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Posts on ‘August 9th, 2012’

Nigeria’s Petroleum Industry Reeling

FROM OUR AUGUST 2004 SHELL NEWS ARCHIVE…

The New York Times: Nigeria’s Petroleum Industry Reeling

In unrest comparable in scale to Chechnya and Colombia, a year of bloodletting has killed more than 1,000 in the oil-rich Niger Delta…: A confidential 93-page security report commissioned by Shell in December 2003 and obtained by The Associated Press and other news organizations warns that mounting attacks by criminals and ethnic militants could force the oil giant to abandon its onshore operations in the delta by 2008.: The report’s authors made other serious conclusions: that Shell “exacerbates conflict” in the way it gives cash and contracts to delta residents…

By THE ASSOCIATED PRESS

Published: August 9, 2004

OMADINO, Nigeria (AP) — In unrest comparable in scale to Chechnya and Colombia, a year of bloodletting has killed more than 1,000 in the oil-rich Niger Delta — leaving the world’s No. 7 oil exporter, and people here, concerned for the future.

Tensions over oil revenues have aggravated ethnic strife. Kidnappings and sabotage have escalated, forcing costly shutdowns by companies pumping crude in the oil-rich swamps of the volatile Niger Delta. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

For Shell, risks outweigh rewards for offshore oil drilling in Arctic

Jim Coburn, JD | Aug 08, 2012

Shell Oil’s spill response gear staged in Wainwright. Summer 2011. Ben Anderson photo

Just two years after BP’s Deepwater Horizon rig exploded in the Gulf of Mexico, another oil industry giant is poised to begin drilling in an even more forbidding, unpredictable and remote environment: the Alaskan shoreline.Shell is moving forward with at least two Arctic wells this year, at a time when confidence in the oil and gas industry’s risk management practices is remarkably low.In the wake of the Deepwater Horizon disaster, several reports have found that many oil and gas companies—not just BP—were poorly managing the risks of offshore drilling. As it prepares to move into the Arctic, has Shell set itself apart from its competitors, or is the company taking avoidable risks in an unforgiving environment?A new report by Ceres shows that oil and gas companies—Shell included—are not doing enough to manage offshore drilling risks and disclose their efforts to investors. The report, “Sustainable Extraction?“, examines risk disclosure in SEC filings submitted in the first quarter of 2011 by 10 of the world’s largest oil and gas companies. It finds that out of 50 deepwater risk disclosure scores on key metrics including spill response procedures and drilling risk management, only four scores were good, and 29 (nearly 60 percent) were poor or no disclosure.

This striking lack of disclosure makes it nearly impossible for investors to understand how companies are managing the range of potential drilling risks. And investors are already wary.

Lloyd’s, the world’s largest insurance market, cautions that “the Arctic is a frontier unlike any other” that will “remain a complex risk environment.” In its “Arctic Opening” report, Lloyd’s highlights geographic remoteness, ongoing changes to the environment as a result of climate change and extreme weather as key risk factors of offshore drilling in the Arctic. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.
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