Oil Companies in Trouble: Breaking Pledges & Plugging Leaks

ExxonMobil, one of the world’s largest oil companies, has broken its pledge to stop funding groups that promote scepticism about man-made climate change, while BP floated a new option this week to plug the Gulf of Mexico oil leak to bring to an end the economic and environmental disaster sooner than expected. Report from The Times in The Australian (20 July 2010): ONE of the world’s largest oil companies has broken its pledge to stop funding groups that promote scepticism about man-made climate change. ExxonMobil gave almost £stg 1 million ($1.75m) last year to organisations that campaigned against controls on greenhouse gas emissions. Several made outspoken attacks on climate scientists at the University of East Anglia and argued that their leaked emails showed the dangers of global warming had been grossly exaggerated. The scientists were exonerated this month by an independent inquiry, but groups funded by Exxon have continued to lambast them. The Media Research Centre, which received $US50,000 ($57,500) last year from Exxon, called the inquiry a “whitewash” and condemned “climate alarmists”. Some of Exxon’s largest donations were to groups that lobbied against a global deal on emissions being reached at last December’s climate summit in Copenhagen. The value of Exxon’s oil and gas investments could fall sharply if governments adopt aggressive plans to reduce their dependence on fossil fuels. The energy giant had indicated it was pulling back from funding sceptics. In its 2007 corporate citizenship report, it stated: “In 2008, we will discontinue contributions to several public policy groups whose position on climate change could divert attention from the important discussion on how the world will secure energy required for economic growth in an environmentally responsible manner.” Exxon also gave reassurances last year that it had no funding links with the sceptics’ biggest annual conference, the International Conference on Climate Change. But a list published by Exxon this month of its “2009 worldwide contributions and investments” revealed it had given four co-sponsors of the New York event $US275,000. It also gave $US1m to 20 other sceptic groups. Bob Ward, policy director at the London School of Economics’ Grantham Research Institute on Climate Change, who has been monitoring Exxon’s links to sceptic groups, said: “Exxon has engaged in a public relations campaign to convince the world that it has stopped funding climate sceptic groups. But this has turned out to be pure greenwash. Exxon has continued to provide financial support for many groups that are engaged in activities to persuade the public and policy-makers into wrongly believing that climate change is a hoax.” Four of the groups funded by Exxon — the Atlas Economic Research Foundation, the Media Research Centre, the Pacific Research Institute and the Heritage Foundation — co-sponsored the New York conference. Exxon recently announced it would no longer fund the Atlas Economic Research Foundation, the Media Research Centre or the Pacific Research Institute. Source: www.theaustralian.com.au AFP report in The Age (20 July 2010): BP floated a new option Monday to plug the Gulf of Mexico oil leak and end the economic and environmental disaster sooner than expected. The “static kill” operation would involve pumping heavy drilling fluids known as mud through the blowout preventer valve system that sits on top of the well and then injecting cement to seal it. Similar to the “top kill” operation that failed in May, BP believes it will now work because the oil and gas in the runaway well is sealed already by its containment cap so the mud won’t need to be forced down so hard. BP senior vice-president Kent Wells said officials could decide to implement the operation within the “next couple days,” long before the first relief well – still seen as the ultimate fix – is completed at the end of the month. Back in May, the “top kill” saw engineers spend days pumping heavy drilling fluid into the leaking well, but they failed to smother the gushing crude. Former Coast Guard chief, Admiral Thad Allen, who heads the government’s response to the spill, confirmed there was “some discussion that there might be some way to do a static pumping of mud into the top that would suppress the hydrocarbons”. But he stressed the plan was still in its infancy and said he was waiting further analysis from BP before making a final decision. He admitted it could have better chances of success than the “top kill” because the well, which has been capped since Thursday, was now in a closed system with back pressure. Both BP and Admiral Allen treaded cautiously after a string of containment failures. “We’re trading off a lot of different options. We’ve discussed about three or four different things that could happen, the relief well being number one,” said Admiral Allen. “We’re still very much in the design and planning phase,” Mr Wells told reporters. “We’ve got some real experienced teams working on this over the next couple of days.” Gulf residents, who have seen the crude tarnish their shorelines and cripple the local economy since a rig leased by BP exploded and killed 11 workers in April, have reacted with cautious optimism. Kenneth Feinberg, who manages BP’s US$20-billion compensation fund, said capping the well would allow compensation claims to move forward more quickly as the extent of the damage became clearer. He urged fishermen, oyster collectors and hotel owners and other businesses to come forward with claims, including emergency payments to cover the first six months of damages. Residents face a tough choice: whether to accept compensation from the fund or pursue legal action against BP or the other companies involved. “I’ll be much more generous than any court will be, and at the same time you won’t need to pay lawyers’ costs,” urged Mr Feinberg. Oil has washed up on the coasts of all five Gulf states – Texas, Louisiana, Mississippi, Alabama and Florida – since the BP-leased Deepwater Horizon rig sank on April 22, two days after the explosion. Poisonous crude has killed birds, closed fishing grounds, decimated the tourism industry and done untold environmental damage. Source: www.theage.com.au