Space cadets Branson and Bezos scoop the 2021 shamelessness prize

Virgin and Amazon bosses do well in our awards for business brass neck, but there are also nods to big oil, big money – and a powerful whiff of Musk

Every Christmas, Observer Business Agenda casts its eye over the year that was, seeking to spotlight the business luminaries whose deeds might otherwise have gone unrecognised. At first glance 2021 looked awfully similar to 2020 – a pandemic, various lockdowns and a new wave of infections to round it all off – but it soon became clear that there were still candidates worthy of special recognition.

Continue reading...

‘Gushing oil and roaring fires’: 30 years on Kuwait is still scarred by catastrophic pollution

Oilwells set alight by Iraqi forces in 1991 were put out within months, but insidious pollution still mars the desert

For 10 months in Kuwait, everything was upside down. Daytime was full of darkness from the thick smoke, and nights were bright from the distant glow of burning oilwells.

When Iraq’s leader, Saddam Hussein, ordered the occupation of Kuwait in August 1990 in an attempt to gain control of the lucrative oil supply of the Middle East and pay off a huge debt accrued from Kuwait, he was fairly quickly forced into retreat by a US coalition which began an intensive bombing campaign.

Continue reading...

Work on Cambo oilfield paused after Shell withdrawal

Firm says project off Shetland cannot proceed on originally planned timescale and it will assess next steps

Work on the Cambo oilfield off Shetland is being paused, its developers have said, plunging the future of oil exploration in the area into doubt.

Shell, which had been planning to develop the field with the private equity-backed fossil fuel explorer Siccar Point Energy, pulled out of the project last week after fierce opposition to it from environmental activists.

Continue reading...

UK ‘embarrassed’ into funding Mozambique gas project, court hears

Friends of the Earth cites documents suggesting UK’s reputation could suffer if it pulled $1.15bn of promised support

The UK was “embarrassed” into funding a huge gas project in Mozambique while considering ending overseas support for fossil fuels, a court has heard.

During a three-day high court hearing, Friends of the Earth highlighted government documents that suggested there would be “obvious repercussions” if the government did not follow through on $1.15bn of support to an offshore pipeline and liquefied natural gas plant in Cabo Delgado province.

Continue reading...

Old UK oilwells could be turned into CO2 burial test sites

Exclusive: Consortium of energy firms and universities says underground storage of hydrogen can also be investigated

Exhausted oil and gas wells would be turned into the UK’s first deep test sites for burying carbon dioxide next year, under plans from a consortium of universities and energy companies.

There are hundreds of active onshore oil and gas wells in the UK. But as they come to the end of their lives, some need to be redeployed for trials of pumping CO2 underground and monitoring it to ensure it does not escape, the group says. The test wells could also be used to assess how hydrogen can be stored underground.

Continue reading...

Exclusive: oil companies’ profits soared to $174bn this year as US gas prices rose

Exxon, Chevron, Shell and BP among group of 24 who resisted calls to increase production but doled out shareholder dividends

The largest oil and gas companies made a combined $174bn in profits in the first nine months of the year as gasoline prices climbed in the US, according to a new report.

The bumper profit totals, provided exclusively to the Guardian, show that in the third quarter of 2021 alone, 24 top oil and gas companies made more than $74bn in net income. From January to September, the net income of the group, which includes Exxon, Chevron, Shell and BP, was $174bn.

Continue reading...

Shell to go ahead with seismic tests in whale breeding grounds after court win

Judgment rules company can blast sound waves in search for oil along South Africa’s eastern coastline

Royal Dutch Shell will move ahead with seismic tests to explore for oil in vital whale breeding grounds along South Africa’s eastern coastline after a court dismissed an 11th-hour legal challenge by environmental groups.

The judgment, by a South African high court, allows Shell to begin firing within days extremely loud sound waves through the relatively untouched marine environment of the Wild Coast, which is home to whales, dolphins and seals.

Continue reading...

Why is Justin Trudeau pressuring Michigan to allow a dangerous oil pipeline? | Lana Pollack

If an ageing pipeline under the Great Lakes spills, it would be devastating. But Canada is trying to block Michigan from shutting it down

Canada would be apoplectic if the US government marched into a Canadian court and argued that the province of Ontario has zero authority over an American company operating an aging, corroded pipeline under Canada’s pristine Georgian Bay. Yet this is the exact approach Canada is taking in US courts by arguing that the state of Michigan has zero authority to order the shutdown of an aging and dangerous pipeline operated by a Canadian company under the Straits of Mackinac – where any spill would have catastrophic ramifications for the Great Lakes.

Canada’s strained position is premised on ignoring the plain text of the 1977 US Canada Pipeline Treaty: “Pipeline[s] shall be subject to regulations by the appropriate governmental authorities … with respect to such matters as the following: (a) pipeline safety … ; (b) environmental protection.”

Lana Pollack was appointed by President Obama to chair the US Section of the International Joint Commission. The IJC was established by the Boundary Waters Treaty of 1909 to assist the US and Canadian governments in managing and protecting waters shared by the two countries. The views expressed are Pollack’s, not those of the IJC

Continue reading...

Shell and BP paid zero tax on North Sea gas and oil for three years

Firms defend paying no corporation tax after government handed out billions to energy giants

Shell and BP, which together produce more than 1.7bn tonnes of greenhouse gases a year, have not paid any corporation tax on oil and gas production in the North Sea for the last three years, company filings reveal.

The oil giants, which have an annual global footprint of greenhouse gases more than five times bigger than Britain’s, are benefiting from billions of pounds of tax breaks and reliefs for oil and gas production.

Continue reading...

No formal Cop26 role for big oil amid doubts over firms’ net zero plans

Officials from fossil fuel firms may attend fringe events but campaigners hail lack of official role

Fossil fuel firms have been given no official role in the Cop26 climate summit, it can be revealed, against a background of growing concern among UK officials that big oil’s net zero plans do not stack up.

Private emails from civil servants in the Cop unit, seen by the Guardian, show doubts about one oil major’s net zero plans, with an official saying BP “[does] not currently fit our success criteria for Cop26” and another noting “it’s unclear whether [its net zero] commitments stack up yet”.

Continue reading...

‘Only yourselves to blame’: UK’s shortages seen from abroad

US and European media give their verdict on the fuel, food and labour crisis they say is caused by Brexit

Government ministers may insist it is “wrong” to blame Brexit for Britain’s fuel, food and labour shortages, but for the rest of Europe – and beyond – there is only one reason why the UK’s crisis is so very much worse than everywhere else’s.

“One is tempted to tell the British: ‘You have only yourselves to blame,’” said Gabi Kostorz on ARD’s Tagesthemen, a leading German news show. “We tried to talk you out of it, but you decided otherwise. Now you have to face the consequences.”

Continue reading...

Cutting methane should be a key Cop26 aim, research suggests

Oil and gas producers could reduce emissions at low cost or even at a profit by staunching leaks, says thinktank

Sharp cuts in methane from leaking gas drilling platforms and production sites could play a major role in the greenhouse gas emissions reductions necessary to fulfil the Paris climate agreement, and should be a key aim for the Cop26 UN climate talks, new research suggests.

Cutting global emissions of methane by 40% by 2030 is achievable, with most cuts possible at low cost or even at a profit for companies such as oil and gas producers. It would make up for much of the shortfall in emissions reductions plans from national governments, according to the Energy Transitions Commission thinktank.

Continue reading...

Tory donor’s oil firm admits employees paid bribes to get contracts

Petrofac made admission as part of deal to end four-year corruption investigation by Serious Fraud Office

A multinational oil firm, which was led by a major Conservative donor, has admitted that its employees paid bribes to land contracts, as it struck a deal to end a corruption investigation into the company.

The admission was announced by the firm, Petrofac, on Friday to settle a four-year corruption and money laundering investigation by the Serious Fraud Office.

Continue reading...

Norway election result: Labour celebrates but coalition talks loom

Labour’s Jonas Gahr Støre on course to be prime minister after Conservative incumbent concedes defeat but faces hard choices on picking allies

Norway’s Conservative prime minister Erna Solberg has conceded defeat to the left-leaning opposition after a general election campaign dominated by questions about the future of the key oil industry in western Europe’s largest producer.

“The Conservative government’s work is finished for this time around,” Solberg told supporters on Monday. “I want to congratulate Jonas Gahr Støre, who now seems to have a clear majority for a change of government.”

Continue reading...

Norway votes – but is Europe’s biggest oil giant ready to go green?

The Scandinavian country faces a crisis of conscience on the eve of elections

Norway goes to the polls on Monday in parliamentary elections that are forcing western Europe’s largest oil and gas producer to confront its environmental contradictions.

Climate issues have dominated the campaigning since August, when the UN’s Intergovernmental Panel on Climate Change published its starkest warning yet that global heating is dangerously close to spiralling out of control.

Continue reading...

Louisiana Shell refinery left spewing chemicals after Hurricane Ida

Power outages from the storm have left air quality tracking systems out of commission, making public health concern hard to gauge

Behind a playground littered with downed tree branches, Shell’s refinery in Norco, Louisiana spewed black smoke from its stacks. The smell of rotten eggs, the signature scent of sulphur emissions, lingered in the air. In an effort to burn off toxic chemicals before and after Hurricane Ida, many industrial facilities sent the gases through smoke stacks topped with flares.

But the hurricane blew out some of those flares like candles, allowing harmful pollution into the air.

Continue reading...

North Sea oil was battered by Covid, but now faces much deadlier waves

Since the pandemic hit, the world’s altered attitude to fossil fuels is throwing doubt over the industry’s future

The UK’s North Sea oil industry may have survived one of the darkest market downturns in history during the Covid-19 pandemic, but the deepest gloom lies over the future of the fossil-fuel industry.

Companies are braced for this week’s annual economic report from industry body Oil and Gas UK (OGUK). It is expected to lay bare the full toll of the pandemic on the ageing oil and gas basin last year.

Continue reading...

Green groups’ fury at loophole in new North Sea oil test

Projects that could produce more than 1.7bn barrels will not have to go through the government’s ‘checkpoint’, data reveals

Prospective oil projects in the North Sea with the capacity to produce more than a billion barrels will avoid a new test designed to assess their impact on the climate crisis, the Observer has learned.

In a development that has angered environmental campaigners, it has emerged that proposed new developments representing some 1.7bn barrels of oil will not have to undergo the forthcoming “climate compatibility checkpoint”, designed to determine whether they are consistent with the government’s climate commitments.

Continue reading...

New oilfield in African wilderness threatens lives of 130,000 elephants

Exploratory project in Botswana and Namibia is threat to ecosystems, local communities and wildlife, conservationists say

Tens of thousands of African elephants are under threat from plans for a massive new oilfield in one of the continent’s last great wildernesses, experts have warned.

Campaigners and conservationists fear the proposed oilfield stretching across Namibia and Botswana would devastate regional ecosystems and wildlife as well as local communities.

Continue reading...

‘This isn’t ideological’: reluctant ‘green hero’ behind Exxon coup

Tiny hedge fund Engine No 1 says a strong climate strategy simply makes good business sense

The activist hedge fund behind ExxonMobil’s boardroom coup last week has claimed another seat from the oil giant’s board, to take the number of new directors who will push for climate action from within the company to three.

The result of last week’s shareholder vote has installed the hedge fund, named Engine No 1 after a San Francisco fire station, as a reluctant hero of the climate movement.

Continue reading...