10 percent this year, according to Houston-based oilfield services company Baker Hughes Inc., which operates about a third of the world's offshore fracking rigs.”


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