Global Community Monitor
 
 

5. Chronic Pollution

From well head to the corner gas station, the Shell system is releasing toxic chemicals.

CHRONIC POLLUTION TOXIC DRILLING FLUIDS

Royal Dutch Shell, like every other oil company, uses tons and tons of additive and auxiliary substances to enable oil and gas drilling — drilling muds and drilling fluids among them. Some of this material can be very toxic, especially when mixed with oil and gas, or with the "production waters" that come to the surface during drilling. Some of the chemicals used can also be changed chemically during drilling due to heat, pressure, and/or interaction with other compounds. For years, much drilling waste was simply discarded in the environment, left in pits or evaporation ponds at land-based operations, and discharged to the sea at offshore operations. Little of this waste — known as exploration and production waste, or "E & P" waste — is regulated, even in the US. Globally, the annual oil industry discharge of E&Pwastes is about three million tons. As a leading player in the E&P business, Shell’s share of this discharge is considerable. True, some changes have begun to occur with offshore drill cuttings, now brought to shore for proper disposal. Still, with drilling fluids, there is a re-maining and significant environmental problem. For the last 75 years or so, Shell has been using some fairly standard — and toxic — substances to enable its drilling. Chief among these are barite and syn-thetic drilling oils. Barite, in reaction with other substances, and due to changes during drilling, becomes barium, a toxic substance. Barite, however, is no small business. Sold by Halliburton and other oil service companies, it is a $500 million annual global market. But barite isn’t the only substance that can do the job. In fact, there are some neglected existing alternatives available that are environmentally safer, more productive, and cheaper to use.

"Tell Shell"— He Did
I note that Shell operations created around 450,000 tonnes of hazardous waste in 2001, and most of this waste was drilling fluids and cuttings contaminated with oil and toxic heavy metals. When I was with Shell Research in The Netherlands I helped develop a novel ecological drilling fluid system based on formate brines. Shell rarely uses this exciting technology, but these benign and biodegradable formate brines have been widely used by other oil companies through-out the world over the past 8 years, and they have been particularly useful in reducing the amount of hazardous wastes created by drilling operations. Agip’s use of formate-based drilling fluids in the environmentally-sensitive Barents Sea is a fine example of how formates are being used to great effect by a responsible oil company to minimize the environ-mental impact of its drilling operations. Fortuitously, the use of formate brines as drilling fluids also appears to result in spectacular increases in oil and gas production - so there is a clear financial reward to be gained from using these ecological fluids. Given Shell’s commitment to "finding new ways to reduce the environmental impact of its operations", why are Shell operations not using their own formate brine technology to reduce the volume of their hazardous waste production?

Yours sincerely, John Downs 25 July 2002

2nd Letter, different Shell forum, same day

Every year the oil industry uses some 3 million tonnes of a toxic heavy metal (barium) in its well drilling fluids. Shell researchers showed as long ago as 1960 that common components of drilling fluids can solubilise the barium, creating a hazardous waste. Much of this hazard-ous drilling waste containing solubilised heavy metal ends up being discharged into our environment. Despite having developed an ecological drilling fluid technology to replace barium, and professing a desire to reduce the environmental impact of its operations, Shell is still a major user of barium in its drilling operations worldwide. I would like to open up a debate about whether Shell is ethically or morally justified in continuing to use large volumes of barium in its drilling fluids when it has a cost-effective and ecological alternative technology, in the shape of its patented formate brine system, readily available but largely unused by the Shell drilling community.

Yours sincerely, John Downs (As of late August 2002, Mr. Downs had not received a reply from Shell to either letter).


Nearly 15 years ago, in fact, in 1987, two enterprising Shell scientists working at The Hague came up with better and safer drilling fluids. They discovered that sodium formate brine and potassium formate brine could serve as very effective drilling fluids. This was a significant discovery, and Shell patented their work product. But it wasn’t until 1993 that Shell first tested a sodium formate brine at its Draugen field in offshore Norway. Shell did little with its new invention from that point on, as most of the scientists who developed the new fluids left Shell. John Downs, one of those former Shell employees who developed and advocated the formate brines, became involved at a company named Cabot to develop the languishing fluids. Downs then licensed the technology from Shell, and began selling the for-mate brine technology to Shell’s competitors including BP, ExxonMobil, TotalFina, and others. Shell, however, was still not using its own in-vention. Instead, it continued to use what some have called "stone age" drilling fluid technologies known as the Di-Pro and Brine-Drill systems. All of this prompted Downs — frustrated with Shell’s history of non-use of its own better and safer product — to avail himself to the "Tell Shell" web page to make his story public. In late July 2002, Down’s wrote two letters, in different forums, to the Tell Shell web page. Click here to see them.

To date, Mr. Downs has yet to receive a reply from Shell. Part of the reason, he speculates, is that Shell has no one competent enough to reply, as all the scientists and technical staff that once worked on the formate brine project have left, with Shell now relying on contrac-tor services to deal with things like drilling fluid. What Down’s has received, however, are queries from within the Shell empire from engineers and project managers wanting to know more about Shell’s own drilling fluids. Meanwhile, Shell’s competitors are reaping the benefits of safer and more productive drilling fluids. Agip, the Italianoil company, has successfully drilled exploration wells in the envi-ronmentally-sensitive Barents Sea with the new fluids, which cost Agip half the price of the synthetics. Shell, however, continues to use its 75-year-old drilling fluids, pro-fessing to the public that it is working hard for a "sustainable future" — but actually doing little in the present, at least in drilling fluids, to change its polluting practices.

In the Gulf of Mexico, for example, where Shell is a major player with hundreds of rigs, barium pollution is occurring daily. But only a few hundred miles away from most of these Shell rigs are the large-scale formate brine production plants of Texas, which now classify their formate "side-streams" as waste, shipped out for disposal. Royal Dutch Shell may be projecting a good image with its "sustainable development" rhetoric, magazine ads, and CEO speeches. Yet when it comes to the actual execution on these promises, and making obvious improvement on practices right under their noses like drilling fluids, there appears to be a big gap between talk and action. If Shell can let a proven, better technology like the formate brine drilling fluids languish for nearly 15 years, what else hasn’t it brought forward?


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