Case study: Royal Dutch Shell

Case study: Royal Dutch Shell

1. economic impact

   • positive
     • 40% of Nigeria's GDP
     • 65% of govt's revenue: 31bn
     • infrastructure dev
       • health: clinics in Niger Delta
       • Edu Shell scholarship: 17k
         • cradle-to-career scholarships
       • skills: entrepreneurship, scaffolding, welding
       • local comm projects 23m
   • negative
     • 1.overdependence
       • influences govt spending: neglect northern Nigeria
       • 95% of X earnings
     • 2.Y inequality (0.437)
       • militants/politicians benefit
       • Local Ogoni: disruption
     • 3.cost of clean-up
       • 50 years of oil pln - 1bn cleanup

2. linkages with host

   • Nigeria's oil industry

3. social

   • positive
     • 60m to Niger Delta Dev Commission
     • microfinancing: female Mpower, bottom-up development
     • health: HIV
   • negative
     • corruption: 65m to govt, routine human rights abusers
     • disruption to livelihood: no compensation, 98% "sabotage"

4. environment

   • +: conservation
     • 60m to Niger Delta Dev. Commission
     • Biodiversity action plan 2006
       • forest reserves Gele-Gele, Urhonigbe
   • negative
     • oil spills: 50 years. Bonga oils. 2013, 40k barrels
     • broken pipelines: contaminate h20 + food ss
     • Destruction of mangroves:10%
       • deforestation: 35% loss in 15 yr
     • fish population decline
     • highest nat. gas flaring
       • air pollution: poisonous chemicals
       • acid rain