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Oil Spill

Shell Warns of Environmental Cost of Oil Theft in Niger Delta

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Published April 11, 2013 by Dow Jones Newswires

Rising incidences of oil theft in Nigeria’s oil producing Niger Delta come at a significant environmental cost, Royal Dutch Shell PLC (RDSB) said Thursday.

In its sustainability report, the Anglo-Dutch oil major said its Nigerian unit, Shell Petroleum Development Company, or SPDC, experienced 137 spills as a result of sabotage and theft last year, with the volume of oil lost amounting to 3.3 thousand tons.

“This was an increase in both volume and numbers from 2011, as the scale of oil theft in Nigeria reached unprecedented levels,” it said in the report. read more

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Shell pipeline spills oil into Houston area bayou

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April 4, 2013, 3:29 p.m. EDT

By Ben Lefebvre

An estimated 50 barrels of oil spilled from a pipeline operated by a subsidiary of Royal Dutch Shell PLC (RSDA.LN, RDSA) into a waterway outside Houston, according to the U.S. Coast Guard.

Shell clean-up crews were working to clear the crude out of Vince Bayou, a waterway that connects to the Houston Ship Channel, which leads into the Gulf of Mexico, said Coast Guard Petty Officer Steven Lehman. The spill was contained but the total amount of oil was still being verified, Officer Lehman said. read more

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Nigerian agencies seek $11.5 billion oil spill payout from Shell

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ABUJA, March 27 | Wed Mar 27, 2013 4:14pm EDT

(Reuters) – Two Nigerian government agencies told a parliamentary hearing on Thursday that Royal Dutch Shell should pay a total of $11.5 billion in compensation for damage caused by an oil spill at its offshore Bonga field in December 2011.

Shell has said that there is no legal basis for the proposed fines and the Nigerian government has never publicly charged foreign oil companies large sums for oil spills.

The national assembly can recommend fines the government should impose on oil companies but it has no power to enforce them. read more

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Nigerian Oil Thieves Return to Decimate Output

Screen Shot 2013-03-05 at 14.17.28 By Elisha Bala-Gbogbo on March 05, 2013

Nigeria’s oil thieves are back in action, sabotaging pipelines to rob Africa’s biggest crude producer of more than a 10th of its daily production.

In the first two months of this year alone, Royal Dutch Shell Plc (RDSA) and other oil companies have declared three force majeures, a legal clause that allows them to miss contracted deliveries due to circumstances beyond their control. The thefts threaten to outpace the worst year, 2009, at the height of the insurgency by militants in the Niger River Delta. read more

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Shell’s Arctic Failure

Screen Shot 2013-01-18 at 10.08.58Shell, a company with one of the worst human rights and environmental records in history, has cancelled its plans to drill this summer in the Alaskan Arctic. A fitting end to a year-long tragicomedy of errors. A year that began with boasting and bravado and ended in a series of accidents and outright safety violations that proved Shell is far from Arctic ready.

Shell’s Arctic Failure Is Obama’s Chance to Act

Kumi NaidooExecutive Director, Greenpeace International: Posted 28 February 2013

An unexpected thing happened last night: One of the biggest oil companies in the world — Shell — made a big decision acknowledging that the oil industry cannot operate safely in the Arctic. A decision that means one year of relief for the people and wildlife of the Arctic.

Shell, a company with one of the worst human rights and environmental records in history, has cancelled its plans to drill this summer in the Alaskan Arctic. A fitting end to a year-long tragicomedy of errors. A year that began with boasting and bravado and ended in a series of accidents and outright safety violations that proved Shell is far from Arctic ready. The bottom line is that no one is or will ever be ready, given the risks involved. read more

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With 2 Ships Out of Commission, Shell Suspends Arctic Drilling

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By February 27, 2013

WASHINGTON — After a series of costly and embarrassing accidents in its efforts to drill exploratory wells off the north coast of Alaska last year, Royal Dutch Shell announced on Wednesday that it would not return to the Arctic in 2013.

The company’s two drill ships suffered serious accidents as they were leaving drilling sites in the Beaufort and Chukchi Seas last fall and winter and are being sent to Asia for repairs. Shell acknowledged in a statement that the ships would not be fixed in time to drill during the short summer window this year. read more

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Coast Guard Finds 16 Violations on Shell Ship

The U.S. Coast Guard has turned over its investigation of violations on a Royal Dutch Shell PLC Arctic drill ship to the Department of Justice, officials said Friday.

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By MARK THIESSEN Associated Press ANCHORAGE, Alaska February 23, 2013 (AP)

The U.S. Coast Guard has turned over its investigation of violations on a Royal Dutch Shell PLC Arctic drill ship to the Department of Justice, officials said Friday.

The violations were found after the drilling season when the Noble Discoverer was in dock in Seward, Alaska. Shell’s other Arctic drill barge, the Kulluk, remains in a sheltered bay off Alaska’s Kodiak Island, where it was towed after grounding on New Year’s Eve.

The Coast Guard found 16 violations on the 571-foot Noble Discoverer after it completed drilling this summer in the Chukchi Sea off Alaska’s northern coast. read more

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Shell undermines climate, guts clean energy legislation

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By: Ray Anderson, River Falls Published February 13, 2013

Letter: Shell undermines climate, guts clean energy legislation, he says

TO THE EDITOR: The Royal Dutch Shell Oil Company, the most carbon-intensive oil company in the world, will contribute more to global warming than any other oil company.

Shell continues to expand investments in oil sands and oil shale using the dirtiest technologies to make it a leader in the industry. Often extracted with gas, that gas is burnt off in huge roaring flames at Shell’s operations in Nigeria, causing premature deaths, child respiratory illnesses, asthma attacks and cancer.

Even though gas flaring was made illegal in 1984, “instead of stopping that practice, Shell decided it was more profitable to pay the legal fines instead and continues to flare one billion cubic feet of gas per day. read more

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Shell plans to tow drill vessels to Asia for major repairs

Screen Shot 2013-02-14 at 10.54.45The Kulluk, a 266-foot diameter, 30-year-old circular drilling rig, had been mothballed in Canada for a dozen years before Shell bought it in 2005 for an untold sum and invested $292 million in upgrades and retrofitting. The 514-foot-long Noble Discoverer is even older, built in 1966 and converted into a drilling ship 10 years later. 

February 11, 2013

By LISA DEMER — [email protected]

In another costly setback for Royal Dutch Shell’s controversial Alaska Arctic endeavor, both drilling rigs used offshore during last year’s oil exploration season will be towed out of the water on massive vessels to Asia for further inspection and repair, Shell announced Monday.

The decision suggests the Kulluk and the Noble Discoverer — Shell’s only drilling rigs for the Arctic — need major work and calls into further question whether Shell will be able to resume drilling in the Chukchi and Beaufort seas this year. Two federal investigations are under way into Shell’s Alaska operations. read more

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Kulluk grounding has already cost Shell $90 million

Royal Dutch Shell is a company with sham business principles and no scruples. It plotted to exploit the 9/11 attack for commercial purposes, adopted a Touch F*** All approach to the safety of offshore operations costing the lives of Shell offshore workers, and even defrauded its own investors. Is the U.S. government really going to allow this thoroughly discredited blundering company to continue with its jinxed Arctic folly?

By John Donovan

Shell has revealed that the grounding of the Kulluk in Alaskan waters has already cost the company $90 million for salvage and other costs. This does not include any repairs. There is no mention of making any insurance claim, because Shell was apparently unable to obtain contingency cover. Lloyds underwriters correctly decided the venture was too risky to the extent that it was impossible to quantify the potential financial consequences of a disaster that could bankrupt even a company as big as Royal Dutch Shell Plc. So Shell has been recklessly maneuvering its fleet, including a converted antiquated rust bucket, in stormy unpredictable Alaskan/Arctic waters without insurance, other than questionable self-insurance for a potential liability that it might not be able to cover. The ill fated voyage of the Kulluk, which ended on the rocks, was prompted, as Shell has admitted, by a tax dodging motive. read more

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A mixed verdict

Feb 1st 2013, 16:57 by G.P. | ABUJA

ON JANUARY 30th a Dutch court ruled that Shell, Nigeria’s biggest oil producer, must compensate Friday Akpan, a farmer from the Delta region, for the pollution of his farmland and destruction of his livelihood. The ruling could open a flood-gate to legal complaints against oil companies.In 2008, five Nigerians, including Mr Akpan, filed suits in The Hague where Shell has its headquarters. The other four cases were dismissed; the court said Shell could not have prevented the spills involved. Environmental campaigners insist the company was negligent. Amnesty International says the dismissal highlights how difficult it is for Nigerians whose lives have been affected by oil pollution to get justice. read more

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Shell vows to tame Arctic

Shell’s chief executive has vowed that a string of embarrassing mishaps will not derail its controversial $5 billion Arctic drilling campaign. He said: “We will not be distracted by being in the crossfire.

THE TIMES

FRIDAY FEBRUARY 1 2013: Page 45

Tim Webb. Katherine Griffiths

Shell’s chief executive has vowed that a string of embarrassing mishaps will not derail its controversial $5 billion Arctic drilling campaign.

Dismissing the grounding of its Kulluk drilling rig in Alaska on New Year’s Eve as a “marine incident”, Peter Voser said that he was convinced that Shell would eventually exploit the Arctic region’s vast deposits.

He said: “We will not be distracted by being in the crossfire. We are quite used to that I’m convinced that Alaska in general will be developed and by companies who have the tech- nology and operating procedures like we have. I see Shell operating in Alaska in the future.” read more

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We’re in the Arctic for the long term, Shell insists, despite risk to 2013 drilling plans

Royal Dutch Shell is in the Arctic for the long term, insisted chief executive Peter Voser, despite casting doubt over the company’s 2013 Alaskan drilling plans and warning he could not rule out further “incidents” after a series of mishaps.

The Kulluk drilling rig which ran aground off Alaska on New Year’s Eve. Photo: AFP

By 9:02PM GMT 31 Jan 2013

Mr Voser was speaking as Shell unveiled a 6pc fall in profits to $27bn (£17bn) for 2012, as fourth-quarter earnings came in below expectations because of a surprise slump in exploration and production profits.

Shell has spent about $5bn over seven years on its controversial Arctic exploration campaign but has yet to be allowed to drill into potentially oil-bearing rocks.

Setting out the company’s intentions to drill more than 40 conventional oil and gas exploration wells this year, Mr Voser said on Thursday that the Arctic was counted within those plans. read more

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Nigeria Spill Fines on Shell, Chevron, Not Backed by Law

By Elisha Bala-Gbogbo – Feb 1, 2013 11:23 AM GMT

Fines amounting to $8 billion sought by Nigeria from Royal Dutch Shell Plc (RDSA) and Chevron Corp. (CVX) for oil spills are not backed by law, said Bukola Saraki, chairman of the country’s Senate Committee on Environment.

“Under the existing law, there is no penalty for oil spills apart from just to clean it up,” Saraki, a senator representing the ruling People’s Democratic Party from central Kwara state, said in an interview in Abuja on Jan. 29. “You only pay 1 million naira ($6,362) for late reporting.” read more

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Shell faces damages over Nigeria oil spill

Speaking to Al Jazeera, Channa Samkalden, a lawyer acting on behalf of the Nigerian farmers, said:  “Overall it’s actually quite a good outcome for us. “At least Shell was held liable for one of the cases. That’s a good start. Also, a very important fact is that the court has said that Shell has a duty to take measures to prevent sabotage, which is of course a principal issue.”

30 Jan 2013

Dutch court upholds just one out of five allegations by Niger Delta farmers against the oil company.

A court in the Netherlands has ruled that Royal Dutch Shell can be held partially responsible for pollution in Nigeria’s Niger Delta region and ordered it to pay damages to one farmer.

The court dismissed on Wednesday four out of five allegations against the oil company. The amount of damages to be paid was to be announced at a later date.

Activists say the case could set a precedent for damage claims related to the foreign activities of multinational companies.

Four Nigerians and interest group Friends of the Earth filed the suit in 2008 in The Hague, where Shell has its joint global headquarters, seeking unspecified reparations for lost income from contaminated land and waterways in the Niger Delta. read more

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Dutch court rejects most of Shell spill case

A Dutch court has ruled that a subsidiary of international oil giant Royal Dutch Shell should be held responsible for pipeline leaks poisoning farmland in Nigeria. It was believed to be the first time a Dutch court has held a multinational’s foreign subsidiary liable for environmental damage and ordered it to pay damages.

A Friends of the Earth banner outside court ahead of the case of Nigerian farmers against Shell, in The Hague, Netherlands.(Photo: Peter Dejong, AP)

January 30, 2013

THE HAGUE, Netherlands (AP) — A Dutch court has ruled that a subsidiary of international oil giant Royal Dutch Shell should be held responsible for pipeline leaks poisoning farmland in Nigeria.

In its ruling Wednesday, the Hague Civil Court rejected most of a landmark case brought by Nigerian farmers and environmental pressure group Friends of the Earth against Shell, saying the leaking pipelines were was caused by saboteurs, not Shell negligence.

However, in one case the judges ordered a subsidiary, Shell Nigeria, to compensate a farmer for breach of duty of care by making it too easy for saboteurs to open an oil well head that leaked on to his land. read more

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How Four Nigerian Villagers Took Shell to Court

Four Nigerian villagers from the Niger River delta have challenged mighty Shell in a Dutch court. They complain that the oil giant has caused environmental devastation and ruined their homes. A verdict in the unprecedented case is expected today.

Battling Big Oil: How Four Nigerian Villagers Took Shell to Court

By Nils Klawitter

Four Nigerian villagers from the Niger River delta have challenged mighty Shell in a Dutch court. They complain that the oil giant has caused environmental devastation and ruined their homes. A verdict in the unprecedented case is expected on Wednesday.

Royal Dutch Shell CEO Peter Voser likes to talk about the good deeds his company performs worldwide. “Sustainable development and social performance is absolutely key in the way we do our business,” says Voser, a Swiss national. The head of Shell feels a duty to pursue such noble objectives as observing human rights and protecting the environment. read more

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Dutch civil court ruling on Shell’s responsibility for cleaning up oil spills in Nigeria

Published January 30, 2013 by Associated Press

THE HAGUE, Netherlands –  Dutch judges are ruling in a landmark civil action by Nigerian farmers who want to hold oil giant Shell liable for poisoning their fish ponds and farmlands with leaking pipelines.

The decision being announced Wednesday could set a legal precedent for holding multinationals responsible for their actions overseas.

Lawyers for the four Nigerians from the oil-rich Niger delta argue Shell makes key policy decisions at its Hague headquarters, so the Dutch court has jurisdiction. read more

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Shell verdict will determine whether other firms could be tried for oil spills

…the reality is that despite condemnation by the UN Environment programme in 2011, despite Nigerian government promises, NGO fury and mounting despair in the communities, Shell’s oil spills go on, the gas flaring continues and the people of the delta remain as poor as ever. The verdict is due tomorrow.

People affected in the Niger delta have come to Europe to ask for justice as multinationals dismiss their claims with impunity

There’s not much left of Goi, an Ogoni village on the Niger delta.

When I went there two years ago large parts of it and the surrounding land still hadn’t recovered from a series of spills of Shell oil that had taken place in 2004. Most Goi people had been farmers and fishermen, but they had mostly moved out because the water, the houses, the mud in the creeks all still reeked of crude.

I had met Eric Dooh whose family comes from Goi, and who has spent years fighting Shell for compensation. This week he’s in Amsterdam representing his father and on Wednesday, he and three other farmers from other parts of the polluted Niger delta will hear the verdict of a Dutch court on the case. read more

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30 January 2013: Court Verdict Expected on Shell’s Nigerian Oil Pollution

At 10 am on 30 January, the court in The Hague will rule on the case of Milieudefensie and four Nigerian farmers versus Shell. The public sitting in this case took place on 11 October last year. The court case is unique because it is the first time that a Dutch multinational has been brought before the court in its home country for environmental damage caused abroad. The case focuses on just three of the thousands of oil leaks in Nigeria. In the case, Milieudefensie demands that Shell cleans up the oil pollution in the villages, compensates the farmers for the damages suffered and maintains the oil pipelines better in the future.

Interview requests

In connection with the anticipated media interest following the 30 January verdict, we ask that media requests for interviews with one of the spokespeople listed below be made in advance to Milieudefensie’s press office.

Spokespeople

Eric Dooh, one of the Nigerian plaintiffs, is in The Hague and will be available to the media on behalf of the plaintiffs. Geert Ritsema and Evert Hassink, of Milieudefensie’s International team, will be available to the media on behalf of Milieudefensie. Milieudefensie’s lawyer, Channa Samkalden of Böhler Advocaten, will be available for questions on the legal aspects of the case. read more

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Davos activists occupy Shell station to protest Arctic drilling, warn of environmental danger

By Associated Press, Updated: Friday, January 25, 10:23 AM

DAVOS, Switzerland — Activists with a big fake polar bear have occupied a Shell service station in the Swiss resort of Davos to protest Royal Dutch Shell PLC’s oil drilling in the Arctic.

About 25 activists from around Europe chained gas pumps together Friday at the station near where the World Economic Forum was being held and hung a banner on the roof reading “Arctic Oil – Too Risky.”

Greenpeace helped stage the protest, raising concerns about dangers to the environment from Shell’s drilling in Alaska and urging forum organizers to reconsider Shell’s participation. A Shell drill barge ran aground on a remote Alaska island on New Year’s Eve.

Shell officials, among the 2,500 corporate and political leaders in Davos this week, did not immediately respond to phone calls about the protest. read more

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Shell win Public Eye ‘shame’ award at Davos from online voters

Shell won the public vote by a wide margin among 41,800 online voters, the two groups said, singling out its “highly risky search for fossil fuels in the fragile Arctic”.

MENAFN – AFP – 24/01/2013

(MENAFN – AFP) Campaigners at Davos on Thursday awarded their annual Public Eye shame awards to Goldman Sachs and Shell “for particularly glaring cases of companies’ greed for profit and environmental sins”.

At an “award ceremony” on the sidelines of the World Economic Forum in Davos, the Swiss chapter of Greenpeace and the Berne Declaration said Goldman Sachs had won the jury prize, while Shell had been chosen by online voters for the public award. read more

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Shell oil spillage in Niger Delta up 70 percent in 2012

Shell Spilled 26,000 Barrels Oil In 2012, Up 70% On Year -SPDC

Published January 24, 2013: Dow Jones Newswires

Shell spilled about 26,000 barrels of oil in the Niger Delta in 2012, up 70% from the previous year, according to data released this month from Shell Petroleum Development Company (SPDC) of Nigeria.

Last year’s 198 spills were due to bunkering or operational incidents, the data showed. Spills and pipeline sabotage can lead to force measures and loading delays.

SPDC has publicly reported oil spills annually since 1995, the company said on its website. read more

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As Shell looks to future, critics point to timing, risks

Shell’s first year of drilling on those leases was nothing short of a PR disaster, with a grounded rig and a drifting drillship highlighting the challenges of searching for crude in the remote and icy waters hundreds of miles north of the Arctic Circle. The high-profile mishaps have prompted a federal investigation of the perils of Arctic drilling and are spurring some in the oil industry to re-evaluate whether the crude on top of the world is worth the logistical challenges, financial costs and environmental risks of getting to it.

Updated 20 January 2013

By JENNIFER A. DLOUHY — Hearst Newspapers

WASHINGTON — When Shell started buying leases to drill in the Beaufort and Chukchi seas in 2005, the company was betting on Americans’ thirst for any oil locked under those Arctic waters, which could replace declining crude production from Alaska’s North Slope and other onshore resources.

Flash forward eight years, and the scenario has changed dramatically.

Now, energy companies are extracting ever more oil from dense rock formations in south Texas, North Dakota and other states, making the need to tap offshore frontiers less urgent. read more

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As Shell’s Arctic Drilling Hopes Hit Snags, Its Rivals Watch

HOUSTON — Royal Dutch Shell’s Arctic drilling program is now officially in jeopardy and its prospects will depend on the findings of two continuing federal inquiries. One review is on the grounding of the Kulluk drill ship on New Year’s Eve after it was set adrift for five days in stormy weather, and the other is on the safety management of the entire Shell program.

By and : A version of this article appeared in print on January 18, 2013, on page B1 of the New York edition

HOUSTON — Royal Dutch Shell’s Arctic drilling program is now officially in jeopardy and its prospects will depend on the findings of two continuing federal inquiries. One review is on the grounding of the Kulluk drill ship on New Year’s Eve after it was set adrift for five days in stormy weather, and the other is on the safety management of the entire Shell program.

Rival oil companies, as they form their strategic choices, are keenly watching to see how Shell’s $4.5 billion exploratory operation off the North Slope of Alaska is faring and how the effort is working with wary United States regulators. read more

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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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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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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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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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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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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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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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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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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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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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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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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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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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Shell to Tow Grounded Alaska Drill Rig 30 Miles in Recovery Plan

By Isaac Arnsdorf – Jan 6, 2013 8:48 AM GMT

Royal Dutch Shell Plc (RDSA) plans to tow the drilling rig that ran aground in Alaska about 30 miles to a safe harbor after naval architects determined the vessel is safe to move.

The Kulluk, which ran aground after breaking from a tow boat during a storm on Dec. 31, will be moved to Kiliuda Bay, where more tests can be conducted, according to a Jan. 5 statement on the website of the Unified Command in Anchorage. The timing depends on weather, tides and readiness. read more

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US Army joins battle to save stricken Shell rig

Adding to Shell’s problems, one of the company’s leading shareholders told The Sunday Telegraph that the market was “nervous” about the Arctic as there would be “hell to pay” in the event of a spill.

The US Army has been called in to help with the battle to salvage Royal Dutch Shell’s stricken Kulluk Arctic drilling rig, which has now been beached in environmentally delicate waters for nearly a week.

By : Sunday Telegraph 6 Jan 2013

The Kulluk, one of two rigs crucial to Shell’s controversial Arctic oil exploration plans, ran aground on New Year’s Eve as it was hit by a fierce storm while being towed to Seattle for maintenance.

Two Chinook helicopters from the 16th Combat Aviation Brigade flew to the scene on Friday to help transport heavy equipment for the salvage operations.

Three vessels are on site and a further 12 en route, according to the Unified Command managing the incident yesterday.

The Kulluk “continues to remain stable and upright and there is no evidence of sheen in the vicinity,” it said, indicating that the 143,000 gallons of diesel and 12,000 gallons of other oil products on board had not leaked. read more

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Shell ship wreck debacle

By John Donovan

News update on Kulluk ship wreck debacle: Security guards are stationed outside the command post set up in The Best Western Kodiak Inn trying to stem the leaks of information feeding a media firestorm. Does that sound like the actions of a company wishing to be completely open about the crisis which has engulfed its $multi-billion  Arctic drilling misadventure? On the subject of leaks, Shell claims that the flooding below decks on the grounded ship comes from open hatches, not due to cracks or holes in the hull. That’s okay then. Shell shareholders can relax. Shell has admitted that the Kulluks generators are wrecked. The weather forecast for today is strong winds and high seas. In other words, more of the same conditions that led to the order to abandon ship in the first place and drove the ill-fated ancient vessel onto the rocks, and likewise Shell’s reputation (already holed by its past notorious “Touch F*** All” culture on North Sea platforms, putting production and profits before the safety of offshore workers). read more

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8 reasons why Shell can’t be trusted in the Arctic

Shell’s most recent ‘mishap’ a few days ago was not the first setback the oil giant has suffered in its plans to drill for oil in the Arctic. In fact, it’s the eighth in a growing list of reasons why Shell should not be trusted in the Arctic.

1. Shell has no idea how much an oil spill clean-up would cost

In March 2012, in response to questions from the UK’s Parliamentary Environmental Audit Committee, Peter Velez, Shell’s head of emergency response in the Arctic admitted that Shell had not assessed the costs of a clean-up operation in the Arctic, leaving shareholders exposed to potentially huge financial losses.

2. Shell’s barge, the Arctic Challenger, was not deemed safe enough by the US government

In July last year the US authorities announced that a key part of Shell’s oil spill response fleet hadn’t been allowed to sail to the Arctic because it did not meet US Coast Guard safety standards. The ship, Arctic Challenger, is a 36-year-old barge used to drag safety equipment through sea ice. But US authorities are not happy with what they’ve seen on-board and didn’t feel confident the Arctic Challenger could withstand the extremely harsh Arctic environment. Originally Shell agreed that the ship would be able to withstand a 100-year storm, but company engineers are now saying that it is “no longer appropriate” for the barge to meet such onerous standards. read more

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Selection of News Articles about Kulluk Debacle

Selection of News Articles about Kulluk Debacle

Latest Shell Debacle in Alaska Part of a Larger Pattern of Risk and …: Huffington Post (blog)-Shell Oil’s string of failures in its Arctic Ocean drilling attempts continued into the New Year. One of the company’s drill rigs ran aground near …

Grounded Shell Oil Rig Off Alaska Coast Still Has No Flooding Or …: Huffington Post-ANCHORAGE, Jan 3 (Reuters) – A Shell oil drilling rig grounded off an Alaska island since a New Years Eve storm has suffered damage from … read more

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