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New York Times

Oil Prices Slump to 11-Year Lows in Asia and Europe

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By STANLEY REEDDEC. 21, 2015

LONDON — Oil prices hit 11-year lows in Asia and Europe on Monday, as a glut of crude on world markets and the recent global climate accord continue to depress fossil-fuel prices.

Brent crude oil, the international benchmark, settled at $36.51 a barrel on Monday in Europe.

Analysts say there is little to restrain continued price declines in the near term. Prices are down about 15 percent so far in December, after an OPEC meeting failed to produce measures to restrain record-high production. That meeting was quickly followed by the United Nations climate accord in Paris, which aims to reduce the world’s reliance on oil and other carbon-emitting fuels. read more

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OPEC Won’t Cut Drilling, and Prices Plunge 5%

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By CLIFFORD KRAUSSA version of this article appears in print on December 8, 2015, on page B1 of the New York edition

HOUSTON — Crude oil prices slid a further 5 percent on Monday to fall to their lowest levels since the 2009 global recession, pummeled by the fading chance that Saudi Arabia would cut production to halt the commodity’s yearlong slide.

In only 16 months global oil prices have collapsed from over $110 a barrel to less than half that, and the oil industry in the United States and around the world is reeling from its worst crisis since the late 1990s. On Monday, the American benchmark broke the $38-a-barrel mark, a price that makes drilling and completing wells a losing proposition in almost all oil fields around the country. read more

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Despite Climate Concerns, OPEC Plans to Keep Pumping Oil While It Can

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By STANLEY REED and SARA HAMDANA version of this article appears in print on December 5, 2015, on page B1 of the New York edition

VIENNA — Even as United Nations climate-conference delegates met near Paris on Friday seeking ways to reduce the globe’s dependence on high-carbon fuels like oil, some of the world’s biggest petroleum producers vowed to keep pumping flat out.

The Organization of the Petroleum Exporting Countries said on Friday that it would keep producing oil at current levels, which are estimated to exceed 31 million barrels a day. read more

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An Oil-Soaked Globe as Production Keeps Climbing and Demand Falls

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A version of this article appears in print on November 14, 2015, on page B1 of the New York edition

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HOUSTON — Such is the state of the oil industry these days that there is sometimes nowhere to put the oil. Off the coast of Texas, a line of roughly 40 tankers has formed, waiting to unload their crude or, in some cases, for a willing buyer to come along. Similar scenes are playing out off the coasts of Singapore and China and in the Persian Gulf.

There is little sign that the logjam will ease, as the price of oil continued its yearlong plunge this week, declining by nearly $10 a barrel. read more

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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. read more

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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. read more

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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. read more

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Shell Says Purchase of BG Group Would Allow Further Cost-Cutting

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By STANLEY REED: NOV. 3, 2015

LONDON — Royal Dutch Shell said on Tuesday that its planned acquisition of BG Group, the British oil and gas producer, would lead to major cost-cutting opportunities as well as sales of oil and gas properties.

As it prepares to complete the deal, expected early next year, Shell also said that it intended to carve out its own liquefied natural gas and related fuels unit into a separate business called Integrated Gas. One reason Shell agreed in April to buy BG for nearly $70 billion was to gain a world-leading position in producing and trading liquefied natural gas, known as L.N.G. read more

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Low Oil Prices Take a Toll on Royal Dutch Shell in Quarter

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Screen Shot 2015-10-29 at 08.02.52By STANLEY REED: OCT. 29, 2015

LONDON — Lower petroleum prices took a big toll on Royal Dutch Shell in the third quarter.

The company reported a loss of $7.4 billion, compared with a profit of $4.5 billion in the quarter a year earlier. Adjusted for inventory changes and one-time items — a more closely watched measurement — earnings fell 70 percent to $1.8 billion.

The company took about $7.9 billion in write-offs for its recently halted exploration venture off Alaska, a canceled heavy-oil project in Canada and other operations. read more

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Profit Down at BP, Which Predicts Era of Low Oil Prices

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By STANLEY REED: OCT. 27, 2015

LONDON — The British oil giant BP said on Tuesday that its profit was down sharply in the third quarter as depressed oil prices took a heavy toll.

The company, saying it expects prices to stay low for years, indicated that it would continue to cut costs and limit its investments in searching for and developing new oil and gas fields.

“We are now in action to rebalance our financial framework in this new price environment,” BP’s chief executive, Robert W. Dudley, said in a statement.

The company said its profit in the quarter was $46 million, compared with $1.3 billion a year earlier. Profit on the basis of underlying replacement cost, a more widely used figure, fell to $1.8 billion for the quarter from $3 billion a year earlier. read more

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Nigeria President Escalates Campaign to Stem Corruption

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Screen Shot 2015-10-12 at 15.59.11In recent days, the campaign escalated with the arrest of two high-profile figures: Diezani Alison-Madueke, the former oil minister whose five-year tenure was marred by recurring accusations of widespread theft; and Olajide Omokore, the chairman of a Nigerian oil company. Both were held as part of inquiries into corruption and money laundering.

By NORIMITSU ONISHIOCT. 16, 2015

ABUJA, Nigeria — Private jets that used to crowd the airport here have been grounded, their wings clipped by the new government’s crackdown on corruption. Rolls-Royces, Range Rovers and Jaguars are gathering dust in the showroom of this capital’s top car dealer. Luxury villas are left unsold, as is the fine Italian marble used to bedeck the homes of Nigeria’s newly rich.

Since assuming power in May on a pledge to root out the graft that has long permeated Nigeria, President Muhammadu Buhari has squeezed the flow of public funds in an effort to clean up Africa’s biggest economy. read more

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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. read more

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New Concern Over Quakes in Oklahoma Near a Hub of U.S. Oil

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Screen Shot 2015-10-15 at 10.41.53By MICHAEL WINESOCT. 14, 2015

A sharp earthquake in central Oklahoma last weekend has raised fresh concern about the security of a vast crude oil storage complex, close to the quake’s center, that sits at the crossroads of the nation’s oil pipeline network.

The magnitude 4.5 quake struck Saturday afternoon about three miles northwest of Cushing, roughly midway between Oklahoma City and Tulsa. The town of about 8,000 people is home to the so-called Cushing Hub, a sprawling tank farm that is among the largest oil storage facilities in the world. read more

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Oil Sands Boom Dries Up in Alberta, Taking Thousands of Jobs With it

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Screen Shot 2015-10-13 at 12.37.36By IAN AUSTENOCT. 12, 2015

FORT McMURRAY, Alberta — At a camp for oil workers here, a collection of 16 three-story buildings that once housed 2,000 workers sits empty. A parking lot at a neighboring camp is now dotted with abandoned cars. With oil prices falling precipitously, capital-intensive projects rooted in the heavy crude mined from Alberta’s oil sands are losing money, contributing to the loss of about 35,000 energy industry jobs across the province.

Yet Alberta Highway 63, the major artery connecting Northern Alberta’s oil sands with the rest of the country, still buzzes with traffic. Tractor-trailers hauling loads that resemble rolling petrochemical plants parade past fleets of buses used to shuttle workers. Most vehicles carry “buggy whips” — bright orange pennants attached to tall spring-loaded wands — to help prevent them from being run over by the 1.6-million-pound dump trucks used in the oil sands mines. read more

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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. read more

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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. read more

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Melting Ice Isn’t Opening Arctic to Oil Bonanza

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Screen Shot 2015-08-13 at 11.35.25By STEVEN LEE MYERS and CLIFFORD KRAUSSSEPT. 7, 2015

TERIBERKA, Russia — The warming Arctic should already have transformed this impoverished fishing village on the coast of the Barents Sea.

The Kremlin spent billions in the last decade in hopes of turning it into a northern hub of its global energy powerhouse, Gazprom. It was once the most ambitious project planned in the Arctic Ocean, but now there is little to show for it aside from a shuttered headquarters and an enormous gravel road carved out of the windblown coastline like a scar. read more

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Court Says Chevron Can Be Pursued in Canada Over Ecuadorean Damage

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Screen Shot 2015-09-05 at 07.12.20By IAN AUSTEN and CLIFFORD KRAUSSA version of this article appears in print on September 5, 2015, on page B2 of the New York edition

The Supreme Court of Canada ruled on Friday that a group of Ecuadoreans can use an Ontario court in an attempt to collect billions of dollars from Chevron for environmental damage.

The ruling is the latest step in a 13-year legal battle over the contamination of a rain forest in Ecuador, where Texaco had oil operations. The lawsuit has pitted Ecuadorean villagers in the region of Lago Agrio against Chevron, which bought Texaco.

While a trial court in Ecuador initially awarded the villagers $17.2 billion, an appeals court reduced the damages to $9.5 billion. It was one of the largest judgments imposed by a court for environmental contamination. read more

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Obama’s Alaska Visit Puts Climate, Not Energy, in Forefront

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By JULIE HIRSCHFELD DAVIS: AUG. 31, 2015

WASHINGTON — President Obama will travel to Alaska on Monday to call for urgent and aggressive action to tackle climate change, capitalizing on a poignant tableau of melting glaciers, crumbling permafrost and rising sea levels to illustrate the immediacy of an issue he hopes to make a central element of his legacy.

But during a three-day trip choreographed to lend spectacular visuals and real-world examples to Mr. Obama’s message on global warming, he will pay little heed to the oil and gas drilling offshore that he allowed to go forward just this month, a move that activists say is an unsavory blot on an otherwise ambitious climate record. read more

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U.S. Is Seen as Laggard as Russia Asserts Itself in Warming Arctic

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Sources: American Association of Petroleum Geologists, Bureau of Ocean Energy Management, IBRU at Durham University, Bordermap Consulting, KlimaCampus Integrated Climate Data Center, U.S. Geological Survey: By The New York Times

By STEVEN LEE MYERSAUG. 29, 2015

ABOARD COAST GUARD CUTTER ALEX HALEY, in the Chukchi Sea — With warming seas creating new opportunities at the top of the world, nations are scrambling over the Arctic — its territorial waters, transit routes and especially its natural resources — in a rivalry some already call a new Cold War. read more

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Oil Companies Sit on Hands at Auction for Leases

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By CLIFFORD KRAUSSAUG. 20, 2015 PAGE B1 IN NEW YORK EDITION

Screen Shot 2015-08-04 at 22.49.59HOUSTON — With oil prices collapsing and companies in retrenchment, a federal auction in the Gulf of Mexico on Wednesday attracted the lowest interest from producers since 1986.

It was the clearest sign yet that the fortunes of oil companies are skidding so fast that they now need to cut back on plans for production well into the future.

The auction, for drilling leases, attracted a scant $22.7 million in sales from five companies, but energy analysts said that came as no surprise on a day when the American oil benchmark price plummeted by more than 4 percent. For the first time since the recession, it is approaching the symbolic $40-a-barrel level. Last summer, it was above $100 a barrel.

A glut on American and world markets is to blame for the depressed prices, but the unusually large daily decline occurred after the Energy Department, in a report, lowered its oil price projections and showed a considerable increase in inventories. read more

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Royal Dutch Shell Profits Continue to Fall, Prompting 6,500 Layoffs By

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By STANLEY REED: JULY 30, 2015

LONDON — Royal Dutch Shell said on Thursday that its profit fell sharply in the second quarter as a strong performance in marketing and refining failed to offset the brunt of lower oil and gas prices.

The oil giant also said it would cut its capital investment and eliminate 6,500 jobs as the drop in oil and gas prices squeezes its vast global exploration and production operations.

The company, based in The Hague, said earnings adjusted for inventory changes and excluding one-time items were $3.8 billion, compared with $6.1 billion in the same period in 2014. read more

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Logistics and Lizards Disrupt Chevron’s Project Off Australia

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Screen Shot 2015-07-04 at 13.26.18Chevron agreed to share the cost with Exxon Mobil, Shell and three Japanese power companies, Osaka Gas, Tokyo Gas and Chubu Electric Power. “This is probably the last of the megaprojects for the oil companies for a while…”

By A. ODYSSEUS PATRICK: JULY 3, 2015

SYDNEY, Australia — Getting anything to Chevron’s gas-processing plant on Barrow Island is a bit of a trick.

Some supplies travel 15 hours from Perth to a supply base for shipping. En route, trucks cannot stop under trees, to avoid picking up bugs and bird droppings. When people and cargo finally make it to the island, an army of 300 enforces a quarantine: Every Velcro strap on clothing and bags is checked for seed pods, boots are scrubbed free of dirt and pants with cuffs never even make it ashore. read more

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After Settlement, Relief at a Diminished BP

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By STANLEY REED and CLIFFORD KRAUSS JULY 2, 2015

LONDON — BP’s future no longer has a giant cloud ahead. But it will take years, if not decades, for the company to approach its size of five years ago, before the explosion of the Deepwater Horizon rig.

Since the 2010 blowout of the Macondo well killed 11 rig workers and dumped millions of gallons of crude into the Gulf of Mexico, BP has vigorously fought in court and on American television to salvage its image and minimize the costs. But in preparation for a settlement to resolve legal wrangling over economic and environmental damages, in which it eventually agreed to pay $18.7 billion, the British-based company also had pruned its global operations to save itself. read more

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Decline of North Sea Oil Fields Forces Political Shifts in Britain

Article by STANLEY REED published JUNE 2, 2015 by The New York Times

Decline of North Sea Oil Fields Forces Political Shifts in Britain

ABERDEEN, Scotland — For the oil industry, the decline of the North Sea fields is part of a global challenge.

But for Britain, it is also a political problem.

The British government, which has long treated the oil industry as a cash cow, was forced to confront the threat to jobs and taxes during the run-up to last year’s referendum on independence for Scotland, which claims a big portion of waters where the North Sea oil and natural gas are.

The Scottish National Party, which supported independence in the referendum, accused the central government in London of mismanaging Britain’s oil and gas resources. Oil officials including Bob Dudley, BP’s chief executive, said during the referendum campaign that the uncertainty and legal problems a Scottish victory would bring could discourage future investment in the North Sea. read more

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Prices Are Down, but Saudis Keep Oil Flowing

Screen Shot 2015-05-21 at 15.02.26Article by CLIFFORD KRAUSS and STANLEY REED published 1 June 2015 in the New York edition of The New York Times under the headline

Prices Are Down, but Saudis Keep Oil Flowing

HOUSTON — The international cartel of oil producers has long followed the same basic strategy. When the market was soft, the group slashed production to raise prices.

But Saudi Arabia, the heavyweight of the Organization of the Petroleum Exporting Countries, has a new agenda. It is now less concerned about the price of crude oil in the global markets and more concerned about delivering fuel to its growing economy.

The shift is upending the traditional market dynamics that have influenced the direction of oil prices for decades. read more

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Grabbing Paddles in Seattle to Ward Off an Oil Giant

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By KIRK JOHNSON MAY 11, 2015

SEATTLE — A dozen or so men and women, cinched into life jackets, paddles at the ready, were about to launch their kayaks into Elliott Bay early Thursday evening with Seattle’s glittering skyline as the backdrop. For some of the paddlers, it was a first-time experience, and with the water at 50 degrees and choppy, there were some obvious signs of trepidation.

“O.K., what hazards are we watching for?” Elizabeth Chiaravalli, their instructor, shouted, and a smattering of answers immediately bounced back. “The waves!” “The dock!” “The pilings!” read more

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U.S. Maps Pinpoint Earthquakes Linked to Quest for Oil and Gas

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Screen Shot 2015-04-24 at 07.46.46“Predicting risk is also hard, the report noted, because there is no scientific consensus on just how powerful such quakes can be. The report estimated the effects of shocks up to magnitudes 6 and 7, while noting that some scientists have speculated that the catastrophic 7.9-magnitude earthquake in China in 2008 was caused by human activity.”

Article bBy RICHARD PÉREZ-PEÑA PUBLISHED APRIL 23, 2015 BY THE NEW YORK TIMES

The United States Geological Survey on Thursday released its first comprehensive assessment of the link between thousands of earthquakes and oil and gas operations, identifying and mapping 17 regions where quakes have occurred.

The report was the agency’s broadest statement yet on a danger that has grown along with the nation’s energy production.

By far the hardest-hit state, the report said, is Oklahoma, where earthquakes are hundreds of times more common than they were until a few years ago because of the disposal of wastewater left over from extracting fuels and from drilling wells by injecting water into the earth. But the report also mapped parts of eight other states, from Lake Erie to the Rocky Mountains, where that practice has caused quakes, and said most of them were at risk for more significant shaking in the future. read more

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New Sea Drilling Rule Planned, 5 Years After BP Oil Spill

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Screen Shot 2015-04-12 at 14.33.58Article by CORAL DAVENPORT published APRIL 10, 2015 by The New York Times

New Sea Drilling Rule Planned, 5 Years After BP Oil Spill

WASHINGTON — The Obama administration is planning to impose a major new regulation on offshore oil and gas drilling to try to prevent the kind of explosions that caused the catastrophic BP oil spill in the Gulf of Mexico, administration officials said Friday.

The announcement of the Interior Department regulation, which could be made as soon as Monday, is timed to coincide with the five-year anniversary of the disaster, which killed 11 men and sent millions of barrels of oil spewing into the gulf. The regulation is being introduced as the Obama administration is taking steps to open up vast new areas of federal waters off the southeast Atlantic Coast to drilling, a decision that has infuriated environmentalists. read more

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As Quakes Rattle Oklahoma, Fingers Point to Oil and Gas Industry

Screen Shot 2015-04-04 at 11.37.11Article by Richard A. Oppel Jr. and Michael Wines published by The New York Times:

As Quakes Rattle Oklahoma, Fingers Point to Oil and Gas Industry

A version of this article appears in print on April 4, 2015, on page A1 of the New York edition

PRAGUE, Okla. — Yanked without warning from a deep sleep, Jennifer Lin Cooper, whose family has lived near here for more than a half-century, could think only that the clamor enveloping her house was coming from a helicopter landing on her roof. She was wrong.

A 5.0-magnitude earthquake — the first of three as strong or stronger over several days in November 2011 — had peeled the brick facade from the $117,000 home she bought the year before. Ms. Cooper, 36, could not get out until her father pried a stuck storm door off the front entrance. Repairs have so far cost $12,000 and forced her to take a second job, at night, to pay the bill. read more

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Nigeria: President-Elect pledges to fight the evil of corruption

Screen Shot 2015-04-02 at 14.19.41

President-elect Muhammadu Buhari, a former military leader, vowed to fight the scourges of corruption and Boko Haram militants. Sunday Alamba/Associated Press

From an article Adam Nossiter published 1 April 2015 by The New York Times under the headline:

Nigerian President-Elect Muhammadu Buhari Sets Out His Agenda

Extracts

KANO, Nigeria — Nigeria’s president-elect, Muhammadu Buhari, did not smile while making his acceptance speech on Wednesday — understandably, as terrorism and corruption were his main talking points.

A day after piling up substantial vote totals against the incumbent president, Mr. Buhari, a former general who once rose to power in a military coup, further consolidated something extraordinary for Nigeria: the peaceful passing of power from one political party to another through the ballot box. read more

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New Federal Rules Are Set for Fracking

Screen Shot 2015-03-21 at 09.12.24FROM AN ARTICLE BY CORAL DAVENPORT PUBLISHED IN THE NEW YORK EDITION OF THE NEW YORK TIMES ON 21 MARCH 2015

New Federal Rules Are Set for Fracking

Extracts

WASHINGTON — The Obama administration on Friday unveiled the nation’s first major federal regulations on hydraulic fracturing, a technique for oil and gas drilling that has led to a significant increase in American energy production but has also raised concerns about health and safety risks.

The Interior Department began drafting the rules, focused on drilling safety, in Mr. Obama’s first term after breakthroughs in the technology, also known as fracking, led to a surge in the production of oil and gas. read more

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Prices Fall to a Six-Year Low for U.S. Oil

Screen Shot 2015-03-16 at 23.38.17Article by Stanley Reed published 17 March 2015 in the New York edition of the New York Times

Prices Fall to a Six-Year Low for U.S. Oil

Oil prices fell to six-year lows on Monday in the face of concerns that a glut in the United States was outpacing already-brimming storage facilities.

Additionally, the Organization of the Petroleum Exporting Countries published a report suggesting that the cartel remained reluctant to intervene to prop up prices.

The direction of oil prices, which had risen sharply from January lows, has fallen back in recent days. Traders are now focused on the second quarter of the year, when demand for oil is traditionally weak because of the end of winter and scheduled refinery shutdowns for maintenance.

On Monday, the price of West Texas Intermediate crude, the main United States benchmark, fell about 2 percent to about $44 a barrel, a six-year low, while Brent crude, the international benchmark, fell by about 2 percent to about $53 a barrel. read more

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Price of crude oil resumes its descent

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Screen Shot 2015-03-14 at 09.07.31Article by Stanley Reed published New York Times New York Edition 14 March 2015under the headline:

Oil Prices Drop as Production Hums Along Despite a Brimming Supply

LONDON — Just as the oil market appeared to be stabilizing, the price of crude resumed its descent on Friday.

The drop, of about 4 percent, came after a report from the International Energy Agency warning that oil pouring into tank farms in the United States might “soon test storage capacity limits.”

The agency, whose reports are closely monitored by oil traders, said that overflowing storage “would inevitably lead to renewed price weakness.” American production of oil continues to increase despite recently announced cutbacks in new drilling by producers.

The price of West Texas Intermediate, the American benchmark, fell to around $45 a barrel on Friday, while Brent, the international benchmark, fell below $55 a barrel.

The Department of Energy has proposed adding five million barrels of oil to the Strategic Petroleum Reserve. The purchase, which requires congressional approval, would be added in June and July. But 9.4 million barrels of oil a day are being produced in the United States. Kevin Book, an analyst with ClearView Energy Partners, said that the proposed purchase was not an attempt to support falling prices but instead “appears to derive from a statutory obligation.” read more

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Slump in Oil Prices Brings Pressure, and Investment Opportunity

Screen Shot 2015-01-13 at 09.23.28An article by Michael Corkery and Peter Eavis published 2 Feb 2015 by The New York Times under the headline: 

“Slump in Oil Prices Brings Pressure, and Investment Opportunity”

American history is littered with oil busts that created big winners and losers.

Now, as the cracks appear in the latest energy boom, the forces of failure and opportunity are stirring again. Resolute Energy, a Colorado company that borrowed big in the boom, is among those in an endgame that is being played up and down Wall Street and in the vast oil fields that new drilling methods have opened in recent years.

It is a struggle that could take place at scores of other companies, leading to thousands of layoffs, as well as losses for banks and investors. At the same time, new fortunes stand to be made. read more

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Who Will Rule the Oil Market?

Screen Shot 2015-01-13 at 09.23.28OPINION ARTICLE BY DANIEL YERGIN PUBLISHED IN PRINT BY THE NEW YORK TIMES ON SATURDAY 25 JAN 2015

WASHINGTON — A HISTORIC change of roles is at the heart of the clamor and turmoil over the collapse of oil prices, which have plummeted by 50 percent since September. For decades, Saudi Arabia, backed by the Persian Gulf emirates, was described as the “swing producer.” With its immense production capacity, it could raise or lower its output to help the global market adjust to shortages or surpluses.

But on Nov. 27, at the OPEC meeting in Vienna, Saudi Arabia effectively resigned from that role and OPEC handed over all responsibility for oil prices to the market, which the Saudi oil minister, Ali Al-Naimi, predicted would “stabilize itself eventually.” OPEC’s decision was hardly unanimous. Venezuela and Iran, their economies in deep trouble, lobbied hard for production cutbacks, to no avail. Afterward, Iran accused Saudi Arabia of waging an “oil war” and being part of a “plot” against it. read more

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Tumbling oil prices

From a Bloomberg article by Joe Carroll and Tara Patel published 12 Jan 2015 by Business Report under the headline:Screen Shot 2015-01-12 at 08.45.23

“Analysis: Falling oil prices to trigger flood of write-downs”

Extracts

TUMBLING crude prices will trigger a flood of oilfield write-downs starting this month after industry returns slumped to a 16-year low, calling into question half a decade of exploration.

With crude prices down more than 50 percent from their 2014 peak, fields as far-flung as Kazakhstan and Australia are no longer worth pumping, says a team of Citigroup analysts led by Alastair Syme. Firms on the hook for risky, high-cost projects that do not make sense in a $50-a-barrel (R587) market include international titans such as Royal Dutch Shell and small wildcatters like Sanchez Energy. read more

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Shell Arctic debacle

Screen Shot 2014-09-06 at 21.06.55Article by Jeremy Cresswell published by EnergyVoice.com on 6 Jan 2015 under the headline:

“Noble Drilling has book thrown at it by Alaskan authorities”

The paper stated: “So obviously, the safeguards in place to date have about as much teeth as a guppy. How do we know the repairs done truly take care of the problems with Noble Discoverer? Because Noble Drilling and Shell say so?”

PREDICAMENT: Drilling rig Kulluk aground in Alaska

Written by Jeremy Cresswell – 06/01/2015 6:00 am

Noble Drilling has been charged with environmental and maritime crimes for operating the drill ship Noble Discoverer and the drilling unit Kulluk in violation of federal law in Alaska in 2012.

Under the terms of a plea agreement filed in the Alaskan federal court early last month, Noble Drilling (US) is pleading guilty to eight felony offences, will pay $12.2million in fines and community service payments, implement a comprehensive “environmental compliance plan”, and will be placed on probation for four years. read more

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Oil Price Crash Continues Into 2015

Screen Shot 2015-01-02 at 23.58.26From an article by CLIFFORD KRAUSS and PETER EAVISJAN published in the NY print edition of The New York Times on 6 Jan 2015 under the headline:

“Oil’s Fall Continues Into 2015, and Stock Markets Shudder”

HOUSTON — Oil prices tumbled below $50 a barrel on Monday, spooking global financial markets and signaling that the remarkable 50 percent price drop since June was continuing this year and even quickening.

The new drop in American and global benchmarks of more than 5 percent was accompanied by reports of increased Middle Eastern oil exports, continuing increases in American production and renewed worries about the declining economic fortunes of Europe.

The plunge once again sent fear through global markets. read more

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Big Oil will get even bigger

Screen Shot 2014-02-18 at 18.34.00FROM AN ARTICLE BY FIONA MAHARG-BRAVO PUBLISHED IN THE NEW YORK TIMES FRIDAY 2 JAN 2015

It’s not clear that Shell, the wallflower in the 1990s, will make a move. Exxon and other majors in the United States might be tempted. Either way, chances are Big Oil will get even bigger… 

There was $383 billion in mergers and acquisitions in the oil and gas sector last year, as of Dec. 11. Yet Europe has largely missed out: About three-quarters of the targets have been in North America, according to Thomson Reuters data. Shale has played a big role. In 2015, oil and gas bankers in Europe will get a bigger slice of the action.

The last big fall in oil prices, at the end of 2008, was too short to push a big merger and acquisition wave.

BP’s former chairman, John Browne, wrote in his memoir that a merger with Shell, pondered while he was at the helm, might have delivered $9 billion in annual synergies. read more

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Oil prices continued their collapse on Friday

Screen Shot 2014-12-13 at 09.19.40Oil prices continued their collapse on Friday… The new rout began Friday morning… Gas prices will continue to be in a free fall as long as crude oil is searching for a bottom,” the AAA motor club reported on Friday.

From an article published by The New York Times on page B1 of the New York edition dated 13 December 2014

Oil Prices Fall Again, and Stocks Follow Suit

Extracts

Oil prices continued their collapse on Friday as evidence mounted that the frenzy of American oil production would continue well into 2015 even while growth in global demand was declining.

The global benchmark for crude approached $60 a barrel — down more than 3 percent on the day and roughly 45 percent since the summer. And the American benchmark continued its free fall as well, to below $58 a barrel, down around 4 percent. A day earlier, it sagged below $60 a barrel in the United States for the first time since 2009. read more

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BP to axe 1,000 jobs amid warning of oil price plunge to $40

Screen Shot 2014-12-04 at 20.54.03Oil giant BP has said it will rack up costs of at least $1 billion (£637 million) over the next year as it embarks on a corporate shake-up which could cull more than 1,000 jobs. It comes as an Iranian official in the Opec oil cartel said crude prices could plunge as low as $40 a barrel in the near future…

Article by Russell Lynch published by The Independent Wed 10 Dec 2014: BP unveils $1bn restructuring amid plunging oil prices

Extracts

Oil giant BP has said it will rack up costs of at least $1 billion (£637 million) over the next year as it embarks on a corporate shake-up which could cull more than 1,000 jobs.

The FTSE 100 giant has accelerated its plans to strip costs out of the business in response to a dramatic plunge in crude prices since June. It is understood that BP, which has 84,000 staff worldwide and 15,000 in the UK, could shed more than 1000 staff by the end of the process.

It comes as an Iranian official in the Opec oil cartel said crude prices could plunge as low as $40 a barrel in the near future if divisions among the producers widened. read more

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Oil company shares slumped

OPEC’s decision on Thursday not to cut production in order to prop up oil prices sent markets reeling. Oil company shares slumped, wiping billions off firms’ market value… As they come to terms with the new oil regime, companies will cut spending by up to 10 percent in 2015… and delay new project approvals.

LONDON, Nov 28 (Reuters) – With oil company revenues set to drop on the back of a rout in prices, boards will have to cut investments and increase borrowing to maintain their cherished dividend payouts.

OPEC’s decision on Thursday not to cut production in order to prop up oil prices sent markets reeling. Oil company shares slumped, wiping billions off firms’ market value and leaving dividend payouts as the only solace for shareholders.

The world’s top oil companies, or majors, including BP , Royal Dutch Shell, Total, ExxonMobil and Chevron are already in the midst of a painful belt-tightening process. read more

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Royal Dutch Shell News Monday 29 Sept 2014

Screen Shot 2014-09-29 at 14.02.38By John Donovan

A selection of current news articles about Royal Dutch Shell from around the globe:

Oil price fixing

According to a Bloomberg article published by energyvoice.com, the UK is considering whether to criminalize manipulation of the world’s most-traded crude-futures market.

Extract

The UK is toughening the rules after the rigging of Libor and related gauges resulted in $6.5 billion in fines for at least 10 companies. European Union antitrust authorities raided the offices of companies including BP Plc, Royal Dutch Shell Plc and Statoil ASA in May 2013 amid allegations of collusion and price manipulation in crude, refined products and biofuels markets. read more

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Royal Dutch Shell Shareholders Beware

Screen Shot 2014-09-06 at 21.06.55The news that BP may be fined up to $18bn for the oil spill in the Gulf-of-Mexico as a result of a ruling by a US federal court that BP acted with “conscious disregard of known risks” and that BP’s “conduct was reckless,” may have very serious implications for other oil companies.

By John Donovan

The news that BP may be fined up to $18bn for the oil spill in the Gulf-of-Mexico as a result of a ruling by a US federal court that BP acted with “conscious disregard of known risks” and that BP’s “conduct was reckless,” may have very serious implications for other oil companies.

Extract from a New York Times article:

The ruling stands as a milestone in environmental law given that this was the biggest offshore oil spill in American history, legal experts said, and serves as a warning for the oil companies that continue to drill in the deep waters of the Gulf of Mexico, where high pressures and temperatures in the wells test the most modern drilling technologies. read more

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Roundup of Royal Dutch Shell News 16 August 2014

Screen Shot 2014-06-23 at 11.37.41SHELL’S USA FIRE SALE

The New York Times reports that the Blackstone Group, a private equity company, is paying Royal Dutch Shell $1.2 billion for a stake comprising more than 107,000 net acres in Louisiana. MORE

A related article by BusinessReport.com features a quote from Marvin Odum, president of Royal Dutch Shell’s U.S. division, Shell Oil Company. Marvin said in a statement: “We are adding highly attractive exploration acreage, where we have impressive well results in the Utica, and divesting our more mature, Pinedale and Haynesville dry gas positions.” MORE read more

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Royal Dutch Shell Playing Politics with Human Lives?

Screen Shot 2014-02-10 at 16.29.29What is even more appalling is the fact that the oil giant Royal Dutch Shell, is the one behind the scene steering the affairs of the Dutch Government and practically playing politics with ‘human lives.’

By Zik Gbemre

RE: DESPITE ANGER OVER DOWNED JETLINER, EUROPE SHIES AWAY FROM SANCTIONS ON RUSSIA

We find it rather appalling that the custodians’ of society, in this case; the Netherlands, Russia and other European states plus the oil giant-Royal Dutch Shell, are more interested in ‘their pockets,’ thirst for power politics and their economy/business rather than ‘human life’ and high moral values enshrined in the rule of law and rights of its citizenry. That is how best we can describe the pathetic situation playing out between some European nations and Russia and Shell in the middle. Like the above article has noted, it is really sad that “despite anger over downed Jetliner, Europe is shying away from sanctions against Russia.” What is even more appalling is the fact that the oil giant Royal Dutch Shell, is the one behind the scene steering the affairs of the Dutch Government and practically playing politics with ‘human lives.’ read more

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One of our sources: Joe McGinniss, the famed ‘journalist provocateur’

Screen Shot 2014-07-23 at 00.31.13Extract from a Joe McGinniss email to a PR officer for one of the organizations supporting the plaintiffs in the Wiwa v Shell case, in which Joe (right) criticised the $15.5 million settlement: 

But I can’t help sensing that after finally reaching the point where you were about to show the world the evidence of Shell’s maleficence and perfidy you turned back from the brink, took a token payment, and let them off the hook. There may have been many sound reasons for doing so. Obviously, on balance, you collectively agreed that settlement was preferable to the trial you’d sought for thirteen years. But it was like you had the stake in your hand, and then instead of driving it into their foul and noxious heart you set it down, took their chump change, and walked away, leaving them able to scurry off spouting claims of having been “humanitarian.” read more

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‘Shell will try to prevent any sanctions against Russia’

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Screen Shot 2014-02-10 at 16.29.29Extracts from a New York Times article by Thomas Erdbrink published 23 July 2014 in the New York edition under the headline: “Despite Anger Over Downed Jetliner, Europe Shies Away From Sanctions on Russia”

Shell, the Anglo-Dutch oil giant, which has its head office in The Hague, is one of the largest foreign investors in Russian gas fields in Siberia. Shell is the largest corporation in the Netherlands, and its stock is widely held in the nation’s pension funds. If Shell loses money, the pensions of Dutch teachers, civil servants and many others suffer.

As a result, the ties between Shell and the government are extremely close, and the company’s welfare inevitably influences policy, analysts said. read more

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Weighing the Risks of Investing in Energy Companies

Screen Shot 2014-02-18 at 18.34.00Extracts from an article by Stanley Reed published 11 June 2014 by The New York Times

…fund managers beginning to think skeptically about fossil fuel companies — not so much because they or their clients disapprove of their activities, but because they think the securities issued by these companies may prove poor long-term investments.

The reasoning, which has caught the attention of major oil companies like Royal Dutch Shell, is that after a period of relative inaction, world governments may be heading toward adopting tougher rules on emissions, transforming the economics of the energy business. Investment professionals say that there hasn’t been a mass exodus out of fossil fuels. read more

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