GULF OF MEXICO: SHELL SECURES FISHERIES

Shell takes pride in being a good corporate partner in Southern Louisiana’s rebuilding in the wake of 2005’s deadly hurricane season.  Many of the corporation’s gestures have been thoughtful and generous, from the return to Shell’s corporate offices in New Orleans to the presenting sponsorship of the Jazz and Heritage Festival.  Shell continues to fund the state-led campaign to secure resources from the U. S. Federal Government in order to restore the wetlands of coastal Louisiana, and has rebuilt ice-houses for the devastated commercial fishing fleet.   While those with a cynical view see this sponsorship as distracting from the primary responsibility oil and gas companies such as Shell hold in causing this coastal destruction through the dredging of canals throughout Louisiana marshes, Shell’s prominent support for federal outer continental shelf (OCS) oil drilling revenue sharing with the state of Louisiana sets it apart from other oil and gas corporations operating in the Gulf.

Shell Ignores Concern Over Long-Term Impacts of LNG Project on Fisheries

Shell’s Gulf Landing liquefied natural gas (LNG) receiving terminal has raised concerns over potential impacts to Louisiana’s coastal fisheries due to a the specific technology proposed for use at Gulf Landing, which was proposed for 36 miles off Cameron, Louisiana.  Called an open-rack vaporizer, or an open-loop system, Shell’s terminal would have run 136 million gallons of gulf seawater daily through a radiator-like heat exchange system.  The physical damage from that process, the exposure to pipes holding the –260° F LNG, as well as the injection of chlorine into the water as an anti-biofouling agent means that all life in the water would be destroyed.  Billions of fish eggs, larvae and zooplankton would have been destroyed annually.

One of four open-loop, off-shore LNG terminals permitted, operating or proposed for the central Gulf of Mexico, the cumulative impacts of these terminals has alarmed fisheries scientists and managers throughout the region.  Federal, regional and state agencies, from the National Marine Fisheries Service to the Louisiana Department of Wildlife and Fisheries oppose the use of the open-loop process. 

Just over a year ago, the Governor Blanco of Louisiana backed up her stated opposition to open-loop LNG by vetoing a proposal by Freeport McMoRan.  Within 24 business hours Freeport had announced it would proceed with its terminal and utilize the fish-friendly, closed-loop alternative.  While that process will necessitate the use of just over 1% of the imported LNG to reheat Gulf water, clearly it is a profitable alternative.

Shell Abandons Gulf Landing

In the face of ongoing popular opposition to Gulf Landing, and citing the changing LNG market in the Gulf of Mexico, Shell announced on March 28, 2007, that they would finally suspend development of the Gulf Landing project. This announcement was greeted with sighs of relief from many within the recreation and commercial fishing sectors, as well as conservation organizations around the Gulf. 

A remarkable aspect of the public education, outreach, organizing and lobbying that went into the opposition to the use of open-loop systems in the Gulf is the unlikely coalition that developed around the issue. Alerted to the issue by the concern voiced by fisheries scientists, Mike Lane of RodNReel.com, Charlie Smith of the Louisiana Charter Boat Association, Darryl Malek-Wiley with the Sierra Club, Aaron Viles with the Gulf Restoration Network and Clint Guidry and A.J. Fabre of the Louisiana Shrimp Association found themselves working shoulder to shoulder to convince the Governor and other politicians and decision-makers in the state to oppose the use of this highly questionable process.  Calling themselves the Gumbo Alliance for Safe LNG, (named after the dish Charlie cooked and served at early group meetings, as well as the breadth of ingredients in the best Gumbo recipes) the groups organized a parade of fishing boats (on trailers) around Shell's Downtown New Orleans headquarters and an LNG industry convention at a Downtown Hotel, filed a lawsuit against Shell, packed a committee hearing in the Baton Rouge capitol on the issue (winning a strongly worded resolution in the process), and generally raised hell on the issue. 

Mike Lane (RodNReel.com) and Aaron Viles (Gulf Restoration Network) even went as far as the Hague, Netherlands to attend the Annual General Meeting of Shell Energy and directly challenged the Shell President, their CEO, and their shareholders to modify or cancel their plans for Gulf Landing.  The Gumbo Alliance consistently advocated for a better, fish-friendly process, and respectfully urged Shell to follow the lead of Freeport McMoRan and take the additional step necessary to protect the natural resources of the Gulf of Mexico for future generations.  When Shell's representative informed the Gumbo Alliance face-to-face of their plans to abandon the project it was clear that mutual respect defined the relationship, despite the three years the two sides had spent disagreeing over Gulf Landing.