“This is the biggest challenge as we have at the moment as a company,” Ben van Beurden, chief executive of oil giant Shell, said recently. “The fact that societal acceptance of the energy system as we have it is just disappearing.”

Speaking at the annual CERAWeek energy conference in Houston on March 9, van Beurden described the growing tensions between his industry, which has created our fossil fuel dependent energy system, and the public, which is demanding a switch to clean energy: “I do think trust has been eroded to the point where it starts to become a serious issue for our long-term future.”

The world’s largest oil companies are increasingly faced with public pressure to do something about their impact on climate change. And increasingly we’re seeing their chief executives responding. The question is though, how much is for real and what's just greenwash?

It’s been just over a year since the Paris climate deal was agreed in December 2015 and slowly corporate annual reports are being filed. In these, companies take stock of the year’s changes and assess the future risks to their business. Meanwhile new strategies and corporate statements are being issued. Statoil recently released a climate roadmap and ConocoPhillips has come out in support of the US remaining part of the Paris Agreement.

But what are we to make of all of this? Do the actions of these oil giants match the big words put out by their chief executives when it comes to climate change? Has anything really changed since Paris?

Royal Dutch Shell

It feels like Shell is going through a bit of an identity crisis. On the one hand, it’s been pretty clear about the risk climate change poses to its business and the need to transition to renewable energy. But on the other hand, it sees this as a slow, decadal process and has a record of lobbying against climate action.

Last week headlines were made when Shell announced it was selling off most of its Canadian oil sands assets. Mixed in with this also was the news that it would now be tying 10 percent of its directors’ bonuses to how well they manage greenhouse gas emissions in their operations.

It also aims to invest $1 billion in renewable energy by the end of the decade.

But a look at the bigger picture shows that while these are steps in the right direction, they’re relatively small steps given Shell’s total annual spending comes to $25 billion.

And according to a recent article written by Shell’s climate advisor David Hone, the company has “no immediate plans to move to a net-zero emissions portfolio over our investment horizon of 10-20 years”.

That said, Shell appears to be somewhat ahead of the curve compared to other oil majors. Maybe it's making up for lost time, or perhaps it doesn't want to be left in the dust. Either way, it's not entirely burying its head in the sand. In its annual report last year for the year up to December 2015 it was the first company to recognize that policy action and legal risks due to rising climate change concerns are mounting. These same concerns are repeated in this year’s report.

However, this comes after the Guardian revealed that Shell knew of the impact fossil fuels would have on the climate as far back as 1991. In a film on temperature and sea level rise the oil giant accurately predicts what scientists now all agree on about climate change.

Yet, despite the company’s own data, it has spent decades investing in unconventional oil and gas projects. Projects which it has always known are incompatible with tackling climate change.

BP

Meanwhile, BP is facing significant pressure to boost production. Part of this effort means it continues to expand into more and more challenging projects in search of bigger returns. But it’s having some trouble.

After strong public opposition to its plans to drill in the pristine waters of the Great Australian Bight it pulled out of the deepwater venture. And now it’s planning a similarly controversial project: drilling for oil near a recently discovered coral reef off the coast of Brazil.

The company also isn’t performing as well as it would have hoped, with share prices currently sitting 30 percent lower than before its Deepwater Horizon disaster.  All of this has led to rumours of takeovers, with reports last week that Exxon was eyeing up the British oil giant.

And as it continues to lay off workers from its drilling operations on the North Sea, a DeSmog UK investigation shows BP has been working hard to boost its social license by putting BP-branded tutors in primary and secondary schools all across Aberdeen.

In the US, however, BP chief executive Bob Dudley seems encouraged by the change in winds that came with a new White House administration. Dudley recently said that the political situation meant business is much more open now, saying that the White House is “very interested” in BP, “more so than at any times in the last eight years”.

As BP continues to push into riskier projects – and riskier in all senses of the word, from its operations to the climate and the marine environment – it will be interesting to see what its annual report (yet to be published) makes of all of this. Last year’s simply recognizes the impact that complying with climate change regulations and laws may have on its profit margin.

Chevron

Compared to last year, Chevron’s come a long way. Whereas its chief executive John Watson boasted last year that the world will always need Big Oil this year it too has publicly recognized to its investors that climate change lawsuits can pose a risk to its profits.

In its annual report for the year up to December 2016 it states: “increasing attention to climate change risks has resulted in an increased possibility of governmental investigations and, potentially, private litigation against the company.”

But amidst growing demand from shareholders for corporate disclosure on climate risks, Chevron this month said in a quietly released report that a transition to lower-carbon energy sources would pose only a “minimal risk” to its operations because it’s investing in these options too. It then goes on to explain that oil and gas will remain the fundamental energy sources.

ExxonMobil

Like BP, Exxon fails to go beyond the impact of climate regulations on its profits. The company however continues to be in the spotlight, from investigations into its long history of funding climate denial to former chief executive Rex Tillerson becoming part of the new White House administration – the same Rex Tillerson who, as Exxon's chief, went by the alias 'Wayne Tracker' when emailing colleagues to discuss climate change.

Since Tillerson left the helm, Exxon has made some attempts to improve its climate credentials. The new chief executive Darren Woods publicly endorsed the Paris climate deal and just weeks after he took over from Tillerson, Susan Avery, a climate scientist, was appointed to the company’s board.

This comes after the company’s shareholders failed to do just that during Exxon’s annual general meeting last summer. During this meeting three other climate related initiatives were voted down including one to stress test the business to avoid 2C warming.

However, no major shift on strategy was announced during Woods' first speech on March 1 since being appointed to lead Exxon. Instead, investment priorities will continue to be in oil and gas.

The company also appears to be taking full advantage of the new US administration’s warm welcome to oil lobbyists as it pushes for weaker regulations on the oil and gas industry.

Photo: Drew Kolb via Flickr | CC 2.0

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Companies in Alberta’s oilsands are scrambling to find a way to reclaim tens of thousands of kilometres of seismic lines cut into the boreal forest before regulations that mandate the recovery of endangered caribou habitat are implemented in late 2017.

But while crews experiment with planting black spruce in piles of dirt during minus-25 degree weather in a bid to repair the forest, the Alberta government continues to lease massive segments of the region for further exploration and still hasn’t mandated reclamation of seismic lines.  

The controversy over caribou habitat and wolf culls in Alberta has stewed for years, but the issue of seismic lines has been largely overlooked. It’s these linear corridors cut through the forest (used to set off explosive charges to locate oil and gas deposits) that encourage predators like wolves to infiltrate what remains of fragmented caribou habitat.

“I don’t think a lot of people thought these seismic lines were a big deal,” said Scott Nielsen, an Alberta Biodiversity Conservation Chair and University of Alberta professor. “But … there are these cascading effects that you can’t anticipate.”

In a century of oil and gas development, hundreds of thousands of kilometres of these wolf freeways have been cut through Alberta’s forest. In one section of the Lower Athabasca region alone, south of Fort McMurray and extending out to Cold Lake, there are 53,000 kilometres of seismic lines.

“We still face the legacy of a tremendous amount of linear disturbances from the initial phases of exploration in the oilsands,” Nielsen said. “So it’s become a major conservation concern — or crisis — really.”

In 2012, the federal government released a recovery strategy for endangered caribou that demands that 65 per cent of their ranges be “undisturbed.” Right now, some Alberta caribou herds have as little as five per cent of their ranges left undisturbed.

“Trying to recover things after they’ve happened is a heck of a lot harder than preventing habitat disturbance in the first place,” Nielsen said.

Restoration Costs Estimated $10,000 Per Kilometre

Some industry players are already voluntarily putting their minds to finding a way to piece the fragmented forest back together — even though restoration costs roughly $10,000 per kilometre.

“With caribou being listed [as endangered] and these areas being defined as critical habitat — that’s why there’s a bit of a mad rush to deal with the legacy of disturbances that we have,” Nielsen said.

Companies Push Ahead with Restoration Despite Lack of Government Requirement

Devon Energy, an oilsands company involved in seismic line restoration since 2011, is trying to make it harder for wolves to move around in caribou ranges.

“Seismic lines, not just seismic lines but roads and trails out in northern Alberta, make it easier for wolves to travel and hunt more efficiently,” Amit Saxena, senior lands and biodiversity manger with Devon, told DeSmog Canada. “They are increasing the spatial overlap between wolves and caribou, more than pre-disturbance levels.”

Saxena said while most companies are doing what they can to ensure new seismic lines come with a lighter footprint — by reducing their width and straightness — there is still a lot of work to do to inhibit wolf movement on the thousands of kilometres of legacy lines crisscrossing the province.

“Sometimes we actually put up wooden or snow fences at 500 metre intervals along the line, and sometimes we’ll do log rollback and brush clearing, making big piles,” he said. “That not only impacts wolf movement on the line but also human movement on the line so that limits the amount of ATVs and quads that go down those lines that will ultimately negatively impact the recovery of the line.”

Devon is working toward the federal government’s target of 65 per cent undisturbed habitat in caribou ranges and prioritizes line recovery based on their habitat value for caribou. The company is also working to offset disturbance in new ranges with conservation in others.

But Saxena pointed out that since there is “no carte blanche requirement” from the province for seismic line restoration, companies are trying to find ways to balance the restoration with other priorities.

“We have to be realistic about it also,” Saxena said. “Industry priorities do play a role in there.”

Tree planting along seismic lines in the ALGAR historic restoration project area. Image from COSIA.

COSIA Pilot Project Tests Caribou Habitat Reclamation Techniques

Kris Geekie, director of community consultation and regulatory affairs for Nexen, said his company is exploring new seismic line restoration techniques in caribou habitat through the Canadian Oil Sands Innovation Alliance (COSIA) as part of the Algar Historic Restoration Project.

“We’re looking at an area nobody is currently active in. There are no oilsands leases within that area and what we’re testing is how can we restore [seismic lines] faster, what are the appropriate treatments, and what are the tactical plans specifically for managing forest fragmentation from seismic lines,” Geekie said.  

Geekie said Nexen, along with other oilsands companies like Statoil, Shell and ConocoPhillips, are working on 390 kilometres of seismic lines throughout the Algar region.

“The pilot is specifically designed to find out if we can improve the sustainability [of caribou] in that area. Basically, the less linear disturbance in the area, and the less access for wolves, is one way we can improve the sustainability of caribou herds.”

Caribou Recovery Plan Still to Come: Province

Alberta Environment and Sustainable Resource Development (ESRD) is currently formulating the province’s caribou recovery plan, according to public affairs officer Duncan MacDonnell — although it’s too early to tell what role seismic line restoration will play in the plan.

“We must have caribou recovery plans ready to go by the end of 2017,” MacDonnell said. “It’s our responsibility to meet those plans according to the [federal] criteria.”

None of the provinces have filed their caribou recovery plans yet, he said, adding the variety of caribou ranges in Alberta alone has contributed to the delays in the draft plan’s release.

“How far [ESRD goes] in terms of restoration schedules or plans, we have no idea yet,” MacDonnell said.

He added ESRD is carrying out a wolf cull in the Little Smoky and A La Peche caribou ranges as an interim measure while the province prepares its recovery plans. Those plans are expected to include some restriction on new development in caribou ranges. 

Nexen seismic line replanting. Photo from Boston College Center for Corporate Citizenship via Youtube.

Alberta Government Continues to Sell Energy Leases in Caribou Range

Yet the Alberta government’s recent sale of energy leases in caribou range has onlookers concerned not enough is being done to protect caribou habitat despite government promises.

Carolyn Campbell from the Alberta Wilderness Association said the government is “sending mixed messages” when it comes to caribou recovery.

In early March, the province came under fire for putting 21,000 hectares of energy leases in caribou habitat up for auction. Campbell said the day after her organization issued a news release on the auction, the government quietly announced the sale would be delayed.

Since then, several new small lease sales in that range have been announced.

“Alberta is being highly inconsistent right now,” Campbell said.

“The problem with new leasing is it creates new rights holders — energy companies — who have a time limit to prove up those leases and under weak rules that enables them to put down new well-sites, new roads, new pipeline infrastructure.”

Campbell said new energy lease sales continue while the government is perpetually delaying the release of range-specific recovery plans. She said Alberta initially committed to releasing the first plan, for the Little Smoky and A La Peche herds, in 2014.

“Time is running out for these caribou. It would be pretty inappropriate to try to run the clock out to 2017,” she said.

She added the current rules for habitat disruption are “unacceptably weak for an endangered species” even when paired with recent efforts to restore disturbed land.

“Even though some companies are getting interested in reclamation, the net effect with all the new leases and activity is ongoing degradation,” Campbell said.

“New lease sales should be totally deferred until there are strong range plans in effect.”  

Image Credit: Alex MacLean

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