Tag: shell

Shell Walks Away From Oil Shale

  • Shell says that even though it's no longer pursing water rights on the Yampa River right now, it's in no way backing off its larger ambitions for oil shale. (Photo courtesy of the US DOE)

Extracting oil from oil shale takes a lot of water. Most of the oil shale in the U.S. is in areas where there’s not a lot of water. Conrad Wilson reports, one big oil company seems to be walking away from oil shale for that reason. But not everyone thinks that’s the case.

Transcript

Extracting oil from oil shale takes a lot of water. Most of the oil shale in the U.S. is in areas where there’s not a lot of water. Conrad Wilson reports, one big oil company seems to be walking away from oil shale for that reason. But not everyone thinks that’s the case.

In the Western US, some energy companies are betting big on oil shale. That’s a process of basically heating up a shale rock into a liquid that’s eventually refined into oil. But the global recession and the threat of climate change might be giving those companies second thoughts. Add to that a increasingly limited water supply, and oil shale looks like a risky investment.

The process of creating oil shale is energy intensive and uses a lot of water. That’s a problem in the arid West. As the population grows, the value of water is increasing.

Royal Dutch Shell has the most invested in developing an oil shale technology that works. So earlier this year when the company announced it was pulling away from water rights, it sent shock waves through the industry.

“I read that decision as Shell’s acknowledgment that oil shale is a long way off and that this was a really controversial filing and that in a sense it’s not worth it.”

That’s Claire Bastable of the Western Energy Project. It’s an environmental group that keeps on eye on energy issues in the West. Shell had been pursuing water rights on the Yampa River, in the Northwest portion Colorado.

“Shell’s decision was a big deal. We’re talking about 15 billion gallons of water. … It would have basically taken the Yampa River, which is one of the the last free flowing rivers in the West and diverted a huge proportion of it to Shell for potential oil shale development.”

Bastable says the 15 billion gallons Shell was seeking is about three times the amount the city of Boulder, Colorado uses in a year.

But, Shell knows a lot of oil can be extracted from the oil shale. It’s estimated that there are 800 billion barrels of usable oil in the shale – in Wyoming, Colorado and Utah.

Dr. Jeremy Boak researches oil shale development at the Colorado School of Mines. He says Shell could be simply postponing extracting that oil. Boak believes oil shale has a future, but it’s still decades away.

“With all of the comments they’ve made about what the time scale for oil shale, Shell has been pretty comfortable that this is going to take time.”

Shell says that even though it’s no longer pursing water rights on the Yampa River right now, it’s in no way backing off its larger ambitions for oil shale.

The company wouldn’t provide someone to comment for this story, but in a statement the company said:

The “ultimate goal is to create a commercial oil shale recovery operation that is economically viable, environmentally responsible and socially sustainable.”

That statement adds timing depends on government regulation and the market. The company could be waiting to see what the government does about climate change and how that affects fossil fuel costs. Shell could also be waiting for oil prices go up before deciding whether oil shale worth the effort.

Eric Kuhn heads up water management for the Colorado River District. He monitors much of the state’s water West of the Continental Divide. Kuhn says there’s probably enough water for oil shale development right now, but it’s hard to say for how long.

“I don’t think they’re dropping the filing changes anything. I think those companies are dedicated to and still have a plan to develop the oil shale resource if they can find a technology that is economically productive or if they can produce the oil shale at a competitive price, I think they will do it.”

Environmentalists in the region hope they won’t. They say Shell’s decision not to pursue the water right now should be a signal to others… oil shale just might not be worth the effort.

For The Environment Report, I’m Conrad Wilson.

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Co2 Turning Ocean Acidic

  • Researchers have found that the Pacific Ocean is becoming increasingly acidic as a result of CO2 emissions (Photo by A. Kalvaitis, courtesy of NOAA)

The Pacific Ocean is becoming more acidic.
The corrosive water could start dissolving shells
and coral. The problem is largely caused by carbon
dioxide emitted by cars and power plants. As Ann
Dornfeld reports, researchers say the problem is
happening faster than they expected:

Transcript

The Pacific Ocean is becoming more acidic.
The corrosive water could start dissolving shells
and coral. The problem is largely caused by carbon
dioxide emitted by cars and power plants. As Ann
Dornfeld reports, researchers say the problem is
happening faster than they expected:

Scientists have known for a long time that the world’s oceans are becoming corrosive
from so much man-made CO2. Carbon dioxide dissolves into the ocean, and forms
carbonic acid.

The corrosive water is concentrated in deep, cold parts of the ocean. Scientists had
predicted it would approach the vulnerable coastal zones in about a century. So they
were alarmed to find the acidity just a few miles off the California coast.

Burke Hales is a chemical oceanographer. He says this corrosive water could break
down the calcium carbonate in coral and shells.

“So we’re talking about things like barnacles and oysters and mussels and
clams. And some planktonic organisms form calcium carbonate shells, as well.”

Researchers say the acidification approaching the coasts is from CO2 that was emitted
50 years ago. That means we’re just at the start of increasingly acidic oceans.

For The Environment Report, I’m Ann Dornfeld.

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Interview – Greening the Business World

Some businesses once considered
‘bad actors’ by environmentalists are now being
praised for leading the ‘corporate greening’
movement. Lester Graham spoke with an advisor who
helped some of those companies, John Elkington.
Elkington is the founder of the consulting firm
SustainAbility. He says not all corporations have
realized the importance of becoming more
environmentally-friendly at the same time:

Transcript

Some businesses once considered
‘bad actors’ by environmentalists are now being
praised for leading the ‘corporate greening’
movement. Lester Graham spoke with an advisor who
helped some of those companies, John Elkington.
Elkington is the founder of the consulting firm
SustainAbility. He says not all corporations have
realized the importance of becoming more
environmentally-friendly at the same time:


JE: Around the world, different regions are in very different places
and companies are in different places as a result of that. In the
United States you’ve had a period of, to some degree on issues like
climate change, denial. And that’s beginning to break down, and it’s
breaking down very rapidly. So you see companies, for example in the
financial sector like Goldman-Saks, talking about the environment and
green issues in a very, very different way than they would’ve done a
few years ago.


You see General Electric, which hasn’t been a great ally of
environmental movement, launching it’s Ecomagination initiative. And
initially, people dismissing that very much as greenwash, but when you
look at the numbers, very serious growth going on inside that business
and some of these areas. And then, perhaps to top it all, you see Wal-
Mart, most peoples’ sort of bogey company in a way, announcing some if
its initiatives around renewable energy, energy efficiency, sustainable
fisheries and so on. And in a sense, it almost doesn’t matter whether
Wal-Mart is serious or genuinely wanting to go green or whatever. This
stuff is starting to cascade through the supply chain. They have 61,000
vendors, these companies around the world. And the work that we do with
companies, they’re saying, whether they’re 3M, or Dupont, or Dow…
they’re saying this company is serious and it’s driving us to do things
we hadn’t previously thought were possible.


LG: Let’s look at consumer level. I think typically, most people are
not spending a lot of time researching which brand of corn flakes is
most carbon-free or sustainable. I think most people make their
decisions on commercials or packaging at the store. How can they make
better choices about sustainable products or companies?


JE: You’re absolutely right. I think most people rely on things like
brands. I mean, they trust a brand or they don’t and they hope a brand
will deal with environmental or fair trade or whatever issues
appropriately. But there are certain moments when things start to speed
up, and this is one of them, and then a different set of actors come
in.


I mean, traditionally, the activist campaigning groups, the NGOs, and
so on, play an incredibly important role in denting brands or building
the credibility of particular brands. And increasingly you get these
standards around environmental and fair trade issues. But I think
actually the key actors at the moment – this is certainly true in
Europe and my own country, the United Kingdom – you’re seeing
supermarkets getting involved again. They did it in the late 80s, early
90s, they played a very important role. That has a huge knock on
impact.


LG: Let’s talk about the energy sector for just a moment. We’ve seen a
lot of renewable energy being built around the world lately. But we
seem to see a lot of power companies, some oil companies still digging
in their heels and fighting tooth and nail to keep things just the way
they are. Are we going to see a sea change in the energy sector like we
are beginning to see in many of the other sectors of the economy?


JE: That’s a very difficult question to answer because I think you’re
going to see several different trends at the same time. You’re going to
see for example, the coal industry, Peabody and people like that,
digging in and saying basically, we’re going to burn a huge amount of
coal. Yes it’s going to have to be clean coal but you’re going to have
that trend. You’re going to have the Exxon Mobiles of this world trying
to look a bit more civilized and say we’ve been misunderstood, we’ve
got to communicate better and so on… But basically still, anti-
climate change is a big issue.


And then you’ve got a bunch of actors. In Europe, you’ve got companies
like Statoil, BP, Shell, who’ve actually gone through that tipping
point quite a number of years back, basically believe climate change is
a reality… Still thing fossil fuels is a very large part of our
energy future, but still starting to explore renewables and energy
efficiency and so on. So I think you’ve got a differentiation and I
don’t think this is an issue of leopards changing their spots. I mean,
some of the companies that are finding this very difficult to deal with
will continue to find it very difficult to deal with even if they
become a bit more sophisticated on the communication front.


HOST TAG: John Elkington is the founder of the consulting firm
SustainAbility. He spoke with the Environment Report’s Lester Graham.

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