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Posts from ‘June, 2011’

Shell, Rosneft in talks for Russian arctic

Published: June 1, 2011

THE HAGUE, Netherlands, June 1 (UPI) — Royal Dutch Shell said Russian oil company Rosneft was interested in jointly exploring the hydrocarbon potential in Russia’s arctic waters.

Shell Chief Executive Officer Peter Voser said following talks with Rosneft last week that both could look at “a multitude” of opportunities in the Russian arctic. Some of the blocs included in the talks had been set aside by Rosneft for British energy company BP, the Financial Times reports.

A proposed $16 billion deal between Rosneft and BP from January collapsed last month after TNK-BP, a joint venture between BP and four Russian billionaires, interrupted the measure after claiming it violated the shareholder agreement with its British counterparts.

Voser was quoted as saying it was still “too early to say” what would happen with any future Rosneft partnership, however.

Rosneft and Shell under the terms of a 2007 agreement could outline individual projects in the arctic. Shell said it wasn’t interested in an asset swap, however.

Rosneft in May had said negotiations between the Russian billionaires and BP resulted in the company receiving proposals that went “beyond the scope” of the original January proposal.

SOURCE ARTICLE

Shell adverts being investigated

June 1 2011 at 04:15pm

The Advertising Standards Authority is investigating whether Royal-Dutch Shell advertisements about hydraulic fracturing are misleading and untruthful, the Treasure Karoo Action Group (TKAG) said on Wednesday.

Shell had run the full-page advertisements in national weekly newspapers and had distributed flyers at its service stations, TKAG national co-ordinator Jonathan Deal said in a statement.

This, after the Cabinet declared a moratorium on all applications for licences to conduct hydraulic fracturing in the exploration of shale gas reserves in the Karoo.

Fracturing, also known as fracking, involves pumping a high pressure mixture of water, sand and chemicals into the shale bed to break apart underground shale rock and extract the gas.

In a live debate with Deal in Cape Town, Shell SA Energy Limited’s chairman and vice president Bonang Mohale said there had never been “a single case of groundwater contamination resulting from fracturing”.

“This is clearly not the truth,” Deal said.

He said Shell claimed on its website that: “The fluids injected into the rock consist of more than 99 percent water and sand, with a small amount of additives similar to those found in household products.”

In its advertisement, Shell said: “We also commit to disclosing fracturing fluids at each drilling location.”

However, in the public debate, Shell would not reveal what those chemicals were, Deal said.

“The violations of environmental regulations by Shell, the self-proclaimed market leader in hydraulic fracturing, are a matter of fact,” he said.

“… No reasonable person can possibly argue that hydraulic fracturing is safe and poses no risk to the environment.

“Shell has been economical with the truth. South Africa has been misled.”

Shell was not immediately available for comment.

Proposals have been made by Shell, Falcon Oil and Bundu Oil and Gas to explore shale gas deposits in the Karoo.

However, after pressure from environmentalists, farmers, scientists and citizens, Mineral Resources Minister Susan Shabangu placed a freeze on applications for rights to explore for shale gas until her department has formulated a policy.

Many argued that fracking would impact negatively on ground water and surface water resources in the Karoo.

Last month, French legislators voted to ban fracking and while a study published in the United States found no sign that fracking chemicals were polluting the water supply, it found evidence that gas leaked from shale wells into drinking water. – Sapa

SOURCE ARTICLE

Law suit claims benzene leaks caused fatal leukemia

Late teacher’s estate sues oil companies

May 30, 2011 11:44 PM

The Telegraph

EDWARDSVILLE – The estate of a beloved Roxana School District teacher and administrator, who died of leukemia in early 2008, is suing Shell Oil Co. and BP Products North America, claiming leaks from their refinery caused her illness.

Jeffry Ochs, special administrator of the estate of Debra Ochs, is suing on his own behalf, as the victim’s husband, and on behalf of their minor child, Annika Ochs.

The lawsuit filed in Madison County Circuit Court claims that while Debra Ochs was visiting her grandparents in South Roxana and while serving as a teacher and principal at Central Elementary School, she was “exposed to and inhaled, ingested or otherwise absorbed benzene, which was emitted, leaked, spilled, dumped and otherwise discharged into the air, and surface/groundwater by defendants.

“Benzene is a highly toxic chemical and is classified as a human carcinogen. Benzene exposure has been linked to certain blood cancers, including acute myelogenous leukemia,” the suit claims.

Debra Ochs died of acute myelogenous leukemia Jan. 8, 2008, after a five-year battle with the disease.

She was a teacher, principal and curriculum director in the Roxana School District from 1993 until she died.

Colleagues said she will always be remembered for her courage in fighting the disease and in fighting for the children.

Her story was told in the publication, “Hope,” published by the Alvin J. Siteman Cancer Center in St. Louis.

During her hospital stay, Ochs participated in a pioneering research project – a collaborative effort between Siteman and Washington University’s Genome Sequencing Center that is supported by an $11 million grant from the National Cancer Institute.

Roxana faculty, staff and friends planted a memorial oak tree and bench near the school in her memory.

The suit claims both oil refining companies owned and operated the refinery during the time Ochs stayed or worked near that location.

Plaintiffs claim that defendants had the knowledge that benzene is toxic and may cause cancer, but negligently built, maintained, managed and operated the Wood River facilities.

The suit claims thousands of pounds of benzene were discharged into the air and ground water.

“The release of benzene from the Wood River facilities occurred throughout the time of their operation, causing a plume of benzene-containing pollutants to extend beyond the boundaries of the Wood River facilities and into the adjoining neighborhoods and community,” the suit claims.

The plaintiffs claim the defendants failed to exercise ordinary care in failing to prevent the harmful effects of the alleged leaks.

The suit includes three counts, asking for at least $50,000 in damages on each count. It asks for damages for the loss of Debra Ochs, emotional support and so forth, and for the pain and suffering she endured as a result of the cancer.

The suit was filed on Jan. 20.

BP has filed an answer denying the allegations or claiming it lacks sufficient knowledge of many of them, such as Debra Ochs’ illness.

The firm acknowledges certain levels of benzene exposure are hazardous, but denies causing Debra Ochs’ cancer.

“BPNA’s operations were at all relevant times conducted in accordance with the then-existing state of the art in conformity with the generally recognized state of technological and scientific knowledge existing at the time of the operations at issue,” the answer claims.

The company also states it acted with due care in accordance with the law.

Shell has not filed an answer. A company spokesman could not be reached for comment.

The problem of refinery emissions in Roxana has come into sharper focus recently as the Illinois Environmental Protection has been digging test wells and taking other actions to detect possible leaks in the area.

State officials said they have detected some emissions recently, but they have downplayed the level and danger of those emissions.

An IEPA official said the agency has been closely monitoring the area around the plant since a benzene release in 1986, when the plant was owned by Shell Oil Co.

Shell has agreed to pick up the tab for the monitoring, because that company was the owner during the 1986 benzene release. Benzene is a component of gasoline but is toxic and may cause cancer.

IEPA officials said there is benzene in the soil around the plant, but it is 40 to 45 feet below the surface.

Shell announced the increased monitoring in 2009. The company said it would check for benzene, which was released from an underground pipeline in 1986.

A total of 8,400 gallons of benzene leaked from the pipeline in 1986. That line extended from the plant to barge loading facilities on the Mississippi River, along a route parallel to Rand Avenue.

The underground pipeline was abandoned and replaced with an above-ground section of pipe.

sanfordschmidt@yahoo.com

SOURCE ARTICLE

Shell is sure of its future investment in the North Sea

mark williamson QATAR

1 Jun 2011

THE chief executive of Shell said the North Sea was still important for the oil and gas giant, which could invest in the province for decades to come.

Peter Voser reiterated Shell’s concerns that the controversial Budget tax hike could make some small developments unviable.

However, he said the company would still go ahead with big investments in the kind of bumper projects that could generate the returns it targets.

Asked where the North Sea fit with Shell’s strategy, Mr Voser said: “It’s an important area for us still.

“Because of the new tax we see smaller and more mature (projects) being challenged on the profitability point of view but we see the two bigger projects going ahead, and they are multibillion projects.”

FULL ARTICLE

Blackpool Rocked

Blackpool Shale Gas drilling suspended after quake

31 May 2011

Shale gas test drilling in Lancashire has been suspended following an earthquake on the Fylde coast.

Cuadrilla, the firm behind the tests, said drilling had been suspended as a precaution after the 1.5 magnitude tremor – the second in two months.

It will now examine the data collected by the British Geological Survey (BGS) before deciding whether to resume.

A tremor centred on Poulton-le-Fylde on 1 April shared a “similar location and mechanism”, the BSG said.

Shale gas drilling, known as “fracking”, involves shattering hard shale rocks underground to release gas using either hydraulic pressure or tiny explosions.

Mark Miller, chief executive of Cuadrilla Resources, said: “We take our responsibilities very seriously and that is why we have stopped fracking operations to share information and consult with the relevant authorities and other experts.

“We expect that this analysis and subsequent consultation will take a number of weeks to conclude and we will decide on appropriate actions after that.”

‘Quake risk’

The process has proved controversial in the US with environmentalists alleging that shale gas leaking into their drinking supply causes tap water to ignite.

But earlier this month the Commons energy select committee called on ministers to support the process in the UK arguing that environmental problems associated with it in the US could be overcome by tight regulation and good industry practice.

The BGS said it was also monitoring fracking as a precaution. There have been two small earthquakes in Lancashire since fracking began in the county in March, including the latest on Friday.

In an analysis of the April quake published on its website the BGS said: “Any process that injects pressurised water into rocks at depth will cause the rock to fracture and possibly produce earthquakes.

“It is well known that injection of water or other fluids during the oil extraction and geothermal engineering, such as Shale gas, processes can result in earthquake activity.”

The BGS said the April tremor took place 1.2 miles (2km) away from the drilling site but said its monitoring instruments were 50 miles (80km) away.

Speaking about the latest quake, Dr Brian Baptie, head of seismology at the BGS, said: “The earthquake was felt by at least one person in Poulton-Le-Fylde.

“Our analysis places the epicentre of the event to within 2km of the Preese Hall site.

“Data from two temporary instruments close to the drill site, installed after the magnitude 2.3 earthquake on 1 April, indicate that the event occurred at a depth of approximately 2km (1.2 miles).

“The recorded waveforms are very similar to those from the magnitude 2.3 event last month, which suggests that the two events share a similar location and mechanism.”

SOURCE BBC NEWS ARTICLE