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February 28 2013

01:07

Shell Backs Off From Arctic Drilling

A series of accidents prompts the company to indicate that it is not yet ready to resume drilling operations in the region.

August 15 2012

20:33

August 06 2012

18:39

The Arctic Drilling Countdown

The interior secretary is on his way to Alaska, but Obama administration officials caution that this doesn't mean that permits are imminent for Shell.

August 03 2012

12:00

Delaware Tax Haven: The Other Shale Gas Industry Loophole

Most people think of downtown Houston, Texas as ground zero for the oil and gas industry. Houston, after all, serves as home base for corporate headquarters of oil and gas giants, including the likes of BP America, ConocoPhillips, and Shell Oil Company, to name a few.

Comparably speaking, few would think of Wilmington, Delaware in a similar vein. But perhaps they should, according to a recent New York Times investigative report by Leslie Wayne.

Wayne's story revealed that Delaware serves as what journalist Nicholas Shaxson calls a "Treasure Island" in his recent book by that namesake. It's an "onshore tax haven" and an even more robust one than the Caymen Islands, to boot.

The Delaware "Island" is heavilized utilized by oil and gas majors, all of which are part of the "two-thirds of the Fortune 500" corporations parking their money in The First State.

Delaware is an outlier in the way it does business,” David Brunori, a professor at George Washington Law School told The Times. “What it offers is an opportunity to game the system and do it legally.”

The numbers are astounding. "Over the last decade, the Delaware loophole has enabled corporations to reduce the taxes paid to other states by an estimated $9.5 billion," Wayne wrote

"More than 900,000 business entities choose Delaware as a location to incorporate," explained another report. "The number…exceeds Delaware's human population of 850,000."

Marcellus Shale Frackers Utilize the "Delaware Loophole" 

The New York Times story also demonstrated that the shale gas industry has become an expert at utilizing the "Delaware Loophole" tax haven to dodge taxes, just as it is a champion at dodging chemical fluid disclosure and other accountability to the Safe Drinking Water Act, thanks to the "Halliburton Loophole." The latter is explained in great detail in DeSmogBlog's "Fracking the Future."

Utilization of the "Delaware Loophole" is far from the story of a few bad apples gone astray for the industry. As Wayne explains, the use of this "onshore tax haven" is the norm.

More than 400 corporate subsidiaries linked to Marcellus Shale gas exploration have been registered in Delaware, most within the last four years, according to the Pennsylvania Budget and Policy Center, a nonprofit group based in Harrisburg that studies the state’s tax policy.

In 2004, the center estimated that the Delaware loophole had cost the state $400 million annually in lost revenue — and that was before the energy boom.

More than two-thirds of the companies in the Marcellus Shale Coalition, an industry alliance based in Pittsburgh, are registered to a single address: 1209 North Orange Street, according to the center.

These fiscal figures, as Wayne points out, predate the ongoing shale gas "Gold Rush" in the Marcellus. SEIU of Pennsylvania has calculated $550 million/year in lost tax revenue in the state from the shale gas industry due to the loophole.

The Pennsylvania House of Representatives set out to tackle the "Delaware Loophole" quagmire in the spring of 2012, but merely offered half-measure legislation that would have allowed corporations - including the frackers - to continue gaming the system. Coryn S. Wolk of the activist group Protecting Our Waters summarized the bill in a recent post:

In March, 2012, the Pennsylvania House of Representatives created a bipartisan bill, HB 2150, aimed at closing corporate tax loopholes. However, as the Pennsylvania Budget and Policy Center noted in their detailed opposition to the bill, the bill would have cost Pennsylvania more money by soothing corporations with major tax cuts and leaving the loopholes accessible to any clever accountant.

Tax cheating in Delaware goes far above and beyond the Marcellus Shale. All of the oil and gas majors, with operations around the world, take full advantage of all Delaware has to offer.

"Piping Profits"

If things in this sphere were only limited to shale gas companies operating in the Marcellus Shale, the battle would seem big. Big, but not insurmountable.

Yet, as the Norway-based NGOPublish What You Pay points out in a recent report titled, "Piping profits: the secret world of oil, gas and mining giants," the game is more rigged than most would like to admit.

How rigged? Overwhelmingly so.

The report shows that ConocoPhillips, Chevron, and ExxonMobil have 439 out of their combined 783 subsidiaries located in well-known tax havens around the world, including in Delaware. All three companies maintain fracking operations, as well, meaning they benefit from both the Halliburton and Delaware Loopholes.

Adding BP and Shell into the mix, Publish What You Pay revealed that the five majors have 749 tax haven subsidiaries located in Delaware out of a grand total of 3,632 global tax haven subsidiaries. This amounts to 20.6-percent of them, to be precise.

These figures moved Publish What You Pay's Executive Director, Mona Thowsen, to conclude, “What this study shows is that the extractive industry ownership structure and its huge use of secrecy jurisdictions may work against the urgent need to reduce corruption and aggressive tax avoidance in this sector."

Tax Justice Network: $21-$32 Trillion Parked in Offshore Accounts

A recent lengthy report titled "The Price of Offshore Revisited" by the Tax Justice Network reveals just how big of a problem tax havens are on a global scale, reaching far beyond Delaware's boundaries.

As Democracy Now! explained,

[The] new report…reveals how wealthy individuals and their families have between $21 and $32 trillion of hidden financial assets around the world in what are known as offshore accounts or tax havens. The conservative estimate of $21 trillion—conservative estimate—is as much money as the entire annual economic output of the United States and Japan combined. The actual sums could be higher because the study only deals with financial wealth deposited in bank and investment accounts, and not other assets such as property and yachts.

The inquiry…is being touted as the most comprehensive report ever on the "offshore economy." 

The Democracy Now! interview below is worth watching on the whole, as oil and gas industry "offshoring" is but the tip of the iceberg.

Photo CreditGunnar Pippel | ShutterStock

Exhaustive Study Finds Global Elite

July 29 2012

20:13

How Do You Spend $375 Million A Day? Ask The Oil Industry

The average U.S. household has seen both their net worth and their average income steadily decline over the last seven years. Unemployment in the United States still remains at uncomfortably high levels, and the poverty rate is about to reach highs that haven’t been seen since the 1960’s. But as average citizens are struggling to provide food for their families and gainful employment, there are a special few in the U.S.A. who have more cash than they know what to do with. Those special few would be the oil industry.

While most of us in the U.S. were cringing every time that ticker on the gas pump climbed higher and higher, executives at the top five oil companies were squealing with delight as their profits climbed even faster and higher than the prices at the pump.

This week, oil companies are sheepishly coming forward with their 2nd quarter earnings statements, likely praying that Americans forget about the fact that gas prices were recently at near-historic highs in areas of the country. From Climate Progress:
  

The top two corporations on the Fortune 500 Global ranking, Royal Dutch Shell and ExxonMobil, announced their 2012 second-quarter earnings today, bringing the total profits for three Big Oil companies to $44 billion for 2012 or $250,000 every day this year. Exxon profited by $16 billion this quarter, bringing its earnings for 2012 to $25 billion.

The New York Times wrote that Exxon and Shell’s earnings “disappoint,” because energy prices unexpectedly dropped for consumers this summer. Put their profits in the appropriate context, however, and Exxon and Shell still made a combined $160,000 per minute last quarter, even though the top five oil companies benefit from $2.4 billion federal tax breaks every year.
 

That certainly warrants repeating: Exxon and Shell made a combined $160,000 every minute for the last quarter, and still helped themselves to a piece of the $2.4 billion in federal tax breaks and subsidies that flow to the top five oil companies (the grand total for all members of the industry is estimated to be between $4 and $7 billion a year.)

At their current rate of pay by the minute, they are on track to beat their record from last year when the top five oil companies combined earned a total of $261,000 every minute, for a grand total of $375 million a day.

So the ultimate question is how do they spend all that money? The simplest answer is that they spend most of it in ways that only makes them wealthier. Again from Climate Progress:
  

ExxonMobil:

Exxon spent 42 percent — or $10.7 billion — of its 2012 profits buying back its stock, which enriches executives and largest shareholders.

Exxon has spent $17 million lobbying for the past 18 months, making it the top spender in the oil and gas industry. It has spent more than $52 million lobbying for the first three years of the Obama presidency, 50 percent more than in the Bush administration.

Exxon is sitting on $18 billion in cash reserves.

Exxon sent federal candidates $1.3 million in campaign contributions so far this campaign cycle, sending 91 percent to Republicans.

Exxon paid just 13 percent in federal taxes last year, lower than the average American family. Right after Mitt Romney, Senate Minority Leader Mitch McConnell (R-KY) is the top recipient of Exxon federal contributions.

Exxon CEO Rex Tillerson received $24.7 million total compensation.

Royal Dutch Shell:

Shell has spent nearly $22 million on lobbying for the past 18 months, making it the second-biggest spender of the oil and gas industry.

Shell bought back 15 percent of its second-quarter profits, or $900 million.

In its annual report, Shell noted that the number of oil spills increased from 195 in 2010 to 207 during 2011.
 

But Exxon and Shell aren’t the only companies to report massive paydays this week; ConocoPhillips is also apparently rolling in the dough. Here’s how they spent their $2.3 billion in 2nd quarter profits:
  

ConocoPhillips has already spent $1 million lobbying Congress this year. In 2011, ConocoPhillips spent over $20 million on lobbying Congress, making it the top spender of the oil and gas industry.

Conoco has contributed nearly $400,000 to federal campaigns this year, with 90 percent of the contributions going to Republicans.

Conoco is sitting on $1 billion in cash reserves.

The company spent 35 percent more than they earned this quarter — or $3.1 billion — buying back its own stock, which enriches the largest shareholders and executives.
 

Obviously, there’s nothing wrong with a company being profitable. The problem is that the oil industry is profitable at the expense of our national economy and our environment. Oil spills in recent years have cost billions of dollars – money that is coming from U.S. taxpayers – and the ridiculous prices at the pump are taking a huge toll on American families.

And again, at the same time these companies are reaping these profits, we’re giving them an extra $7 billion tip every year. And as long as they keep pulling in these massive profits, they’ll have enough money to pay off the right politicians to keep those billions in subsidies in place. Last year, the total amount spent on lobbying topped $30 million by the oil industry in order to preserve their subsidies, which netted them a whopping 42% return on their investment.

July 24 2012

21:23

Breaking Up With Keystone XL and Dirty Energy - It's Not Us, It's You [Video]

This is a guest post by Heather Libby.

A new video from the Post Carbon Institute pokes fun at the Keystone XL pipeline’s tendency to reappear no matter how very little we want it around - much like an ex-boyfriend who won’t get the hint.

Like many in the environmental movement, I was thrilled when President Obama denied the permit for the Keystone XL pipeline. I really thought it was the end of the Keystone XL. Silly me.

Within weeks, Republicans were looking for new ways to resubmit the Keystone XL plan. Mitt Romney has said he’ll make approving the Keystone XL a priority for his first day in office if he wins.

Seeing all of this, I was frustrated and felt disenfranchised. So I did what I always do in that situation: write comedy. 

All I could think of was how much pipeline companies like Transcanada, Enbridge, Shell and Kinder Morgan reminded me of guys who simply won’t take no for an answer. They're going to keep coming back no matter what we tell them, unless we cut them off for good - and remove their subsidies.

Fortunately there are many organizations - including 350.org and Oil Change International who are working hard to convince governments that eliminating subsidies is the right thing to do for our energy future. 

Don’t you think it’s time we end this dirty relationship?
  

We Quit You, Keystone XL

July 23 2012

12:02

July 19 2012

18:40

Who Needs Cute? A Jab at Shell and Arctic Drilling

Greenpeace sponsored a billboard ad mocking Shell's plan to drill in the frigid Chukchi Sea this summer.

March 26 2012

13:40

On Our Radar: The State of the Planet

In advance of the Rio + 20 summit meeting in Brazil, specialists are meeting in London this week to present a comprehensive scientific update on the pressure the planet is under as well as potential fixes.

March 10 2012

22:42

Big Oil Rakes In Billions, Still Complains Taxes Are Too High

The President rolled out his FY2013 budget recently, which includes eliminating $40 billion in tax breaks from Big Oil companies, such as BP, Chevron, ConocoPhillips, ExxonMobil, and Shell. Meanwhile, the American Petroleum Institute's response would have you believe that cutting the subsidies would be the equivalent of moving back into their parents' basement.

It's propaganda at its most repetitive, crying that they are "job creators" and that it's so "unfair" to raise taxes because they already contribute millions to the economy every day, and if you do they swear to god prices will rise and the inevitable dependency on foreign oil will bring about the apocalypse itself if you don't let them have their way.

That's like Donald Trump begging to not get kicked out of rent-stabilized, low-income housing even when raking in billions annually, and then threatening to trash the place once the landlord actually puts up an eviction notice.

It's true. The combined profit of the "big 5" oil companies listed above was $137 billion last year, with ExxonMobil, Chevron, and ConocoPhillips coming in first, fourth, and 15th, respectively, on the Fortune 100 list of most profitable companies.

read more

March 03 2012

00:50

U.S. Chamber Hits The Road To Promote "Oily" Highway Transportation Bill

A bitter fight has erupted in Washington, D.C. in recent weeks surrounding the fate of a much-needed transportation and infrastructure bill. Congressional Democrats wanted to pass a bill that would fund projects to help rebuild roads and bridges, but Republicans were against the idea.

So, in an attempt to get something more tangible out of the legislation, Congressional Republicans loaded the bill down with dozens of handouts to the oil industry, including immediate approval of the Keystone XL pipeline and expanded access to U.S. lands for oil exploration. The amendments would also take national gas tax money away from public transportation projects, and reduce the amount of federal contributions to public employee pensions – two actions that will have devastating effects on middle class America. And with the fight bringing the discussion on the legislation to a halt, the U.S. Chamber of Commerce took it upon themselves to hit the road and sell the bill to the American public.

From the U.S. Chamber:

The business group will be hosting breakfasts, lunches and policy roundtables with local chambers and business associations this week in 12 different cities in Ohio, Idaho, Georgia, North Carolina, South Carolina, Alabama and Louisiana.

Janet Kavinoky, the Chamber’s executive director of transportation and infrastructure, will be on the road trip, along with Alex Herrgott, one of the business group’s transportation lobbyists.

“The idea is to get out, give people a good sense what the bill is and get them talking to their members of Congress and have them get the bill done,” Kavinoky said. “We want Congress to feel like it needs to come back to Washington and get the bill done and put it to bed.”

read more

February 17 2012

17:03

Interior Approves Shell's Arctic Oil-Spill Response Plan

The Interior Department says Shell's oil spill response plan has been approved for drilling in shallow waters of the Chukchi Sea in the Arctic.

February 08 2012

05:14

China Looks To Stephen Harper For Lessons In Dirty Energy Exploitation

Canadian Prime Minister Stephen Harper is in China this week to meet with Chinese leaders about how both countries can profit big by exploiting China’s shale gas reserves, as well as by importing Canadian tar sands oil. Harper is scheduled to meet with both Chinese officials, as well as heads of oil and gas companies during his four-day visit to the country.

More on the specifics of who will be attending these meetings, from Reuters Canada:

During his trip Harper will meet President Hu Jintao and Premier Wen Jiabao as well as two important regional players - Chongqing Communist Party chief Bo Xilai and Wang Yang, the chief of Guangdong province.

The Canadian mission, which will arrive in Beijing on Tuesday, is the largest of its kind since 1998. Guests include top executives from Shell Canada, Enbridge and Canadian Oil Sands as well as uranium producer Cameco Corp and mining firm Teck Resources Ltd.

Other firms include plane and train maker Bombardier Inc, Air Canada, Eldorado Gold Corp, SNC-Lavalin Group Inc, Canfor Corp and West Fraser Timber Co Ltd.

After the United States’ rejection last month of the Keystone XL pipeline, Canadian officials are hoping to reap a profit in the world’s largest emerging market. But any energy trade deals would certainly benefit both sides, as just last week PetroChina, parent of China’s largest oil producer, purchased a 20% stake in a Canadian shale gas project being run by Royal Dutch Shell.

Chinese oil companies are hoping that their cooperation with Shell and the Canadian government will help them use these valuable resources to teach officials more about the process of extracting shale gas, mostly through fracking.

Just last year, with some financing through other Chinese oil companies, Shell invested more than $400 million in Chinese shale gas projects, which included the drilling of at least 15 different shale extraction wells.

read more

Reposted by02mydafsoup-01 02mydafsoup-01

November 18 2011

13:15

ExxonMobil and Shell Eyeing North American LNG Export Deals

Yesterday, LNG World News reported that ExxonMobil Vice President Andrew Swiger announced, at a conference hosted by Bank of America Merrill Lynch, that it was actively seeking LNG (liquefied natural gas) export terminals throughout North America, including, but not limited to, in British Columbia and on the Gulf Coast.

In terms of exports from North America, whether it is the Gulf Coast or whether it is Western Canada, it’s something we’re actively looking at,” said Swiger.

So, where are these prospective export terminals located, what are the key pipelines carrying the unconventional gas produced from shale basins, and what are the key shale basins in the mix? Hold tight for an explanation.

Golden Pass LNG Terminal and Golden Pass Pipeline

The LNG World News article explains that ExxonMobil "has a stake in the Golden Pass LNG Terminal in Texas," but does not explain exactly what the "stake" is.

A bit of research shows that ExxonMobil is a 17.6% stakeholder in the Golden Pass LNG Terminal, according to a March 2011 article publshed by Platts. It is co-owned by ConocoPhillips and Qatar Petroleum, who own a 12.4% and 70% stake in Golden Pass LNG, respectively.

Golden Pass LNG is stationed in Sabine Pass, TX, located on the Gulf Coast on the Texas-Louisiana border, which is in close proximity to Cheniere's Sabine Pass LNG export terminal, a terminal which has been written about in-depth by DeSmogBlog.

As of now, Golden Pass is an import terminal, and "is among the largest LNG import facilities worldwide, with the capacity to import 15.6 million metric tons of LNG annually," explains LNG World News. But many import facilities have turned into export facilities, including the Jordan Cove LNG terminal in Coos Bay, Oregon, the Dominion Cove LNG terminal in Lusby, Maryland, and Kitimat LNG terminal in Kitimat, British Columbia. Gas corporations often execute the bait-and-switch, transforming what were originally import terminals into export terminals.

If history repeats itself, which is highly likely based on this latest report from LNG World News, then the Golden Pass LNG Terminal could soon be transformed into an export terminal, making it export terminal number two in Sabine Pass.

It appears for now that the gas would come from the shale basins surrounding Sabine Pass, meaning the Barnett Shale, the Eagle Ford Shale, the Haynesville Shale, and the Fayetteville Shale, and flow out these respective shale basins via an extensive pipeline system, to the key Golden Pass and Sabine Pass hubs. 

For example, Golden Pass also owns Golden Pass Pipeline, which runs from the Haynesville Shale down to the Golden Pass LNG terminal.

Horn River Basin Shale and Pacific Trail Pipelines

LNG World News' article also mentions that ExxonMobil "has 340,000 shale gas acres in Western Canada’s Horn River Basin." The Horn River Shale Basin is located in northeastern British Columbia and sits on 250 trillion cubic feet of unconventional gas, producred through the toxic hydraulic fracturing, or fracking process. 

Assuming ExxonMobil holds true to the pronouncement made by Swiger, much of the gas produced in the Horn River Basin will flow westward to Kitimat LNG export terminal, which ships gas to the Asian market. 

One of these facilities is co-owned by EOG Resources (EOG), EnCana Corporation (EnCana), and Apache Corporation (Apache). In October 2011, Canada’s National Energy Board, the Canadian equivalent to the U.S. Federal Energy Regulatory Commission, granted Kitimat LNG a 20-year Export Licence to serve international markets. The Pacific Trail Pipelines connect the Horn River Basin to the Kitimat LNG facility and are also co-owned by EOG, EnCana, and Apache. 

Another key LNG export terminal in the works will be co-owned by Shell, Korea Gas Corporation, China National Petroleum Corporation, and Mitsubishi Corporation.

The Globe and Mail explained the looming deal, writing

Shell is examining plans for a 3.6 billion cubic feet a day project, which would be among the largest under consideration in the world…Kitimat LNG intends to build a 700-million cubic foot facility first, at a cost greater than $5-billion, but has received an export licence that allows it to double that. The partnership intends to make a final investment decision early next year, but is already spending several hundred million dollars to terrace the sloped site of the intended terminal, the first step in construction.

A pipeline arrangement paralleling the EOG, EnCana, Apache agreement will likely follow the Shell export deal announcement, carrying gas fracked from the Horn River Shale Basin to Kitimat, in order to be exported, in the form of LNG, to the profitable Asian market. 

North American Export Market a Huge Racket

As is now perfectly clear and has been made clear by DeSmogBlog on multiple occasions, not only is the unconventional gas industry unconcerned with the "domestic consumption" of gas for "national security" purposes, but perhaps even more importantly, two of the largest fossil fuel corporations in the world, Shell and ExxonMobil, are now in the fray of the export game.

Deals of this nature will likely proliferate as time progresses, with what has been coined the "one-percent" by the Occupy Wall Street movement, standing with the most to gain from them.

November 17 2011

20:28

ExxonMobil and Shell Stamp Huge Oil and Gas Deals in Iraq

Just a few weeks after President Barack Obama announced U.S. troops are "leaving" the war-torn country, ExxonMobil and Shell each announced major new oil and gas production agreements in Iraq.

On November 12, ExxonMobil signed an oil production deal with the Kurdish Regional Government to drill in Iraqi Kurdistan, located in northern Iraq. This comes on top of an existing oil deal it landed in 2009, to drill for oil in the West Qurna Field, located in southern Iraq.

The New York Times explained both deals:

Exxon and its partners agreed to invest $50 billion over seven years to increase output by about two million barrels of oil per day there, at West Qurna Phase 1, bringing more new oil to market than the United States currently produces in the Gulf of Mexico. Margins, though, are low. Kurdistan offers more lucrative production-sharing agreements, allowing the company to earn a larger share of revenues and to count more of the crude on its books, which helps boost stock prices.

Days later on November 15, Royal Dutch Shell signed a $17 billion natural gas production deal with the Iraqi government. Shell will utilize the natural gas by-product from oil produced at the West Qurna Field, the Rumaila Field, and the Az Zubair Field, and transform it into a usable product. "Shell said it would sell the gas to electrical utilities in Iraq, but that it may also eventually export some," explained The New York Times.

Reuters further explained the specter of an LNG (liquefied natural gas) export deal in the Shell contract, writing,

Iraqi officials have said the project could include building an LNG export facility with a maximum capacity of 600 million cubic feet of gas per day, so long as Iraq's own gas needs are satisfied first

(Snip)

A summary of the official agreement obtained by Reuters after the initial signing in July lists a $4.4 billion LNG export unit, in addition to the $12.8 billion estimated cost of rehabilitating existing gas facilities and building new ones, but it does not say when the LNG plant might be built. 

U.S. Troops Leaving Iraq? Not quite

Critical observers understand full well that the U.S. won't be "leaving" Iraq anytime soon, of course. Instead, up to 3,000 troops will be moved, en masse, into neighboring Kuwait, on top of the already existing 29,000 troops stationed in the small Gulf state. Kuwait is home to seven U.S. military bases.

Furthermore, scores of "peacekeeping forces" will remain inside of Iraq itself. On top of that, untold number of "security forces," also known as private mercenaries, made infamous by Blackwater USA (now XE Services LLC), will also remain inside of Iraq. 

A Familiar Pattern: History Repeats Itself

Weeks ago, I uncovered a parallel oil war the United States launced in Uganda, the eastern African country that borders Lake Albert and the Albertine Basin, which sits on 2.5 million barrels of oil and is home to a key U.S. military base at Entebbe International Airport.

ExxonMobil is a key player looking to profit from Uganda's resource curse, and it likely is also teaming up with the powerful mercenary army Saracen International, which is co-owned by Blackwater founder Erik Prince and Salim Saleh, the brother of Uganda's President, Yoweri Museveni.

Saracen Interntional is a split-off of one of the first mercenary armies of the modern era, Executive Outcomes, which was owned by Tony Buckingham, who now owns Heritage Oil. Heritage, my article explains, along with ExxonMobil, has been working overtime together to secure oil production deals in the Albertine Basin, as seen through the lense of Wikileaks' U.S. State Department diplomatic cables. 

History, then, is repeating itself in Iraq, with the familiar ingredients, including oil, natural gas, mercenary forces, and key military bases, all in place. 

October 26 2011

22:15

A Coast Guard Challenge: Arctic Drilling

The closest Coast Guard base to a proposed site for offshore drilling in the Arctic is in Kodiak, Ak., more than 1,000 miles to the south.

August 26 2011

19:17

Musings of a Malcontent: Shell Oil is AWESOME!


Musings of a Malcontent: Environmental Irony in an Imperfect (but humorous?) World“Musings of a Malcontent” is a weekly op-ed by GlobalWarmingisReal contributor Carlyle Coash

Dudes and dudettes! I know a few weeks ago I said that Exxon rocks, but seriously –

Shell Oil is totally awesome!

They are like…totally the best when it comes to nearly averting huge oil spills. Man, they rock so much they make Exxon’s rocking look like a Yanni concert. Totally dude! Right?

I have lived in California too long. To all, my deepest regrets.

The Valley just takes me over sometimes.

As you may know, one of Shell’s massive drilling sites in the North Atlantic leaked about 2,000 gallons of oil into the sea last week. Woops. I hate when that happens. You’re minding your own business drilling into the seabed and you totally forget to check to make sure no pipes are leaking.

I could barely get into my bathroom the last time I let that happen.

A recent article in the Daily Telegraph stated that Shell was upset by the leak as it has been trying to position itself as the most reliable and trustworthy oil company after BP’s spill earlier this year.

“Solid and dependable” were the exact words.

Huh? Can a comparison even be made? Is there even a position to be jockeyed for as most dependable oil company of the year? We’re the best! We only spilled 2,000 barrels! Only 10 seabirds and a handful of sea life have met their end due to our actions – not like those miscreants over at BP. And don’t get me started on Conoco! I won’t even let them baby-sit anymore.

It’s like the Emperor saying he is more reliable than Darth Vader because at least he shows his face. Or Stalin saying he was more dependable than Hitler because he managed not to get himself shot in a ditch outside his bunker. Or that Charlie Sheen is trustworthier than Paris Hilton.

(There was actually a poll done there. Yes – we will deserve everything coming to us)

Do these companies really think they can outshine each other? Hmm – given all the recent oil slicks appearing in the Gulf, perhaps I should pick a different word. No – that works really. They might succeed in their efforts given the absolute lack of coverage of this particular event. By the way, Lindsey Lohan was seen wearing the same dress as Pippa Middleton did at the Royal Wedding.

Who are they fooling? Us, I am afraid. Us – big time.

I should have more compassion. Shell has been having such a tough year so far. The death of a maintenance worker, a series of dangerous gas leaks, equipment collapsing off a platform into the sea. Oh yeah – and a 15,000 hour backlog on repairs.

15,000 hours?

I’m sure there is nothing to worry about there.

Is there anyone paying attention to that? Any oversight? Any fines each day the repairs remain undone? I have SWAT teams descending on my home when I am two days late with my Student Loan payment, but by all means let’s give them their 15,000 hours. It won’t cost us anything.

Oversight is so overrated. They’re fine on their own.

Really.

Apparently the Shell Brent Field is the largest in the North Sea, with four platforms. In July the Charlie platform was closed by the Health and Safety Executive (HSE) because of an “uncontrolled release of flammable substances” – not the first time such a thing has happened.

I bet the folks at Burning Man would know exactly how to handle that situation.

The HSE described ignition of gas at the platform as “almost inevitable” – with the potential for a catastrophe. Yep, they have a lot to be proud of. In their quest to become the most outstanding of oil companies they have triumphed. They truly have come out front in the battle of most awesomest, awake, earth healing, puppy conscious, gracious, resplendent and massive oil company in the world.

Dare I say the Universe? Yes, I dare it!

By the way, did I mention they have permission to drill in the Arctic?

It just keeps getting better.

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July 21 2011

18:30

Shell Forced to Retract "Misleading" Fracking Adverts in South Africa

The gas industry has finally received the slap on the hand it deserves for parroting the outdated refrain: “there are no instances of documented water contamination from hydraulic fracturing.” In South Africa, the Advertising Standards Authority (ASA) ordered oil and gas giant Shell to withdraw claims about shale gas drilling, after the authority found the company guilty of propagating misleading information in several newspapers.

The Karoo region of South Africa has become an international target for unconventional gas producers since its vast shale gas deposits were discovered in recent years. The rush to drill created a wave of public concern, after reports of fracking disasters, including water contamination, well blow-outs and explosions, have become commonplace across America. The government has called for a delay in granting drilling permits until a full-scale study is completed to address mounting concerns.

Looking to sway public opinion, Shell published numerous full-page public relations adverts in local newspapers, claiming that hydraulic fracturing is used in 90% of gas wells and has never caused water contamination.

The ASA ruled that numerous aspects of the Shell adverts are “unsubstantiated and misleading.” The claims made by Shell are “not adequately substantiated,” according to the authority, and are “in contravention” of advertising codes in South Africa, which requires such information to have “unequivocal, independent verification.”

The ASA condemned Shell for their position on water contamination, saying that the company was clearly portraying a biased perspective and should have taken to time to assess a broader spectrum of literature on the topic.

This is not the first time Shell has had to pull an advertisement from a major news source. In 2008 the British advertising authority forced the company to withdraw an advert boasting their new “sustainable” energy developments in the Canadian tar sands

The South African citizen organization Treasure the Karoo Action Group, who made the official complaint to the ASA, welcomed the ruling

Bonang Mohale, Shell South Africa chair said they are disappointed with the ruling, adding “the purpose of the advert was to provide information directly to the public to enable them to properly assess the nature of the proposed shale gas exploration in the Karoo, as well as the accompanying technology of hydraulic fracturing.”

Shell, along with others from the gas industry, has been pushing to perform preproduction fracking despite the moratorium. Test fracking, they say, is necessary to determine where and how to drill, and how much to invest.

Treasure the Karoo chairperson Jonathan Deal says that Shell is in no position to make such demands. “We do not know enough about the long-term or even the short-term damage fracking could inflict on the environment.”

The PR stunt by Shell is a deliberate attempt to misinform the public he says, and “we should not be misled by the emotional calls and manufactured facts of such adverts.”

Image Credit: www.rainharvest.co.za

May 27 2011

20:10

Documents Reveal Canada's Secret 'Oil Sands Team' in Europe

DeSmog has helped to document the Canadian government's extensive efforts in Europe to kill climate change legislation targeting the Alberta tar sands. In a major development today, official documents obtained though an Access to Information request by the Dominion newspaper expose a nefarious “pan-European oil sands advocacy strategy” that is much more coordinated than previously understood. 

According to Martin Lukacs at the Dominion Paper, the Canadian government has carried out a secret plan to boost investment and keep world markets open for Alberta's filthy tar sands oil. Their strategies include collaboration with major oily allies to aggressively undermine European environmental measures.<!--break-->

In December 2009, the federal government “pan-European oil sands advocacy strategy" was launched out of fear that growing opposition could curb European investment in the industry and that the EU restrictions on tar sands imports could be mimicked globally.

While very little of Alberta's tar sands oil is actually exported to Europe (the lion's share goes to the U.S.), entrenched tar sands defenders in Canadian government and the oil companies who stand to profit from it were concerned that European efforts to favor low-carbon fuel sources could influence other countries seeking ways to reduce global warming pollution.

Thus the government worked diligently, and often hand-in-hand with industry, to oppose the European Fuel Quality Directive.

Interestingly, the Team was launched in December 2009 around the time of the United Nations climate negotiations in Copenhagen. Perhaps, rather than mending Canada's damaged reputation, the government figured it could lobby it away.  

According to one of the documents obtained, “Oil sands are posing a growing reputational problem [in Europe], with the oil sands defining the Canadian brand,” The document goes on to argue that, “Canada’s reputation as a clean, reliable source of energy may be put at risk.”

It appears that the Canadian government sees clean fuel legislation as more of a PR problem to be finessed than as as legitimate environmental problem to be addressed. 

The “pan-European oil sands advocacy strategy" is run by the Department of Foreign Affairs (DFAIT) and involves eight foreign missions who work alongside Natural Resources, Environment Canada and the Alberta government.

The Team routinely monitors green groups, responds to negative media coverage, and assists Canadian policymakers to lobby European parliamentarians and organize trips to Alberta. They've also worked to “enhance cooperation” with oil companies, and coordinated regular meetings between top European oil executives and Albertan and federal ministers, including Prime Minister Stephen Harper.

The diplomatic campaign is much more coordinated than previously understood. It involves the complicity at the highest level of government and oil company executives, from secret meetings to big investments in the tar sands. It's a story so gruesome, it will make your head spin.

Head over to the Dominion Paper and The Tyee to read more. 

Reposted by02mydafsoup-01 02mydafsoup-01

March 09 2011

13:15

Filling Stations Fret Over Price Creep

People are spending less -- for example, filling the tank only halfway, a Shell station owner in Houston laments.
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