FT: “The new deal will see the two companies join forces to develop parts of the Bazhenov shale, a vast formation in western Siberia that is one of the largest accumulations of unconventional oil in the world. Oil executives call it “Russia’s Bakken”, a reference to the formation in North Dakota that has driven a huge increase in US oil production.” Read more
FT: ” Shell’s ambitious plans to explore for oil in the Arctic this year are clouding over again. Peter Voser, chief executive, said the two drilling rigs the company is deploying offshore Alaska are both out of action.” Read more
Heather Stewart sums up the World Economic Forum: “Governments are increasingly pinning their hopes on the fuel (shale gas) as a low-cost energy source, releasing them from dependence on the volatile Middle East.” Read more
WSJ: “Exporting the U.S. shale energy revolution overseas turns out to be far tougher than anyone expected …oil companies are running into obstacles as they try to replicate the U.S. experience on other continents. The result is that significant overseas shale energy production could be a decade away.” Read more
Guardian: “Public Employees for Environmental Responsibility (Peer), a US group that helps federal and state employees raise the alarm on environmental protection issues, said it was shocked by the single page of notes from the government agency after it filed a federal lawsuit against the BSSE asking for all documents relating to the capping tests.”
But only a quarter of the way to the potential reservoir it is targeting off Alaska, and they may not be able to continue without an extension to the allowed drilling season. FT: “Mr Salazar [Interior Secretary] said the company would not be allowed to go any further until it had secured final approvals for the Arctic Challenger, the 300-foot barge converted to carry a containment system for catching oil in the event of a spill. He suggested those approvals could come next week, at the earliest. “We are holding Shell’s feet to the fire,” Mr Salazar said. “We don’t know whether Shell will be able to complete a well in the Arctic this year”.”
Shell also plans a $12.6bn refinery and petrochemical complex – which could become China’s single largest foreign investment.
Guardian: And Osborne has never once had a meeting with green energy. Treasury ministers have met multiple times with Shell.
Shell declares that it cannot meet its full commitment to export oil from Nigeria following hacksaw sabotage locals say is caused by the company withdrawing contracts to pay people to monitor and protect the pipeline.
The award, made in the UK High Court, is for a spill 20% the size of the Gulf spill. While holding hands up for this one, most spills are not operational but the result of sabotage, Shell claims.
Reports to the HSE show more than one a week. Most go unreported. Shell is one of the worst offenders.
The FLNGs, as the industry is now calling them, allow production where once it was too expensive to put in pipelines, and is out of the public eye. The first, Shell’s, is set for Australia. Others are thinking of following suit, the FT reports.
BP’s future supplies look to be in trouble. Offers are also being considered from Exxon and Chevron.