Just five months after Chevron lost its drilling rights for causing the largest oil spill in recent memory off the coast of Rio de Janeiro, they’ve gone and done it again. According to Brazil’s National Petroleum Agency (ANP), Chevron has reported that a new leak of indeterminate size has been detected near the site of last November’s spill — and it could present a a major setback for the U.S. oil company’s ambitions to drill in the region’s oil-rich Frade Field.
(Reuters) - A court in Ecuador has rejected an order by arbitrators that an $18 billion pollution ruling against Chevron should be frozen, but the judges referred an appeal by the U.S. oil company to the country’s Supreme Court.
A year after the landmark decision against Chevron, a panel working for The Hague’s Permanent Court of Arbitration told Ecuador last week to take all necessary measures to suspend enforcement of the award at home and abroad. But in a ruling made public on Monday, the court that has been considering the case in the remote Amazon jungle region of Sucumbios said Ecuador should not comply with that order.
"A simple arbitral award … cannot force judges to infringe the human rights of our citizens," said the court, adding that abiding by the panel’s order would be unconstitutional and would lead to the breach of international human rights conventions.
The court said it had accepted an appeal filed by Chevron, however, and referred it to the Supreme Court in the clearest sign yet that the litigation, which has already run nearly 20 years, could drag on for more years. The plaintiffs say The Hague panel’s ruling will not affect their plans to collect on the $18 billion award in other countries where Chevron has assets.
Read the rest at Reuters
"Shell Oil is now producing oil from the world’s deepest subsea well at its Perdido Development, utilizing advanced technology to lead the way in increasing the company’s ability to produce more domestic oil and gas resources. The well, at 9,627 feet below the water’s surface, is located in the Tobago Field 200 miles southwest of Houston in the ultra-deep water of the Gulf of Mexico. Tobago is jointly owned by Shell (32.5%, as operator), Chevron (57.5%), and Nexen (10.0%) and is one of three fields producing through the Perdido drilling and production platform.
Tobago breaks the world water depth record for subsea production, previously held by another field in the Perdido Development, the Silvertip field at 9,356 feet of water.”
Source: Rigzone (note this is a fluff piece pushed to Rigzone via Shell’s PR)
Meanwhile, the U.S. just won a case against EU subsidies to Airbus. Apparently, that subsidy was ‘unfair’… More, here.
Shell, ExxonMobil, ConocoPhillips, BP America and Chevron Corp—the “Big Five” oil companies—reported a cumulative total earning of $36 billion in the first quarter of this year. As Huffington Post writer Erich Pica points out that’s “more than $200,000 every minute.” This jaw-dropping number has been accompanied by a hike in oil prices, which averaged out at about $3.98 per gallon for regular unleaded gas across the country. This is more than a dollar increase from the $2.90 gas stations were charging one year ago, The Associated Press reports.
Oil companies shouldn’t roll over on losing a lot of money. But, it’s interesting to see CEO’s and certain politicians argue that the most profitable companies on planet earth can’t survive in a supposed “free market”.
Note the highlighted sentence.
Chevron to Add Marcellus Acreage
Chevron Corp. announced Wednesday that it has agreed to acquire oil and gas assets, primarily 228,000 net leasehold acres, in the Marcellus Shale from Chief Oil & Gas LLC and Tug Hill, Inc. Terms of the transaction, which is expected to close before the end of the second quarter, were not disclosed.
George Kirkland, vice chairman, Chevron Corporation, said, “This opportunity is aligned with our strategy to acquire early-in-life assets with long-term organic growth potential. Over the last year, Chevron has acquired nearly five million net acres of shale gas assets in the United States, Canada, Poland and Romania.”
"This expansion of our shale gas portfolio gives us additional high-quality resources with strong growth potential, as well as proximity to and synergy with existing operations," said Gary Luquette, president of Chevron North America Exploration and Production Company.
The acreage, which is principally located in southern Pennsylvania, will give Chevron an estimated five trillion cubic feet of additional natural gas resource in its Marcellus Shale operations.