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Politics : The Environmentalist Thread -- Ignore unavailable to you. Want to Upgrade?


To: Wharf Rat who wrote (34853)7/16/2011 4:26:33 AM
From: average joe  Read Replies (1) | Respond to of 36917
 
Shell pulls the pin on Mackenzie Delta

VANCOUVER AND TORONTO— From Saturday's Globe and Mail

Published Friday, Jul. 15, 2011 4:57PM EDT

Royal Dutch Shell PLC (RDS.A-N71.900.590.83%) is giving up on the Mackenzie Delta, pulling out of the region 38 years after it first discovered a massive deposit of natural gas.

The energy giant on Friday acknowledged it is looking to sell off its delta holdings, including its position in the newly approved but long-delayed Mackenzie Valley natural gas pipeline.

Royal Dutch Shell PLC (RDS.A-N)
71.90 0.59 0.83%
As of Jul 15, 2011 4:00

As part of [Shell’s] regular global portfolio review, Shell has decided to focus its resources on other options,” the company said in an eight-page divestiture brochure.

Shell’s decision marks another major setback to the industry’s vision of transporting the region’s natural gas reserves to southern markets, a plan that has stalled amid shifting industry economics.

After being held up for years in legal and regulatory delays, the Mackenzie Valley pipeline’s economics are now in doubt because of extensive discoveries and production of shale gas, trapped in previously inaccessible formations in already developed parts of North America. Abundant shale gas reserves have contributed to a broad supply glut of natural gas that has depressed the commodity’s price. The reality of today’s gas industry has many questioning whether the Mackenzie pipeline will ever get built.

“This is an economic tragedy,” said Adam Waterous, head of oil and gas finance firm Scotia Waterous, which was not involved in Shell’s decision. “We can’t let this happen again with Gateway,” the Enbridge Inc. $5.5-billion oil pipeline that aims to take Alberta oil to the west coast for shipment to Asian markets. That project is now under review and faces opposition from environmentalists and native communities.

The Mackenzie pipeline – an 1,100-kilometre connection between the delta and Alberta – was first proposed in the 1970s but never got off the ground. A second attempt was made in 2004 but extensive delays, legal and regulatory, hurt the project. The pipeline is burdened by exorbitant costs that are expected to total $16-billion.

In the interim, vast quantities of shale gas were discovered throughout North America. Shell, for example, paid $5-billion in 2008 to buy Duvernay Oil Corp., which had vast assets of shale gas in British Columbia that were already connected to pipeline systems.

Even though Shell no longer sees value in the region, it promotes the delta in its sales documents as “an exciting, basin-opening opportunity.”

Canada’s Aboriginal Pipeline Group, which has the opportunity to own as much as a third of the pipeline if it is built, said the proposed sale isn’t necessarily bad news. “Some will think that and others will realize it’s business at usual,” Fred Carmichael, chairman of the group, said from Inuvik, NWT. “It doesn’t fit their portfolio, so they’re moving on for the time being. There’ll be plenty of interest.”

Imperial Oil, Exxon Mobil Corp. and ConocoPhillips are the other members of the consortium that invested in building the pipeline. Imperial leads the group, but the company said “it wouldn’t be appropriate” to comment on other members’ decisions. However, a source close to Imperial said Shell’s decision came as a surprise and that it is unclear if senior management saw it coming.

Shell has set a deadline of Aug. 31 for any bids. Some of Calgary’s most senior bankers were caught off guard by Shell’s decision and noted that the assets will be tricky to sell. One possible buyer could be Korea Gas Corp., which has shown recent interest in the region because it hopes to export gas in liquid form. South Korea is the world’s top importer of liquefied natural gas.

To attract bidders, Shell will open a “virtual data room” on Monday, followed by seismic work stations at its Calgary office a week later. The company has already promoted a data package “to a broad group of prospective purchasers” to stoke interest, company spokesman Stephen Doolan wrote in an e-mail on Friday afternoon.

While Mr. Doolan said Shell “believes the project is important for Canada,” the company has calculated it can make more money on other assets. Mr. Doolan added that selling assets is a key part of Shell’s “portfolio-based strategy” and that it looks at what it owns to figure out what combination will make its shareholders the most money.

The comments suggest that Shell sees a better return on its investment in B.C.’s sprawling Montney shale gas play, where Shell paid a hefty sum for Duvernay.

Gas in the delta was first uncovered by Exxon Mobil’s Canadian arm, Imperial Oil, in 1971. The field, according to regulatory documents, contains 2.8 trillion cubic feet of recoverable gas. The initial production rate from the field, named Taglu, was 445 million cubic feet a day – a large figure. To put the number in perspective, Taglu’s size would be one-eighth of all of Encana Corp.’s current production and Encana is North America’s No. 2 gas producer. Shell’s main delta field is about one-third the size of Taglu.

theglobeandmail.com



To: Wharf Rat who wrote (34853)7/16/2011 12:00:19 PM
From: Tom Clarke  Read Replies (1) | Respond to of 36917
 
Looking for a Green Business idea? What about becoming a milkman?

Start a Dairy Delivery Service and Nourish Your Community
Local Food | July 14, 2011
by Kimberly Hartke

I remember the milkman. Most of you maybe are too young to have such a memory. Every week, he delivered fresh milk, cream, cottage cheese to an insulated metal container on our back porch (placed there because it was the shady side of the house). He was a direct connect between us and the producer.

Excited, we would run to greet the milkman. We loved the products he brought and his nice smile. He would have a lively chat with my mom, tell her about new products and take her order for the next week.

Ed Hartz, whose family lives in both Sandy Hook and Fairfield Connecticut, wants to bring the Milkman back. He believes the Milkman is the key to rebuilding our rural economies. By providing a bridge between the producer and consumer, the Milkman is a market maker. He adds a personal touch, and he shares his firsthand knowledge of the farms, their products, with his customers.

Ed says with enthusiasm, “The consumer is the ultimate guide to food freedom, the consumer dictates the marketplace. You don’t need a lot of money to fight the status quo with a milk truck.” Ed believes the milkman is a change agent, and that raw milk is a metaphor for food rights.

This all started two years ago when Ed attended the Rutgers lecture by David Gumpert, author of Raw Milk Revolution—Behind America’s Emerging Struggle Over Food Rights. At the time, he had been doing side jobs as a milk man to make extra money. He caught the vision of what a milkman delivery company could do to widen access for consumers to high quality, locally produced products.

Then, Ed attended the International Raw Milk Symposium in Madison, Wisconsin, where he really got jazzed about his business idea. He returned home to Connecticut, bought a used milk truck and started knocking on doors. Today, a year later, he has hundreds of customers who buy a variety of farm fresh products from The Milkman Company.

As he goes from house to house, he educates his customers (Why Raw Milk Is GREAT For Me) about the foods they are buying. Like the milkman of my youth, he is bringing a smile and firsthand knowledge to his “neighbors.”

His latest project is launching an indoor, permanent farmers market, otherwise referred to as a “Food Hub.” This market, as well as the milkman delivery service, will be open and operating 6 days a week, and serve the community much the way a grocery store does. Ed believes the transitory nature of most Farmers Markets are inefficient and that farmers don’t get a good return on the time and resources they invest in them.

In contrast, milkman delivery service plus a Food Hub will create stability and improve access to the local foods marketplace. Also, marketing and distribution don’t fall on the farmer’s shoulders when these two things are in place.

The Milkman Company will connect farmers with the Food Hub, allowing farmers to stay on the farm and do what they do best, grow produce, tend orchards and care for livestock.

Fairfield County, Connecticut is one of the most affluent communities in the nation. The clientele Ed serves are professionals, work on Wall Street, own businesses. They are influential people, and raising their consciousness about food will raise awareness in the community at large.

And, Ed’s service brings them alternative products not necessarily available through other commercial channels. On his truck, he carries a variety of fruits and vegetables, and a range of dairy products: biodynamic, non-GMO, lightly pasteurized, non-homogenized, and even raw milk, since Connecticut is a state that permits retail raw milk sales.
Explains Ed Hartz, “We can actualize change through activity. More people, who object to industrial agriculture and its outputs need to act on good information. I would like to teach others how easy it is to set up a delivery service in their community. I invite Hartke is Online readers who are interested in this green business opportunity to email me for more information about this business model and The Milkman Company distributorships.”

Visit TheMilkmanCompany.com or email Ed at themilkmancompany@earthlink.net.

Kimberly Hartke is the publicist for The Campaign for Real Milk, a project of the nutrition education non-profit, The Weston A. Price Foundation.

hartkeisonline.com



To: Wharf Rat who wrote (34853)7/17/2011 3:37:24 PM
From: LLCF  Respond to of 36917
 
Thanks... as you know to those following along the right threads here on SI the "peak oil" production, supply demand imbalances, FNM banko, massive mortgage defaults, deep Depression, and other now obvious ideas were well known as much as a decade ago... the knee jerk types on the thread probably think this is all some big surprise... and of course O'Bama is responsible for all of them. :)) Never mind you can go back and find all these things discussed in depth.

Some folks seem to miss even the caboose on the gravy train of life. "Luther Dingels" if you will:

youtube.com

Make sure to watch till ~ 4:52.

Going forward it's sources like this that makes you money... watching the latest CNBS or other newsshow talking heads is a recipe for missing the whole boat.

DAK