...Shell Company Analysis Dr. Scruton Methodist University Management and Organization Abstract Shell Oil is a global company in the oil industry. This long established company has withstood the test of time in this competitive market. Management practices have established the resources necessary to overcome the obstacles of a global company. This detailed analysis of Shell Oil focuses on management in order to provide an understanding of how the company is able to succeed. The organizational analysis provides insight into Shell’s goals, culture, and resources. An example of a specific problem that Shell faced, oil spills in Nigeria, continues off of the company analysis. Nigeria is a major extraction location for shell, but sabotage and oil leaks grew to be a major concern. Shell faced court cases in search of relief in Nigeria, but the majority of the oil leaks were a result of sabotage; therefore, shell was not responsible. However, people believed that it was shell’s responsibility to safeguard the oil lines and prevent sabotage in the first place. Shell funded the cleanup of previous oil spill sites along with a major advertising campaign to avoid a negative impact on its business. Some people still believe that Shell should be taking more responsibility for the oil spill crisis in Nigeria. Shell Company Analysis Oil is a resource that has been in great demand since the production of combustion engines, as well as other industrial machines. Royal Dutch...
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...Shell in Nigeria Shell is a multinational corporation that for 50 years has been intimately involved in Nigeria’s economy, politics and overall development. Company generates billions of dollars in export earnings while providing the federal government with half or more of its revenue. Shell has also been implicated in government military actions that have resulted in the killing of non-violent community, human rights and environmental activists and local villagers, as well as the oppression of ethnic minorities. They’ve been seen as being complicit in widespread corruption and as a large contributor to the self-enrichment of government officials and powerful, local interests. They’ve also been viewed as a principal agent of widespread environmental degradation in what’s recognized as one of the world’s biodiversity hotspots. Urbanization, industrialization and deforestation are taking a heavy toll on the Delta region’s soil, land, water and air. The country’s forest area has been reduced by around half between 1990 and 2008, which is degrading the region’s agricultural productivity and water resources. Local activists and residents, as well as local and foreign scientists and researchers, have decried the fouling of the Delta region’s air, land and water, much of it attributed to pollution associated with oil and gas exploration and production. Shell has been harshly criticized for the effects its exploration and production in Nigeria. Seventy-five percent of oil spill incidents...
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...image. Royal Dutch Shell Plc is ranked seventh among the top global oil producing companies for year 2012 by Forbes (Christopher Helman 2012). Despite its prominent reputation and its claimed aim of achieving the worldwide energy demand in a responsible manner, it does negate the fact their business operations have impacted the environment of Nigeria. The pressing argument that will be discussed in this paper would be the interminable oil spills due to the defective facilities and insufficient checks of equipments which are identified as the one of the main sources of the environmental contamination by Shell in the Niger Delta, how these irresponsible activities have implicated the environment which leads to unfavourable circumstances for society and stakeholders such as institutional investors, and the efforts made by Shell to counteract the situation. Background of Oil Spills in Niger Delta Before Shell tapped on the Delta, the eastern area of Nigeria was resource wealthy. However what thought to be a profitable activity for the corporations as well as Nigerian people too turned out to be a severe environmental threat and has been evolving for a few decades since 1956. Shell did acknowledge that their operations have caused oil spills, but did not agree on the extent of it. Analysts have recorded that in the year 1995 to 2006, Shell has committed an average three hundred spills annually which results to more than four hundred fifty thousand barrels of oil ( Tuodolo 2009...
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...An Assessment of Oil and Gas Industries in the Niger Delta Thesis Statement Oil and Gas companies operating in Niger Delta are causing damage to the health and safety of environment and the communities of Niger Delta. Introduction Companies participating in Oil and Gas Industry, either upstream, midstream, or downstream, know the pressure from governments and environmental organizations that have been at the center stage environmental issues, while traditional security issues and reliability are even more critical as the industry is driven by strong demand. All the oil companies, especially after the oil spill fiascos that took place in the last 2 decades in Niger Delta, have committed their resources to ensure health and safety of its employees, the people inhabiting the region where company’s operations are taking place, and the protection of environment and other resources such as water. The assessment of all Oil and Gas companies reveals that all the oil and gas companies in Niger Delta are committed to the values, morals, standard and principles that are discussed below in the literature review section (Yusufu et al., 2011, Pp. 34). Discussion Health and Safety: Not to harm people, whether they are employees or contractors of third parties. Accompanying water: Treatment and re-injection of water associated with oil production methods and techniques that are in line with the standards of environmental protection. Drilling Fluids: Management and disposal of...
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...A Study of Shell Oil and its Stakeholders in Nigeria Part 1 (Week Six) A Review of Basic Issues Regarding the Background and Interests of Stakeholders of Shell Oil Company in Nigeria Chapter 1 Introduction The complexity of understanding the Shell Nigeria oil spill and applying critical analysis and leadership theories to the problem is a challenging debate. A reader would tend to assume that Shell is at fault and should take all the blame for this corporate and ecological mess. Therefore, the introduction needs to provide the reader with sufficient historical information and background of stakeholders such as Royal Dutch Shell Company, Nigeria (country), Niger Delta (province of Nigeria) and its directly affected tribal communities of the oil spill. The introduction is thorough as to avoid explaining in other key elements of this research paper. The Royal Dutch Shell was ranked No1 as the largest organisation in the world in 2012 by Global 500. Shell has boosted its first quarter earnings of 2012 by 11% compared to that of 2011. Shells long term projects that have just commenced creating; a gas to liquids plant in Qatar and further projects in Canadian oil sands, have in part contributed to these revenues. Royal Dutch Shell has 87000 employees globally (Global 500, 2012) The first Shell Company in Nigeria was started in 1936 by The Royal Dutch/Shell Group. The Royal Dutch/Shell Group then founded Shell D’Arcy. Two years later in November 1928...
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...08 Fall 08 Fall MSc OIL AND GAS MANAGEMENT International Environmental Law M28 CLS Ivenia M. Holt Impacts of oil pollution on the environment and wellbeing of a local indigenous community: A case study of the Ogoni people of Nigeria. 1.0 Introduction Ogoni is an ethnic group in the Niger (fig. 1) Delta area of Nigeria. It is a high oil-rich area, populated by approximately 500,000 people (Global nonviolent action database 1995). Ogoni’s who are hardworking people are farmers and fisher men, producing food not only for themselves but for most of the Niger Deltan’s (Ebeh n.d). The region has been plagued with serious environmental degradation resulting from activities of oil and gas exploration and exploitation since Shell petroleum development company discovered oil in Ogoni land in 1958 (Global nonviolent action database 1995). However, contaminated lands in this region were not only through wells and pipelines, but by gas flares which produced intense heat and chemical gas fogs that polluted nearby homes and rendered farmlands barren ( Johansen 2010). Oil exploration and production have been carried out by Shell international at Ogoniland since 1950s, but its operations were stopped in the 1990s due to disputes between Shell and the Ogoni’s (Kadafa 2012). As a result, Ogoniland has been characterized by oilfields and installations that have remained dormant, past spills, lack of maintenance, oil trapping and damages to oil infrastructure for over fifteen...
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...A Study of Shell Oil and its Stakeholders in the Niger Delta Being a Leader – Final Project (part2) A basic review on the background of Shell Nigeria, its Stakeholders, Interests and Responsibilities. Contents: Chapter 1 • Introductions o Shell Global overview o Background on Shell Nigeria Chapter 2 • Historical Background of Shell in the Niger Delta • Corporate Social Responsibility and Ethics of Shell • Stakeholders , Problems and Models o The Chief Executive Officer of Shell o The Local Employee of Shell Nigeria o The Investor of Shell Global or Shell Nigeria Chapter 3 • Various Approaches to Leadership Skills o Trait approach o Contingency approach o Situational approach o Constitutive approach o Transactional leadership o Charismatic leadership o Transformational leadership o Situational leadership • Points I have learnt about myself • How would I bring resolution to the problem Chapter 4 • Conclusions and Recommendations Reference list Chapter 1 Introduction Shell Global overview Shell Global is one of the largest companies in the world, growing from a small shop in London nearly 200 years ago to one of the biggest global groups of energy and petrochemical companies in the world, with more than 90,000 employees currently employed in more than 80 countries worldwide, being led by the Chief Executive Officer (CEO), Peter Voser based in the global headquarters in Hague, the Nederland’s, with the...
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...in regard to both national politics and the oil industry help put Shell Oil Company’s operations in Nigeria into context. Nigeria, an English speaking country in West Africa, is the most populated country in Africa with 180 million people; and has one of the largest and fastest growing economies in the world with five percent growth in GDP every year. Further, Nigeria is one of the world’s largest producers of oil in the world and is part of the Organization of the Petroleum Exporting Countries (hereafter “OPEC”). RDS, a British and Dutch multinational gas and petroleum company headquartered in Holland, has many subsidiaries such as the Shell Oil Company (American Subsidiary) and Shell Petroleum Development Company (Nigerian Subsidiary hereafter referred to as “SPDC”). SPDC has been the biggest fossil fuel company in the Nigeria and it accounts for over twenty percent of Nigeria's total oil production. Shell was first established in Nigeria in 1937 and was given a license of exploration in 1938. Four years before Nigeria’s Independence from Great Britain in 1960, Shell Nigeria discovered economically feasible oil in 1956. In 1957, Shell established the first oil field in the Delta region of Nigeria, located in the land owned by the Ogoni tribe. By 1958, Shell had begun exporting oil from Nigeria for the first time commercially. I. Question of Ethical Breach? Since the 1970’s, Shell has consistently been accused of major environmental...
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...In a major oil spill that occurred in the Niger Delta Region of Nigeria in 2008, Shell Petroleum Development Company (SPDC) stated that this was caused by a fault in a pipeline. In the town of Bodo, tens of thousands of oil barrels caused pollution to the land and creek. Shell’s official investigation report claims that 1,640 barrels of oil were spilt in total. Nigerian regulators have confirmed that the spill lasted for 72 days and estimate that between 103,000 and 311,000 barrels were spilt in this time. Besides the under-recording of this incident, Shell has repeatedly claimed to its investors, media and customers that the majority of the spill was caused by sabotage. Amnesty International has now confirmed that more than 50% of the oil spill was a result of operational failures. After more than 3 years since this oil spill, Shell has failed to perform a proper clean-up to the affected area, or to pay any form of official compensation to the affected communities. Thousands of activists in more than 14 countries have undertaken protests against the major oil giant, and the people of Bodo have now taken their claim of a leak of 500,000 barrels to the UK courts. Observing this particular situation involving Shell in Nigeria, an understanding will be established of how leadership could be used to address the situation. This paper is organised as follows: First, I will provide a background and history into the Shell Nigeria operations. Secondly, I will establish an understanding...
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...Shell in the Niger Delta: A Framework for Change Five case studies from civil society sponsored by February 2010 About ECCR The Ecumenical Council for Corporate Responsibility (ECCR) is a church-based investor coalition and membership organisation working for economic justice, environmental stewardship, and corporate and investor responsibility. ECCR undertakes research, advocacy and dialogue with companies and investors. It seeks to influence company policy and practice and to raise awareness among the British and Irish churches, the investor community and the general public. For more information, please visit www.eccr.org.uk. Acknowledgements ECCR would like to thank the five civil society organisations that contributed case studies based on their work in the Niger Delta; Cordaid for generously sponsoring the report; members, partners and independent experts who advised, read and commented on the text before publication; Royal Dutch Shell Plc and Shell Petroleum Development Corporation of Nigeria for providing company information and commenting on the text. Cover photo credits: Friends of the Earth International; IRIN/UN Office for the Coordination of Humanitarian Affairs; Milieudefensie/Friends of the Earth Netherlands; Stakeholder Democracy Network. Disclaimers ECCR has commissioned and published these case studies as a contribution to public understanding. The text has undergone a careful process of fact-checking and review to achieve accuracy and balance. Nevertheless...
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...Shell devam Introduction At the beginning of human history, people just needed nature for shelter, for food to survive. While humanity was growing up, people started to need other things. What we do for supplying our needs is taking from nature. As a human we supposed; nature exists for human and humans have all right to use nature for each of their purposes. By time our needs were changed, we needed to use more of nature. For instance, we use woods to cook food. To heat ourselves we burned woods. Then we found the coal. The coal was very effective to get energy for lots of our needs. However, human always wants more because their needs are changed. Next, we found how to use petroleum to get energy. Why we have to get energy is because energy is fundamental for people daily life. It helps us deliver nourishment, fuel transport and energize communication channels over the world. Over the impending decades, more individuals will obtain entrance to energy and appreciate higher standards for everyday life. However these improvements could cause big pressure on our world’s resources, such as energy, fresh water and food. In the meantime, environmental change remains a big concern. Petroleum sector is one of the harmful sectors. At the beginning of using petroleum, people were using it for lightning mostly. During industrial revolution, chemist found that distillation separates petroleum to more useful forms. Engines started to work with some of new forms of petroleum, gasoline...
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...Study of Shell Oil and its Stakeholders in Nigeria Part 2 (Week 9) A review of basic issues regarding the Background and Interests of Stakeholders of Shell Oil Company in Nigeria Somaya Rhoda 16069635 Chapter 1 Introduction In a major oil spill that occurred in the Niger Delta Region of Nigeria in 2008, Shell Petroleum Development Company (SPDC) stated that this was caused by a fault in a pipeline. In the town of Bodo, tens of thousands of oil barrels caused pollution to the land and creek. Shell’s official investigation report claims that 1,640 barrels of oil were spilt in total. Nigerian regulators have confirmed that the spill lasted for 72 days and estimate that between 103,000 and 311,000 barrels were spilt in this time. Besides the under-recording of this incident, Shell has repeatedly claimed to its investors, media and customers that the majority of the spill was caused by sabotage. Amnesty International has now confirmed that more than 50% of the oil spill was a result of operational failures. After more than 3 years since this oil spill, Shell has failed to perform a proper clean-up to the affected area, or to pay any form of official compensation to the affected communities. Thousands of activists in more than 14 countries have undertaken protests against the major oil giant, and the people of Bodo have now taken their claim of a leak of 500,000 barrels to the UK courts. Observing this particular situation involving Shell in Nigeria, an understanding...
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...international environmental forces that impact their business. Most of the international environmental forces are; Cultural, Physical, Political, Intellectual, Legal, International Monetary system and Financial forces. These force are very important for a company to consider carefully before it ventures into any country for business. International companies that did not manage these international environmental forces properly have gone out of business. Most Multinationals in recent times have dedicated departments that handle these forces. This capstone project will discuss the impact of international environmental forces on Shell Petroleum Development Company. Shell is a Royal Dutch company that has many locations globally, and is one of the major oil companies in the world. Most of its international environmental forces issues will mainly focus on Nigeria, where the company has been operating since 1937 and also the United States. One ethical issue the company has face in the international business environment will also be analyzed. Finally, there will be conclusion that will restate the major points of the paper and the various points mentioned. INTERNATIONAL ENVIRONMENTAL FORCES The seven International environmental forces are Cultural, Physical, Political, Intellectual property, Legal,...
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...Friend or Foe Shell in the Niger Delta Shell in the Niger Delta There is a long and terrible record of environmental destruction and human rights violations in the oil-producing regions of Nigeria. The gross level of environmental degradation caused by oil exploration and extraction in the Niger Delta has gone unchecked for the past 30 years. Evidence shows that the oil companies operating in Nigeria have not only disregarded their responsibility towards the environment but have acted together with the military’s repression of Nigerian citizens. The profit-driven collusion between multinational oil companies and the past and present Nigerian governments has cost many lives and continues to threaten the stability of the region. In the course of writing this paper, based on all the accounts of reports read, interviews conducted, news and report findings, I came to the realization that oil extraction and the related operations of multinational oil corporations pose a serious threat to the livelihood of the people of the Niger Delta. Tensions in the Niger Delta continue to erupt into violence as natural resources vital to local communities’ survival are destroyed by oil operations. Environmental and social justice for the people of the Niger Delta remain central issues for achieving peace in the region. As long as people’s calls for justice continue to be ignored and resisted by both multinational oil corporations and the Nigerian government, the situation...
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...Shell in Nigeria: The Ethical Issues Ethics are moral principles, as of an individual, a country or a religion. A lot of people have different perspectives of the world and carry different opinions involving what is ethical and what is not. Ethics are a major concern in International Business and companies face ethical issues very frequently. Royal Dutch Shell, commonly known as Shell, is a fusion of over 1,700 companies around the world. Shell Nigeria is one of the largest oil producers in the Shell Group and more than 80% of the oil extractions in Nigeria is in the Niger Delta. The Delta is a home to many small minority ethnic groups, such as Ogoni, all of which suffer exploitation of human rights, environmental rights, and economical and health issues by big multinational oil companies, mainly Shell. Emanuel Nnadozie, A famous writer, has said "Oil is a curse which means only poverty, hunger, disease and exploitation for those living in oil producing areas.” This paper will focus mainly on the case of Shell’s ethically immoral attitudes towards Ogoni, but one must keep in mind that there are dozens of other groups that suffer the same exploitation of resources and injustices, both environmentally and economically. Firstly, Ogoni continuously faces human rights violation from Shell. Oil from Ogoniland provides close to $30 billion to the economy of Nigeria and the people of Ogoni see only very little from their contribution to Royal Dutch Shell. According to The Essential...
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