Royal Dutch Shell

Royal Dutch Shell plc is a major energy company, one of the top four vertically integrated private sector oil/gas companies in the world (along with BP, ExxonMobil, and Total). Shell also has a significant petrochemicals business (Shell Chemicals) and an embryonic renewable energy sector developing wind and solar opportunities. Its corporate headquarters are in The Hague, Netherlands, with legal headquarters in London, United Kingdom.

Environmental and Reputational issues

Over the years Shell has been criticized by environmental and human rights groups for a number of their operations, especially in South Africa and Nigeria.

Related Topics:
South Africa - Nigeria

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South Africa

In the 1970s and 1980s Shell was heavily criticised by anti Apartheid activists for continuing to carry out business in the Republic of South Africa. Annual General Meetings of the two Group holding companies were disrupted by protesters and Shell was also accused of sanctions breaking. Shell always argued that unlike other multinationals who withdrew (e.g. Mobil) it could be more of a force for good by staying in the country than by leaving.

Related Topics:
Apartheid - South Africa

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Nigeria

Shell operates in Nigeria under the name Shell Petroleum Development Company (SPDC). Shell's involvement in Nigeria came to the fore after the execution of dissident Ken Saro-Wiwa and eight others. The political activist Ken Saro-Wiwa had implicated Shell during his ?treason? trial by saying ??the ecological war that has waged ? will be called to question sooner than later and the ?crime of the Company's dirty wars against the Ogoni people will also be punished.? Shell was also found to be providing money and supplies to the Nigerian military. When Saro-Wiwa was executed on trumped-up charges some of the world-wide condemnation of the act was aimed at Shell who by association was implicated.

Related Topics:
Nigeria - Ken Saro-Wiwa - Ogoni

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Brent Spar

Shell was also challenged by Greenpeace for plans for subsea disposal of the Brent Spar, an old oil transport and hub station located in the North Sea, into the North Atlantic. Shell eventually agreed to disassemble it onshore in Norway, although Shell has always maintained (supported by third party advice) that its original plan to sink the platform was safer and better for the environment.

Related Topics:
Greenpeace - Brent Spar - North Sea - North Atlantic

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Canada

In Canada, Shell Canada settled a lawsuit in which an additive in their gasolines created problems on fuel gauges, especially in automobiles produced by DaimlerChrysler.

Related Topics:
Canada - Shell Canada - DaimlerChrysler

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Ireland

In Ireland, Shell has drawn criticism by attempting to pipe unrefined gas from the Corrib Gas Field onshore and to refine it at a plant in north County Mayo. Natural gas is sometimes refined at source when offshore. The concerns lie in piping the gas, at high pressure, through inhabited areas. Five men were jailed between June and September 2005 for obstructing the construction of the pipeline through their lands.

Related Topics:
Corrib Gas Field - County Mayo

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Oil and Gas Reserves recategorisation

Shell drew fire in 2004 when it had to perform a major recategorization of its reserves, admitting that a significant share of reserves previously booked as proven did not fulfill the requirements for proof under the US regulatory provisions. The delayed Annual report and Accounts 2003 restated proven reserves reduced 6.648 mn USD in 2001 and reduced by 6.469 mn USD in 2002. This corresponds to roughly 13% of the previous proven reserves base. As a contributing factor, it was identified that in previous years the leading management's bonus payments were linked to the proven reserves base. This practice has since been discontinued. The reserves issue led to the dismissal of the Group Chairman Sir Philip Watts, and the departure of the CFO and other top executives.

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Sustainable Development

On June 17th of 2004, Shell chairman Ronald Oxburgh made a statement to The Guardian that in the face of the threat of global warming he was "really very worried for the planet”. As a remedy he proposed the practice of carbon sequestration, which involves removing carbon dioxide from the atmosphere and burying it underground. "Sequestration is difficult, but if we don't have sequestration then I see very little hope for the world," he said. Lord Oxburgh's comments were consistent with Shell's commitment to Sustainable Development, a commitment which was a key part of the reputation building efforts that the Group undertook after Brent Spar.

Related Topics:
2004 - Ronald Oxburgh - The Guardian - Global warming - Carbon sequestration - Carbon dioxide - Sustainable Development

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