Shell USA
Industry | Oil, energy |
---|---|
Founded | 1912 |
Headquarters | Houston, Texas, USA |
Key people | Marvin E. Odum, President |
Revenue | US$2,147.5 million (2008) |
Number of employees | 24,008 (2008) |
Parent | Royal Dutch Shell |
Website | Official website |
Shell Oil Company is the United States-based affiliate of Royal Dutch Shell, a multinational oil company ("oil major") of Anglo Dutch origins, which is amongst the largest oil companies in the world. Approximately 22,000 Shell employees are based in the U.S. The head office in the U.S. is in Houston, Texas. Shell Oil Company, including its consolidated companies and its share in equity companies, is one of America’s largest oil and natural gas producers, natural gas marketers, gasoline marketers and petrochemical manufacturers.
Business areas
Shell is the market leader through approximately 25,000 Shell-branded gas stations in the US which also serve as Shell's most visible public presence. Shell Oil Company is a 50/50 partner with the Saudi Arabian government-owned oil company Saudi Aramco in Motiva Enterprises, a refining and marketing joint venture which owns and operates three oil refineries on the Gulf Coast of the United States. It also holds 80% of an exploration firm called Pecten that explores and drills in various offshore locations including the oil basin near Douala, Cameroon in cooperation with the French government-owned Elf Aquitaine (now Total). [1]
Shell products include oils, fuels, and card services as well as exploration, production, and refining of petroleum products.[2] The Shell Oil Refinery in Martinez, California, the first Shell refinery in the United States[3], supplies Shell and Texaco stations in the West and Midwest.[4]
Shell gasolines used to include the RU2000 and SU2000 lines (later there was a SU2000E) but they have been superseded by the V-Power line.[5]
Shell has an agreement with Chevron to supply each other with the base stock of gasoline (refined gasoline before additives such as V-Power or Techron is added) in certain areas where one company has refinery capacity and the other does not. [citation needed]
In 2002, Shell began converting its Texaco stations to the Shell brand, a process expected to be complete by June 2004, "the largest retail re-branding initiative in American business history."[6]
Relationship with Royal Dutch Shell
Until the mid 1980s Shell’s business in the United States was substantially independent, with its stock (“Shell Oil”) being traded on the NYSE and with little direct involvement from the Group’s central offices in London and The Hague, in the running of the American business. In 1984, Shell made a bid to purchase those shares of Shell Oil Company it did not own (around 30%) and despite some opposition from some minority shareholders which led to a court case, Shell succeeded in the buy-out for a sum of $5.7 billion.[citation needed]
Despite the acquisition, however, Shell Oil remained a very independent business. This was partly for complex legal reasons as RoyalDutch/Shell feared that there could be onerous liability problems if a closer control of Shell Oil's affairs was taken by the "parent companies". One of the stranger consequences of this independence was that the Shell logo used in the US was slightly different from that used in the rest of the world. In the 1990s Shell Oil's independence began gradually to be eroded as the "parent companies" took a more hands-on approach in the running of the business. The logo now used in the United States is the same as that used elsewhere.[citation needed]
Subsidiaries
- Aera Energy LLC is a joint venture with Mobil Oil operating in California.
- Shell Development Emeryville was a research facility that operated from 1928-1966 in California
- Motiva Enterprises is a joint venture with Shell and Saudi Refining.
Legal issues
Environmental
The U.S. Environmental Protection Agency (EPA) issued a Notice of Violation to Shell Oil Company for its infringements of the Clean Air Act at a bulk petroleum terminal the company owned in Bridgeport, Conn., until October 1, 1998. According to the report, Shell loaded a total of 28.4 million gallons of gasoline onto barges without required vapor recovery equipment on seven days in 1997. The result is 56 tons of uncontrolled volatile organic compound emissions to the atmosphere in an area of New England. During the investigation in May 1999 EPA also found that Shell built an additional loading bay in 1995 without permit of the state Department of Environmental Protection. Bridgeport’s facility itself has been recorded to produce average of about 170 tons of volatile organic compounds per year.[7] However, this modification has the potential of production 30 tons per year more of the pollution emissions.[8]
In 2008, a new lawsuit was opened against Shell Oil Company in Houston, Texas for alleged Clean Air Act violation. Shell’s Deer Park facility is the nation’s eighth-largest oil refinery and one of the world’s largest producers of petrochemicals. The facility is also the second largest source of air pollution in Harris County, which ranks among the worst in the nation in several measures of air quality. According to Sierra Club and Environment Texas, analysis of Shell’s own reports to the Texas Commission on Environmental Quality, air pollutants released at Deer Park since 2003 include 2 million pounds of sulfur dioxide, 1 million pounds of volatile organic compounds (VOCs), 600,000 pounds of carbon monoxide, 250,000 pounds of nitrogen oxides, and 90,000 pounds of benzene and 60,000 pounds of 1,3-butadiene. The lawsuit seeks a court order requiring Shell to end its Clean Air Act violations and pay additional penalties of up to $32,500 per day for each violation of the Clean Air Act.[9]
Shell has recently implemented efforts to reduce the impact of its operations on the millions of migratory birds that encounter the North Sea drilling operations.[10]
Zone-pricing
Mehdi Shahbazi was a Shell station operator in central California who posted signs in 2005 stating "Big oil's unearned profit" in protest of zone pricing. Shell sued Shahbazi saying that the protest violated the terms of his lease.[11] Shahbazi responded by accusing the company of "breach of contract and of violating the Petroleum Marketing Practices Act". Shell then terminated his contract.[citation needed] A federal judge ruled in favor of Shell and Shahbazi was ordered to vacate the station.
Shahbazi died on November 14, 2007 due to liver failure which was a result of a hunger strike.[12]
See also
- Petroleum geology
- Fred Meissner, Shell Laboratories, Petroleum Explorationist, Professor Colorado School of Mines
- M. King Hubbert, Shell Laboratories, Petroleum Geologist, created the Hubbert peak model of oil depletion
References
- ^ An MBendi Profile - Organisation: Pecten Cameroon Company
- ^ Card Services - Products & Services
- ^ Our History of Achievement
- ^ About Shell Martinez Refinery
- ^ Shell Offers a New Gasoline In 10 Cities to Aid Air Quality - New York Times
- ^ http://driving.myfoxcharlotte.com/news_this_week/2002-05-08-1912-driving/index.html, Retrieved on 2009-03-24.
- ^ "Air Pollutant Emissions Report: SHELL OIL CO". Scoreboard. 1999. Retrieved April 28 2008.
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ignored (help) - ^ Amy Miller (1999). "EPA ISSUES NOTICE OF VIOLATION TO SHELL OIL AND MOTIVA IN BRIDGEPORT". EPA. Retrieved April 28 2008.
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ignored (help) - ^ ALuke Metzger (2008). "Environmental Groups Sue Shell Oil for Clean Air Act Violations at Deer Park Refinery and Chemical Plant". Texas Environment. Retrieved April 28 2008.
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ignored (help) - ^ www.shell.com/home/content/responsible_energy/environment/biodiversity/bio_case_studies/netherlands/netherlands.html
- ^ Mehdi Shahbazi's website
- ^ Mercury News article: Hunger striker Mehdi Shahbazi dies at 65 after fighting Shell Oil