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Posts from ‘May, 2011’

Shell’s intent to lean on the Financial Times

By John Donovan

This is the first story arising from the 2010 crop of Shell internal communications Shell was legally obliged to supply to us following a further application under the Data Protection Act.

It provides evidence of Shell’s intent to lean on a major newspaper publisher in connection with an article published on this website: royaldutchshellplc.com.

Previous Shell internal emails provided proof of Shell’s intent to pressurize The Sunday Times to “kill” a story about us and our website. The half-page article which revealed how our intervention in the Sakhalin2 project had cost Shell £11 billion was read to me over the telephone by the Sunday Times journalist, but the story was killed hours before publication It contained an interview with the so-called Kremlin Attack dog, Oleg Mitvol, who confirmed our pivotal role and made a most unflattering comment about Shell management.

This time the FT.com was the target of Shell’s censorship ambitions.

The FT sent an email to Shell on 27 July 2010 containing article links published on “The Energy Source” – an FT.com feature. One link was to an article we published on 26 July 2010 under the headline: “A close call for Shell on North Sea platform.

The article criticized Shell and its CEO, Peter Voser.

That single article link on FT.com sparked the following email correspondence involving Shell.

Some information has been redacted by Shell.

From:
Sent: 27 July 2010 16:39

To:

Subject: FW: Energy Source

Voices from the past.

If you look in the attached you will see that Mr Donovan has managed to get FT.com to refer to his website as if it was a respectable source.

This really irritates me and gives him undeserved credibility. Has shell tried to do anything with the FT? If not or it has not worked I could have a go with

Best wishes,

Tel:                        Fax:
Mobile:

RESPONSE

From:
Sent: 27 July 2010 17:17

To:

Subject: RE: Energy Source

I will find out from the media people what we have done to try to engage with the FT on this. Incidentally, you should be aware that Donovan has access to most of the emails written to and from Shell about him through his regular Data Protection Act requests.

Regards


Royal Dutch Shell plc

Shell Centre, London SE1 7NA
Registered in England and Wales number 4366849

Registered Office: Shell Centre, London, SE 1

Headquarters: Carel van Bylandtlaan 30, 2596 HR
The Hague, The Netherlands

I assume that the response was sent by Richard Wiseman (Chief Ethics & Compliance Officer – now retired), the official then designated within Shell to deal with all matters relating to us.

I note the warning in the response, that “Donovan has access to most of the emails written to and from Shell about him…” According to the Data Protection Act, I should have access to ALL emails written to and from Shell about me.

If it was Mr Wiseman, he failed to inform the other party that I had been in email correspondence with him a few days earlier inviting Shell to point out any inaccuracies on the basis that they would then be deleted from the article. I also invited Shell to supply for unedited publication with the article, any comments it wished to make. Shell decided not to take up either invitation. The correspondence was published as part of the article.

I do not know of any other publisher that would bend over backwards to ensure accuracy and provide an opportunity for unedited comment by Shell to be published with an article.

It is ironic that we do not receive due credit from people who have the breathtaking audacity to accuse us of not being respectable, while they once again conspired behind the scenes to lean on another global news organization. It is amazing that Shell should lower itself to act in this manner.

The email exchanges reveal the fear which Shell has for this site. It is well placed, as will shortly become even more evident.

Shell to submit new Arctic offshore drilling plan

2 April 2011

ANCHORAGE, Alaska (AP) — Shell Oil will apply to drill 10 wells off Alaska’s Arctic shore over the next two years under exploration plans headed to federal authorities.

The company hopes to see results from a $3.5 billion investment into Arctic Ocean drilling that has been thwarted in recent years by court challenges or inability to obtain federal permits.

“Maybe four times is a charm,” said Pete Slaiby, Shell Alaska vice president, on Monday. “This is our fourth Beaufort Sea exploration plan that has gone down the pike. And next week it will be the second Chukchi exploration plan. We feel that we’ve got pretty good and robust plans.”

Shell Alaska spokesman Curtis Smith said the company will seek permission to drill four wells in the Beaufort Sea off Alaska’s north shore and six in the Chukchi Sea off the state’s northwest shore using two drilling ships in 2012 and 2013.

Drilling is bitterly opposed by environmental activists and some Alaska Native groups, who say petroleum companies have not demonstrated the ability to clean up a spill in ice-choked waters. Critics contend leases in the Chukchi Sea were auctioned off before proper environmental studies were performed to determine how drilling and the accompanying industrial activity would affect endangered whales and other wildlife — including polar bears, walrus and ice seals.

The stakes are high for both the state of Alaska — where onshore reserves have diminished and the trans-Alaska pipeline now operates at less than one-third capacity — and for the rest of the country looking to lower its dependence on imported oil. But in light of environmental concerns — and last year’s disaster in the Gulf of Mexico — federal regulators are proceeding cautiously.

Federal officials estimate Arctic waters hold 26 million barrels of recoverable oil and 130 trillion cubic feet of natural gas.

Shell obtained leases in the Beaufort Sea off Alaska’s north coast in 2005 and in 2008 spent $2.2 billion on leases in the Chukchi off the state’s northwest coast.

The company had hoped to drill exploration wells in 2010 during the roughly three and a half month open water season in both the Chukchi and the Beaufort but its plans were put on hold by Interior Secretary Ken Salazar after the Deepwater Horizon spill.

Salazar suspended applications for drilling and has said the department will take a guarded approach guided by science and the voices of North Slope communities.

Shell’s 2011 plans called for drilling only in the Beaufort. The company in February dropped those plans. The decision was made after an appeals board of the Environmental Protection Agency said it would review the air permit the agency had granted regarding the effect of emissions from drilling ships and support vessels.

Shell officials have said a catastrophic well blowout similar to last year’s disaster in the Gulf of Mexico is unlikely because its plans mitigate two key contributing factors. Shell intends to drill in shallower waters. Also, company officials expect far less pressure on their wellhead.

Shell submitted a response plan that it says can handle a spill of 504,000 gallons per day — more than double what federal regulators said would be a worst-case discharge from the exploratory wells it has applied for to date.

Smith says the company expects to submit the plan of exploration for the Beaufort on Wednesday and for the Chukchi soon.

Slaiby said Shell’s previous exploration plans already had received the blessing of a federal appeals court and will benefit from lessons learned from the Deepwater Horizon drilling rig at the Macondo Prospect in the Gulf of Mexico.

“We’re building on what we had previously and we have taken and lifted, I think, the right stuff out of the BP Macondo incident and made the plans even more robust,” Slaiby said.

“We really had a good plan that was site specific for Alaska, had looked at things like one-hour response time, and addressed a lot of the issues that folks were saying weren’t available in the Gulf of Mexico.”

He made an analogy to the air transport industry.

“There was a crash,” Slaiby said. “People have looked at what was deficient, and we built upon that. I clearly think that our plan prior was a good plan. Our plan post is a better plan.”

SOURCE ARTICLE

Shell to Seek U.S. Approval to Drill as Many as 10 Oil Wells Off Alaska

By Katarzyna Klimasinska – May 2, 2011 5:44 PM GMT+0100

Royal Dutch Shell Plc (RDSA), which has been blocked from developing leases it holds off Alaska’s Arctic coast, this week will ask the U.S. to approve drilling as many as 10 oil exploration wells by 2013.

The Hague-based company will submit a Alaska Plan of Exploration for 2012 through 2013 to the Bureau of Ocean Energy Management, Regulation and Enforcement, Kelly op de Weegh, a spokeswoman for the company, said today in an e-mail.

“After five years of not being permitted to drill in its 10-year lease blocks, we are now forced to plan on increased activity each year,” she said.

Shell plans for as many as two wells a year in Camden Bay in the Beaufort Sea, and as many as three per year in the Chukchi Sea, she said. A delay in issuing an air permit last year forced the company to postpone exploratory drilling in the Beaufort Sea beyond 2011. Shell’s Beaufort Sea leases expire in 2015.

The New York Times reported Shell’s plans for Alaska yesterday.

– Editors: Steve Geimann, Larry Liebert

To contact the reporter on this story: Katarzyna Klimasinska in Washington at kklimasinska@bloomberg.net;

To contact the editor responsible for this story: Larry Liebert at lliebert@bloomberg.net

SOURCE ARTICLE

Shell to present Alaska deep-water drilling plans to US government

Royal Dutch Shell is pushing ahead with plans for deep-water drilling in Alaska, despite environmental concerns caused by BP’s disastrous spill in the Gulf of Mexico.

The Arctic Ocean region in Alaska reportedly contains enough reserves to provide fuel for 25m cars for 35 years.

Amanda Andrews

By Amanda Andrews 7:05PM BST 02 May 2011

The oil giant will present a detailed proposal to the US federal government this week, asking for its permission to drill up to 10 exploratory oil wells beneath Alaska’s Arctic waters.

The move comes five years after BP’s decaying Prudhoe Bay pipeline spilt 200,000 gallons of oil across Alaska.

The Arctic Ocean region in Alaska reportedly contains enough reserves to provide fuel for 25m cars for 35 years.

President Barack Obama is understood to have requested extra safety assurances about Shell’s plans.

Shell has said it will not drill in Alaska if it cannot do so “safely and responsibly” and said the characteristics of the fields are different to those in the Gulf of Mexico.

It is believed that a spill in the Arctic’s inaccessible waters would be even more damaging than the Gulf of Mexico accident.

A Shell spokesperson said: “Shell remains committed to employing world-class technology and experience to ensure a safe, environmentally responsible Arctic exploration programme.”

Administration officials said in reports from the US that they will review Shell’s new proposal cautiously.

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SOURCE ARTICLE

Controversial film on Corrib Gas pipeline tours the U.S.

Risteard O’Domhnaill’s stunning new documentary, The Pipe, which recently wowed audiences at Boston’s Irish Film Festival, is currently taking in a tour of selected U.S. cities, with upcoming screenings in New York, Chicago and San Francisco.

O’Domhnaill, a news cameraman by trade, has followed the people of the Erris Peninsula, Co. Mayo as they have battled Shell’s encroachment onto their lands. The oil giant is seeking to exploit the Corrib Gas Field, located 80 km off the coast of County Mayo, by pumping unrefined gas 9km inland through an inhabited area to a refinery.

Documenting key players in the struggle over four years, The Pipe premiered at last year’s Galway Film Fleadh and has since won acclaim at film festivals worldwide, most recently winning Best Documentary Feature at the Arizona International Film Festival, and a similar award at Glasgow’s Celtic Media Festival.

Upcoming U.S. screenings include at the San Francisco International Film Festival until May 5th; the Irish American Heritage Center, Chicago on Friday, April 29th; and the New York Public Library for the Performing Arts on Saturday, May 14. For full screening details and links to buy tickets, see thepipethefilm.com.

SOURCE ARTICLE

Shell sued over oil spill in Niger Delta

Royal Dutch Shell has been hit with a class-action lawsuit in London by the Bodo community of Nigeria, which suffered a “devastating” oil spill when a key pipeline burst in the summer of 2008.

The new lawsuit against Shell has been sparked by a leak allegedly coming from the Trans-Niger pipeline, which the community says started flowing into the Bodo creek in August 2008.  Photo: AP

Rowena Mason
By Rowena Mason 7:45AM BST 02 May 2011

The community filed a lawsuit last month at the High Court against both Royal Dutch Shell and Shell Petroleum Development Company of Nigeria, raising the possibility of a drawn-out legal battle for compensation.

More than 69,000 people live in Bodo in the Niger Delta, which has seen 9m to 13m barrels of oil spilt from the pipelines of various companies over the years – more than double the volume of BP’s Gulf of Mexico leak. UN figures show more than 6,800 spills between 1976 and 2001.

Much of those spills has not been cleared up because oil companies face regular attacks on their staff and pipelines by militants who have targeted the industry since 2006. The militants claim Nigerian people do not see enough profit from their natural resources.

The new lawsuit against Shell has been sparked by a leak allegedly coming from the Trans-Niger pipeline, which the community says started flowing into the Bodo creek in August 2008 and continued for four months. Shell claimed it was only made aware of the problem on October 5 that year but the pipeline was not fixed until a month later. There were later reports of a second leak on the pipeline in February 2009.

More than two years later, the Bodo people are still claiming that the livelihoods of fishermen and farmers have been destroyed by the spill.

A report by Amnesty International calls the oil leak “devastating” and says that Shell came to assess the site in spring 2009, when oil was still affecting the land.

“As of May 2009, the site of the spill had still not been cleaned up and there was controversy over the clean-up contract,” the Amnesty report said. “On 2 May 2009, eight months after the spill, Shell staff reportedly brought food relief to the community, which they rejected as inadequate.”

According to Nenibarini Zabbey of the Center for Environment, Human Rights and Development: “Shell Petroleum Development Company officials arrived at the palace of the paramount ruler of Bodo on Saturday 2 May, 2009, and presented as relief materials 50 bags of rice, 50 bags of beans, 50 bags of garri, 50 cartons of sugar, 50 cartons of dry peak milk, 50 cartons of milo tea, 50 cartons of tomatoes and 50 tins of groundnut oil. Given the population, the Bodo people consider the offer by Shell as insulting, provocative and beggarly.”

It is understood Shell has received letters of claim relating to the two alleged oil spills but has not yet been formally served with a writ.

Shell declined to comment on the lawsuit or the Bodo spill but a spokesman said that, in general, “the great majority of spills in the Niger Delta are the result of third party interference, mainly sabotage, theft of equipment or leaks caused by thieves drilling into pipelines or opening up wellheads to steal oil. On average, such third party interference has accounted for more than 75pc of all oil spill incidents and more than 70pc of all oil spilled from Shell facilities in the Delta over the last five years.”

Last year, Shell says it spilt approximately 3,500 tonnes of oil into the Niger Delta. This was down significantly from the 14,000 tonnes of oil spilt in 2009, when military violence in the region was at a peak.

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SOURCE ARTICLE

Shell Tries to Calm Fears on Drilling in Alaska

Children play on empty fuel containers outside of Savoonga, Alaska, where Shell executives have met with local residents to address their concerns.

A version of this article appeared in print on May 2, 2011, on page B1 of the New York edition with the headline: Gulf Spill Casts Shadow Over Shell Plans in Alaska.

By

SAVOONGA, Alaska — Shell Oil will present an ambitious proposal to the federal government this week, seeking permission to drill up to 10 exploratory oil wells beneath Alaska’s frigid Arctic waters.

The forbidding ice-clogged region is believed to hold vast reserves of oil, potentially enough to fuel 25 million cars for 35 years. And with production in Alaska’s North Slope in steep decline, the oil industry is eager to tap new offshore wells.

Shell has led the way, working for five years to convince regulators, environmentalists, Native Alaskans and several courts that it could manage the process safely, protect polar bears and other wildlife, safeguard air quality for residents and respond quickly to any spill in the region. But BP’s Deepwater Horizon disaster a year ago put a chill on new offshore drilling.

Shell’s renewed application will pose a test for President Obama, who promised to put safety first after the BP spill. But he has also reiterated his support for offshore drilling amid voter worries about rising gasoline prices.

Environmental groups say a spill in the Arctic’s inaccessible waters could be even more catastrophic than the Gulf of Mexico accident. Republicans, meanwhile, are threatening to excoriate the president for turning his back on energy security if he says no to Shell.

“Americans are reeling from staggering prices at the pump,” said Representative Cory Gardner, a Colorado Republican on the House Energy and Commerce Committee. “So the president has to justify to the American people why we are not replacing Saudi Arabian oil imports with U.S.-produced oil.”

Whatever the administration decides, it will anger somebody. “If the Obama administration approves drilling in the Arctic, it will demonstrate that they have learned nothing from the gulf spill,” said Brendan Cummings, senior counsel at the Center for Biological Diversity, which is suing to stop Shell.

Administration officials say only that they will thoroughly review Shell’s new proposal. “We need to continue to take a cautious approach in the Arctic that is guided by science and the voices of North Slope communities,” said Kendra Barkoff, a spokeswoman for the Interior Department, which oversees most of the process.

The politics extend as far as Alaska’s remotest villages, where support from Native Alaskans, or at least their acquiescence, is essential to win several permits. With that in mind, Pete Slaiby, Shell’s top executive in Alaska, was glad-handing last week in Savoonga, a village on an island in the Bering Sea. He passed out raffle tickets, bought a trinket and congratulated the Yupik hunters for harpooning two bowhead whales.

One hunter waved a copy of the movie “An Inconvenient Truth,” and launched into an attack on oil as a cause for the warming temperatures that are melting the Arctic ice. Other hunters pressed Mr. Slaiby on concerns that the migrating walruses they depend on for food would suffer from the noise if drilling operations began north of here.

Mr. Slaiby said Shell was concerned about climate change too, and promised that the company would take painstaking precautions to protect wildlife. “We won’t be successful here if we deprive people of their subsistence,” he said. “If the oil companies are doing well and the people living around them are not, it’s a recipe for disaster.”

Shell has already spent $3.7 billion on the 10-year offshore leases and preparations for exploration, although the company has yet to drill a single hole. Shell will formally present its new proposal — to drill up to 10 wells over the next two years in remote waters north of Alaska, in the Chukchi and Beaufort seas — in the next few days. If the plan is approved within nine months or so, exploration could begin next year.

Just as in the past, executives realize they need to fight the battle on multiple regulatory and legal fronts. “It’s like holding a bunch of pins in your hand, and trying to make sure not one drops,” said Brian Malnak, Shell’s vice president of government affairs.

Perhaps the toughest hurdle this year will be convincing the government that Shell could protect the Arctic from a devastating spill. An Interior Department agency recently estimated that a “hypothetical” blowout of an oil well in the Chukchi Sea could release 1.4 million barrels of crude over a 39-day period before a relief well could be drilled. A leak of that magnitude would severely test the capacity of the boats, barges, skimmers and a spill containment tanker that Shell plans to deploy around its rigs, although the company promises to add whatever equipment regulators find necessary.

Shell is proposing to use two drill ships, each capable of drilling a relief well for the other in case of the kind of blowout that destroyed the Deepwater Horizon rig. The company is also promising to add more testing and an extra set of shears to its blowout preventers and to keep emergency capping systems near drilling sites to capture any potential leaks.

Alaska once accounted for a third of the nation’s oil production, but its fields are now in steep decline. The decrease in production threatens the continued safe use of the Trans-Alaska Pipeline System, also known as TAPS, which requires a steady flow of oil to avert corrosion and spills.

The Alaskan Arctic potentially holds 27 billion barrels of oil. “If we could open the Arctic to oil exploration,” said Alaska’s governor, Sean Parnell, “we can fill that TAPS line in a way to preserve it for another 50 to 100 years.” Major production from the Arctic would probably be a decade away, however.

Environmentalists contend that the risks of drilling are too great. They warn that hurricane-force winds, high seas, and frigid cold and ice would make cleaning up a spill far more difficult than in the gulf, and they say that oil operations could disturb migration and reproduction of marine mammals.

“We believe there need to be more spill drills, more testing, more inspections of the drill rig and blowout preventer before they begin,” said Marilyn Heiman, director of the United States Arctic Program of the Pew Environment Group.

In his presentation in Savoonga, Mr. Slaiby said Shell and other companies had safely drilled in Alaska’s Arctic waters in the 1980s and 1990s, without a spill or major damage to wildlife. And he noted that the wells Shell intended to drill here were far shallower than BP’s ill-fated Macondo well, making the possibility of a blowout more remote.

“We’ve never told people that what we do doesn’t entail risk,” Mr. Slaiby said, “but the risks are different from the Gulf of Mexico.”

SOURCE ARTICLE