Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


Greenpeace's BP Amoco Resolution On Climate Change

REQUISITION by shareholders for giving notice of intended resolutions and for circulation of statement on business to be dealt with at the BP Amoco plc 2000 AGM

To the Directors of BP Amoco plc

We the undersigned being more than 100 members holding shares in the company on which there has been paid up an average sum per member of more than £100 require you, in accordance with the Companies Act 1985 Section 376 to give members of the company entitled to receive notice of the next annual general meeting notice of the annexed resolution, being a resolution which may properly be moved and is intended to be moved at that meeting and to circulate to those members the annexed statement.


Resolution on Arctic oil exploration and global climate change to the
BP Amoco plc 2000 AGM

RESOLVED that shareholders request the Board of Directors to implement the following policies for BP Amoco plc (the Company):

1. Cancel all plans for oil exploration and development on the coastal plain of the Arctic National Wildlife Refuge and in the Arctic Ocean.

2. Stop the expenditure of any funds by the Company or its subsidiary or associate companies targeted to achieve these objectives, including investments for the development of the Northstar project.

3. Make capital freed up by the cancellation of Northstar available to BP Solarex to up-scale substantially its solar manufacturing capacity.

Supporting statement to the resolution on Arctic oil exploration and global climate change to the BP Amoco plc 2000 AGM


The shareholder group SANE BP and Trillium Asset Management Corporation support the aim of BP Amoco to play a leading role in meeting the world's energy needs without damaging the environment but believe that BP Amoco has still not addressed the role that frontier oil exploration plays in undermining global climate protection and vulnerable ecosystems. They maintain that serious consideration of these issues is central to the company’s long term commercial success.

The purpose of this resolution is to ensure that BP Amoco desists from damaging and costly oil exploration in the Arctic, in particular the construction and development of the proposed Northstar oil development and future drilling in the Arctic National Wildlife Refuge. Furthermore, the resolution aims to ensure that the company makes the necessary investment in its solar subsidiary, BP Solarex, to secure its profitability and future growth.

The resolution follows discussions between representatives of SANE BP and Directors of BP Amoco in which concerns about the Northstar development, future drilling in the Arctic Refuge and the slow speed of solar power commercialisation were raised. It is the view of SANE BP that BP Amoco has not adequately addressed these concerns.

The case for the resolution

BP Amoco’s world-wide oil & gas production activities have adverse impacts at both the global and regional level. The greatest overall environmental impact of BP Amoco's core business is carbon pollution from the burning of fossil fuels, such as oil and gas. Carbon pollution is the largest contributor to the human induced greenhouse effect.

According to climate scientists, the last decade of the 20th century was the warmest in the past 1,000 years. The western Arctic is particularly vulnerable to changes in the global climate and is already warming three times faster than the global average. The early break up and later freeze-up of sea ice in parts of the Arctic and sub-Arctic is having a detrimental effect on native peoples and wildlife. For example, polar bears in Hudson Bay are being adversely affected as sea ice change results in a shorter hunting season on the ice.

BP Amoco is one of the 5 largest privately owned carbon producers in the world. Growing international moves to arrest global climate change are of fundamental importance to the company’s future profitability. BP Amoco has indicated that climate protection will require a major reduction in fossil fuel use and that this is likely to affect the company’s main businesses. However, shareholders have not been informed as to how climate protection will affect the company's investment strategy in relation to exploring and developing new oil and gas reserves.

The Arctic is particularly vulnerable to the direct impacts from oil exploration and development because its ecosystems recover very slowly from oil spills and disturbance. BP Amoco is currently trying to develop the world's first offshore Arctic oil field: the much-delayed Northstar project. BP gained Northstar's lease in December 1994. It now hopes to bring ashore the first oil, from an estimated 185 million-barrel reserve, by 2001. The estimated cost of the project is between 500 and 1,500 million US Dollars.

BP Amoco refuses to accept that the Arctic National Wildlife Refuge should be permanently off-bounds to oil development, despite its current protected status. The company finances the lobby group Arctic Power, which is working to have the coastal plain of the Arctic National Wildlife Refuge opened to oil drilling. The Refuge is the only conservation area in the USA that provides a complete range of Arctic and sub-Arctic ecosystems.

The US Department of the Interior has concluded that oil development in the coastal plain would have major adverse impacts on the vast herd of caribou that migrate there each spring to give birth. The coastal plain is also the most important denning area for the entire South Beaufort Sea polar bear population and serves as a crucial habitat for musk oxen and at least 180 bird species.

Oil spills from Northstar would harm polar bears, endangered bow head whales and seals that migrate though or inhabit this part of the Arctic Ocean. The US Department of the Interior's Minerals Management Service predicts that 10 oil spills, each in excess of 1000 barrels, will occur in the Arctic Ocean if offshore development proceeds.

Investment Choices

Investment capital freed by the cancellation of Northstar could be invested in the promising renewable energy business opportunities now available to the company. BP Amoco wholly owns BP Solarex, one of the leaders in the rapidly growing market for solar electric (photovoltaic) technologies. The market for solar panels is potentially enormous, but it is currently limited by the high cost of production.

A major interdisciplinary study led by a technical expert from BP Solarex, and a separate analysis by global business consultants KPMG, have identified an extraordinary opportunity in this market. These studies have shown that there are no technical barriers to building large-scale solar factories that can produce photovoltaic panels at a price that makes rooftop solar systems competitive with existing electricity supply. The estimated cost of such a factory is 520 million US Dollars. This investment is at the low end of cost estimates for the Northstar project.

SANE BP is a group of BP Amoco shareholders that includes Greenpeace, the US Public Interest Research Group and socially responsible investors.




© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

New Reports: Flood Risk From Rain And Sea Under Climate Change

One report looks at what would happen when rivers are flooded by heavy rain and storms, while the other examines flooding exposure in coastal and harbour areas and how that might change with sea-level rise.

Their findings show that across the country almost 700,000 people and 411,516 buildings worth $135 billion are presently exposed to river flooding in the event of extreme weather events...

There is near certainty that the sea will rise 20-30 cm by 2040. By the end of the century, depending on whether global greenhouse gas emissions are reduced, it could rise by between 0.5 to 1.1 m, which could add an additional 116,000 people exposed to extreme coastal storm flooding. More>>



Gordon Campbell: On The Commerce Commission Fuel Report

The interim Commerce Commission report on the fuel industry will do nothing to endear the major oil companies to the New Zealand public... More>>


Emergency Govt Bill: Overriding Local Licensing For The Rugby

“It’s pretty clear some clubs are having difficulty persuading their district licensing committees to grant a special licence to extend their hours for this obviously special event, and so it makes sense for Parliament to allow clubs to meet a community desire." More>>


Leaving Contract Early: KiwiBuild Programme Losing Another Top Boss

Ms O'Sullivan began a six-month contract as head of KiwiBuild Commercial in February, but the Housing Ministry has confirmed she has resigned and will depart a month early to take up a new job. More>>


Proposed National Policy Statement: Helping Our Cities Grow Up And Out

“We need a new approach to planning that allows our cities to grow up, especially in city centres and around transport connections. We also have to allow cities to expand in a way that protects our special heritage areas, the natural environment and highly productive land." More>>


Ombudsman's Report: Ngāpuhi Elder 'Shocked' By Conditions At Ngawha Prison

A prominent Ngāpuhi elder is shocked to find inmates at Ngawha Prison are denied water and forced to relieve themselves in the exercise yard... Chief Ombudsman Peter Boshier has released a report highly critical of conditions at the Northland prison. More>>


Promises: Independent Election Policy Costing Unit A Step Closer

The creation of an entity to provide political parties with independent and non-partisan policy costings is a step closer today, according to Finance Minister Grant Robertson and Associate Finance Minister James Shaw. More>>


School's In: Primary And Intermediate Principals Accept New Offer

Primary and intermediate school principals have voted to accept a new settlement from the Ministry of Education, which includes entrenched pay parity with secondary principals. More>>


IPCA On 'Rawshark' Investigation: Multiple Police Failings In Hager Searches Confirmed

The Independent Police Conduct Authority has found that the Police's unlawful search of Nicky Hager's property in October 2014 resulted from an unwitting neglect of duty and did not amount to misconduct by any individual officer... More>>


Broadcasting Standards: Decisions On Coverage Of Mosque Attacks

The Authority upheld one of these complaints, finding that the use of extensive excerpts from the alleged attacker’s livestream video on Sky News New Zealand had the potential to cause significant distress to audiences in New Zealand, and particularly to the family and friends of victims, and the wider Muslim community. More>>




InfoPages News Channels