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January, 2013:

CALL TO OPEN UP EMERGENCY SHELL ARCTIC REVIEW

He ordered the review following a series of increasingly serious mishaps with critical safety systems assembled by Shell.

Federal Agencies Need to Consult Outside Experts and Residents Not Just Industry

Washington, DC — The emergency 60-day review of Arctic drilling plans by the U.S. Interior Department must be opened to public scrutiny to have credibility, according to an open letter sent today by Public Employees for Environmental Responsibility (PEER). The group is urging federal regulators to meet with independent experts in open session rather than only with industry representatives behind closed doors and to create an advisory council for local residents to participate in decision-making. Such a consultative process on Arctic offshore drilling is now playing out in Great Britain. read more

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Cormorant Alpha leak shuts down up to 27 UK oil fields

16 January 2013 Last updated at 07:31

A pipeline system servicing up to 27 oil fields has been shut down after a leak on the Cormorant Alpha platform, north-east of Shetland.

The fields affected, and another eight associated platforms, produce up to 6% of the UK’s oil and gas output.

Hydrocarbons were detected inside a leg of the Cormorant Alpha platform.

Its operator, Taqa Bratani, has removed non-essential workers as a precaution and said the leak had been contained.

Shutting down the platform, which is about 100 miles from Shetland, affects the whole Brent pipeline system. read more

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Shell, Coast Guard figure out next step for Kulluk rig

Posted on January 14, 2013 at 10:57 am by Jennifer A. Dlouhy

In the week that  Shell’s Kulluk drilling rig has been anchored in Alaska’s sheltered Kiliuda Bay, workers have scrutinized its exterior and studied conditions inside the 266-foot vessel.

Remote-operated vehicles and divers have been evaluating the hull of the conical drilling unit, which beached Dec. 31 on an uninhabited Alaskan island 30 miles away. That underwater assessment finished late Saturday, and workers are now analyzing data from the examination to determine what will happen next with the rig. read more

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U.K. Government Rejects Lawmakers’ Calls to Halt Arctic Oil Drilling

01/14/2013| 07:16pm US/Eastern

By Selina Williams

LONDON–The U.K. government has rejected lawmakers’ calls for a halt to Arctic oil and gas drilling, despite renewed safety concerns following the recent grounding of Royal Dutch Shell PLC’s (RDSA, RDSA.LN, RDSB.LN) Kulluk rig off Alaska, saying that securing global energy supplies was paramount.

The U.K. government’s comments, published Tuesday, come as Shell Monday said it had safely towed the Kulluk rig to safe harbor on Kodiak Island in the Gulf of Alaska. The rig ran aground in stormy weather Dec. 31 while under tow, further highlighting fears about the environmental risks of oil extraction in the Arctic. read more

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Refusal over Arctic drilling ban

MPs on the all-party Environmental Audit Committee say the UK has a moral responsibility. The committee held an enquiry into protection of the Arctic last year. As part of the investigation they questioned Shell. They are now recalling the firm for enquiries since its drill rig Kulluk ran aground in Alaska this month.

Roger Harrabin By Roger Harrabin Environment analyst: Published 15 January 2013

The UK government has refused to support a moratorium on Arctic drilling, despite new concerns after the grounding of a Shell oil rig.

Ministers say that existing efforts to protect the Arctic environment are more likely to be effective than a ban.

They say it’s inappropriate for the UK to take the lead on strategy as it is not an Arctic state.

But MPs on the all-party Environmental Audit Committee say the UK has a moral responsibility. read more

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Candid testimony of Simon Henry about disgraced Shell EP Boss Walter van de Vijver

As can be seen in his testimony, Simon Henry deliberately limited the amount of time that Walter van de Vijver spent with UK and US investors, almost as if there was something to hide? Wonder what current Shell investors will make of that revelation? An insight into how Mr Henry thinks shareholders can be manipulated and shielded from potential spontaneous outpourings of the truth. The Dutchman wouldn’t learn his lines.

“I am becoming sick and tired about lying,” said Walter van de Vijver (right), senior executive at Royal Dutch/Shell. Photo Credit: Chris Ratcliffe/Bloomberg News

Candid testimony of Simon Henry about the disgraced Shell Exploration And Production Chief Executive, Walter van de Vijver (shown right).

Simon Henry became Head of Shell Group Investor Relations in March 2001. His predecessor was Walter van de Vijver.

Extracts from the sworn testimony of Simon Henry to the U. S. Securities and Exchange Commission on 19 October 2004 in Washington D.C. The reference to “one on one” meetings, was in regard to Shell senior management meetings with analysts and investors.

As can be seen in the testimony, Simon Henry deliberately limited the amount of time that Walter van de Vijver spent with UK and US investors, almost as if there was something to hide? Wonder what current Shell shareholders will make of that revelation? An insight into how Mr Henry thinks shareholders can be manipulated and shielded from potential spontaneous outpourings of the truth. The Dutchman wouldn’t learn his lines. read more

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Another Stumble in the Quest for Arctic Oil

Shell has provided a helpful window into what a future of offshore drilling in the Arctic would look like, and it looks disastrous.

Extracts from article published 13 Jan 2013:

Another Stumble in the Quest for Arctic Oil

Shell’s decision to tow its drill rig from Dutch Harbor, Alaska to Seattle for repairs in the middle of the winter was bewildering. It’s a time when storms are frequent and waves of the sort encountered by the Kulluk are common, and it wasn’t long before the rig and the ship towing it, the Aiviq, ran into potentially life-threatening danger.

The episode was an exclamation mark on a disastrous season in the Arctic for Shell, whose track record before this latest accident would have been humorous were the safety and environmental implications not so grave. At every step, from construction to transport to testing, the company proved itself entirely unprepared for life in Alaskan waters. read more

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EPA Cites Shell Arctic Rig for Air-Permit Violations

EPA Cites Shell Arctic Rig for Air-Permit Violations read more

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Shell Alaskan Meltdown: U.S. EPA takes action against Shell

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
REGION 10
1200 Sixth Avenue. Suite 900
Seattle, Washington 98101-3140

JAN 10 2013

OFFICE OF COMPLIANCE AND ENFORCEMENT

Reply to: OCE-127

Certified Mail Return Receipt Requested

C T Corporation System Registered Agent for
Shell Gulf of Mexico Inc.
9360 Glacier Hwy, Suite 202 Juneau,
Alaska 9980 I

Re: Notice of Violation issued to Shell Gulf of Mexico Inc.
Notice of Termination of Administrative Compliance Order on Consent
Docket No. CAA-10-2012-0195

Dear Registered Agent:

The U.S. Environmental Protection Agency (“‘EPA”) is issuing the enclosed Notice of Violation (”Notice”) to Shell Gulf of Mexico Inc. (“Shell”) in accordance with Section 113(a) of the Clean Air Act (“CAA”), 42 U.S.C. § 7413(a), regarding operation of the Discoverer drillship (“Discoverer”) and its fleet of associated vessels (“Associated Fleet”) in the Chukchi Sea. EPA is also notifying Shell that EPA is terminating the Administrative Compliance Order on Consent, Docket No. CAA-10-201200195, issued to Shell on September 7. 2012 (“COC”). read more

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Esso and Shell face allegations of ‘predatory pricing’ over fuel cost

The Office of Fair Trading is studying allegations by independent petrol station owners that oil giants Shell and Esso have engaged in “predatory pricing”.

By : 10:30PM GMT 12 Jan 2013

The RMI Petroleum Retailers Association (PRA), representing the independent retailers who run 60pc of UK forecourts, made the claim as it called for all petrol stations to sell fuels at a minimum price to shield its members from going out of business.

The OFT is expected to report within weeks on the state of Britain’s £32bn retail fuel market after calling for evidence in September, amid concerns that the market may be unfair to consumers and to independent retailers. read more

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Candid testimony of Shell’s Simon Henry about Sir Philip Watts

Q: Do you like Mr. Watts personally? A: It was difficult to like Phil.  He was not a guy you go for a beer with. …he was still running with that chip on his shoulder… He was a guy from the wrong side of the tracks.

Candid (some might say indiscreet) testimony of Simon Henry about the disgraced Shell Group Chairman Sir Philip Watts (shown right).

Extracts from the sworn testimony of Simon Henry to the U. S. Securities and Exchange Commission on 19 October 2004 in Washington D.C.

Mr Henry is currently Chief Financial Officer of Royal Dutch Shell Plc.

Q: With the benefit of hindsight, were there ever instances where you believed Mr. Watts provided the market with incomplete or inaccurate information?

A: With the benefit of hindsight, he answered a lot of questions about Gorgon, and with the benefit of hindsight, they could have been answered differently. read more

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For all but Shell, Alaska risks outweighed the benefits

In an April document entitled “-48° C,” Lloyd’s of London – a British insurance giant – claimed that “cleaning up any oil spill in the Arctic, particularly in ice-covered areas, would present multiple obstacles which together constitute a unique and hard-to-manage risk.” In July, British Petroleum – which had run the Deepwater Horizon platform – withdrew its own bid to drill in the arctic due to incalculable “costs” of any accidents there. In February 2012, the US Government Accountability Office issued a warning. “Oil and gas exploration and production off the coast of Alaska is likely to encounter environmental and logistical risks that differ from those in the Gulf of Mexico because of the region’s cold and icy conditions.” Statoil suspended its own plans for drilling in the Alaskan Arctic in August.

“Once-in-a-generation” oil and natural gas fields apparently lured the Royal Dutch Shell company into ignoring clear dangers about drilling in the Alaskan Arctic. It could soon be paying the price.

While environmentalists might be breathing a sigh of relief that the Kulluk oil rig didn’t spill a drop of its 150,000 gallons of oil after running aground off the coast of Alaska late last December, the Royal Dutch Shell company is likely still holding its breath.

On January 3, a group of 45 Democratic congressmen from the Sustainable Energy and Environment Coalition called for a formal investigation of the Kulluk incident in order to determine whether Shell should be allowed to continue drilling for oil in Alaskan waters – into which Shell has invested $5 billion (3.75 billion euros). read more

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Evidence Shell Tax Dodging was Behind Kulluk debacle

By John Donovan

The Alaska Dispatch has quoted from an email that Shell Alaska spokesperson Curtis Smith (right) sent on 27 December 2012.

Curtis said in his email:

“it’s fair to say the current tax structure related to vessels of this type influenced the timing of our departure.”

He also said it could cost “multiple millions” if the Kulluk was still in Alaska waters Jan. 1.

I think we can safely assume that Mr Curtis will have earned a big black mark against his name at Shell PR for telling the truth. That is not a quality that Shell management is looking for in a spokesperson. read more

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Investors howl for Shell’s blood

By John Donovan

The current news about Shell’s Alaskan debacle is chilling, but not as bad as the news about the Shell reserves scandal exactly 9 years ago today.

Monday, January 12, 2004

The Australian: Shell chief faces the axe

Daily Mail: Heat is on Watts after Shell shock

The West Australian: Investors howl for Shell’s blood  

London Evening Standard: Shell pledges faith in Gorgon

The Times: Investors demand changes at Shell

The Guardian: Shell debacle leads to call for outside audits

Sydney Morning Herald: Shell rubs out 4bn barrels

Financial Times: Life of Shell reserves cut by 3 years

Financial Times: Call for oil giants to detail fields read more

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Shell’s Arctic Drilling Experiment an Epic Failure

By Brooke Jarvis January 11, 2013 10:37 AM ET EXTRACT

In December of 2011, Royal Dutch Shell produced a series of videos advertising the company’s plans to drill for oil in the Arctic Ocean. Their tagline: “It’s time to explore, and Shell is Arctic Ready.”

That slogan sounds rather different after 2012, a year in which little went as the company planned – this week prompting U.S. Secretary of the Interior Ken Salazar to announce an urgent, high-level review of what went wrong. (FULL ARTICLE) EXTRACT

I reached out to Shell in both Houston and Alaska to gauge the company’s willingness to absorb costs incurred by public entities. Neither location made a representative available to answer questions by deadline. [See update at bottom.] The company did clear up one gauzy point, albeit to other outlets. As we reported earlier this week, Shell was motivated to move the Kulluk when it did to avoid paying tax to Alaska on the rig in the new year. From United Press International: read more

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Shell faces fresh scrutiny over Alaskan drilling

The pressure is mounting on Shell to abandon its quest for Arctic oil after the US government ordered two reviews into the company’s activities off the Alaskan coast… after a series of accidents in the area involving its ships, rigs and equipment that culminated in the grounding of the rig Kulluk… The US Coastguard…opened an investigation… which could lead to civil or criminal penalties for Shell or its staff.

The pressure is mounting on Shell to abandon its quest for Arctic oil after the US government ordered two reviews into the company’s activities off the Alaskan coast that could halt its planned drilling campaign.

The Obama administration has ordered a sweeping review of Shell’s plans to drill in the Arctic after a series of accidents in the area involving its ships, rigs and equipment that culminated in the grounding of the rig Kulluk near an Alaskan island on New Year’s Eve. read more

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SHELL ARCTIC MELTDOWN: What a f****** mess Shell have got themselves into…

SHELL ARCTIC MELTDOWN: What a f****** mess Shell have got themselves into…

COMMENT RECEIVED FROM A SHELL SENIOR MANAGEMENT RETIREE

Just read that Shell broke some air quality rules from the EPA. There must be a whole team coordinating all the replies to the press and authorities and making sure they all say the same thing. I can only say: what a f****** mess they have got themselves in. The mess there in Alaska is worse than one can imagine and in my view a direct result of incompetence and penny pinching.

Experts claiming reputational damage many times greater than other damage…

This is what happens if you remove skills and replace those with processes and boxes that must get ticked off. Brinded was a great believer in process, he thought that the rest were too stupid to think for themselves.

Related article by Loren Steffy published Jan 11 by The Houston Chronicle

Shell had a lot riding on Arctic’s rigs snapped tow lines

For years, Shell Oil Co. claimed that a byzantine regulatory process was impeding its progress in the Arctic. Now, if it gets frozen out of the region, it has no one to blame but itself.

The company had a lot riding on the tow ropes pulling its conical drilling rig across the stormy seas near the Alaskan coast on New Year’s Eve. Shell itself had seven years and almost $5 billion invested in the project, and as the first company allowed to drill in Arctic waters, it carried the burden of not botching the effort for other companies also awaiting permits. read more

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EPA cites Shell for air-quality permit violations on Kulluk, Noble Discoverer

Late Thursday, the EPA delivered two notices of violation to Shell for Clean Air Act permits that the company had received for Kulluk and its counterpart, the drillship Noble Discoverer.

Suzanna Caldwell | Jan 10, 2013

While Royal Dutch Shell’s recovery effort on the once-beached Kulluk drilling rig proceeds quietly, the Environmental Protection Agency is sounding off.

Late Thursday, the EPA delivered two notices of violation to Shell for Clean Air Act permits that the company had received for Kulluk and its counterpart, the drillship Noble Discoverer.

A statement from the agency said based on the EPA’s inspection of the Discoverer and Shell’s self-reports of excess nitrogen oxides, the EPA determined that Shell had multiple permit violations for each ship during the 2012 drilling season. read more

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Shell Arctic problems mount with diesel spill fears

Royal Dutch Shell plc Arctic problems mount with diesel spill fears

Written by Roberta Murray: Published on Friday, 11 January 2013 09:47

Royal Dutch Shell plc’s Arctic problems mounted as it emerged that hundreds of gallons of fuel may have leaked during the grounding of its Kulluk rig and the US Interior Secretary branded the company’s mishaps “troubling”.

Unified Command, which is managing the response to the Kulluk accident, said that up to 272 gallons of diesel fuel may have leaked from the tanks of four survival boats, which were dislodged from the Arctic rig “either while it was towed or when it grounded” off Alaska. “One tank is intact, two tanks have been damaged and one is inaccessible to be able to determine its condition,” it said. read more

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EPA raps Shell for Arctic air violations

According to the agency, Shell’s self-reporting of emissions revealed excess nitrogen oxide was released from both the Discoverer and Kulluk, leading the EPA to conclude that Shell had “multiple permit violations for each ship” during the company’s 2012 drilling season.

Posted on January 10, 2013 at 10:00 pm by Jennifer A. Dlouhy in Alaska

The Environmental Protection Agency on Thursday rapped Shell Oil Co., for violating the terms of air pollution permits governing emissions from its drilling rigs and support vessels operating in Arctic waters last year.

The agency issued two separate notices of violation alleging Shell ran afoul of the Clean Air Act permits governing its Kulluk drilling unit used in the Beaufort Sea and the drillship Noble Discoverer (as well as its support vessels) used in the Chukchi Sea. A fleet of vessels were in the Arctic as Shell bored the first half of two exploratory oil wells in the Chukchi and Beaufort seas last October. read more

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Shell may have moved rig to avoid taxes: lawmaker

UPDATE 6-Shell may have moved rig to avoid taxes – U.S. lawmaker

Fri Jan 11, 2013 12:27am EST

* Markey questions rig’s move in “near hurricane” conditions

* Shell quoted by newspaper saying taxes “influenced” timing

* Oil giant later says relocation guided by safety, not taxes

By Yereth Rosen and Timothy Gardner

ANCHORAGE, Alaska/WASHINGTON, Jan 10 (Reuters) – Shell may have moved an oil rig that ran aground off Alaska last week partly to avoid millions of dollars in taxes, U.S. Rep. Ed Markey said, raising even more questions about the oil company’s decision on the timing of the move.

The letter from the top Democrat on the House of Representatives Natural Resources Committee adds to the already-intense political scrutiny of Royal Dutch Shell’s ambitious and troubled Arctic drilling foray last year. read more

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Selection of Shell related articles 10 Jan 2013

Selection of links to articles relating to Shell (kindly provided by a regular contributor)

JULIETTE KAYYEM Shell’s Arctic troubles only buy time: Bostonglobe-Shell Oil has had a rough time up in Alaska. In the last year, it has had to contend with stray ships, busted engines, mismanaged contracts, and …

Shell’s US ultra-deepwater Perdido hub nears production capacity …: Platts-Production from wells in Shell’s ultra-deepwater Perdido Hub in the US Gulf of Mexico is now reaching over 115,000 b/d of oil equivalent, …

Big Oil, Big Ketchup and The Assassination of Hugo Chavez: The People’s Voice-Henceforth, Exxon, British Petroleum, Shell Oil and Chevron would get to keep 70% of the sales revenues from the crude they sucked out of … read more

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US scuppers Shell’s hopes of drilling Alaskan Arctic

By Rob Davies; PUBLISHED: 09:03, 10 January 2013

Shell’s dream of drilling for oil in the Alaskan Arctic has suffered another blow, after US authorities announced a ‘high-level’ review likely to delay its plans still further.

US Secretary of the Interior Ken Salazar said his department would launch a 60-day probe ‘to review practices and identify challenges as well as lessons learned’.

It follows a series of accidents and setbacks that have hit Shell’s Alaskan programme, the latest of which saw its drilling rig, the Kulluk, rescued after running aground on New Year’s Eve. read more

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Devastatingly bad news day for Shell 9 years ago: 10 Jan 2004

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Shell’s Arctic troubles only buy time

Shell Oil has had a rough time up in Alaska. In the last year, it has had to contend with stray ships, busted engines, mismanaged contracts, and faulty spill containment equipment as it tried, and failed, to drill for oil in the Arctic Ocean.

By Juliette Kayyem:  Globe Columnist: January 10, 2013

Shell Oil has had a rough time up in Alaska. In the last year, it has had to contend with stray ships, busted engines, mismanaged contracts, and faulty spill containment equipment as it tried, and failed, to drill for oil in the Arctic Ocean. On Tuesday, the Interior Department hastily announced a review of the company’s Alaskan adventure. Facing its own criticism that Interior Secretary Ken Salazar approved the risky drilling attempt, the agency will pay “special attention” to “Shell’s management and operations.” The expedited government assessment came just one day after the Kulluk, Shell’s runaway drilling vessel that separated from its tow ship in December, finally ran aground. read more

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Salazar: ‘So many’ Shell Arctic mishaps ‘troubling’

By Jennifer A. Dlouhy: Updated 7:47 pm, Wednesday, January 9, 2013

WASHINGTON — Interior Secretary Ken Salazar said Wednesday he is concerned about the series of blunders surrounding Shell’s recent Arctic drilling and is looking to a government investigation for answers.

“We don’t know what went wrong, and that’s why it’s important that this high-level review occur,” Salazar told reporters. “There is a troubling sense that I have that so many things went wrong.”

Although Salazar stressed that the Obama administration remains committed to Arctic energy development, he stopped short of saying Shell would be able to resume drilling exploratory oil wells in the Chukchi and Beaufort seas this summer. read more

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Shell’s Arctic oil exploration operation faces multiple investigations

By Lisa Demer

The Anchorage Daily News: Posted on Wednesday, 01.09.135

ANCHORAGE, Alaska — As response teams continued Tuesday to evaluate Royal Dutch Shell’s once-grounded oil drilling rig, the Coast Guard, the Obama administration and U.S. Sen. Mark Begich all announced investigations or reviews taking a close look at Shell:

• Interior Secretary Ken Salazar announced “an expedited, high-level assessment” of Shell’s 2012 offshore drilling program in the Beaufort and Chukchi seas.

• The Coast Guard commander for Alaska has ordered a formal marine casualty investigation into the circumstances of the Dec. 31 grounding of the then-unmanned Kulluk during a pounding Gulf of Alaska storm just offshore Sitkalidak Island, south of Kodiak. read more

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Tom Botts

Botts was in charge of Southern as GasDirector UEG with his buddy Finlayson as Oil Director UED. It’s interesting the connection with Wood Group as one of the guys killed by the combined neglect of Birnie, Bayliss, Berget, Finlayson, Botts, Hill and their mentor TFA Brinded was a Wood Group employee, who of course was blamed for contributing to his own demise…

John,

Thought you may like this press release in todays Scotsman and also Aberdeen Press and Journal.

Botts was in Aberdeen following Finlayson so he continued the TFA policy during his tenure. Shortly after his departure the Brent B fatalities took place sliding the blame on his successor!  

Botts implemented Brindeds ruthless staff reductions and dilution of retained skill levels resulting in todays Management profiles of the inability to do anything.

Botts finished up in Houston overseeing the Motiva refinery expansion resulting in a massive cock up on start up costing many millions and months of delayed start up read more

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Selection of articles relating to Shell: 9 January 2013

Selection of links to current articles relating to Shell: kindly provided by a regular contributor

Weather models put Shell Oil on hook for irresponsible decision …: Alaska Dispatch-Jan 6, 2013: Shell Oil made a misguided and poorly informed decision to move a … Unbelievably, a Shell Oil spokesman said, that forecasts indicated a …

Deep In Canadian Lakes, Signs Of Tar Sands Pollution: WBUR-The Shell Oil Jackpine open pit mine uses trucks that are 3 stories tall, weigh 1 million pounds and cost $7 million each. There is explosive …

Shell Innovation Summit Puts Collaboration In The Spotlight: PR Newswire (press release)-The event brings Shell business and technology leaders together with … President of Shell Oil Company and Director of Upstream of Royal … read more

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SHELL’S ALASKAN FOLLY

Do we really need to have another disaster on the scale of Piper Alpha or Alexander Kielland before Shell starts to apply the same standards to their Alaskan operations as are applied to their international operations? Has anyone ever heard of a 47 year old drilling vessel being used in the Arctic in Norway, or even a 30 year old drilling vessel? Or helicopters without de-icing equipment? Shell has lost control of both of their vessels in Alaska, leading to well publicised groundings. Why do we never hear of loss of control incidents and vessels running aground in the Norwegian Arctic?

COMMENT ON SHELL’S ALASKAN FOLLY BY AN EXPERT

Many of your readers will be familiar with the two major North Sea disasters (Piper Alpha and Alexander Kielland) which together resulted in 290 deaths in the 1980s. Those with longer memories will remember the Sea Gem which was lost (with 13 lives) while being moved in December 1965.
 
These vessels were all constructed in accordance with the standards in force at the time. The standards simply could not have anticipated the ferocity of the conditions under which the vessels would be used, or the specifics of the export system to which the Piper Alpha platform was attached.
 
As suggested by Tennille Tracy’s article, standards are created to address the circumstances of accidents/incidents that have already happened. They cannot anticipate new circumstances and are usually the result of compromises which try to balance the economic costs of applying new standards with the perceived benefits. The Cullen Report into the Piper Alpha disaster proposed the use of Safety Cases which would review both operating practices and equipment standards for specific anticipated circumstances. The Safety Case approach has been adopted globally (outside the US) and has undoubtedly contributed to the fall in the number of accidents/incidents in the offshore oil and gas industry.
 
The US should have learned a lesson from BP’s Macondo disaster, but continues to rely on standards which were written long before deep water or arctic drilling was even considered: fortunately most international operators have their own internal standards (which are required to support their Safety Cases) which far exceed the minima of the applicable statutory requirements, if indeed such statutory requirements exist. However, when no internal operator standard is available and costs can be reduced by applying legal minima, the application of standards written for a different world may result in a disaster. Most US standards are based on operations in the Gulf of Mexico or on land, so it is hardly surprising that they are inadequate for the Arctic.
 
Do we really need to have another disaster on the scale of Piper Alpha or Alexander Kielland before Shell starts to apply the same standards to their Alaskan operations as are applied to their international operations? Has anyone ever heard of a 47 year old drilling vessel being used in the Arctic in Norway, or even a 30 year old drilling vessel? Or helicopters without de-icing equipment? Shell has lost control of both of their vessels in Alaska, leading to well publicised groundings. Why do we never hear of loss of control incidents and vessels running aground in the Norwegian Arctic?
 
The Noble Discoverer was designed long before the Sea Gem accident, and the Kulluk long before Piper Alpha: the creation of new standards will not fix the shortcomings inherent in their designs.  read more

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Royal Dutch Shell tax dodging key factor in Kulluk debacle

Screen Shot 2012-12-07 at 01.26.25By John Donovan

Royal Dutch Shell has a history of tax avoidance stretching back many decades. A Shell spokesman has confirmed that the Kulluk was being towed from Alaskan waters for tax reasons. The timing was designed to take advantage of a tax loophole, which allowed the oil giant to avoid $6 million in Alaska state taxes. Should be no surprise since the company is infamous for putting profit before offshore safety. And the company is now run by a pair of ruthless bean counter fat cats, Voser and Henry. read more

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Shell’s Alaska Rig Debacle — Just the Tip of the Iceberg?

While one Shell spokesman confirmed that the tax structure influenced the timing of the move, a second spokesman insisted it was driven by safety concerns for voyage, as two weeks of favorable weather were forecast for the trip. Worse than gales in the Beaufort Sea for Royal Dutch Shell PLC in the wake of the incident is the dreaded reappearance of corporate America’s most feared nemesis, Congressional oversight, a development that will earn Shell little gratitude from other energy companies.

By: John Daly: Published: Tuesday, 8 Jan 2013 | 1:38 PM ET

Whether one believes 100 percent in the science behind global warming, the fact is that the northern polar ice cap is in retreat, sparking an energy resource scramble among those nations with northern littorals. The U.S., Canada, the Russian Federation, Norway and Denmark (via Greenland) have all rushed to stake sovereign claims on previously ice-bound waters off their coasts, resulting in an energy land rush for subsea hydrocarbon riches.

But working in the extreme Arctic conditions brings its own set of technical hazards, highlighted by the grounding of Royal Dutch Shell’s Kulluk rig on the rocks off Sitkalidak Island on 31 December, after being battered by a northern Pacific gale. In a timeline of accidents, a line between the Aiviq tug and the Kulluk broke, as did four reattached lines between the Aiviq and other vessels in the stormy weather, and the Aiviq’s four engines failed. read more

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Interior Dept. Expedites Review of Arctic Drilling After Accidents

WASHINGTON — The Interior Department on Tuesday opened an urgent review of Arctic offshore drilling operations after a series of blunders and accidents involving Shell Oil’s drill ships and support equipment, culminating in the grounding of one of its drilling vessels last week off the coast of Alaska. Officials said the new assessment by federal regulators could halt or scale back Shell’s program to open Alaska’s Arctic waters to oil exploration, a $4.5 billion effort that has been plagued by equipment failures, legal delays, mismanagement and bad weather.

The Kulluk, a Shell Oil drilling rig, was checked for seaworthiness on Monday off the Alaskan coast after running aground.: James Brooks/Kodiak Daily Mirror, via Associated Press

By and

A version of this article appeared in print on January 9, 2013, on page A12 of the New York edition

WASHINGTON — The Interior Department on Tuesday opened an urgent review of Arctic offshore drilling operations after a series of blunders and accidents involving Shell Oil’s drill ships and support equipment, culminating in the grounding of one of its drilling vessels last week off the coast of Alaska.

Officials said the new assessment by federal regulators could halt or scale back Shell’s program to open Alaska’s Arctic waters to oil exploration, a $4.5 billion effort that has been plagued by equipment failures, legal delays, mismanagement and bad weather. read more

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U.S. to Review Shell’s Arctic Practices

Shell’s $5 billion Arctic drilling program has struggled with mishaps nearly from the start.

By TENNILLE TRACY And ALISON SIDER

The U.S. government has opened a high-level review of accidents and mishaps experienced by Royal Dutch Shell RDSB.LN +0.27% PLC since it started the process of drilling for oil in the Arctic Ocean last year, the Interior Department said Tuesday.

The review comes after one of Shell’s drilling rigs broke free of a tugboat and wedged itself on rocks off Sitkalidak Island on Alaska’s southern coast. The drilling rig, known as the Kulluk, has since been recovered and arrived Monday in nearby Kiliuda Bay, where it will undergo assessment. read more

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U.S. Officials to Review Shell’s Drilling Efforts in Arctic Ocean

The U.S. government has launched a “high-level” review of accidents and mishaps experienced by Royal Dutch Shell PLC… The review, announced Tuesday by the Interior Department, comes after one of Shell’s drilling rigs broke free of a tug boat and ran aground on an island off the coast of Alaska…

By Dow Jones Business News,  January 08, 2013, 04:13:00 PM EDT

By Tennille Tracy

WASHINGTON–The U.S. government has launched a “high-level” review of accidents and mishaps experienced by Royal Dutch Shell PLC as it started the process of oil drilling in the Arctic Ocean last year.

The review, announced Tuesday by the Interior Department, comes after one of Shell’s drilling rigs broke free of a tug boat and ran aground on an island off the coast of Alaska. Within days of the incident, environmental groups called on President Barack Obama to suspend all Arctic permits until safe operations could be guaranteed. read more

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Oil tanker departs Shell Martinez refinery hits San Francisco Bay Bridge

The oil tanker Overseas Reymar struck “a glancing blow” to a tower of the San Francisco-Oakland Bay Bridge after unloading crude at a Royal Dutch Shell refinery the day before.

The collision occurred at 11:20 a.m. local time, the U.S. Coast Guard said in an e-mailed statement. No oil was released, a notice to the California Emergency Management Agency shows.

The tanker was damaged above the waterline, with no breach of the hull, said Captain Peter McIsaac, port agent for the San Francisco Bar Pilots. read more

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Oil Sands Industry in Canada Tied to Higher Carcinogen Level

The development of Alberta’s oil sands has increased levels of cancer-causing compounds in surrounding lakes well beyond natural levels, Canadian researchers reported in a study released on Monday. And they said the contamination covered a wider area than had previously been believed. “Now we have the smoking gun,” Professor Smol said. The study is likely to provide further ammunition to critics of the industry, who already contend that oil extracted from Canada’s oil sands poses environmental hazards like toxic sludge ponds, greenhouse gas emissions and the destruction of boreal forests.

Todd Korol/Reuters: An oil sands mine Fort McMurray, Alberta.

By : A version of this article appeared in print on January 8, 2013, on page A4 of the New York edition

OTTAWA — The development of Alberta’s oil sands has increased levels of cancer-causing compounds in surrounding lakes well beyond natural levels, Canadian researchers reported in a study released on Monday. And they said the contamination covered a wider area than had previously been believed.

For the study, financed by the Canadian government, the researchers set out to develop a historical record of the contamination, analyzing sediment dating back about 50 years from six small and shallow lakes north of Fort McMurray, Alberta, the center of the oil sands industry. Layers of the sediment were tested for deposits of polycyclic aromatic hydrocarbons, or PAHs, groups of chemicals associated with oil that in many cases have been found to cause cancer in humans after long-term exposure. read more

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Safe harbor, uncertain future for Shell’s Arctic rig

By Jennifer A. Dlouhy | January 7, 2013 | Updated: January 7, 2013 11:01pm

WASHINGTON – A massive campaign to free a grounded Arctic drilling rig that involved more than a dozen ships and some 730 people cleared a big hurdle Monday, as salvagers pulled the vessel to safe harbor in Alaska.

Salvage crews anchored the Kulluk rig in Kodiak Island’s sheltered Kiliuda Bay, where it arrived Monday morning. Three support vessels remained attached to the Kulluk.

For Shell, which owns the 266-foot conical drilling unit and planned to use it to continue a $5 billion quest for Arctic oil this summer, the work is just beginning. read more

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Platform-free oil in Arctic waters within striking distance

Balazs Koranyi Reuters: 9:08 a.m. CST, January 7, 2013

OSLO (Reuters) – Lying at the bottom of a giant water-filled pit in western Norway, a thousand-ton gas compressor is humming along, going through grueling tests as engineers prepare it to change oil and gas production for good.

The compressor, a prototype for Royal Dutch Shell’s massive Ormen Lange natural gas field in the Norwegian Sea, will help make platform-free offshore production, the Holy Grail for oil firms, a reality within a decade.

The new technology will have particular meaning for places such as Alaska, where the grounding of Shell’s Kulluk rig on New Year’s Eve stirred opposition to rigs in environmentally delicate and technologically challenging places. read more

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Kulluk refloated

ANCHORAGE, Alaska, January 7, 2013 – With arrival of favorable high tides at Sikalidak Island, recovery crews refloated the Kulluk shortly after 1:00 AM CST today.  Shortly afterward the anchor handling vessel Aiviq commenced towing the conical drillship toward safe harbor at Kiliuda Bay about 30 miles to the northeast. Once there a detailed damage assessment will begin.  Infrared monitoring equipment on one of the vessels in a flotilla accompanying the tow shows no indication of fuel in the water and onboard tank checks confirm no change in fuel levels.  A crew of eleven remains onboard Kulluk during towing operations. read more

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Motiva Shuts Down Texas Refinery Expansion Unit Due to Leak

By Dow Jones Business News,  January 07, 2013, 01:19:00 PM EDT

By Alison Sider

Motiva Enterprises LLC said the crude unit of its Port Arthur, Texas, refinery expansion leaked while being restarted Sunday and was shut down.

Kimberly Windon, spokeswoman for Royal Dutch Shell PLC (RDSA), said the company still plans to have the VPS 5 crude distillation unit fully restarted “in the early part of this year.”

“We anticipate making the necessary adjustments/repairs and returning the unit to normal operation in an expeditious manner,” Ms. Windon wrote in an email Monday. read more

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Shell oil drilling vessel towed after running aground off Alaska island during storm

ANCHORAGE, Alaska — A Royal Dutch Shell PLC drill vessel pulled from rocks off a remote Alaska island approached shelter Monday morning in a protected Kodiak Island bay.

By Associated Press, Updated: Monday, January 7, 6:55 PM

ANCHORAGE, Alaska — A Royal Dutch Shell PLC drill vessel pulled from rocks off a remote Alaska island approached shelter Monday morning in a protected Kodiak Island bay.The Kulluk, a circular drill barge without its own propulsion, ran aground New Year’s Eve in a powerful storm. It was being towed to Seattle for maintenance before it ran aground, but the lines that connected it to the towing ship broke. That same ship, the 360-foot Aiviq, pulled the Kulluk off the rocky bottom near Sitkalidak Island at 10:10 p.m. Sunday and started a slow tow toward Kiliuda Bay.High winds and sea swells threatened to slow the barge’s 30-mile journey to the bay. But the ship made steady progress, moving about 4 mph. By 9 a.m., the vessels were about four miles from where crews planned to anchor up.

The massive effort to move and salvage the ship involves more than 730 people, according to the Unified Command, which includes the Coast Guard, Shell and contractors involved in the tow and salvage operation. Eleven people are aboard the ship — a salvage crew of 10 people and one Shell representative.

The Kulluk is carrying more than 140,000 gallons of diesel and about 12,000 gallons of lube oil and hydraulic fluid.

A tug trailing the drill vessel used infrared equipment to watch for oil sheens and reported no petroleum discharge. read more

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Arctic drilling – cold feet

FROM THE FINANCIAL TIMES JAN 7, 2013

Cold, wet and windy in those Alaska waters. An accident involving Shell’s Kulluk oil drilling rig over the new year has set alarm bells ringing…

…only technology can reduce the risks. Until it is developed further, there is no need to rush into such stormy waters.

FULL FT ARTICLE

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Towing of Shell Alaska oil rig off rocks set to begin

(Reuters) – A recovery team was poised to start towing a grounded Shell oil rig off rocks near an Alaska island, assuming the weather allows, the team said late on Sunday.

A tow line was attached to the Kulluk drillship on Sunday at about 4 p.m. (1:00 a.m. British time) and all elements were in place for towing operations to proceed on Monday, a statement from the joint command centre for the Kulluk responders said.

Yet weather in the area remains a challenge, with the National Weather Service issuing a gale warning through Sunday night and forecasting rain, snow and winds of between 15 and 30 miles an hour. read more

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Gulf of Alaska storms vs. Kulluk drilling rig

Unbelievably, a Shell Oil spokesman said, that forecasts indicated  a favorable two-week weather window. This is at odds with the facts.

Cliff Mass | Jan 06, 2013

The storms win.

Shell Oil made a misguided and poorly informed decision to move a huge drilling platform (the Kulluk) from Dutch Harbor Alaska to Seattle starting Dec. 21. As described in the Seattle Times and elsewhere the problems grew from broken tow lines and faulty engines on December 26th, to the eventual grounding the Kulluk on an island just south of Kodiak island on Dec. 31.

Anyone familiar with the meteorology of the North Pacific and the Gulf of Alaska knows that this region is one of the stormiest on the planet with one major storm after another during midwinter.  Unbelievably, a Shell Oil spokesman said, that forecasts indicated  a favorable two-week weather window. This is at odds with the facts. First, as I will show below the forecasts on the day they left clearly suggested the potential for big storms during the 3-4 week voyage to Seattle, including the first week. Second, forecast skill drops substantially after 4-6 days and thus there was no guarantee of fair weather for this difficult tow. read more

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Reputational damage to Peter Voser

By John Donovan

The mainstream news media is reporting that the reputational damage to Peter Voser and the Shell board arising from the Arctic meltdown is huge. The fact that Shell’s leadership is hopelessly incompetent comes as no surprise to us. No competent board with an ounce of commercial commonsense would allow this website to continue in existence, bearing in mind the damage it has done to Shell over the years by providing an outlet for Shell insider leaks. A Shell official has admitted our success in humiliating the company. Watts was a disaster, Jeroen van der Veer meekly surrendered Shell’s controlling stake in the Sakhalin II project and Voser has now been exposed as a hypocritical fat cat who poured scorn on BP, instead of minding his own ship. Why did Shell rehire Voser in the first place? Surely it would have been better to find someone not tainted by financial scandal to lead Shell after the reserves fraud? read more

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Royal Dutch Shell Arctic rig sparks drill fears

The reputational damage to Shell’s chief executive Peter Voser and the rest of the board is enormous. Shell has spent most of the past year defending allegations that it is incapable of drilling safely in the environmentally-sensitive Arctic region, which is regarded as the next frontier for oil.

By Daily Mail Reporter Monday 7 January 2013

Fears are growing that Royal Dutch Shell could further delay its entire drilling programme in the region where the US Army was embarrassingly called in to help salvage its Kulluk Arctic drilling rig.

The 266ft-diameter Kulluk ran aground off uninhabited Sitkalidak Island, about 200 miles south of Anchorage, Alaska, on New Year’s Eve as it was hit by a storm while being towed to Seattle for maintenance.

So far there has been no leakage of diesel or the hydraulic fluid stored aboard in strong tanks, and no loss of life or significant injuries. read more

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Shell’s money play is on the rocks

By SHANNYN MOORE: 5 Jan 2013

Royal Dutch Shell’s Alaska operations could have used a dose of “local knowledge” to prevent their latest debacle: the grounding of the oil rig Kulluk. That phrase, “local knowledge,” should ring a bell for Shell. The company was the one of the largest contributors to a group opposing the restoration of Alaska’s Coastal Zone Management program.

Why did Shell spend so much money to keep coastal Alaskans away from the table? Don’t they value the experience of local people along the Beaufort and Chukchi coasts? Oh, that’s right. When you’re drilling in their back yards, you only want silent partners. read more

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Shell faces an Arctic meltdown

Royal Dutch Shell could be forced to delay its entire drilling programme in the Arctic this year unless its grounded Kulluk rig can be repaired in time, the City’s top oil analyst has warned. The grounding of the Kulluk rig has left Peter Voser, Shell’s chief executive, dealing with a ‘reputational hit’.

Emily GosdenBy : Published in The Sunday Telegraph 6 Jan 2013

The oil major’s controversial project also faces a series of regulatory hurdles that may now be even harder to pass as opponents of Arctic drilling prepare to capitalise on the reputational damage of the accident.

Last night, the Kulluk drilling rig remained grounded off Alaska as the US Army was drafted in to help salvage operations. Officials were unable to say whether the rig, which was hit by a storm while being towed to Seattle for maintenance, was seaworthy or when it could be moved. read more

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Vosers Holed Arctic Superbucket

John,

Just wondered how Voser’s Superbucket performed in the Arctic!

This cartoon character depicts the goings on in the HAGUE OFFICE in response to the PR hogwash.

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