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Posts under ‘Climate Change’

Oil giants ‘face cascade of claims’

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Robin Pagnamenta Energy Editor: November 7, 2015

An investigation by New York’s attorney-general into ExxonMobil’s record on climate science could trigger a “cascade” of similar claims against other oil companies, including Britain’s BP and Royal Dutch Shell, legal experts have warned.

Prosecutors might seek to investigate other companies that helped to fund organisations that queried climate science, such as the Global Climate Coalition, of which BP and Shell were members during the 1990s, they said.

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Shell says $60-$80 carbon price needed to justify carbon storage

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Screen Shot 2015-10-28 at 08.03.29Nov 6 2015, 16:59 ET | By: Carl Surran, SA News Editor

Royal Dutch Shell (RDS.A, RDS.B) unveils a $1.3B carbon capture storage project for Alberta, but says future efforts to curb greenhouse gases will continue to need financial support from governments.

Shell CEO Ben van Beurden says carbon capture and storage projects need a $60-$80 price for carbon dioxide to justify building them, more than 5x the current price of C$15/ton (US$11.27) in Alberta.

Shell’s Quest facility will extract 1M tons of the gas from its Scotford refinery each year, and the carbon dioxide will be injected into an underground saline formation ~50 miles from the plant – it is the first in North America to store CO2 in a deep saline formation.

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Exxon Inquiry Both Mirrors and Contrasts With Tobacco Industry Case

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By JOHN SCHWARTZNOV. 6, 2015

The New York attorney general’s decision to investigate Exxon Mobil over whether the company lied to the public and investors about the risks of climate change has raised questions about possible similarities to the Justice Department’s successful suit against the tobacco industry in 1997.

The new case has reprised the famous question from Watergate — What did they know, and when did they know it? — which also was an important element of that tobacco lawsuit.

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Citing Climate Change, Obama Rejects Construction of Keystone XL Oil Pipeline

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President Obama is the first world leader to reject a project because of its effect on the climate,” said Bill McKibben, founder of the activist group 350.org, which led the campaign against the pipeline. “That gives him new stature as an environmental leader, and it eloquently confirms the five years and millions of hours of work that people of every kind put into this fight.”

By CORAL DAVENPORT: NOV. 6, 2015

WASHINGTON — President Obama announced on Friday that he had rejected the request from a Canadian company to build the Keystone XL oil pipeline, ending a seven-year review that had become a symbol of the debate over his climate policies.

Mr. Obama’s denial of the proposed 1,179-mile pipeline, which would have carried 800,000 barrels a day of carbon-heavy petroleum from the Canadian oil sands to the Gulf Coast, comes as he seeks to build an ambitious legacy on climate change.

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Keystone rejection tied to climate inaction frustration-Shell CEO

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Markets | Fri Nov 6, 2015 3:38pm EST

By Mike De Souza

Nov 6 (Reuters) – The U.S. rejection of the proposed Keystone XL pipeline was driven in part by protesters who are increasingly frustrated with inaction on climate change, Royal Dutch Shell Plc Chief Executive Ben van Beurden said on Friday.

Speaking at the launch of Shell’s new carbon capture and storage project in Alberta, the first Canadian project of its kind in the oil sands industry, van Beurden said anti-fossil-fuel movements are growing because of anxiety and resentment about a failure to reduce greenhouse gas emissions.

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Exxon Mobil Investigated for Possible Climate Change Lies by New York Attorney General

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Mr. Schneiderman’s decision to scrutinize the fossil fuel companies may well open a new legal front in the climate change battle. The Exxon inquiry might expand further to encompass other oil companies…

By JUSTIN GILLIS and CLIFFORD KRAUSSNOV. 5, 2015

The New York attorney general has begun an investigation of Exxon Mobil to determine whether the company lied to the public about the risks of climate change or to investors about how such risks might hurt the oil business.

According to people with knowledge of the investigation, Attorney General Eric T. Schneiderman issued a subpoena Wednesday evening to Exxon Mobil, demanding extensive financial records, emails and other documents.

The investigation focuses on whether statements the company made to investors about climate risks as recently as this year were consistent with the company’s own long-running scientific research.

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Shell Canada carbon capture likely last to get Alberta subsidies

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Screen Shot 2015-09-17 at 07.55.40CALGARY, ALBERTA | BY MIKE DE SOUZACommodities | Thu Nov 5, 2015 9:01pm GMT

Royal Dutch Shell’s launch on Friday of Canada’s first oil sands project to capture and bury carbon emissions – assisted by generous public subsidies – will likely be the last to get such funding, the Alberta government said this week.

The left-leaning New Democratic government of the energy-rich Western Canadian province, home to the country’s controversial oil sands, said it no longer plans to fund future efforts using the technology.

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Shell describes Arctic drilling project as a good prospect that just didn’t work out

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Screen Shot 2015-11-03 at 08.42.45Associated Press: Nov. 3, 2015

LONDON (AP) — Royal Dutch Shell CEO Ben van Beurden says the company will reflect on its decision to consider drilling off the coast of Alaska but voiced his regret that the prospect couldn’t be made to work out.

Van Beurden told reporters Tuesday as Shell updated its strategy that it would examine the decision to pursue offshore drilling in Arctic waters. Shell reported a third-quarter loss of $7.4 billion last week as it re-organized and cancelled projects, including drilling in Alaska amid sharp drops in the price of oil.

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Shell leaves door open for future exploration in Alaska’s Arctic

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Jennifer A. Dlouhy | Houston Chronicle: November 2, 2015

Screen Shot 2015-11-03 at 08.42.45WASHINGTON — Shell is walking away from oil exploration in Arctic waters north of Alaska, but it isn’t ready to close the door completely.

Disappointing results from a critical test well at the company’s Burger prospect in the Chukchi Sea, combined with the high costs of developing the region and an “unpredictable regulatory environment,” have prompted Royal Dutch Shell to cease Alaska offshore exploration “for the foreseeable future,” CEO Ben van Beurden told reporters Thursday.

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Even as it walks away from Arctic drilling, Shell keeps door open for future work

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Screen Shot 2015-10-05 at 14.03.31Posted on October 29, 2015 | By Jennifer A. Dlouhy

WASHINGTON — Shell is walking away from oil exploration in Arctic waters north of Alaska, but it isn’t ready to close the door completely.

Disappointing results from a critical test well at the company’s Burger prospect in the Chukchi Sea, combined with the high costs of developing the region and an “unpredictable regulatory environment” have prompted Royal Dutch Shell “to cease further exploration activity offshore Alaska for the foreseeable future,” CEO Ben van Beurden told reporters Thursday.

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US Follows Royal Dutch Shell plc Backs Away From Arctic Drilling

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By: Micheal KaufmanOct 19, 2015

The US Interior Department announced on Friday that it will cancel the auction of 2016 and 2017 natural gas and offshore oil leases in the Arctic Ocean. The auction was scheduled under the Department’s current five-year Chukchi Sea leasing program for 2012–2017. The division cited low crude oil prices and lack of interest from oil companies as the main reason behind its decision.

This news comes a few weeks after Royal Dutch Shell plc (ADR) (NYSE:RDS.A) withdrew its Arctic drilling plan. The oil giant had spent $7 billion for the Arctic campaign. It said last month that it has dropped its exploration and production (E&P) activities in the Burger prospect of the Chukchi Sea, as it found few traces of oil and natural gas in the region. The company was not satisfied with the drilling results; it had initially expected huge amount of oil traces in the Ocean. Shell has dropped all future plans of Arctic drilling for the foreseeable future.

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U.S. Cancels Remaining Arctic Oil Lease Sales Under Obama

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Brian Wingfield and Joe Carroll: BLOOMBERG.COM: 17 October 2015

The U.S. Interior Department effectively halted drilling off Alaska’s coast for the remainder of President Barack Obama’s term by canceling two sales of Arctic oil and gas leases.

The decision comes less than a month after Royal Dutch Shell Plc said it would indefinitely cease exploration in the region as the company didn’t find sufficient quantities of oil or gas in a Chukchi Sea drilling zone.

“In light of Shell’s announcement, the amount of acreage already under lease and current market conditions, it does not make sense to prepare for lease sales in the Arctic in the next year and a half,” Interior Secretary Sally Jewell said in a statement on Friday.

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US curbs Arctic offshore oil and gas drilling

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The US government has announced new curbs on oil and gas exploration in Arctic waters off Alaska’s northern coast.

It comes after oil giant Royal Dutch Shell last month stopped its Arctic activity citing “disappointing” tests.

The US interior department said it was cancelling two potential Arctic offshore lease sales and would not extend current leases.

The announcement has been welcomed by environmentalists.

Miyoko Sakashita, of the Center for Biological Diversity, said the decision was “great for the Arctic and its polar bears”.

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U.S. Blocks Alaskan Arctic Drilling for 2 Years

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Screen Shot 2015-10-05 at 14.03.31By CLIFFORD KRAUSSOCT. 16, 2015

HOUSTON — The Obama administration shut the door Friday on drilling in Alaska’s Arctic Ocean over the next two years, canceling auctions for drilling rights in the Chukchi and Beaufort seas.

The decision by the Interior Department was not surprising because it came less than a month after Shell Oil canceled the most advanced exploration project in the region because of disappointing results from a test well and high costs at a time when oil prices are extremely low.

Still, the announcement is symbolically important as the administration steps back from its cautious support of drilling in the Arctic.

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Big Oil’s Murky Climate

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Big Oil truly is facing a conundrum of biblical proportions

Liam Denning: Bloomberg.com: October 16, 2015

Big Oil is getting religion — sort of.

Ten major oil companies including Royal Dutch Shell, BP and Saudi Aramco declared on Friday that they totally get the climate change thing and would support measures aimed at preventing it. 

Yet, without committing to the most obvious measure to encourage fundamental change — namely, widespread carbon pricing — you could say the Oil and Gas Climate Initiative has taken a leaf from St. Augustine: yearning to be pure, just not quite yet.

The announcement comes ahead of December’s UN climate conference in Paris and not long after a more modern cleric, Pope Francis, took his call for greater efforts to curb carbon emissions directly to Congress.

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BP plc, Royal Dutch Shell And Others Declare Joint Action On Climate Change

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Screen Shot 2015-10-16 at 22.05.20By: Micheal Kaufman: Oct 16, 2015 

Global warming over the past few years has become a major issue. Companies around the world keep on pumping and burning record levels of conventional fossil fuels. Burning of fossil fuels leads to carbon emissions, which are highly detrimental for the environment. Activists have now have taken a stern hand regarding pollution and are urging companies to adopt safer cleaner fuels. President Barack Obama recently also stressed upon the importance of using alternatives, such as natural gas, which are safer for the environment.

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The risks of wildcatting in the Arctic

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Screen Shot 2015-10-05 at 14.03.31A former Shell Oil executive and catastrophic risk expert on the nightmare scenario when oil and ice mix.

by Lauren Ellis @lauren_jellis: October 15, 2015

Two drill vessels officially left Arctic waters after Royal Dutch Shell announced that the company would cease exploration in the Chuckchi and Beaufort seas. After a $7 billion investment and a standoff with kayaktivists, Shell cited a “disappointing exploration outcome,” meaning there’s oil in the Arctic, but not enough where they drilled to justify the cost. It’s a classic industry gamble called wildcatting: oil companies invest in an unexplored area hoping to strike black gold in the hidden reservoirs thousands of feet below the surface.

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Shell’s drilling vessels leave Arctic waters after company ends oil exploration off Alaska

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Screen Shot 2015-10-05 at 14.03.31DAN JOLING: Associated Press: Oct. 13, 2015

ANCHORAGE, Alaska (AP) — Two drill vessels employed by Royal Dutch Shell PLC off Alaska’s northwest coast have safely departed Arctic waters for the Pacific Northwest.

The 572-foot Noble Discoverer, owned by Noble Drilling U.S. LLC, reached Dutch Harbor in the Aleutian Islands on Sunday afternoon. After a Coast Guard inspection, the vessel departed Monday for the Port of Everett in Washington state, Shell spokesman Curtis Smith said.

The Polar Pioneer, owned by Transocean Ltd., reached Dutch Harbor on Monday afternoon. Two tug boats accompanying the semi-submersible drilling vessel, the Ocean Wind and Ocean Wave vessel, planned to refuel and change crews. The Polar Pioneer will be towed to Port Angeles, Washington.

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Shell Is Reeling After Pulling Out of the Arctic

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Screen Shot 2015-10-04 at 09.03.21BY ANTONIA JUHASZ / OCTOBER 13, 2015

Earlier this month, Shell’s tumultuous Arctic drilling campaign came to an abrupt and costly end. In a written statement, the company announced the cessation of its offshore Alaska activities “for the foreseeable future”—at a loss of billions of dollars. This both stunned and thrilled critics, many of whom worried that the seven-year effort to stop Shell was dead in July, when the Obama administration approved the company’s permits to drill.

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Shell’s Arctic drill rigs make final Alaska stop

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Screen Shot 2015-10-05 at 14.03.31Laurel AndrewsOctober 12, 2015

Two weeks after announcing the end of its Arctic offshore oil exploration program, Royal Dutch Shell’s Noble Discoverer drillship left Dutch Harbor Monday afternoon, the last planned stop in Alaska as it heads to the Pacific Northwest.

The company’s second drilling rig that had arrived in Alaska this summer, the Transocean Polar Pioneer, is close behind.

The Noble Discoverer arrived in Dutch Harbor Sunday, said Shell Alaska spokesperson Megan Baldino. During the stop, both rigs had a crew change and resupply of fuel and groceries.

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Alaska mulls extra oil drilling to cope with climate change

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By Matt McGrath: Environment correspondent, BBC News, Alaska: 12 Oct 2015

Expanding the search for oil is necessary to pay for the damage caused by climate change, the Governor of Alaska has told the BBC.

The state is suffering significant climate impacts from rising seas forcing the relocation of remote villages.

Governor Bill Walker says that coping with these changes is hugely expensive.

He wants to “urgently” drill in the protected lands of the Arctic National Wilderness Refuge to fund them.

Alaska has been severely hit by the dramatic drop in the price of oil over the past two years.

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Environmentalists ramp up resistance to big oil

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Screen Shot 2015-10-05 at 14.03.31Environmental groups have become emboldened by their perceived triumph over Shell in the Arctic, in which they refined new tactics. What impact might this decision have on the future green movement in the United States?

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Environmental organizations celebrated when Royal Dutch Shell announced it was halting oil and gas explorations in Alaska’s Chukchi Sea “for the foreseeable future.” Activists heralded the move as an unprecedented victory for their campaign to stop drilling: They managed to shut down a fossil fuels project, they claimed.

However, the oil giant is adamant that environmental groups played no role in its decision to leave the Arctic. A spokesperson confirmed to DW that the company withdrew for economic and legislative reasons, stating that the Burger J well didn’t contain enough oil to develop a viable commercial project.

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UNESCO sees bright side to Shell’s Arctic pullout

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Screen Shot 2015-10-05 at 14.03.31Alaska Dispatch News: October 8, 2015

Shell’s decision to end its program to drill for oil in Arctic waters off Alaska is being cheered by one international organization.

Shell’s drilling in the Chukchi Sea threatened Russia’s Wrangel Island Reserve, an ecologically rich site that is the only designated World Heritage site in the Arctic, said the United Nations Educational, Scientific and Cultural Organization, also known as UNESCO.

“This Arctic jewel, and the wealth of wildlife it supports, were threatened by Shell’s Chukchi Sea operations,” UNESCO said in a statement released Wednesday.

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Shell’s withdrawal from Arctic energizes activists

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By Jennifer A. Dlouhy, Hearst Washington Bureau: Oct  8, 2015

WASHINGTON — Environmentalists who battled Arctic oil drilling by paddling kayaks, dangling from bridges and climbing onto rigs at sea have claimed a high-profile success against Shell and aim to funnel the resulting enthusiasm into other fights against fossil fuels.

Shell is abandoning its long crusade to find crude in the waters north of Alaska after disappointing results at a critical test well in the Chukchi Sea. While the company cited financial reasons for the pullout, the move nonetheless represents a tangible victory for environmental activists.

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Aggressive bidding after reserves scandal put Shell on path to Arctic disappointment

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$7 billion bust in the Arctic Ocean

Screen Shot 2015-10-05 at 14.03.31By Jennifer A. Dlouhy: 5 Oct 2015

WASHINGTON — Shell’s dreams of an Arctic oil bonanza were dashed with disappointing results from a critical exploratory well this summer, but they were in full force seven years ago, when the company aggressively outbid competitors to nab drilling rights in the Chukchi Sea.

Reeling from a scandal involving overstated reserves and desperate to replenish its portfolio, Royal Dutch Shell spent $2.1 billion buying up those Chukchi Sea leases, vastly outspending the competitors who plunked down just $800 million combined in the same government auction.

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Myths about Shell’s Arctic Alaska pullout persist

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Screen Shot 2015-10-04 at 09.03.21Yereth RosenAlaska Dispatch News: October 3, 2015

When Royal Dutch Shell announced that it had lost its big-money bet in the Chukchi Sea and would end its entire program in the offshore U.S. Arctic, the hyperbole and finger-pointing began in earnest.

Rep. Don Young accused President Obama and Interior Secretary Sally Jewell of deliberately sabotaging Alaska’s economy. “I’m sure somewhere Sally Jewell and President Obama are smiling and celebrating Shell’s decision to cease operations off the coast of Alaska,” Young said in a statement issued just after Shell’s announcement.

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Shell may post loss after taking £2.7bn Arctic exploration hit

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Screen Shot 2015-10-03 at 14.26.20Shell chief executive Ben van Beurden told The Mail on Sunday just two weeks ago that he was committed to the Arctic

By Jon Rees For The Mail On Sunday: 4 Oct 2015

Shell is set to reveal that quitting the Arctic cost it up to $4.1billion (£2.7billion) in its third-quarter results when it unveils them later this month – in a move that could push the oil giant into reporting a loss.

The firm took investors and its environmental opponents by surprise when it announced last week that it would end its drilling programme in the Chukchi Sea, 150 miles off the north-west coast of Alaska.

It said it had found indications of oil and gas but not enough to justify further exploration.

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What Shell’s latest move says about Arctic drilling myths

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Screen Shot 2015-10-03 at 14.26.20By  Scott L. Montgomery OCTOBER 1, 2015

The company’s departure is certainly a pause in a new era of Arctic exploration, but it’s not the end.

After seven years of preparation and several billion dollars spent, Shell has decided to abandon its exploration program in the U.S. Arctic “for the foreseeable future.” This follows barely two months’ drilling in the Chukchi Sea at the company’s Burger J well, located 150 miles northwest of Barrow, Alaska. Evaluation of all data revealed “indications” of oil and gas but not enough to justify further activity in today’s low price environment.

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Shell’s Exit From Arctic Oil Drilling

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Screen Shot 2015-08-13 at 11.35.25LETTER TO THE EDITOR OF THE NEW YORK TIMES

“I am hesitant to pop open the Champagne quite yet…”

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To the Editor:

Re “Shell Pulls Plug on Exploration in Alaska Arctic” (front page, Sept. 29):

While the news that Shell has decided to pull out of its controversial Arctic oil exploration effort is cause for celebration for many environmentalists, I am hesitant to pop open the Champagne quite yet.

I find it hard to celebrate knowing that Shell’s withdrawal is the result of an oversaturated oil market fattened on shale oil from the Bakken formation and an OPEC overproduction of 1 million barrels above the cartel’s target output. Shell’s Arctic exit is a business decision in response to low oil prices due to a slowing economy and a glut of supply, both temporary conditions that do nothing to preclude a return to Arctic exploration once these conditions expire.

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Shell CEO Ben van Beurden says carbon price needed to tackle climate change

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“Shell’s track record on climate change does not inspire us with confidence...”

By business reporter Michael Janda and staff: 2 Oct 2015

Shell’s global chief executive says an effective carbon price is needed to tackle climate change, whether through a trading or tax system.

Speaking exclusively to ABC TV’s The Business, Ben van Beurden said a price on carbon was necessary to discourage pollution.

“Putting, in one form or another, a real, clear price on carbon that compels people to act with rational economic actions, I think is something that we need,” he told presenter Ticky Fullerton.

When pressed over the Government’s current Direct Action plan, which provides funding for programs to cut emissions rather than charging heavy emitters, Mr van Beurden said the design of the system was a matter for politicians in each country.

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Shell boss confronts environmental, carbon challenges

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On Monday, the oil and gas giant gritted its teeth and pulled out of one of the most ambitious, expensive and controversial exploration forays on the planet – Alaska. A project that could have delivered tens of billions of dollars instead delivered a dry well and, on Sunday, van Beurden and his team called it quits.

ANALYSIS: By The Business presenter Ticky Fullerton: 2 Oct 2015

Rarely have energy companies faced greater challenges, and global giant Shell has moved to tackle some of them head on.

Of all weeks to be in London to catch up with global Shell chief executive Ben van Beurden, this was it.

On Monday, the oil and gas giant gritted its teeth and pulled out of one of the most ambitious, expensive and controversial exploration forays on the planet – Alaska.

A project that could have delivered tens of billions of dollars instead delivered a dry well and, on Sunday, van Beurden and his team called it quits.

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A rig too far

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Screen Shot 2015-09-13 at 14.19.16Ben van Beurden, installed as Shell’s chief executive in 2014, could have halted the ill-fated project. But after a “personal journey”, he decided to go ahead.

Shell’s retreat from the frozen north shows the new realities of “big oil”: Reputation was another factor in Shell’s retreat

Oct 3rd 2015 | HOUSTON | From the print edition

OIL companies have a proud history of digging holes in inaccessible places and producing gushers of money. But in the Chukchi Sea, in the Alaskan Arctic, Shell has poured $7 billion into a single 6,800-foot exploratory well, making it possibly the most expensive hole yet drilled, only to admit this week that it had not found enough oil and gas to make further exploration worthwhile.

That was a big climbdown for a company that had spent seven years since acquiring the Chukchi licenses in 2008 in a highly public, drawn-out battle to drill in the Arctic. The decision boiled down to costs, financial and reputational. Most big oil firms face similar pressures. Some will take a lesson from Shell and put their Arctic plans on hold, though Eni, a big Italian oil firm, is vowing to press ahead with its efforts to drill in the Norwegian Arctic.

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Emma Thompson joins Greenpeace to celebrate Shell scrapping Arctic drilling

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Emma Thompson joins Greenpeace to celebrate Shell scrapping Arctic drilling

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By Charlotte Krol, and PA, video source YouTube / Greenpeace29 Sep 2015

Actress Emma Thompson has joined activists outside the headquarters of Shell to celebrate news that the oil giant is pulling out of drilling in the Arctic.

Greenpeace has been protesting against the company’s attempts to explore for fossil fuels off the coast of Alaska, including parking a double-decker bus-sized polar bear puppet outside the company’s London HQ for the last month.

The company said it would cease exploration in the region for the foreseeable future after failing to find sufficient signs of oil and gas to make further exploration worthwhile, blaming high costs and a “challenging and unpredictable regulatory environment”.

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Royal Dutch Shell’s Arctic Bucket Of Ice Has Melted, Yield Is Now North Of 8%

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Summary

* The Burger J well test results were a dud, no major reserves found.

* Shell puts Arctic drilling on hold indefinitely, which further reduces future capex.

* Dividend yield tops the 8% mark.

Royal Dutch Shell (RDS.A / RDS.B) was always upbeat about the prospects of drilling in the Arctic, targeting resources that could be 10 times greater than the sum of oil and gas produced so far in the North Sea. Somewhat puzzling, the Anglo-Dutch multinational pressed on with its plans even though rivals Exxon Mobil (NYSE:XOM), BP (NYSE:BP), Chevron (NYSE:CVX) and ConocoPhilips (NYSE:COP) had all suspended activity in the area.

Despite big concerns from environmentalists and shareholders, and earlier misadventures in the region, the company argued it was just too big a prize to avoid the Arctic.

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Shell’s Arctic defeat ends dream of new frontier

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Screen Shot 2015-09-17 at 07.55.40Christopher Adams, Ed Crooks and Jack Farchy

After nine difficult years and $7bn of spending, Royal Dutch Shell has admitted it has nothing to show for its contentious campaign to discover oil in the Arctic. As it pulled the plug on further drilling — announcing billions of dollars in likely losses — the prospects for a new frontier in exploration faded, too.

FULL FT ARTICLE

Why Shell Quit Drilling in the Arctic

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By Paul Barrett: BLOOMBERG.COM: 28 SEPT 2015: 6:12 PM BST

Royal Dutch Shell’s abrupt announcement today that it would cease all offshore drilling in the Arctic is surprising for several reasons. One is the unusual degree of confidence the company expressed as recently as mid-August that it had identified 15 billion barrels of oil beneath the well known as Burger J it’s now abandoning. 

What on earth happened?

Mistaken geology

After spending $7 billion over several years to explore a single well this summer, Shell said in a statement that it “found indications of oil and gas … but these are not sufficient to warrant further exploration.” This contrasts sharply with Shell officials’ statements as recently as July and August that based on 3D and 4D seismic analysis of core samples, its petroleum geologists were “very confident” drillers would find plentiful oil.

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Shell Exits Arctic as Oil Slump Forces Industry to Retrench

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By CLIFFORD KRAUSS and STANLEY REED

As oil prices have continued their steady decline this year, rig after rig has been shut down, costing thousands of jobs in the United States. Yet major oil producers have been loath to pull the plug on their most ambitious projects — the multibillion-dollar investments that form the backbone of their operations.

Until now. On Monday, Royal Dutch Shell ended its expensive and fruitless nine-year effort to explore for oil in the Alaskan Arctic — a $7 billion investment — in another sign that the entire industry is trimming its ambitions in the wake of collapsing oil prices.

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Shell Abruptly Abandons Arctic Drilling, Finding It Too Costly

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BY ZOË SCHLANGER
9/28/15

After a season spent drilling an exploratory oil well in one of the harshest environments on Earth, Royal Dutch Shell announced Monday morning it was abandoning its attempt to develop the Alaskan Arctic “for the foreseeable future.”

The exploratory well 150 miles offshore in the Chukchi Sea did not turn up enough oil to warrant the expensive and “unpredictable” enterprise, Shell said in a statement. It will be sealed and abandoned “in accordance with U.S. regulations,” the company said.

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These 2 charts explain why Shell stopped drilling in Alaska

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Screen Shot 2015-09-17 at 07.55.40It’s all about oil prices.

Royal Dutch Shell said Monday it will stop drilling for oil off Alaska’s coast. The move comes after Shell failed to discover a noteworthy amount of undersea oil in a well off northern Alaska despite spending $7 billion on exploration efforts.

The decision will undoubtedly please the many environmentalists who were against the project from the start. But their protests aren’t the reason Shell is calling it quits in Alaska. Instead, Shell’s decision was economic: The price of oil has dropped precipitously over the past year, meaning it’s getting much harder to make a profit on the stuff.

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Shell abandons Alaska Arctic drilling

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Terry MacalisterMonday 28 September 2015 18.29 BST

Barry Gardiner, Labour’s new shadow minister for energy and climate change, said Shell had been engaged in a fool’s errand. “(Potentially) desecrating one of the world’s last wildernesses shows a complete failure of moral leadership at the head of the company. If his investors are not calling for Ben van Beurden’s head, now that the company has suffered a $4.1bn loss then his board certainly should be.”

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Shell move dims oil prospects, delights environmentalists

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Screen Shot 2015-09-28 at 23.21.47ANCHORAGE, Alaska (AP) — Royal Dutch Shell has abandoned its long quest to become the first company to produce oil in Alaska’s Arctic waters, darkening the nation’s long-term oil prospects and delighting environmental groups that tried to block the project.

After years of effort, Shell is leaving the region “for the foreseeable future” because it failed to find enough oil to make further drilling worthwhile.

The company has spent more than $7 billion on the effort, slogged through a regulatory gauntlet and fought environmental groups that feared a spill in the harsh climate would be difficult to clean up and devastating to polar bears, walruses, seals and other wildlife.

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Shell pulls plug on Arctic drilling campaign

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Screen Shot 2015-09-01 at 23.33.36By ETAIN LAVELLE FOR THE DAILY MAILPUBLISHED: 22:22, 28 September 2015

To the delight of eco-warriors worldwide, Shell pulled the plug on its Arctic drilling campaign, taking a £2.7billion hit on the controversial venture that was persistently undermined by the prolonged oil price weakness and fierce opposition from ecological activists.

Although an exploratory well showed indications of oil and gas in Alaska’s Chukchi Sea, Shell blamed high costs associated with the project as well as the ‘challenging and unpredictable’ regulatory environment as it shelved its drilling plans for the foreseeable future.

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Shell has made a costly call to abandon Alaska

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Screen Shot 2015-09-13 at 14.19.16Kamal AhmedBusiness editor: 28 Sept 2015

It could have been Hillary Clinton’s tweet that did it.

Just after the US government had given the go-ahead for Shell to restart its exploration in Alaska, the Democratic presidential candidate took to the social media site.

“The Arctic is a unique treasure,” Mrs Clinton said on Twitter. “Given what we know now, it’s not worth the risk of drilling.”

Which seemed to ignore the fact that drilling has been taking place in the Arctic for decades – for example oil was first discovered in one of the main basins, Prudhoe Bay, in 1968.

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Shell pulls the plug on Arctic exploration

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Screen Shot 2015-08-12 at 09.34.13Mon Sep 28, 2015 6:21am EDT

By Karolin Schaps

(Reuters) – Royal Dutch Shell has abandoned its Arctic search for oil after failing to find enough crude, a move that will appease environmental campaigners and shareholders who said its project was too expensive and risky.

The withdrawal came six weeks after the final U.S. clearance and three months after Shell was still defending the project, a rapid change of heart for such a large company that showed it is preparing for a prolonged period of low oil prices while trying to close its $70 billion takeover of rival BG.

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Tapped out? Shell ending Arctic offshore oil exploration after test well disappoints

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Screen Shot 2015-08-13 at 11.35.25FoxNews.com: Sept 28, 2015

Royal Dutch Shell said early Monday that it was ceasing offshore oil and gas exploration in Arctic waters after a test well yielded unsatisfactory amounts of oil and gas.

The announcement was a huge blow to Shell, which was counting on offshore drilling in Alaska to help it drive future revenue and had poured billions in investment and years of work into the exploratory well. Environmentalists, however, had tried repeatedly to block the project, and welcome the news.

A statement from the company’s headquarters in The Hague said Shell was ending exploration off Alaska “for the forseeable future” after what it called “a clearly disappointing exploration outcome.”

Shell said it had found indications of oil and gas in the well in the Chukchi Sea, about 80 miles off Alaska’s northwest coast. However, the petroleum was not in quantities sufficient to warrant additional exploration in that portion of the basin, the company added.

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Shell ceases Alaska Arctic drilling after exploratory well disappoints

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Screen Shot 2015-09-17 at 07.55.40Associated Press: Monday 28 September 2015 07.04 BST

Royal Dutch Shell PLC has said it is ceasing exploration in offshore Alaska for the foreseeable future, saying an exploratory well drilled to 6,800ft (2,100m) found oil and gas but not in sufficient quantities.

Shell USA’s president, Marvin Odum, said in an announcement early on Monday in the Netherlands that it was a disappointing outcome for that part of the Chukchi sea basin.

Shell drilled in 150ft (45m) of water about 80 miles (130km) off Alaska’s north-west coast. The exploratory well was the first in the Chukchi in 24 years.

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Will Shell-funded Energy Transitions Commission help or hinder the low carbon economy?

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Screen Shot 2015-08-13 at 11.35.25By Jessica Shankleman  |  25 Sep 2015

Will Shell-funded Energy Transitions Commission help or hinder the low carbon economy?

Oil giant Shell is backing a new organisation that is being set up to lobby governments to step up their investments in low carbon technologies, with the twin aims of boosting economic growth and tackling climate change.

But the new Energy Transitions Commission, which is due to launch on Monday with €5m to €7m of funding, has already come under fire from some green groups who fear Shell may be using the initiative to further its own aims, particularly its controversial Arctic drilling programme.

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Shell, Statoil among energy companies forging climate advice group

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Screen Shot 2015-08-27 at 14.29.46Green Business | Thu Sep 24, 2015 

Representatives from energy companies including oil heavyweights Shell and Statoil have joined forces to advise on making cleaner energy decisions, the latest push by energy firms to become more pro-active on climate issues.

Shell Chairman Chad Holliday, Statoil Vice-President Bjorn Otto Sverdrup and RWE Chief Executive Peter Terium are among a list of commissioners acting in a personal capacity to advise governments on how to change their energy markets without damaging the environment.

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Shell to advise governments on climate change!!!

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Screen Shot 2015-09-01 at 23.33.36Sep 24 2015, 11:59 ET | By: Carl Surran, SA News Editor

Royal Dutch Shell (RDS.A, RDS.B), BHP Billiton (NYSE:BHP) and GE are teaming up with the McKinsey consultancy and other large companies to advise governments on how to combat global warming without weakening their economies, Financial Times reports.

The companies also are backing a $6M “energy transitions commission” to create a blueprint for a greener global economy in the next 15 years.

But the commission, due to be formally unveiled at a conference in Texas on Monday, already is under fire from some environmental groups who ask if a body supported by fossil fuel companies can offer objective guidance on global warming.

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Giant ‘dying polar bear’ appears outside Shell UK headquarters in protest over Arctic drilling

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BY KARA O’NEILL: 21 Sept 2015

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A giant dying polar bear has been placed outside the headquarters of oil and gas company Shell in a bid to stop their Arctic drilling programme.

British actress Emma Thompson was among the protesters who manoeuvred the three-tone puppet into place, locking six people inside so the bear cannot be moved.

The bear, which is the size of a double decker bus, and is named Aurora (after the Northern Lights) is intended to sit outside the company’s headquarter in South Bank, London, until they cease their drilling.

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