By, GROUP B6

Reshma Gaikwad (P919)Rohit Khot (P931)

Aditya Kulkarni (P935)Sagar Parmar (P945)Megha Pote (P946)

Neha Sankhe (P951)

Flow Of Discussion

Royal Dutch/ Shell: One of the largest oil company

Shell enters Nigeria

Shell causes problems in Nigeria

Case Analysis: -> Why does the Nigerian government allow this to happen? -> How did the Nigerian government support Shell? -> Was Nigeria only affected country? -> What did Shell do under the name of Corporate Social Responsibility? -> Do all Oil companies follow same approach as of Shell of cover up Corporate

social responsibility activities? (Ex. Exxon Mobil, ONGC, BP) -> What actions can a oil company take to quell criticism about its operations?

Royal Dutch/ Shell• The "Royal Dutch/Shell Group," commonly know as Shell

• Spread over 1,700 companies all over the world

• It operates in over 140 countries

• Shell Nigeria is one of the largest oil producers in the

Royal Dutch/Shell Group.

• 80% of the oil extraction in Nigeria is the the Niger

Delta, the southeast region of the country.

• Over the years Shell has been criticized by

environmental and human rights groups for a number of

its operations

Shell Enters Nigeria• Shell’s operations control about half of Nigeria’s oil output

• Nigerian operations are significant, accounting for about 10 percent of the company’s petroleum sources

• The joint venture between Shell and the Nigerian Government found oil for the first time in 1956 in Ogoniland which is a small 404-square mile area of Nigeria at the delta of the Niger River

• The Nigerian government’s revenues from these operations have traditionally gone to the country’s central government, and very little has been redistributed back to Ogoniland

Shell Causes Problems In Nigeria

• Although oil from Ogoniland provided approximately $30 billion

to the economy of Nigeria, the people of Ogoni had seen little to

nothing from their contribution to Shell's pocketbook.

• "Oil is a curse which means only poverty, hunger, disease and

exploitation" for those living in oil producing areas.

• Shell has done next to nothing to help Ogoni:  by 1996, Shell

employed only 88 Ogoni (0.0002% of the Ogoni population, and

only 2% of Shell's employees in Nigeria).

• Ogoni villages have no clean water, little electricity, few

telephones, abysmal health care, and no jobs for

displaced farmers and fisher persons, and adding insult to

injury, face the effects of unrestrained environmental

molestation by Shell everyday.

Environmental Degradation• Natural Gas Flaring 

In Ogoniland, 95% of extracted natural gas is flared(compared with 0.6% in the United States) Nigerian oil fields are responsible for more global warming effects than the combined oil fields of the rest of the world

• Oil Spills Although Shell drills oil in 28 countries, 40% of its oil spills worldwide have occurred in the Niger Delta.

• Pipelines and construction The extraction of oil has lead to construction of pipelines and facilities on precious farmland and through villages.

• Health impacts The Nigerian Environmental Study Action Team observed increased "discomfort and misery" due to fumes, heat and combustion gases, as well as increased illnesses, has observed higher rates of certain diseases like bronchial asthma, other respiratory diseases, gastro-enteritis and cancer among the people in the area as a result of the oil industry.

• Beginning in 1992, a group of Ogonis, led by the author Ken Saro-

Wiwa, formed the Movement for the Survival of Ogoni People

(MOSOP)

• MOSOP began campaigning for political self-determination, a

greater share of oil revenues, compensation for losses from

Shell’s activities, and restoration of the environment in Ogoniland

• The Nigerian government arrested Saro-Wiwa and eight others

for inciting and directing supporters to violence, held them in jail

nearly a year, and then hanged them in 1995

• Shell publicly opposed the executions and had written a

letter to the Nigerian head of state requesting clemency

for Saro-Wiwa.

A representative from Greenpeace, one

of Shell’s major critics said, “Shell is the

most powerful political actor on the

Nigerian stage-both historically and

currently. In Nigeria, the power doesn’t

come from the people, it comes from

Shell. If Shell wanted to make a difference,

(it) would.”

Case Video 1

Case video 2

Why does the Nigerian government allow this to happen?

How did the Nigerian government support Shell?

Was Nigeria only affected country?

What did Shell do under the name of Corporate Social Responsibility?

Do all Oil companies follow same approach as of Shell ofcover up Corporate social responsibility activities? (Ex. Exxon Mobil, ONGC, BP)

What actions can a oil company take to quell criticism about its operations?

Case Analysis

Why Did The Nigerian Government Allow This To Happen?

• Oil companies have a frightening amount of influence upon the government

• 80% of Nigerian government revenues come directly from oil, over half of which is from Shell.

• Countless sums disappear into the pockets of military strongmen in the form of bribes and theft.

• In 1991 alone, $12 billion in oil funds disappeared (and have yet to be located)

• Oil companies bribe influential local officials to suppress action against the companies.

• Shell and the military dictatorship of Nigeria have earned billions at the expense of the people of the Niger Delta, who now live in extreme poverty

• Shell has imported weapons for the Nigerian military• Shell alone provides over 40% of the Nigerian dictatorship's

budget, and has the influence to force the military to reform and insure that a just and democratic government is formed which represents the interest of all Nigerians

How Did The Nigerian Government Support Shell?• Maintain the status quo• Acting on Shell's requested attacks on villagers

whose farms are destroyed by the oil company• Continue silencing, by any means necessary, those

who expose Shell's complete disregard for people, for the environment, for life itself.

• Violent military regime• Occupying lands which provides 2/3 of Nigeria's oil.

People were violently prevented from organizing their own freedom.

• Harassing, wounding and killing Ogoni and others, the military ensures that it remains in power and that its pockets remain lined with the blood money of Delta oil

• Durban, South Africa - Communities Doomed with Aging RefineryShell operates in collaboration with British Petroleum (BP), known as the South African Petroleum Refinery (SAPREF)

Record of polluting communities, injuring workers, misleading the public, and withholding information.

• Sao Paulo, Brazil - Shell Forced to Clean Up Contamination & Conduct Medical Examinations of WorkersPublic & workers suffered health problems because of contamination at the plant

• Sakhalin Island, Far East Russia - Oil Slicks & Slick TalkSakhalin Energy Investment Company, Ltd., led by Shell

Dozens of local residents exposed to the spill’s toxic fumes• County Mayo, Ireland - From Devastating Beauty to

Devastating RuinShell's new Nigeria

Was Nigeria Only Affected Country?

• Pandacan, the Philippines - Negotiating Substandard Environmental ControlsConcerns about the enormous health and safety threats of accidents

• Curaçao, Netherlands Antilles - Shell CEO Jeroen van der Veer Leaves Behind a MessIsland is contaminated with oil waste.

• Port Arthur, Texas, USA - Shell Dismisses Refinery Malfunctions Harming NeighborhoodShell operates a massive oil refinery through a joint venture with Saudi Aramco, known as Motiva

Numerous malfunctions cause an estimated total of 106,495.46 kg (234,784.17 pounds) of toxins to be released into the air.

• Norco & Coastal Louisiana, USA - Shell Ignores Dangerous ImpactsShell resisted taking precautionary action to prevent the long-term impacts of its operations that are damaging to human health

• Campaign to repair its negative image• Re-introduced itself as a company with human rights, social

responsibility, and sustainable development at the core of its values and practices.

• “Clean-Up” operation which involved little more than the turning of the land, placing the oil just below the surface.

• Often repeated commitment to human rights, health, environmental protection, and ethical practices.

• Lip service to respecting human rights and promoting sustainable development whilst continuing with business as usual

• Shell claims that it has been exploring the capture and utilization of carbon dioxide to mitigate the effect of greenhouse gas emissions

• The Shell Foundation is an initiative of the oil major Royal Dutch Shell, initiative to concentrate on working with external partners to promote sustainable development.

What Did Shell Do Under The Name Of Corporate Social Responsibility?

• Exxon Valdez Oil spill • ONGC Gujrat Oil Spills• BP’s Gulf Of Mexico Spill

Do All Oil Companies Follow Same Approach As Of Shell Of Cover Up Corporate Social Responsibility Activities?

Exxon Valdez Oil spill

ONGC Gujrat Oil Spills

BP’s Gulf Of Mexico Spill

BP CSR

• BP Plc has spent up to US$125 million annually on its corporate

social responsibility CSR campaign to enhance its socially

responsible image in its transition and launched a hugely successful

image-building campaign, labeling itself “Beyond Petroleum.”

• This showed BP as a green activist, with a new logo of a green and

yellow sun. 

• BP made monumental investments in solar energy and after a string

of acquisitions BP Plc even became the largest maker of solar panels

in the world.

What actions can a oil company take to quell criticism about its operations?• The resources of the land should be used to benefit the people

of that land

• Shell should introduce practices, technology and environmental management systems which will prevent Shell’s operations from having any long-term negative impact on the environment.

• Extensive remediation program to rehabilitate the disturbed land to internationally acceptable condition.

• Shell should welcome freedom of speech and respect for fundamental human rights in the region.

• Eliminate hazardous and life threatening facility accidents by replacing antiquated and dilapidated pipelines and relocating them to non-residential areas

• Improve and enhance its identification and measurement of facility

pollution by employing state-of-the-art real-time environmental

monitoring, which thoroughly involves community participation.

• Take full responsibility for past environmental damage that

continues to impact the health and environment of people in places

like Sao Paulo, Brazil and Curaçao, Caribbean.

• Fully and accurately assess the significant impacts of massive

projects,like the oil and gas drilling, processing, which could

ultimately subject to irreversible environmental disasters and

devastating economic losses

People first, oil second

Thank You…