Obama administration delivers big blow to Shell’s Arctic drilling plans

By Jennifer A. Dlouhy

WASHINGTON — The Obama administration delivered a major blow to Shell’s Arctic drilling plans on Tuesday, by ruling that wildlife protections bar the company from simultaneously boring two wells into the Chukchi Sea this summer.

The decision will force Shell to scale back its hopes of completing two exploratory oil wells in waters north of Alaska this summer and is another setback for the firm that has spent seven years and $7 billion trying to find crude in the Arctic Ocean. read more

Shell goes ahead with giant Gulf of Mexico field after cost cuts

Markets | Wed Jul 1, 2015

* Appomattox project set to start production by end of decade

* Will be Shell’s largest platform in the region (Adds details, quotes, share price)

By Ron Bousso

LONDON, July 1 (Reuters) – Royal Dutch Shell has given the green light for the development of its largest platform in the Gulf of Mexico after making steep cost cuts which made the deep water project economical despite low oil prices.

The decision to pour billions of dollars into the Appomattox project comes as companies have scrapped around $200 billion of mega-projects in the wake of the sharp decline in oil prices over the past year.

Shell has operated in the Gulf of Mexico for over 60 years. The region contributes about 17 percent of total U.S. crude oil production according to the Energy Information Administration and was the location in 2010 of the worst offshore oil spill in U.S. history, involving BP’s Deepwater Horizon well. read more

Oil giant Shell fined over Brent Bravo leak

Oil giant Shell has been fined thousands of pounds after a diesel leak on board a North Sea platform.

Between 13 and 15 tonnes spilled into the sea from the Brent Bravo, 116 miles north east of Lerwick, in May 2013.

Senior management from Shell were at Aberdeen Sheriff Court where the company admitted the release of fuel.

Sheriff Kenneth Stewart fined the company £6,650, reduced from the maximum possible due to the early stage of the guilty plea.

A Shell UK spokeswoman said: “We regret that the release occurred – no spill is acceptable. read more

Shell to tap new Gulf of Mexico oil

HOUSTON, July 1 (UPI) — Royal Dutch Shell said Wednesday it made a final investment decision to open up new oil developments in the deep waters of the U.S. Gulf of Mexico.

Shell said it was moving forward with a decision to build what it says will be the largest floating platform in the Gulf of Mexico in order to tap into the deepwater Appomattox prospect. Average production is expected to be about 175,000 barrels of oil equivalent per day.

“Appomattox opens up more production growth for us in the Gulf of Mexico, where our production last year averaged about 225,000 boe per day, and this development will be profitable for decades to come,” Upstream Director Marvin Odum said in a statement. “With its competitive cost and design, Appomattox is next in our series of deep-water successes.” read more

Shell’s Arctic oil drilling plans hit by polar bears and walruses

By Reuters: 12:32AM BST 01 July 2015

The Obama administration has dealt a setback to Royal Dutch Shell’s Arctic oil exploration plans, saying established walrus and polar bear protections prevent the company from drilling with two rigs simultaneously at a close range, as it had planned.

The US Fish and Wildlife Service issued Shell a permit which emphasized that under federal wildlife protections issued in 2013, companies must maintain a 15-mile buffer between two rigs drilling simultaneously.

The rule is meant to protect populations of animals sensitive to the sounds and activities of drilling. Walruses have been known to plunge off rocks into the sea during drilling, putting their populations at risk. The animals are already at risk from reduced habitat areas due to global warming. Drilling with only one rig at a time could slash the amount of work Shell had hoped to accomplish. read more

The lessons for all from the Corrib Gas project in North Mayo

Major infrastructure that is years behind schedule and massively over budget

Wednesday, 1 July 2015

The Corrib Gas project represents a cautionary example of how large industrial developments should not be handled by governments or multinational companies. A lack of consultation and sensitivity to local concerns in the initial stages led gradually to resistance and confrontation. Smouldering resentment over what objectors regarded as unqualified state support for the developer caught fire when five protesters, concerned about the safety of a gas pipeline and its proximity to their homes, were jailed on an application from Shell. From there, there was no going back. read more