17-05-2010, 05:36 PM
Some time ago, I visited I went looking on the Internet for an old article in Harvard Business Review entitled "Planning as Learning" by Arne de Geus.
It's a powerful article, one which others would call seminal, because it spawned a significant movement in organizational development, and notably the work of Peter Senge and friends in "the fifth discipline" and beyond, some of which was touched upon in my blog a long time ago. These are works I've learned much from and cited in my papers and proposals over the years for the use of simulation gaming as a tool for improving disaster response.
Arne de Geus worked for a long time with Royal Dutch Shell, a major oil drilling outfit. I guess in my Internet search I brushed up against or left behind a trail of "cookie" crumbs because this morning, in my e-mailbox, or perhaps because of my guest blog entry at Manageable Ants entitled "Shrimp Linguini Lagniappe", up pops a press release. RDS is the company whose activity has spawned actions studied by people like John Robb in the Nigerian Delta, where the people indigenous to the area being exploited sometimes take things into their own hands. What has happened in the Nigerian Delta could and probably has spawned whole threads, books, even movies. At any rate, this showed up on my desktop this morning; make of it what you will.
Shell halts Nigerian offshore drilling in visionary new remediation plan
17/05/2010
The Hague - In advance of the 18 May Shell Annual General Meeting (AGM), Royal Dutch Shell and its joint-venture Shell Petroleum Development Company (SPDC) are announcing sweeping plans to clean up all areas of the Niger Delta where they operate, compensate local communities for past injuries, and institute a local stakeholders program that will contribute to lifting the region out of poverty.
The Comprehensive Shell Remediation Plan for the Niger Delta (CSR-ND) has been steadily developing behind closed doors since Shell CEO Peter Voser took the helm last year, but was fast-tracked in response to public pressure to include an immediate cessation of deep-water drilling in the Niger Delta.
"Shell is proud to be the first international petrochemical company to embark on a rehabilitation and compensation program of any significant scale," said Shell spokesperson Bernadette Hopma. "The Gulf of Mexico gush has made CSR-ND especially timely."
"By anticipating and proactively sidestepping the inevitable storm of company-unfriendly rule-changes that follow on major environmental and human calamities of a certain variety, we are building our company's ongoing resilience well into the future," said CEO Voser in yesterday's lunchtime pre-AGM address to top management of Royal Dutch Shell.
After noting that Shell is the largest oil producer in the Niger Delta, which is Africa's equivalent of the Mississippi River Delta—the largest wetland in Africa, and the third-largest drainage area on the continent—Voser outlined the company's rationale for the move.
"Despite our company's measured ongoing efforts to operate within a potential international rule-book as we deliver shareholder value, we have not always done very well. Every year since 1969, oil operations in the Niger Delta have spilled as much oil as the 1989 Exxon Valdez. Neither the Delta itself, nor the prospective legal environment, can tolerate that sort of stress. To avoid serious consequences for Shell's viability, we must react proactively to past, present and potential future threats to people, the environment, and the future of the global community."
Last year, Nigeria had 2,000 active spills. These were certainly not all due to Shell's operations, but the amount of oil released into the wetlands has been steadily on the rise with production increases by a number of companies.
"Recent events in the Gulf of Mexico demand change," said Shell spokesperson Bernadette Hopma. "The expected hurricane of regulation and policy change across industry, resulting from the negligent practices by one pair of companies especially, means that all of us need to try to push harder in the interests of long-term survival. Shell will therefore distinguish ourselves by being the first oil company in history to cease taking risks with important delta ecosystems. The unique geology underlying these deltas have sustained our shareholders very well, but we must not let that kind of sustainability come at the the expense of the biodiversity, carbon absorption and O2 production that are their true worth."
Highlights of the Shell and SPDC CSR-ND Plan include:
* The immediate cessation of deepwater drilling off the coast of Nigeria until the conclusion of a full independent safety review by our local government partners with international oversight.
* The immediate cessation of gas flaring, with all open flares converted by 2012 into energy sources for tariffless local consumption.
* An investment of $8 billion by 2012 followed by $1 billion per annum for 10 years to attempt partial environmental restoration of the Niger Delta. The work force carrying out this mission will be 97% locally sourced and trained.
* A $45 million "truth and reconciliation process" fund to assess and award reparations for perceived injustices since 1958, when Shell first started commercially exporting oil from the region.
* The est ablishment of a $4 billion fund earmarked for compensation for perceived injustices.
* The establishment of a local stakeholder program that gives decision-making and veto capacity over new and ongoing projects to communities affected by Shell and SPDC projects worldwide, pending more formal control at the level of local government.
* A commitment to cap oil production at current levels until 2015, and then to gradually reduce production to 10 percent of current levels by 2050, while compensating for this reduction through the development of renewable energy sources.
"At long last the words 'stakeholder' and 'sustainable' will actually mean something," said CEO Voser. "CSR-ND means planning not just for short-term profits, but for what actually matters, including the viability of the planet itself."
Enquiries
Shell Media Relations
International, UK, European Press - Bernadette Hopma / Christopher Aganju (The Hague): +31 (0)70-3465963, media@shellcsr.com
US Press - Rita Rogoeveen / Francis Moira (Houston): +1 832-493-0508, +1 281-573-0987, usmedia@shellcsr.com
Notes
Royal Dutch Shell plc is incorporated in England and Wales, has its headquarters in The Hague and is listed on the London, Amsterdam, and New York stock exchanges. Shell companies have operations in more than 100 countries and territories with businesses including oil and gas exploration and production; production and marketing of Liquefied Natural Gas and Gas to Liquids; manufacturing, marketing and shipping of oil products and chemicals and renewable energy projects. For further information, visit http://www.shell.com
Cautionary note
The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this document "Shell", "Shell group" and "Royal Dutch Shell" are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words "we", "us" and "our" are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. ''Subsidiaries'', "Shell subsidiaries" and "Shell companies" as used in this document refer to companies in which Royal Dutch Shell either directly or indirectly has control, by having either a majority of the voting rights or the right to exercise a controlling influence. The companies in which Shell has significant influence but not control are referred to as "associated companies" or "associates" and companies in which Shell has joint control are referred to as "jointly controlled entities". In this document, associates and jointly controlled entities are also referred to as "equity-accounted investments". The term "Shell interest" is used for convenience to indicate the direct and/or indirect (for example, through our 34% shareholding in Woodside Petroleum Ltd.) ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest.
This press release contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management's current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management's expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as ''anticipate'', ''believe'', ''could'', ''estimate'', ''expect'', ''in tend'', ''may'', ''plan'', ''objectives'', ''outlook'', ''probably'', ''project'', ''will'', ''seek'', ''target'', ''risks'', ''goals'', ''should'' and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this document, including (without limitation): (a) price fluctuations in crude oil and natural gas; (![[Image: cool.gif]](http://commongroundcommonsense.org/forums/style_emoticons/default/cool.gif)
changes in demand for the Group's products; © currency fluctuations; (d) drilling and production results; (e) reserve estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) l egislative, fiscal and regulatory developments including potential litigation and regulatory effects arising from recategorisation of reserves; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward-looking statements contained in this document are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional factors that may affect future results are contained in Royal Dutch Shell's Annual Report and Form 20-F for the year ended December 31, 2009 (available at http://www.shell.com/investor and http://www.sec.gov - opens in new window). These factors also should be considered by the reader. Each forward-looking statement speaks only as of the date of this press release, 17 May, 2010. Neither Royal Dutch Shell nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this document.
The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this document that SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website http://www.sec.gov - opens in new window. You can also obtain these forms from the SEC by calling 1-800-SEC-0330.
It's a powerful article, one which others would call seminal, because it spawned a significant movement in organizational development, and notably the work of Peter Senge and friends in "the fifth discipline" and beyond, some of which was touched upon in my blog a long time ago. These are works I've learned much from and cited in my papers and proposals over the years for the use of simulation gaming as a tool for improving disaster response.
Arne de Geus worked for a long time with Royal Dutch Shell, a major oil drilling outfit. I guess in my Internet search I brushed up against or left behind a trail of "cookie" crumbs because this morning, in my e-mailbox, or perhaps because of my guest blog entry at Manageable Ants entitled "Shrimp Linguini Lagniappe", up pops a press release. RDS is the company whose activity has spawned actions studied by people like John Robb in the Nigerian Delta, where the people indigenous to the area being exploited sometimes take things into their own hands. What has happened in the Nigerian Delta could and probably has spawned whole threads, books, even movies. At any rate, this showed up on my desktop this morning; make of it what you will.
Shell halts Nigerian offshore drilling in visionary new remediation plan
17/05/2010
The Hague - In advance of the 18 May Shell Annual General Meeting (AGM), Royal Dutch Shell and its joint-venture Shell Petroleum Development Company (SPDC) are announcing sweeping plans to clean up all areas of the Niger Delta where they operate, compensate local communities for past injuries, and institute a local stakeholders program that will contribute to lifting the region out of poverty.
The Comprehensive Shell Remediation Plan for the Niger Delta (CSR-ND) has been steadily developing behind closed doors since Shell CEO Peter Voser took the helm last year, but was fast-tracked in response to public pressure to include an immediate cessation of deep-water drilling in the Niger Delta.
"Shell is proud to be the first international petrochemical company to embark on a rehabilitation and compensation program of any significant scale," said Shell spokesperson Bernadette Hopma. "The Gulf of Mexico gush has made CSR-ND especially timely."
"By anticipating and proactively sidestepping the inevitable storm of company-unfriendly rule-changes that follow on major environmental and human calamities of a certain variety, we are building our company's ongoing resilience well into the future," said CEO Voser in yesterday's lunchtime pre-AGM address to top management of Royal Dutch Shell.
After noting that Shell is the largest oil producer in the Niger Delta, which is Africa's equivalent of the Mississippi River Delta—the largest wetland in Africa, and the third-largest drainage area on the continent—Voser outlined the company's rationale for the move.
"Despite our company's measured ongoing efforts to operate within a potential international rule-book as we deliver shareholder value, we have not always done very well. Every year since 1969, oil operations in the Niger Delta have spilled as much oil as the 1989 Exxon Valdez. Neither the Delta itself, nor the prospective legal environment, can tolerate that sort of stress. To avoid serious consequences for Shell's viability, we must react proactively to past, present and potential future threats to people, the environment, and the future of the global community."
Last year, Nigeria had 2,000 active spills. These were certainly not all due to Shell's operations, but the amount of oil released into the wetlands has been steadily on the rise with production increases by a number of companies.
"Recent events in the Gulf of Mexico demand change," said Shell spokesperson Bernadette Hopma. "The expected hurricane of regulation and policy change across industry, resulting from the negligent practices by one pair of companies especially, means that all of us need to try to push harder in the interests of long-term survival. Shell will therefore distinguish ourselves by being the first oil company in history to cease taking risks with important delta ecosystems. The unique geology underlying these deltas have sustained our shareholders very well, but we must not let that kind of sustainability come at the the expense of the biodiversity, carbon absorption and O2 production that are their true worth."
Highlights of the Shell and SPDC CSR-ND Plan include:
* The immediate cessation of deepwater drilling off the coast of Nigeria until the conclusion of a full independent safety review by our local government partners with international oversight.
* The immediate cessation of gas flaring, with all open flares converted by 2012 into energy sources for tariffless local consumption.
* An investment of $8 billion by 2012 followed by $1 billion per annum for 10 years to attempt partial environmental restoration of the Niger Delta. The work force carrying out this mission will be 97% locally sourced and trained.
* A $45 million "truth and reconciliation process" fund to assess and award reparations for perceived injustices since 1958, when Shell first started commercially exporting oil from the region.
* The est ablishment of a $4 billion fund earmarked for compensation for perceived injustices.
* The establishment of a local stakeholder program that gives decision-making and veto capacity over new and ongoing projects to communities affected by Shell and SPDC projects worldwide, pending more formal control at the level of local government.
* A commitment to cap oil production at current levels until 2015, and then to gradually reduce production to 10 percent of current levels by 2050, while compensating for this reduction through the development of renewable energy sources.
"At long last the words 'stakeholder' and 'sustainable' will actually mean something," said CEO Voser. "CSR-ND means planning not just for short-term profits, but for what actually matters, including the viability of the planet itself."
Enquiries
Shell Media Relations
International, UK, European Press - Bernadette Hopma / Christopher Aganju (The Hague): +31 (0)70-3465963, media@shellcsr.com
US Press - Rita Rogoeveen / Francis Moira (Houston): +1 832-493-0508, +1 281-573-0987, usmedia@shellcsr.com
Notes
Royal Dutch Shell plc is incorporated in England and Wales, has its headquarters in The Hague and is listed on the London, Amsterdam, and New York stock exchanges. Shell companies have operations in more than 100 countries and territories with businesses including oil and gas exploration and production; production and marketing of Liquefied Natural Gas and Gas to Liquids; manufacturing, marketing and shipping of oil products and chemicals and renewable energy projects. For further information, visit http://www.shell.com
Cautionary note
The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this document "Shell", "Shell group" and "Royal Dutch Shell" are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words "we", "us" and "our" are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. ''Subsidiaries'', "Shell subsidiaries" and "Shell companies" as used in this document refer to companies in which Royal Dutch Shell either directly or indirectly has control, by having either a majority of the voting rights or the right to exercise a controlling influence. The companies in which Shell has significant influence but not control are referred to as "associated companies" or "associates" and companies in which Shell has joint control are referred to as "jointly controlled entities". In this document, associates and jointly controlled entities are also referred to as "equity-accounted investments". The term "Shell interest" is used for convenience to indicate the direct and/or indirect (for example, through our 34% shareholding in Woodside Petroleum Ltd.) ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest.
This press release contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management's current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management's expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as ''anticipate'', ''believe'', ''could'', ''estimate'', ''expect'', ''in tend'', ''may'', ''plan'', ''objectives'', ''outlook'', ''probably'', ''project'', ''will'', ''seek'', ''target'', ''risks'', ''goals'', ''should'' and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this document, including (without limitation): (a) price fluctuations in crude oil and natural gas; (
changes in demand for the Group's products; © currency fluctuations; (d) drilling and production results; (e) reserve estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) l egislative, fiscal and regulatory developments including potential litigation and regulatory effects arising from recategorisation of reserves; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward-looking statements contained in this document are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional factors that may affect future results are contained in Royal Dutch Shell's Annual Report and Form 20-F for the year ended December 31, 2009 (available at http://www.shell.com/investor and http://www.sec.gov - opens in new window). These factors also should be considered by the reader. Each forward-looking statement speaks only as of the date of this press release, 17 May, 2010. Neither Royal Dutch Shell nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this document.The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this document that SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website http://www.sec.gov - opens in new window. You can also obtain these forms from the SEC by calling 1-800-SEC-0330.
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