Shell has dismissed shareholder calls for a review of its controversial oil sands developments.
A group of institutional investors, led by campaign group FairPensions,
had tabled a special resolution ahead of the Anglo-Dutch company's
annual meeting next month. They want Shell to review the commercial and
environmental viability of going ahead with its new projects in
Canada's boreal forests.
But the Anglo-Dutch oil company today
urged other investors to vote down the resolution. "Whilst the issues
raised by the group of shareholders ... are valid and appreciated ...
it would set a precedent which, if applied more generally to the
company's major investment opportunities, would add unnecessary costs
and duplication of effort."
The letter to shareholders, giving
notice of the meeting in the Hague on 18 May, added that the company
had already provided all the non commercially sensitive information to
shareholders about its oil sands projects. BP, whose annual meeting
takes place on Thursday, is facing similar pressure from shareholders over its own oil sands activities.
Shell's
next development phase of its Athabasca joint venture will soon add
100,000 barrels per day. This will take production from oil sands
mining to 4% of its total production. About 0.6% of its current
production comes from in situ operations, where the oil is recovered
from beneath the ground by drilling.
The campaign led by
FairPensions, whose supporters include the Co-operative and trade union
Unison, argue that the projects are too big an environmental and
economic liability. They also argue that climate change caused by oil sands development could put at risk shareholders' other investments.
The
issue of oil sands has soared up the political and environmental agenda
since the Copenhagen summit highlighted the need for a clampdown on
carbon-intensive activities.