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Posts from ‘August, 2010’

Court Protects Blogger Gripe Sites!

Plave thinks from a legal standpoint that trying to remove online postings or prevent bloggers from posting content is a fruitless activity for an offended firm. “There is no point in a business trying to stop comment,” he says, alluding to first amendment rights that protect the free speech of American citizens. “This is why firms do not pursue pulling content off demeaning websites.”

Click to continue reading “Court Protects Blogger Gripe Sites!”

Problems with Shell Fuel Save Diesel

Posting by “schnitzer” 16 August 2010

We have a 2003 Facelift Freelander TD4 HSE, it has run normally and as expected until we filled the vehicle with the new Shell Fuel Save Diesel on Saturday 24th July, 2010, since then the revs are all over the place, the vehicle hesitant when start/stopping at places like roundabouts, struggling at higher speeds on the motorway, really feels bad. The car was checked on Saturday last, no faults were highlighted on the computer, but you could hear that the vehicle was not happy.

Then a BMW X3 diesel came in ! same engine, same Shell fuel, same problem, also nothing reporting on the computer system.

Hopefully, a tank of the Sainsburys taste the difference will clear the Shell. Fingers crossed.

RELATED ARTICLES

Shell in court over misleading ad claims

Shell FuelSave reminiscent of Formula Shell debacle

Shell gasoline debacles

Shell in court over misleading ad claims

NZ Herald

Updated 7:04 PM Monday Aug 16, 2010

Ads for oil giant Shell misled consumers by giving them the impression they could travel “appreciably further” by using the company’s petrol, a marketing expert testified today.

Shell New Zealand is defending 22 charges laid by the Commerce Commission under the Fair Trading Act.

They relate to an advertising campaign from April 2006 to May 2007 in which Shell claimed a fuel economy formula added to its petrol was “designed to take you further”.

Commerce Commission lawyer John Dixon told Wellington District Court today that the advertising made false or misleading claims, and the company had engaged in conduct that was liable to mislead the public.

A peer-reviewed study by Shell found the additive increased fuel efficiency by an average of only 0.98 percent over petrol with no additives.

That amounted to an extra 6km for every 650km travelled, or yearly savings of only about $20 if a driver spent an average of $2000 on petrol a year.

Mr Dixon said only 5 percent of petrol sold in New Zealand did not contain additives of a similar nature to Shell’s.

Otago University marketing researching Sarah Todd, a consumer behaviour specialist, said the ads gave the strong impression drivers could travel “appreciably further” using Shell’s petrol.

The court was shown a television ad featuring a skier jumping over a village, with the words “designed to take you further”.

The ad gave the impression of a huge leap forward, Prof Todd said.

A print ad suggested drivers using Shell’s petrol would have to stop for coffee breaks because they would have to stop less often for fuel.

The campaign gave “the impression of a significant benefit” to consumers but did not provide numerical evidence, Prof Todd said.

“At no stage are they given information as to what it means to them as an average driver.”

Consumers might have been given a different impression had the ads contained the figures, she said.

Shell lawyer Les Taylor said Prof Todd had “no evidence whatsoever” that the average driver would not consider the 0.98 percent efficiency increase appreciable.

Figures were not used in the ads because Shell could not guarantee how much further the average driver was able to travel, he said.

Mr Taylor questioned Prof Todd’s suitability as an expert witness, saying she was making “vague assertions” and expressing a unique opinion not based on research.

Judge Michael Behrens allowed her evidence to continue.

“An expert witness is entitled to an opinion based on their own knowledge.”

The trial is set down to continue until Thursday.

- NZPA

SOURCE ARTICLE

RELATED ARTICLES

Shell FuelSave reminiscent of Formula Shell debacle

Its like a walk down memory lane for those of us who remember the launch of another wonder fuel by Shell in 1986, Formula Shell, based on new technology and with a scientific image deliberately conjured up by Shell.

There was only one small problem. The new wonder fuel ruined many car engines and it did so on an international basis.

Shell gasoline debacles


Shell spying on Shell employees

By a former employee of Shell Oil USA

Reuters Article: Shell critic says oil major targeting his website

John

I must say that I have been very surprised (and  disturbed) to learn of the extent of Shell’s activities in the monitoring of their employees, their outside critics, etc. I find the creation of an internal ‘thought police’ organ very disturbing. Even more disturbing is the employment of former high level British and American governmental ‘spooks and cops’ to run these organizations. Shell’s relationship with the FBI is also very disturbing. Furthermore, Shell’s actions toward you and your blog have been almost ‘neo-facist’ in nature. (Henri Deterding would be proud of them, I am sure. Traditions die hard, I guess.)

Who hires these guys? Fear does nothing for staff performance or loyalty, and it breeds loathing, contempt, and rebellion. It is very bad for business and the bottom line because it drives away the best and the brightest.

All this nonsense brings to mind a number of books I read as a youth. One was George Orwell’s ’1984′. There are some lessons to be learned from that book, good and bad I suppose. (As I  recall the ‘pigs’ were the ruling caste. No. That was Orwell’s ‘Animal Farm’. The ‘Party’ and ‘Big Brother’ ruled in ’1984′.) I wonder if these two books are recommended reading for Shell management? (They might try reading John Locke’s comments on tolerance and the various forms of tyranny as well. However, you might have to remind these folks who John Locke was.) There has to be a good editorial comment lurking in this observation somewhere. I will have to ponder it and see what I can come up with.

When I worked for Shell USA in the 1980′s the HR gang (Human Resources) was referred to as the ‘thought police’. The term ‘Resources’ was snickered at as well. Staff was a ‘resource’ to be ‘exploited’, just like natural resources. Why Shell USA management chose the term ‘Resources’ is a mystery to me. Very bad form. Most companies would use the term Human Relations or Employee Relations. Not Shell. But the term accurately reflected the attitude of management towards their staff.

Times have changed but management culture and their attitude toward their staff clearly has not. Shell would be served far better if the time and resources involved in policing and repressing staff attitudes and discontent were directed toward the process of selecting competent managers of both talent and character. This would do more for staff moral, attitude, loyalty and performance than any degree of bullying and repression.

Just a thought or two from a former Shell USA employee.

The giant oil field in India sold for a song by Shell

“…sold for a song by accident-prone Royal Dutch Shell yielded Cairn one of the country’s largest-ever finds and catapulted it into the FTSE 100.”

SUNDAY TELEGRAPH

Cairn shareholders set for £1bn windfall when Indian oil fields are sold to Vedanta

Shareholders in Cairn Energy are in line for a windfall of at least £1bn, with the oil explorer close to completing a £5bn deal to sell its giant Indian oil fields to Vedanta Resources.

By Rowena Mason
Published: 10:58PM BST 14 Aug 2010

The Greenland explorer may confirm the move to sell a 51pc stake to London-listed Vedanta as early as today, after last-minute talks throughout the day yesterday.

Sir Bill Gammell, the chief executive of Cairn, would receive a minimum of £2m from his 0.2pc stake in the explorer if the pay-out were as low as £1bn.

Most investors expect the amount of money given back to them to run into multiple billions, however. The final cash return has not yet been finalised.

It could take the form of a special dividend or another more tax-efficient payment, according to sources close to the company.

Cairn plans to use the remaining cash from the sale to fund its ambitious deepwater drilling programme in the technically difficult region of Greenland.

It will still keep a minority 11pc stake in the 10 Indian fields, with Vedanta becoming the controlling shareholder.

Cairn’s share price rose by 3pc to 468.3p on Friday, while its Mumbai-listed arm, Cairn India, rose 4pc to 355.45p, as investors were cheered by the prospect of cash.

However, Vedanta shares fell 5.9pc to £20.53 on Friday, after dropping more than 7pc on Thursday, in anticipation of the heavily indebted company’s deal.

The $9bn company has around $4.5bn of liabilities and is planning capital expenditure of around $10bn over the next three years.

The acquisition is the first foray into the oil sector for Vedanta, which is majority owned by Anil Agarwal, an Indian billionaire and London resident.

The move will expand Vedanta away from its core business of producing zinc, copper, iron ore and aluminium.

Analysts have raised concerns about how it will fund the deal following an agreement to acquire $1.3bn of African zinc mines from Anglo American in May.

“It already has debt on the balance sheet, a very substantial capital expenditure programme and is buying Anglo Zinc for $1.3bn,” said Liam Fitzpatrick, a mining analyst at Credit Suisse.

Yesterday, the Indian authorities pointed out that they had not yet given approval and would scrutinise the deal closely.

State-owned ONGC is a partner in the Rajasthan fields, which are considered a strategic national asset.

Cairn acquired the Indian fields from Shell in 1997 for just $7m, spinning them off into Cairn India as a separate listed subsidiary 10 years later. Oil production from the fields in Rajasthan is expected to meet around 6pc of India’s demand.

The sale could see Cairn shrink and drop out of the FTSE 100 index or cling on at the bottom.

But analysts from Merrill Lynch said earlier this year that the company’s $400m Greenland exploration programme gave it the potential to double in size if it strikes oil.

The company has now started the high-risk drilling campaign in one of the world’s least explored areas, where scientists believe there is significant geological potential for discoveries.

Greenland gave Cairn the go-ahead for the first two out of four wells in June and it began drilling last month. The results are due towards the end of this month.

“Cairn Energy selling part of its stake in Cairn India makes sense as it could monetise part of the value in India now and free up cash for Greenland exploration and perhaps a special dividend. Retaining a stake in Cairn India would also enable Cairn to benefit from any further exploration upside,” said Richard Griffith, an analyst at Evolution Securities.

SOURCE ARTICLE

Related comment on Shell Blog by MUSAINT on Sunday 15 August 2010 :

I know that I have commented on this age old story about Shell selling their Rajasthan acreage before (this story and my comments are probably like a cracked record), but, the issue should be put at the doorstep of 2 Shell individuals – namely Messrs. Wildig and Parsley. I know I have been corrected by somebody previously, but, these two individuals killed off Shell’s E&P presence in the sub-continent (that includes Pakistan which has also proved a money earner for Premier Oil). Probably the Swiss inbred & nodding-donkey Bichsel signed the final death-knell for the sub-continent but Parsley and Wildig were the real culprits. Why oh why was an idiot PE (Wildig) by background given the responsibility to defend exploration decisions?? Hard-nosed that he was, I liked the genuine ability of someone such as Murris to decide on entry or exit on a country. The likes of Bichsel / Parsley and most especially Wildig had absolutely no idea.

RELATED ARTICLES

The giant oil field sold for a song by Shell: 5 January 2010

THE CITY INTERVIEW: Sir Bill Gammell hopes to score a try in the Arctic: 29 April 2009: ts most lucrative decision was to prospect in the Rajasthan region in the north-west of India. Drilling a desert prospect sold for a song by accident-prone Royal Dutch Shell yielded Cairn one of the country’s largest-ever finds and catapulted it into the FTSE 100.

Daily Telegraph (UK): Tiof field holds key to Cairn: “Oil wild-catters, dedicated to sniffing out oil reserves in the world’s most uninhabitable places, have had a gushing year. Cairn is the leader, having outwitted its rival, Shell, to strike black gold in India. The enormous find, plus the high oil price, catapulted Cairn into the FTSE 100.” (ShellNews.net) 13 Nov 04

The Sunday Telegraph: Cairn’s desert storm: The oil minnow bought the rights to drill in the Rajasthan wilderness from Shell for a paltry £4m. Its hunch paid off spectacularly and Cairn is now a FTSE100 company.: “Since that time, its market capitalisation has more than quadrupled to over £3bn today.”: “At an oil price of around $50 per barrel, that production will translate into $2bn worth of net cashflow for Cairn.” Sunday 20 November 2005

Daily Express (UK): Shell reflects ups and downs of the oil trade: Perhaps the most embarrassing episode came when Shell sold its stake in a 50/50 joint venture in an Indian oilfield to its partner Cairn Energy for a mere £4million — the field proved to have enough oil in it to increase Cairn’s share price by 300 per cent and propel it into FTSE100.

Arabies Trends: The crisis at Shell: The company’s embarrassment deepened on March 10th, when the small Scotland-based Cairn Energy announced a spectacular oil strike in a concession in India that the oil giant had sold it 18 months earlier for a meager $7 million.

The Times: Natural resources: Scottish group’s oil strike is jewel in India’s crown: “The discovery of oil at Mangala single-handedly catapulted Cairn from relative obscurity into a FTSE 100 company, poured further mockery on Royal Dutch Shell at the time of its reserves scandal — the Rajasthan block was originally Shell’s, but was relinquished to Cairn three years ago…”: November 19, 2005


Shell Motiva VP Tom Purves falls victim to his own Game

By Joe Blow

It was with some elation that I heard of Mr. Purves’ fall from grace with his superiors. In fact I popped the cork on a fine bottle of wine that I have been saving for just such an occasion.  As I sipped my wine and imagined what must have happened, many theories ran through my mind, “Did Botts suddenly grow a brain”, “Did Williams realize what an idiot Purves was”, “Did Voser finally listen to the people”.  Unfortunately for so many, this is a measure of justice, not the absolute Justice we deserve.

It is no secret to people who have read past comments posted on this blog, Tom Purves is rotten to the core. The destruction he has wreaked on the gulf coast is unimaginable.  It has been mentioned that Tom will see this move as a reward, that is a clear sign of the delusion that he lives in.  The remaining world can clearly see that Tom is being brushed aside so that he may be promptly blamed for the albatross known as “CEP”.  I find it quite comical myself. When Forrest managed CEP it was failing from lack of management, Tom will cause a complete 180 and bring his signature style of micromanagement to the project which should accelerate the projects failure.

The important message in these moves is clear.  Steve Rathweg is being sent in to restore some integrity in the VP role.  The key for Steve is to understand the damage Tom has done in his time, to recognize the remaining threat that Tom’s minions pose, and to figure a way to neutralize and re-engage the people of the gulf coast sites that have been so severely de-moralized.  Steve is a good guy and I expect that he is more than capable of fulfilling this tall order.

Related: Leaked Email from Shell VP Tom Purves reveals confidential Motiva Business Plans

Big Oil: In the US Congress you only get what you pay for

“I have about as much faith that the US Congress will do the ‘right thing’ as I do that oil industry management will do the ‘right thing’. ZIP. ZERO. NONE. There is too much oil industry money floating around the halls of Congress.”

Comment by former employee of Shell Oil USA on the LA Times article…

BP spill may cause sea change for energy industry

There a lot of us oil industry ‘worker bees’ who have a thing or two to say about the industry. Most of us find the work in the oil industry, particularly the upstream side of the industry, fascinating, challenging, and extremely rewarding, and would not change careers if we had the chance. There isn’t another profession like it in the world.

But most of us also find the way the industry is managed to be dismally poor and outright abhorring and disgusting at times. Your blog provides a much needed outlet.

The US oil industry has several serious problems here in the States.

However, the most serious may be the fact that they don’t have a political representative at the highest levels of government to make their case and co-opt their regulatory adversaries.

During the Reagan years G.H.W. Bush senior was V.P., and as an ex-oil industry manager he wielded a great deal of influence, at the White House and with Congress, that the oil industry benefited from. When Bush Sr. was President oil companies had a very easy time of it. Clinton’s administration was not overly friendly to the oil industry, but they weren’t overtly hostile either. Of course, with G.W. Bush junior in the White House, and Dick Cheney, former CEO of Halliburton as VP, the oil industry was in the drivers seat.

Don’t think that the war in Iraq wasn’t about oil and political payback to the oil industry for all their support. Iraq has potentially some of the largest on-shore reserves of ‘easy oil’ left to discover. Estimates run as high as perhaps 300-500 billion bbls. That makes oil industry CEO’s drool all over themselves. Of course, Halliburton has made a FORTUNE on that war.

Now, there is nobody in the White House that is beholding to ‘big oil’. And the BP disaster, and revelations of corruption and collusion at DOI and MMS, have only added to the oil industry’s problem.

The real problem the US oil industry has it that it tries to operate in this country like it does in third world countries, i.e., by co-opting the political leadership and demanding special tax treatment, royalty ‘holidays’, and non-enforcement or lax enforcement of environmental and worker safety laws as the ‘quid pro quo‘ for political financial support. They have tried to corrupt the political process here in the US with their vast monetary resources like they have done in most of the rest of the world. And to a good degree they have succeeded. In the US Congress you only get what you pay for.

Now the political winds in Washington have changed somewhat and it is time to pay the piper, maybe, to a degree. The oil industry lobby is working overtime to stop unfriendly legislation and ‘costly’ and ‘unnecessary job killing’ regulation. Time will tell how successful they are.

I have about as much faith that the US Congress will do the ‘right thing’ as I do that oil industry management will do the ‘right thing’. ZIP. ZERO. NONE. There is too much oil industry money floating around the halls of Congress.

Collection of links relating to drilling in the Arctic Ocean

Articles and links supplied by a former employee of Shell Oil USA.


ARTICLES

The Arctic and Shell

What happens if Statoil is involved in major Arctic Ocean blowout?

Statoil, Shell and the Arctic Ocean

LINKS

Shell Chukchi Sea Application 2010 Application for Incidental Harassment Authorization for the Non-Lethal Taking of Whales and Seals in Conjunction with Planned 2010 Exploration Drilling Program Chukchi Sea, Alaska: April 2010

(IF SHELL WISHES TO EXPLAIN HOW YOU “TAKE” A WILD MULTI -TON WHALE IN A “NONE LETHAL” FASHION, WE WILL HAPPILY PUBLISH THAT INFORMATION HERE – I HAVE CHECKED THE 50 PAGES IN THIS SHELL DOCUMENT AND CANNOT FIND AN EXPLANATION?)

I have lifted some text from the NOAA EIS that relates to the bureaucratic definitions of ‘take’ and ‘harassment’. As can be seen, they are not benign definitions. These folks talk about ‘temporary loss’ of hearing. How did they determine this with cetaceans (whales)? Do these people know what they are talking about?

NMFS Statutory and Regulatory Mandates

Under the MMPA, the taking of marine mammals without a permit or exemption from NMFS is prohibited.

“Take” under the MMPA means:

“to harass, hunt, capture, kill or collect, or attempt to harass, hunt, capture, kill or collect.”

Except with respect to certain activities not relevant here, the MMPA defines “harassment” as:

“…any act of pursuit, torment, or annoyance which (a) has the potential to injure a marine mammal or marine mammal stock in the wild [Level A harassment]; or (b) has the potential to disturb a marine mammal or marine mammal stock in the wild by causing disruption of behavioral patterns, including, but not limited to, migration, breathing, nursing, breeding, feeding, or sheltering but which does not have the potential to injure a marine mammal or marine mammal stock in the wild [Level B harassment].”

To date, NMFS’ policy has been to use the 180-decibel (dB) root-mean-squared (rms) received level for cetaceans and 190-dB rms received level for pinnipeds to indicate where temporary threshold shift (TTS, or temporary loss of portion of hearing sensitivity) of these animals from acoustic exposure begins. Since TTS does not result in a permanent loss of hearing sensitivity, and the animal is expected to fully recover from TTS after a certain period of time (see review in Southall et al., 2007), NMFS views TTS as Level B harassment. In addition, NMFS uses the 160-dB rms isopleth for cetaceans and 170-dB rms for pinnipeds to indicate where Level B behavioral harassment begins for acoustic sources, including impulse sounds, such as those used for seismic surveys. In order to obtain an exemption from the MMPA’s prohibition on taking marine mammals, a citizen of the United States who engages in a specified activity (other than commercial fishing) within a specified geographic region must obtain an incidental take
authorization (ITA) under section 101(a)(5)(A) or (D) of the MMPA. An ITA shall be granted if NMFS finds that the taking of small numbers of marine mammals of a species or stock by such citizen will have a negligible impact on the affected species or stock(s) and will not have an unmitigable adverse impact on the availability of the species or stock(s) for subsistence uses. NMFS shall also prescribe, where applicable the
permissible methods of taking and other means of affecting the least practicable impact on the species or stock and its habitat (i.e., mitigation, monitoring and reporting of such takings). ITAs may be issued as either (1) regulations and associated Letters of Authorization (LOAs) where there is a potential for serious injury or mortality; or (2) IHAs, when there is no potential for serious injury or mortality or where any such potential can be negated through required mitigation measures.

As part of the MMPA authorization process, applicants are required to provide detailed mitigation plans that outline what efforts will be taken to reduce negative impacts to marine mammals, and their availability for subsistence use, to the lowest level practicable. In addition, IHA authorizations require that operators conduct monitoring, which should be designed to result in an increased knowledge of the species and an
understanding of the level and type of takings that result from the authorized activities. Under the MMPA, NMFS further requires that monitoring be designed to provide information and data verifying (or disputing) that the taking of marine mammals are, in fact, negligible and there are no unmitigable adverse impacts on the availability of marine mammals for subsistence uses.

In making a determination of no unmitigable adverse impacts to subsistence uses of marine mammals, NMFS and MMS consider whether a Plan of Cooperation (POC) is negotiated between the affected Alaskan Native communities and the applicants………

Statoil rewrites the rulebook: Sept 2007

Statoil wants to drill off Greenland: 25 November, 2009

Forum magazine – Statoil’s clean sweep on safety

Another article on Statoil. Maybe the WWF would be interested in this and perhaps lobby for the imposition of Norwegian safety standards in the Arctic offshore! They have the ear of the White House, so why not raise the issue?

Norwegian oil company increases Alaska holdings in Chukchi Sea: 2010

Why Norway’s offshore drilling is safer: 3 May 2010

This recent Guardian article on oil rig safety issues also mentions Statoil: BP threatened with legal case over safety of all its oil rigs

Norway’s offshore oil drilling safety record: 4 May 2010

For Big Oil, the N-word is “nationalize”: 27 May 2010

The real driving force in the Norwegian oil industry for safety, the environment, etc. is the Petroleum Safety Authority. I have included a link to their web site. They have their regulations on-line. PETROLEUM SAFETY AUTHORITY NORWAY

I have attached a link to an article in off-shore technology about BP’s proposed development of the Liberty Field in Alaska. It is interesting because of the use of extreme extended reach drilling technology. The cost of building a gravel island directly above the field was prohibitive. BP didn’t even consider some sort of man-made platform.

BP slows down plans for Liberty oil field: 6 July 2010

Six lessons from the BP oil spill: 10 July 2010

Alaska Gov: Judge Clears Shell’s Offshore Seismic Oil Testing: 6 August 2010

Still on hold: Statoil’s Chukchi seismic in doubt after injunction: 8 August 2010

BP America, BPXA may be fined $500m for repeated violations: 1 April 2009

Poisoning the Well: Jan 1997

Frontier Discoverer (The Frontier Discoverer was originally built as a log carrier and was converted in 1975 to a Sonat Offshore Drilling Discoverer Class turret moored drillship.)

The Biggest Oil Spills in History
Arctic Melting and Oil: Countries Stake Claims as World Faces Environmental Disaster
Chukchi Cap
Recent blowout is one of only 18 in Alaska: 18 December 2008
Arctic Governments And Industry Still Unprepared For Oil Spills 20 Years After Exxon Valdez: 19 March 2009
Arctic Oil: A Boon For Nest Predators: 9 September 2009
Low Concentrations of Oxygen and Nutrients Slowing Biodegradation of Exxon Valdez Oil: 18 January 2010
Arctic Voyage Illuminating Ocean Optics 26 July 2010
Alaska’s Arctic Seas: Court Ruling Halts Offshore Lease Sale 27 July 2010
U.S.-Canadian mission set to map Arctic seafloor: 1 August 2010
Chukchi Sea Planning Area: Draft Environmental Impact Statement by Minerals Management Service Volume 1 (pending)
Chukchi Sea Planning Area: Draft Environmental Impact Statement by Minerals Management Service Volume 2
Undiscovered oil resources in the Federal portion of the 1002 Area of the Arctic National Wildlife Refuge: an economic update: 2005-1217 Open-File Report 2005
ALASKA FEDERAL OFFSHORE: Descriptions of Geologic Plays 1995 U.S. Minerals Management Service
Last hope in the last frontier: offshore development key in Alaska.: March, 2007
Digital terrain mapping of the underside of sea ice from a small AUV: 2008

More information which might be of interest to the WWF. This data set consists of upward looking sonar draft data collected by submarines in the Arctic Ocean. It includes data from both U.S. Navy and Royal Navy submarines: Submarine Upward Looking Sonar Ice Draft Profile Data and Statistics

Update 14 August 2010

I have attached a link about the development of riser-less drilling technology. It is about 15 years old, but its use is growing rapidly. With reference to the Statoil article, Statoil has used it on 19 projects, NOT for 19 years, and it probably is not a required method of drilling in Norwegian waters, although I don’t know that for certain. If it isn’t now it probably will be in the near future. The environmental benefits are simply to great not to make it a required drilling technology.

Riserless drilling project develops critical new technology

There are some links in this article that I found amusing, but typical for the ‘oil patch’.

When I first went to work for Shell in the early 1980′s there was a popular bumper sticker in Texas that most people in the rest of the US didn’t quite understand and often found somewhat offensive. It went something like :

‘Please don’t tell my Mother that I work in the Oil Patch, she thinks I still play piano in a New Orleans ‘cat’ (whore) house.’

It always makes me laugh. But it tells you how oil field workers and the industry are often regarded by the rest of American society. The oil industry is not highly regarded. It is generally viewed as being a ‘rape, ruin and run’ industry. Like logging and coal mining. And justifiably so (e.g., Nigeria). BP’s bungling and callous disregard for operational safety hasn’t helped improve the image of the oil industry any.

Attached is a corporate news release from Statoil about them being the first to use riser-less drilling technology in the Gulf of Mexico that they have been using in the North Sea for almost 20 years. The article speaks for itself.

Environmentally friendly drilling solutions in the US

The method is clearly a cost effective drilling technology, and far more ‘environmentally friendly’. I presume the use of this technology is mandatory in the North Sea and Arctic waters of offshore Norway. And I am sure Norske Shell is well acquinted with the technology.

One wonders why the US Dept. of the Interior and MMS and Shell Oil USA, et al, are 20 years behind the Norwegians.

Someone should take a long hard look at the proposed drilling prognoses for the Statoil and Shell exploraton wells in next year’s proposed Chukchi Sea drilling program to see how each operator intends to drill their exploration wells. Any bets that Statoil’s plans are far less polluting that Shell’s.

The WWF might be interested in this. The drilling prognoses should be part of the environmental impact statement filed by each operator.

See the attached link and article. When you read the article you will note that reference is made to ‘ice scouring studies’. These are related to seabed scour by dragging sea ice (the pressure ridge issue I mentioned previously), and are obvious follow up studies to those done in the 1980′s, and perhaps later. The water depths in the locations Shell wants to drill are on the order of 30m – 50m.

Again, the WWF should be interested in these studies. They should determine whether production is, in theory, ‘possible’. These studies should also cover a multi-year period in order to obtain an idea of the variability in ice pack characteristics

Duo get greenlight for Chukchi surveys: 9 August 2010

Attached is a link to DOI’s list of EIS’s for Alaska. You might want to post this link in one of those articles. There are a host of them.

http://alaska.boemre.gov/ref/EIS_EA.htm

Alaska Petroleum Reserve lease sale disappoints: 11 August 2010

BP spill may cause sea change for energy industry

latimes.com

The massive leak is complicating the belief that the Gulf of Mexico is the nation’s best source of oil and natural gas. Experts predict that production will slow while regulation and deep-water drilling costs will increase.

The BP disaster has complicated the view that the Gulf of Mexico is America’s best source of crude oil and natural gas. Above, workers on an idle oil rig off the coast of Louisiana. (Lee Celano, Reuters / August 10, 2010)

By Ronald D. White, Los Angeles Times August 14, 2010

Not long ago, federal officials were hailing the Gulf of Mexico as America’s best source of future crude oil and natural gas.

But the disastrous BP oil leak has complicated that view and may have a greater effect on the energy industry than any incident since the 1969 Santa Barbara oil spill, which led to the Environmental Protection Agency and a 27-year moratorium on most offshore drilling.

Experts predict that energy production will slow and regulation will increase along with the cost of drilling in deep water. Better technology will have to be developed. New projects may require rigorously tested emergency plans. Government oversight will be overhauled.

“The days of easy oil are over,” said Michael Klare, program director at the Institute for Policy Studies in Washington. “Only the tough crude remains, in unfriendly parts of the world or in difficult places where the technology and the regulations have not caught up. There are bound to be greater risks.”

The least powerful industry players have been the first affected by higher costs and added restrictions, such as the federal government’s temporary moratorium on new deep-water drilling, experts said.

“Small oil companies and drillers will go out of business, and insurance rates for companies will skyrocket faster than healthcare costs,” said Phil Flynn, an analyst for PFGBest Research.

Diamond Offshore Drilling Inc. has moved two deep-water drilling rigs out of the Gulf of Mexico to more hospitable waters, citing the uncertainty of continued deep-water drilling in the gulf. Industry experts say the Houston company was the first to act, but it won’t be the last.

As production from older, shallow-water wells continues to decline, what remains, according to federal government estimates, is the oil that drillers hope to find in waters as deep as 9,900 feet, or nearly twice the depth of the site of the current oil spill. Federal officials had expected that new wells would reverse the production decline and that records would be set for the amount of oil extracted.

“The Gulf of Mexico is one of the single largest suppliers of oil and gas to the U.S. market,” Lars Herbst, Gulf of Mexico regional director for the federal Minerals Management Service, said last year as he unveiled a report forecasting a bright future for gulf production. “With continued interest and activity in deep-water areas of the Gulf of Mexico, we anticipate that oil production will continue to be strong with a large portion of production coming from projects in deeper water depths.”

Since that optimistic assessment, much has happened, including an overhaul of the Minerals Management Service amid withering criticism of the agency’s failure to adequately oversee oil and gas drilling in federal waters.

Congress is considering far-reaching legislation that would impose new environmental safeguards on offshore drilling, repeal oil-industry-friendly provisions of energy policy, hit producers with a new tax to fund conservation programs and eliminate the $75-million liability cap on economic damages from oil spills.

The legislative push has the industry worried.

“The accident in the Gulf of Mexico has shown us that we need to focus on safety and environmental protection,” said Jack Gerard, chief executive of the American Petroleum Institute, an oil industry trade group. “But legislative proposals that would make domestic resources unavailable or uneconomic, instead of focusing on improving safety, must be turned aside. Millions of families, thousands of products and hundreds of industries across the country depend on reliable and affordable oil and natural gas every single day.”

Some oil executives, such as BP’s Robert W. Dudley, who will take over as chief executive of the company Oct. 1, say that the disaster has changed the industry forever.

“There’s no question, the company, both BP and the industry, will need to change and fully understand the capability of rig systems equipment to be able to operate in these areas, and I think that’s the area that you’ll see a changed BP and a changed oil and gas industry globally,” Dudley said.

New requirements and heightened costs will cover every segment of exploration and production, including the equipment used in emergencies, experts say. Drillers and regulators will demand better designed, more expensive equipment, with backup protections built in.

The gulf catastrophe also is expected to bring more rigorous safety rules and extensive emergency plans, including ways to remotely shut down broken wells. The Interior Department has already proposed a requirement of certification by a professional engineer and “at least two independently tested” blowout preventers “before beginning any new drilling operations using either a surface or subsea blowout preventer.”

Deciding to take the initiative rather than wait for federal regulators to set new conditions, Exxon Mobil Corp., ConocoPhillips, Chevron Corp. and Royal Dutch Shell have committed $1 billion to start an emergency oil spill program with strike teams and equipment that could be on the way to an accident within 24 hours.

Even without more accidents, insurance costs will escalate for any oil company not large enough — like BP — to self-insure, experts said.

“The oil industry did this kind of well hundreds of times without a problem,” said Brian Youngberg, an analyst with Edward Jones & Co. in St. Louis, noting that BP’s Thunder Horse field is the biggest oil producer outside of Alaska and sits in even deeper gulf waters.

Youngberg worries that costs will rise so high that oil companies will look for less expensive opportunities for offshore drilling outside of the gulf.

“If that happens, it will be very detrimental to oil supplies here and it will push up the price of oil tremendously,” Youngberg said.

That increase, experts say, eventually would trickle down to motorists and other end users.

Another casualty of the BP accident was public confidence.

“The industry proved that they cannot be trusted,” said Tyson Slocum of Public Citizen, the Washington consumer advocacy group. “Not a single company operating in the gulf had a realistic plan for dealing with a catastrophic blowout. The industry failed to deliver. They can only blame themselves for what must come now.”

ron.white@latimes.com

Copyright © 2010, Los Angeles Times

LA TIMES ARTICLE

Corrib gas consultants apologise for omitting data on pipeline route

The Irish Times – Wednesday, July 28, 2010

LORNA SIGGINS Western Correspondent

CORRIB GAS project consultants have apologised for omitting material submitted to An Bord Pleanála as part of its new pipeline route application.

RPS Consultants have written to a number of appellants explaining that some data was omitted from the environmental impact statement.

An Bord Pleanála told The Irish Times yesterday that it was contacted by the consultants, and it believed at this stage it should not delay the resumed oral hearing, set for August 24th, into the last section of pipeline.

The consultants state that the “inadvertent administrative oversight” is “deeply regretted” and has been rectified. The material refers to habitat sheets, designated sites, bird figures and fauna figures. Some of it was in the documents, but misplaced, while the fauna figures were omitted altogether, according to RPS.

The material, which has been reissued, supports Shell E&P Ireland’s revised application to tunnel its last section of pipeline under Sruwaddacon estuary, a special area of conservation.

This last section will link the landfall at Glengad to Ballinaboy terminal.

The developers say it is 234m away from the nearest occupied house – almost three times the distance of the original route.

Shell has also applied to An Bord Pleanála for compulsory acquisition orders to 10 pieces of land at Glengad/Dooncarton, Aughoose and Bellagelly South, under section 40 of the Gas Act.

Pobal Chill Chomáin community group spokesman John Monaghan said he was “disappointed” this issue only came to light shortly before the final deadline for submissions to the board on the new application. Submissions must be with the board by today.

“This may be a genuine error, but the developers are always telling us that errors cannot happen,” Mr Monaghan said.

Up to half of a previous “modified” pipeline route was deemed by the board to be unacceptable on safety grounds, due to proximity to housing.

In a separate development, the Corrib gas partners, including Shell EP Ireland, have said responsibility for the Corrib gas field wells “has been clarified”.

It was commenting on e-mails leaked to the royaldutchshellplc.com website run by father and son Alfred and John Donovan, which indicate Shell staff concerns about there being “no clear ownership” of the Corrib wells.

Responsibility for subsea structures is a serious issue after the BP oil spill in the Gulf of Mexico. The Corrib gas partners said the technical integrity of five Corrib well fields had been “regularly monitored and assured”.

SOURCE ARTICLE