The Big 3: oil co’s and legal cases this month

Three of the world’s biggest private oil companies face landmark legal actions this February. Here is a brief run down of the main cases, what they are about and why they matter.

1. US v BP

At the centre of the legal fallout from BP’s Deepwater Horizon disaster in April 2010 is a  complex civil trial which begins on 27 February. The trial will determine who is to blame, how much should be paid in damages and penalties and who should pay them. BP is one of a number of defendants, alongside Transocean (owner and operator of the rig) and Halliburton. There are over 120,000 claimants involved, from Gulf Coast fishers to the US government, and a massive 72 million pages of documents. The trial, heard before a Judge Carl Barbier without a jury, is expected to last all year. Continue reading

Video: Chevron rig blazes off the coast of Nigeria

This disturbing video from Al Jazeera shows what’s left of Chevron’s KS Endeavour gas rig, which exploded on 16 January 2012. Over 20 days later the site is still ablaze and the intense flames and plumes of smoke can be seen from the nearby fishing village. Local community activists released this footage:  

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What I’m reading about this week

Metro: ‘Sustainable’ funds investing millions in oil companies and banks. This article mentions Platform’s work on Shell Nigeria and uses it to question the ethics of investment in oil companies.

Heat or Eat? Fuel Poverty Action occupy British Gas headquarters.

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In pictures: Chevron rig still burning in Nigeria

On 16 January, between 4.30am and 5am, Chevron’s KS Endeavour drilling rig exploded six miles off the coast of Nigeria after the company lost control of the gas well. Two workers were reported killed. Ten days on, the fire continues to burn.

Photos courtesy of Morris Alagoa at ERA/FoE Nigeria. Continue reading

Oil, art & human rights links

Shell sponsorship: there's something unsettling about the Shell branded baby blankets in this hospital in Port Harcourt, Nigeria. Nevertheless, corporate sponsorship and community projects cannot absolve oil companies like Shell for creating a health crisis and human rights tragedy in the Niger Delta.

EU oil companies including Shell and Total will be banned from importing and purchasing Iranian oil by new sanctions, reported Reuters. As Iran threatens to retaliate by blocking the Strait of Hormuz, a major artery of global oil shipments, the UK foreign minister William Hague downplayed the likelihood of war.

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Shell’s Bonga oil spill hits Nigerian communities

Click on the image to view the full video from NTD

Shell’s major oil spill at the offshore Bonga facility in Nigeria is threatening the livelihoods of at least 13 different coastal communities, reports Reuters. As thick crude oil continues washing up on Nigeria’s shoreline, Shell is denying responsibility and claims that “non-Bonga oil” from a third party spill is to blame. A local resident from Bisangbene told the Vanguard newspaper that Shell’s Bonga spill had ruined livelihoods in the fishing village. Mr. Goodnews Gereghewei said:

our occupation is predominantly fishing and our fishermen have withdrawn from the sea because of the massive oil spill due to fear of being roasted alive since they fish mostly at night with local lamps.

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UK government backs risky offshore drilling

Despite serious environmental concerns, the heightened risk of major accidents and inadequate regulatory oversight, the UK’s Department for Energy and Climate Change has awarded 46 new licences for oil and gas drilling in the North Sea, including in the ecologically sensitive West of Shetlands area. Speaking to BBC News, Adam Ma’anit of Platform condemned the move:

“There is insufficient data with regards to the complexity of the marine environment in these areas…It is highly irresponsible for [the Department of Energy and Climate Change] to sign off on any concomitant oil and gas expansion in the region.” Continue reading

An abdication of responsibility

When a government responds to one of the worst oil spills in its waters for a decade by appointing the former Chairman of Shell to advise on cutting regulation of the offshore oil and gas industry, something has clearly gone wrong. If the government wants to ramp up extraction from deeper waters but is unwilling to police industry standards effectively, how will catastrophic disasters be prevented in UK waters? Who will hold oil companies to account, when our government fails to do so?

The Telegraph reports:

Charles Hendry, the energy minister, promised oil executives at Aberdeen’s annual Offshore Europe conference that they would be facing less regulatory oversight in years to come.

UK’s ageing oil rigs are close to collapse, video footage shows

This is the frightening reality of oil extraction in the UK North Sea. Video footage and documents leaked to the the Scottish Sunday Express shows that Shell’s oil rigs are ready to collapse.

RUSTING RIGS SPARK FEARS OF OIL TRAGEDY

By Paula Murray

 

SHOCKING footage has emerged showing the dire state of Britain’s rust- ing oil rigs, amid fears some could be close to collapse.

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Channel 4 News: Shell North Sea Oil Spill

Last night’s Channel 4 News was mostly taken up with a relatively heated debate on the London riots. During the air time left over, science correspondent Tom Clarke gave an overview of Shell’s 100 tonne oil spill in the North Sea. PLATFORM provided some analysis, putting Shell’s oil spill in the context of the daily leaks, discharges and spills in the North Sea.

Shell initially claimed the spill was “under control” yesterday, but late last night Reuters Tom Bergin reported that the ruptured pipeline was continuing to leak oil into the seabed, and that the oil spill had already been ongoing 2 days before the oil giant called the authorities.

The Anglo Dutch oil major first revealed the leak late on Friday but a spokesman said on Saturday it had been detected two days earlier.

A spokeswoman for the Maritime & Coastguard Agency said it had no information on the status of the clean up operation, and that none of its staff were at the spill site.

The fact that an oil spill of as yet unknown magnitude went undetected so close to the Scottish coast line should raise alarm bells in Holyrood and amongst UK regulators (the Health and Safety Executive and Department for Energy and Climate Change).

The combination of “light-touch” regulation in an era of budget cuts, and self-reporting of pollution incidents is the perfect recipe for a major Deepwater Horizon-type accident in the UK’s backyard.

You can read more of PLATFORM’s research into the inherent risks of offshore drilling here.