Monthly Archives: March 2019

How Iranian Oil Escapes US Sanctions

 At least two tankers have ferried Iranian fuel oil to Asia in February 2019 despite U.S. sanctions against such shipments, according to a Reuters analysis of ship-tracking data and port information, as well as interviews with brokers and traders.  The shipments were loaded onto tankers with documents showing the fuel oil was Iraqi. But three Iraqi oil industry sources and Prakash Vakkayil, a manager at United Arab Emirates (UAE) shipping services firm Yacht International Co, said the papers were forged.  The people said they did not know who forged the documents, nor when.

“Some buyers…will want Iranian oil regardless of U.S. strategic objectives to deny Tehran oil revenue, and Iran will find a way to keep some volumes flowing,” said Peter Kiernan, lead energy analyst at the Economist Intelligence Unit.  While the United States has granted eight countries temporary waivers allowing limited purchases of Iranian crude oil, these exemptions do not cover products refined from crude, including fuel oil, mainly used to power the engines of large ships. Documents forwarded to Reuters by ship owners say a 300,000 tonne-supertanker, the Grace 1, took on fuel oil at Basra, Iraq, between Dec. 10 and 12, 2018. But Basra port loading schedules reviewed by Reuters do not list the Grace 1 as being in port during those dates.  One Iraqi industry source with knowledge of the port’s operations confirmed there were no records of the Grace 1 at Basra during this period. 

Grace 1 oil tanker

Reuters examined data from four ship-tracking information providers – Refinitiv, Kpler, IHS Markit and Vessel Finder – to locate the Grace 1 during that time. All four showed that the Grace 1 had its Automatic Identification System (AIS), or transponder, switched off between Nov. 30 and Dec. 14, 2018, meaning its location could not be tracked.  The Grace 1 then re-appeared in waters near Iran’s port of Bandar Assaluyeh, fully loaded, data showed. The cargo was transferred onto two smaller ships in UAE waters in January, from where one ship delivered fuel oil to Singapore in February 2019.  Shipping documents showed about 284,000 tonnes of fuel oil were transferred in the cargoes tracked by Reuters, worth about $120 million at current prices…

One of those vessels, the 130,000 tonne-capacity Kriti Island, offloaded fuel oil into a storage terminal in Singapore around Feb. 5 to 7. Reuters was unable to determine who purchased the fuel oil for storage in Singapore.  The Kriti Island is managed by Greece’s Avin International SA… Avin International’s Chief Executive Officer George Mylonas told Reuters. Mylonas confirmed the Kriti Island took on fuel oil from the Grace 1.There is no indication that Avin International knowingly shipped Iranian fuel oil. Mylonas said his firm had conducted all necessary due diligence to ensure the cargo’s legitimate origin….

Kriti Island oil tanker

Excerpts from Roslan Khasawneh et al, Exclusive: How Iran fuel oil exports beat U.S. sanctions in tanker odyssey to Asia, Reuters, Mar. 20, 2019

The Price of Banning Dirty Fuels for Ships

A strict sulfur limit for marine fuels is starting in 2020.  US refiners say they have been preparing for the International Maritime Organization’s 0.5% sulfur cap for a dozen years by making billions of dollars of investments to their plants. They also think US oil producers are well positioned to meet new global demand for lower-sulfur fuels.

Despite the industry’s confidence, Gulf Coast refiners are nevertheless skittish about one major wild card.  The January 1, 2020 implementation date comes right in the middle of President Donald Trump’s re-election campaign, and this White House has shown a particular sensitivity to pump prices and their impact on voters.  Trump administration sources told the Wall Street Journal in October that the White House was considering ways to delay the IMO’s 0.5% sulfur cap beyond the long-scheduled January 1, 2020, implementation date. The story alone sent the stock market value of five US refining companies down by a combined $11 billion – hence their skittishness.

Within weeks of the story, trade groups for refiners, oil and gas producers, LNG exporters and steelworkers created the Coalition for American Energy Security to educate White House officials and members of Congress about IMO 2020 and what US industries were already doing to prepare… “The American energy industry is ready to dominate the global market for these new fuels, and timely implementation is critical to achieving that objective.”  said Ken Spain, spokesman for the Coalition for American Energy Security..

Excerpts from Insight from Washington: US refiners worry about White House wild card as IMO 2020 nears, S&P Global The Barrel, Mar. 11, 2019

The Pristine Waters of Alaska and Big Oil: Exxon Valdez

Thirty years ago this Sunday, at just after midnight on March 24, 1989, the Exxon Valdez supertanker ran aground in Prince William Sound off the south coast of Alaska. No-one was hurt, but the ship’s hull was ruptured, and of the 1.26m barrels of crude on board about 258,000 spilled into the water. The National Transportation Safety Board inquiry found that the causes of the accident included the failure of the ship’s master to provide a proper navigation watch “because of impairment from alcohol”, as well as inadequate personnel training and deficient management oversight.

In terms of volume released, the spill does not make the list of the world’s largest, but it was one of the worst in US waters. The harm caused by a spill is also not a direct function of the quantity of oil: a release in the cool waters of Prince William Sound, where oil breaks down more slowly, could be more damaging than a larger volume in the Gulf of Mexico, where temperatures are warmer and there are more plentiful microbes that thrive on natural oil seeps. The location of the spill also added to its emotional impact: the pictures of the oil fouling the pristine waters of Alaska shocked the world.

Exxon Valdez Clean up

Even decades after the spill, there was still evidence of the oil visible on some of the beaches in the region. Exxon agreed to pay $900m for restoration to settle damages claims from the state and federal governments, and the work of the Exxon Valdez Oil Spill Trustee Council, which oversees the use of that money, goes on. The Pacific herring population in Prince William Sound has collapsed since the early 1990s, although it is not clear whether the spill was responsible, and other wildlife such as sea ottershave recovered.

For the oil industry, the disaster was transformative. Single-hulled tankers began to be phased out, to be replaced by safer double hulls, first in the US and then worldwide. The process was accelerated after the sinking of the tanker Erika off the coast of Brittany in 1999, an accident that was considered one of France’s worst environmental disasters.

For Exxon in particular, the Valdez spill prompted a fundamental rethink of its safety culture and practices. The company developed what is called its Operations Integrity Management System, a framework that “puts safety at the center of everything we do”. By the time that Rex Tillerson ran ExxonMobil, in 2006-16, the company could rightly boast of having a safety record that was admired across the industry, and its OIMS was widely emulated….But any employer’s highest duty is to make sure workers can do their jobs safely and go home at the end of the day, and on that measure Exxon has performed better than its peers. Any workplace death is one too many, of course, but over the past decade Exxon has suffered significantly fewer than other leading oil companies.

Excerpts from Ed Crooks,  The Exxon Valdez spill 30 years on, Financial Times, Mar. 22, 2019

Can’t Eat This! MicroPlastics Carrying Bacteria

The hard surface of waterborne plastic provides an ideal environment for the formation of biofilm by opportunistic microbial colonisers, and could facilitate a novel means of dispersal for microorganisms across coastal and marine environments. Biofilms that colonise the so-called ‘plastisphere’ could also be a reservoir for faecal indicator organisms (FIOs), such as Escherichia coli, or pathogenic bacteria such as species of Vibrio.

Nurdles on bathing beach

A study published in March 2019 looks into five public bathing beaches and quantifies their colonisation by E. coli and Vibrio spp. Nurdles [i.e., microplastics] were heterogeneously distributed along the high tide mark at all five beaches, and each beach contained nurdles that were colonised by E. coli and Vibrio spp. Knowledge of E. coli colonisation and persistence on nurdles should now be used to inform coastal managers about the additional risks associated with plastic debris.

Abastract from Colonisation of plastic pellets (nurdles) by E. coli at public bathing beaches

A Swamp of Oil Pollution: Ogoniland

Status of Cleaning up Oil Pollution in Ogoniland, Nigeria:

According to the Civil Society Legislative Advocacy Centre (CISLAC), the clean-up of Ogoniland is bugged with identity crisis, procedures, processes and overheads. Perception of corruption, lack of transparency and accountability, complex decision making, internal crisis of choice between Ogoni and the Niger Delta….The United Nations Environment Programme (UNEP) released its Environmental Assessment of Ogoniland in August 2011 after series of protests of oil spillage in the community that culminated to the death of Ken Sarowiwa and eight others.  The report  made recommendations to the government, the oil and gas industry and communities to begin a comprehensive cleanup of Ogoniland, restore polluted environments and put an end to all forms of ongoing oil contamination in the region…

Pollution of soil by petroleum hydrocarbons in Ogoniland is extensive in land areas, sediments and swampland.  In 49 cases, UNEP observed hydrocarbons in soil at depths of at least 5 metres. At 41 sites, the hydrocarbon pollution has reached the groundwater at levels in excess of the Nigerian standards permitted by National Laws..

Excerpts from Ogoni: Cleanup Exercise by Authorities Questioned by Civil Society Groups, UNPO, Mar. 12, 2019

How to Save the Rhino? Torture and Kill Civilians

In national parks across Asia and Africa, the beloved nonprofit WWF  with the cuddly panda logo funds, equips, and works directly with paramilitary forces that have been accused of beating, torturing, sexually assaulting, and murdering scores of people…WWF has provided high-tech enforcement equipment, cash, and weapons to forces implicated in atrocities against indigenous communities…Villagers have been whipped with belts, attacked with machetes, beaten unconscious with bamboo sticks, sexually assaulted, shot, and murdered by WWF-supported anti-poaching units, according to reports and document

 WWF has provided paramilitary forces with salaries, training, and supplies — including knives, night vision binoculars, riot gear, and batons — and funded raids on villages…The charity has operated like a global spymaster, organizing, financing, and running dangerous and secretive networks of informants motivated by “fear” and “revenge,” including within indigenous communities, to provide park officials with intelligence — all while publicly denying working with informants.

The charity funnels large sums of cash to its field offices in the developing world where staff work alongside national governments — including brutal dictatorships — to help maintain and police vast national parks that shelter endangered species. But many parks are magnets for poachers, and WWF expends much of its energy — and money — in a global battle against the organized criminal gangs that prey on the endangered species the charity was founded to protect.  It’s a crusade that WWF refers to in the hardened terms of war. Public statements speak of “boots on the ground,” partnerships with “elite military forces,” the creation of a “Jungle Brigade,” and the deployment of “conservation drones.”  WWF is not alone in its embrace of militarization: Other conservation charities have enlisted in the war on poaching in growing numbers over the past decade, recruiting veterans from the wars in Afghanistan and Iraq to teach forest rangers counterinsurgency techniques

The enemy is real, and dangerous. Poaching is a billion-dollar industry that terrorizes animals and threatens some species’ very existence. Poachers take advantage of regions ravaged by poverty and violence. And the work of forest rangers is indeed perilous: By one 2018 estimate, poachers killed nearly 50 rangers around the world in the previous year. But like any conflict, WWF’s war on poaching has civilian casualties.

Indigenous people living near one park in southeast Cameroon described a litany of horrors incuding dead-of-night break-ins by men wielding machetes, rifle butt bludgeonings, burn torture involving chilis ground into paste, and homes and camps torched to the ground. Their tormentors in these accounts were not poachers, but the park officials who police them. Although governments employ the rangers, they often rely on WWF to bankroll their work.  …Documents reveal WWF’s own staffers on the ground are often deeply entwined with the rangers’ work — coordinating their operations, jointly directing their raids and patrols alongside government officials, and turning a blind eye to their misdeeds.

Iindigenous groups — both small-fry hunters and innocent bystanders — say they suffer at the hands of the rangers.  Nepal’s park officials were given this free rein decades ago, shortly after WWF first arrived in Chitwan in 1967 to launch a rhinoceros conservation project in a lush lowland forest at the foot of the Himalayas. To clear the way, tens of thousands of indigenous people were evicted from their homes and moved to areas outside the park’s boundaries..

The park’s creation radically changed their way of life: Now they must scrape together money to buy tin for their roofs, pay hospital bills, and farm new crops. They also live in fear of the park’s wild animals, which, while rising in number thanks to anti-poaching efforts, have destroyed crops and mauled people to death.  Rhinoceros horns can sell for hundreds of thousands of dollars on the black market. Professional poachers offer a tiny portion to locals who assist them, which can be hard for impoverished residents of villages to turn down.

Chitwan’s forest rangers work alongside over 1,000 soldiers from the park’s army battalion. Nepalese law gives them special power to investigate wildlife-related crimes, make arrests without a warrant, and retain immunity in cases where an officer has “no alternative” but to shoot the offender, even if the suspect dies….. Indigenous groups living near Chitwan have long detailed a host of abuses by these forces. Villagers have reported beatings, torture, sexual assaults, and killings by the park’s guards. They’ve accused park officials of confiscating their firewood and vegetables, and forcing them into unpaid labor.

WWF’s work with violent partners spans the globe. In Central Africa, internal documents show the charity’s close involvement in military-style operations with both a repressive dictatorship and a notoriously fierce army. …The park’s management plan says WWF will help organize raids, known as “coup de poings,” on local villages suspected of harboring poachers. A confidential internal report found that such missions, frequently conducted in the dead of night with the help of police units, were often violent.

Excerpts from WWF Funds Guards Who Have Tortured And Killed People, BuzzFeed News

Who is Afraid of Bats?

More than 50,000 of the fruit bats are thought to have been killed in Mauritius since 2015, in an attempt to protect fruit in orchards.  The bats – also known as flying foxes – are resorting to eating in orchards to survive because only 5 per cent of Mauritius’s native forests remain, animal experts warned.  Fruit bats are vital for biodiversity as they pollinate flowers and scatter seeds, enabling trees and plants to grow and spread, according to conservationists.  But populations of the flying foxes have fallen by more than 50 per cent in four years, said Vincent Florens, an ecologist at the University of Mauritius. Some believe fewer than 30,000 now remain.

The first cull, in 2015, killed 30,000, and in a second cull, the following year, 7,380 were targeted.  The latest cull involved 13,000.  Prof Florens said he believed the number killed is much higher than the 50,300 government figure.  “The culls took place late in the year, when many mothers were pregnant or had babies,” he told National Geographic. “You shoot one bat and basically kill two.” Others were likely to have been injured and died later, he said.

Scientists are supporting a lawsuit against the government on grounds of animal welfare violations to prevent any more culls…Mahen Seeruttun, Mauritius’s minister of agro-industry and food security, told FDI Spotlight: “We have a large population of bats who will eat fruit crops.

Excerpts from Endangered fruit bats ‘being driven to extinction’ in Mauritius after mass culls kill 50,000, Independent, Mar. 4, 2019