Royal Dutch Shell

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The previously unpublished assessment, carried out by US firm Accufacts, found that between 1,440 and 4,320 barrels of oil were flooding the Bodo area each day following the leak.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.

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.

‘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.

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.”

Pages

Subscribe to Royal Dutch Shell