Shell: greed pays no heed to community concerns

In 2005 Shell's revenues amounted to $306.73 billion, making it the third-largest corporation in the world by turnover. And with profits of $25 billion, it was the world's second most profitable business in terms of gross profits in 2005.

But at what cost such profits?

damned for oil time: Shell has shown consistent and blatant belligerence in its bid to remain a pioneering leader of the petroleum industry. The oil giant is internationally renowned for ignoring local communities' requests to respect and protect the environment in which it operates. Instead it prefers to pollute the earth, air and lives of those unfortunate to live in its way.

Download fact sheet Continued pollution (Milieudefensie/Friends of the Earth Netherlands).

Find out more below:

nigeria

Shell has been active in the Delta Niger for almost 50 years now - yet local communities have seen little benefit:

• Instead they have been subjected to recurring pipeline ruptures and numerous massive oil spills resulting in death, sickness and the destruction of livelihoods. The latest oil spill occurred on the 4th of January 2006.

• And despite numerous requests to stop gas flaring in the Niger Delta, (which wastes valuable resources, gives off greenhouse gas emissions and poisons localities with toxic cocktails), Shell has blatantly turned its back on Nigerian law with plans to keep flaring until the end of 2009.

• When an oil spill is classed as ‘sabotage’ Shell can avoid paying compensation or clearing up the damage. Read about this and the other dirty underhand tactics Shell uses from a first hand witness.

Sakhalin Island

Sakhalin-II is one of the largest integrated oil and gas developments in the world. Led by Shell, the Sakhalin Energy Investment Company (SEIC) project promises to threaten the rare Western Gray Whale, rip up the island’s pristine landscape and threaten the livelihood of local fishermen and indigenous people alike:

• An absence of complete and reliable project information coupled with Shell’s unwillingness to engage seriously in dialogue with indigenous peoples' organizations lead to a “Green-Wave” protest against the negative ecological impacts of the Sakhalin extraction projects.

  • Shell’s Response? It tried to pre-empt the protest by visiting indigenous settlements in an attempt to persuade them not to participate and threatened to fire participating employees.

• After taking nine hours to respond to a category 2 (1,300 barrels) oil-spill at Kholmsk and another 48 hours to transport necessary equipment to the site, conservation organizations demand that Shell declare a moratorium on marine activities on the Sakhalin II project until the oil giant implements an internationally-accepted Oil Spill Prevention and Response Plan covering all of the project's operations.

  • Shell’s response? Appoint a “ crisis management ” public relations officer who has no specific technical understanding of oil industry emergency procedures.

• Despite a 10,000 strong petition by local inhabitants calling for the EBRD to stop funding the Sakhalin Energy project along with numerous protests against the widespread damage being inflicted on Sakhalin's environment, social infrastructure and fishing economy, Shell still shows no plans to back down or make further concessions to the concerns of local communities .

Pressure does pay off

South africa : Until December 2005, Shell was not prepared to accept the community demand to replace south Durban fuel pipelines where more than 1 million litres of petrol had leaked through rusting infrastructure and forced people to relocate.

Five years of pressure from a mix of shareholder activism, political lobbying and community mobilization finally forced Shell to replace the pipelines.

Sakhalin island : In response to environmental groups and campaigners around the world, Shell re-routed the undersea pipeline from one of its platforms to avoid the feeding grounds of the western gray whale and devised a way to install the offshore platforms more silently to avoid scaring off the whales during the feeding season.