Royal Dutch Shell

Rep. Markey Raises Big Questions About Shell's Containment Dome Fail

Rep. Ed Markey (D-Mass), has penned a letter to Secretary of the Interior, Ken Salazar, looking for answers about a Royal Dutch Shell (NYSE:RDS.A) containment dome that “crushed like a beer can” in tests earlier this Fall.

Markey, who is the Ranking Member of the US House Committee on Natural Resources, is referring to a story first broken by Seattle radio station KUOW investigator John Ryan, revealing that in September Shell performed tests on a containment dome that was to be deployed as part of the company's controversial Arctic offshore oil drilling operations.

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,

2008 Shell Nigeria Oil Spill 60 Times Larger Than Originally Claimed

Amnesty International and the Centre for Environment, Human Rights and Development (CEHRD) dropped a bombshell early this week, unveiling documents pertaining to the Royal Dutch Shell Oil 2008 Bodo oil pipeline spill.

The documents indicate that the Shell spill released 60 times the amount of oil Shell had originally reported in the ravaged Niger Delta coastal town with a population of 60,000 people.

In a press release, Amnesty explained its findings:

The previously unpublished assessment, carried out by US firm Accufacts, found that between 1,440 and 4,320 barrels of oil were flooding the Bodo area each day following the leak. The Nigerian regulators have confirmed that the spill lasted for 72 days.

Shell’s official investigation report claims only 1,640 barrels of oil were spilt in total. But based on the independent assessment the total amount of oil spilt over the 72 day period is between 103,000 barrels and 311,000 barrels.

Adding insult to injury, Shell has yet to begin to clean up what it has destroyed. “More than three years after the Bodo oil spill, Shell has yet to conduct a proper clean up or to pay any official compensation to the affected communities,” wrote Amnesty.

ExxonMobil and Shell Eyeing North American LNG Export Deals

Yesterday, LNG World News reported that ExxonMobil Vice President Andrew Swiger announced, at a conference hosted by Bank of America Merrill Lynch, that it was actively seeking LNG (liquefied natural gas) export terminals throughout North America, including, but not limited to, in British Columbia and on the Gulf Coast.

In terms of exports from North America, whether it is the Gulf Coast or whether it is Western Canada, it’s something we’re actively looking at,” said Swiger.

So, where are these prospective export terminals located, what are the key pipelines carrying the unconventional gas produced from shale basins, and what are the key shale basins in the mix? Hold tight for an explanation.

Golden Pass LNG Terminal and Golden Pass Pipeline

The LNG World News article explains that ExxonMobil “has a stake in the Golden Pass LNG Terminal in Texas,” but does not explain exactly what the “stake” is.

A bit of research shows that ExxonMobil is a 17.6% stakeholder in the Golden Pass LNG Terminal, according to a March 2011 article publshed by Platts. It is co-owned by ConocoPhillips and Qatar Petroleum, who own a 12.4% and 70% stake in Golden Pass LNG, respectively.

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.

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.

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.” 

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.

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.

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