Archived press release

You Can Be Sure of Shell. Huge UK profits fund wildlife destruction abroad

8 February 2001

Shell's massive profits, aided by fuel price rises, are being used to fund oil extraction activities in some of the World's most precious wildlife areas. On the day that the world's second largest oil company announced record profits, Friends of the Earth accused Shell of being "...on the take - from both people and the planet".

Royal-Dutch Shell this morning announced that its earnings for the past year reached a record US$13.11 billion (£9.04 billion) - up 85%. This rise in cash flow is helping to fund a big expansion in exploration, including some of the world's most environmentally sensitive areas. These activities have put Shell on a collision course with environmentalists, both in Britain and abroad:

* In Pakistan, Shell has entered into a joint venture with Premier Oil to explore for gas in one of the country's oldest and most famous national parks. A coalition of Pakistani environmental organisations have filed a petition against Shell in a Karachi court, claiming that the company's actions are illegal.

* In Bangladesh, Shell has formed a joint venture with the Scottish power company Cairn Energy, to explore for fuel in the Sundarbans mangrove forest. The region represents one of the world's most important wetlands and is home to the largest remaining population of Bengal tigers.

Scientific and political consensus is also now building about the devastating, human social and environmental costs of climate change - fuelled primarily by the burning of fossil fuels like oil and gas.

* Last month, the Intergovernmental Panel of Climate Change (IPPC) representing 2000 scientists, warned that global climate change is likely to be much more severe than previously feared.
* Earlier this week, a report by members of the United Nations Environment Programme's (UNEP) financial services initiative, indicated that climate change

could cost the world over US$300 billion a year. Losses due to more frequent tropical cyclones, loss of land through rising sea levels and damage to fishing stocks, agriculture and water supplies, is likely to hit the world's poor hardest.

Shell is well placed to address the cause of these problems, and help reduce the world's dependence on fossil fuels. Yet the company plans to increase oil and gas production by 5% a year between now and 2005. In contrast, Shell currently invests less than 1% of its turnover in renewable energy, such as wind, solar and wave power.

Friends of the Earth is calling on Shell to end immediately all oil and gas exploration in protected areas, and to switch investment to renewables.

Craig Bennett, Shell Campaigner at Friends of the Earth said:

"Today we've learnt how Shell goes about making profits, and how it goes about spending them. At both ends of the chain, this mega-corporation is on the take -from both people and the planet - here in the UK and abroad.

Shell is not just ripping off the consumer, it is also planning to rip apart some or the world's most valuable protected areas. Shell talks a lot about profits and principles,but it's clear they've made a choice between the two - profits first.

Friends of the Earth will be challenging Shell - in The City, at the pumps, and abroad- to deliver more than just glossy adverts, when it comes to the environment".

Photos available on request of:
* Kirthar National Park in Pakistan.
* FOE Local Groups campaigning against Shell, on petrol station forecourts.

If you're a journalist looking for press information please contact the Friends of the Earth media team on 020 7566 1649.

Published by Friends of the Earth Trust