shell company case study

Shell Change Management Case Study

Welcome to our blog post on a Shell change management case study. 

In today’s dynamic business landscape, change is inevitable, and organizations must constantly adapt to stay relevant and competitive. 

However, change can be difficult to implement and manage effectively, especially in large organizations with complex structures and processes. 

This is where change management comes into play – a structured approach to transitioning individuals, teams, and organizations from a current state to a desired future state.

In this case study, we will explore how Shell successfully managed a major change initiative, the strategies they employed, and the outcomes achieved. 

We will also discuss the lessons learned from Shell’s experience and how other organizations can apply them to their own change management initiatives.

Brief History and Growth of Shell 

Shell, officially known as Royal Dutch Shell, is a multinational oil and gas company headquartered in The Hague, Netherlands, and incorporated in the United Kingdom. 

The company was formed in 1907 as a result of a merger between Royal Dutch Petroleum Company and Shell Transport and Trading Company Limited. 

Shell’s early growth was fueled by its expansion into new markets and its exploration and production activities around the world, which enabled the company to become one of the largest oil companies in the world by the mid-20th century. 

In recent years, Shell has diversified its business to include renewable energy, chemicals, and power, reflecting the company’s commitment to sustainability and the energy transition. 

Today, Shell operates in over 70 countries and employs around 87,000 people worldwide.

External Factors of Change for Shell 

• Increasing competition: Shell faced intense competition from other major oil and gas companies as well as new players in the market, particularly in the emerging markets. This put pressure on the company to find ways to differentiate itself and remain competitive.
• Changing customer demands: As the world became more environmentally conscious, customers began to demand cleaner, more sustainable energy solutions. This meant that Shell had to adapt its business model to incorporate more renewable energy options.
• Regulatory changes: Governments around the world were introducing new regulations aimed at reducing carbon emissions and promoting sustainable energy solutions. This meant that Shell had to comply with new rules and regulations, which could be expensive and time-consuming.
• Technological advancements : The rapid pace of technological change meant that Shell had to keep up with new innovations in areas such as exploration, production, and distribution of oil and gas. This required significant investment in research and development and the adoption of new technologies.

Internal Factors of change for Shell 

• Complex organizational structure: Shell’s organizational structure was complex and hierarchical, with many layers of management and decision-making. This made it difficult to implement changes quickly and efficiently.
• Siloed business units: Shell’s business units were often siloed and did not communicate effectively with each other. This led to duplication of effort, inefficiencies, and missed opportunities.
• Resistant culture: Shell had a culture that was resistant to change, with many employees comfortable with the status quo. This made it challenging to get buy-in from employees for new initiatives and to implement change successfully.
• Cost pressures: As the oil and gas industry became more competitive, Shell faced increasing pressure to reduce costs and improve efficiency. This required a major overhaul of its operations and processes

Key Strategies of Successful Change Management Implementation by Shell 

The change management strategy at Shell was designed to fit the specific needs and culture of the company, rather than trying to impose a one-size-fits-all approach. This helped to build buy-in and engagement among employees, and ensure that the change initiative was successful.

Following are the key strategies of successful change management implemented by Shell.

• Leveraging the existing culture: Rather than trying to change the culture at Shell, the change management strategy was designed to leverage the existing culture and build on its strengths. For example, Shell’s focus on safety and operational excellence was used as a foundation for the change initiative, with a strong emphasis on maintaining these values while driving efficiency and innovation.
• Engaging employees: Shell recognized that its employees were a critical component of the change initiative, and so the strategy was designed to engage employees at all levels of the organization. This involved creating opportunities for employees to provide feedback, share ideas, and participate in the development and implementation of the initiative.
• Flexibility and agility: Shell’s organizational structure and processes were complex and hierarchical, which could make it challenging to implement change quickly and efficiently. To address this, the change management strategy emphasized flexibility and agility, with a focus on breaking down silos and empowering employees to make decisions and take action.
• Measurement and metrics: Shell is a data-driven company, and so the change management strategy emphasized the importance of measurement and metrics in tracking progress and ensuring accountability. However, the metrics used were tailored to fit the specific needs of the change initiative, with a focus on outcomes that were important to Shell’s business objectives and culture.

Challenges of Implementation of Change Initiatives 

While the change initiative at Shell was ultimately successful, there were several roadblocks and challenges that arose during implementation. Here are a few examples:

• Resistance to change: As with any change initiative, there was some resistance to the changes being implemented. This was particularly true among employees who had been with the company for many years and were accustomed to the old ways of working. Shell addressed this by emphasizing the benefits of the change, providing regular communication and updates, and involving employees in the process as much as possible.
• Complexity of the organization: Shell is a large and complex organization, with many different business units and functions. This made it challenging to implement change consistently across the organization. Shell addressed this by adopting a flexible and adaptable approach, and by empowering employees to make decisions and take action at the local level.
• Resource constraints: Implementing change can be resource-intensive, and Shell faced some challenges in terms of funding, staffing, and other resources. Shell addressed this by prioritizing the initiative and allocating resources strategically, and by leveraging existing capabilities and resources where possible.
• Change fatigue: Shell had undergone several change initiatives in the past, which had left some employees feeling fatigued and skeptical about the latest initiative. Shell addressed this by emphasizing the benefits of the change, providing regular communication and updates, and involving employees in the process as much as possible.

The biggest outcome of successful implementation of change by Shell 

The biggest outcome of the successful implementation of change by Shell was the transformation of the organization from a traditional oil and gas company to a more agile, customer-focused, and innovative organization. This transformation enabled Shell to adapt to a rapidly changing market and stay competitive, while also delivering significant benefits to customers, employees, and shareholders.

By streamlining processes, eliminating redundancies, and improving communication and collaboration, Shell was able to increase efficiency and reduce costs. By better understanding customer needs and preferences, and by providing more responsive and personalized service, Shell was able to improve customer satisfaction. By empowering employees to take ownership of their work, and by creating a culture of innovation and continuous improvement, Shell was able to enhance innovation and drive new business growth.

As a result of these benefits, Shell was able to improve its overall business performance, including revenue growth, profitability, and market share. Overall, the successful implementation of change by Shell enabled the company to stay ahead of the curve and remain a leader in the industry.

Final Words

The change management initiative by Shell serves as an excellent example of how a large and complex organization can successfully adapt to changing market conditions and stay ahead of the curve. By adopting a flexible and adaptable approach, and by empowering employees to take ownership of their work, Shell was able to transform its culture and operations, delivering significant benefits to customers, employees, and shareholders.

The success of Shell’s change management initiative highlights the importance of effective leadership, communication, and collaboration in driving change. It also underscores the need for organizations to be proactive in anticipating and responding to external and internal factors that may impact their business.

In today’s rapidly changing business environment, the ability to adapt and innovate is essential for success. By embracing change management principles and practices, organizations can position themselves for growth and long-term success. The case study of Shell’s change management initiative provides valuable insights and lessons for organizations seeking to navigate the challenges and opportunities of the modern business landscape.

About The Author

Tahir Abbas

Related posts.

How to Write a Business Case for Funding? – Explained

Gamification in the Workplace – Benefits and Examples

05 Best Crisis Management Real-Life Examples

Our name changed from Royal Dutch Shell plc to Shell plc in January 2022. We are currently updating the content of this site to reflect that change.

Your recent searches

Your recent searches will appear here

Top searches

• Safety Data Sheets
• Annual Reports
• Shell Eco-marathon

Case Study: Saving with a Smarter Grease Solution

Overcome demanding conditions with a smarter grease solution. Shell Gadus drastically reduced grease consumption at this sugar mill.

A sugar mill in St. Thomas, Jamaica operates equipment in a hot, humid and dusty environment at low speeds. It wanted to control its grease consumption and extend the life of its bearings.

The Shell Lubricant Solutions team recommended switching to Shell Gadus S2 OG 20000. As well as being ideally suited to the heavily loaded journal bearings being used at the mill, it could also be applied via the Farval centralized lubrication system.

This resulted in a 54% reduction in grease consumption and a 67% reduction in mill bearing replacement costs, compared to the previous harvest.

The reduced maintenance and lubricant costs saw the company reporting estimated annual savings of US $81,000.

Savings indicated are specific to the calculation dates and mentioned sites. These calculations may vary from site to site and from time to time, depending on, for example, the application, the operating conditions, the current product being used, the condition of the equipment and the maintenance practices.

• Contact our Experts
• Find the Right Oil
• Share this on Facebook
• Share this on Twitter
• Share this on LinkedIn
• Copy link to the clipboard

RELATED CONTENT

End-to-End Agriculture Solutions

Learn how to connect the dots between productivity, sustainability and profit with our suite of effective lubrication solutions.

The Future of Farming

Find out how new technology in agriculture is changing the way we view and approach the most pressing industry challenges.

Asset Protection

Make the right maintenance choices and you can protect your agriculture equipment without compromising your bottom line.

Achieving Growth

Plant the seeds of lubrication excellence now and you’ll soon be reaping the Total Cost of Ownership benefits.

More about Shell Lubricants

Explore our Lubricant Services

Explore our expert services, designed to empower progress.

Explore our Product Lines

Explore our range of high quality lubricants.

• Harvard Business School →
• Faculty & Research →
• September 2019
• HBS Case Collection

Shell: A Company of Opportunity?

• Format: Print
• | Language: English
• | Pages: 25

About The Author

Joseph B. Fuller

More from the authors.

• Faculty Research

Skills-Based Hiring: The Long Road from Pronouncements to Practice

Healthy outcomes: how employers' support for employees with caregiving responsibilities can benefit the organization, delivering on the degree: the college to jobs playbook.

• Skills-Based Hiring: The Long Road from Pronouncements to Practice  By: Matthew Sigelman, Joseph B. Fuller and Alex Martin
• Healthy Outcomes: How Employers' Support for Employees with Caregiving Responsibilities Can Benefit the Organization  By: Joseph B. Fuller
• Delivering on the Degree: The College to Jobs Playbook  By: David Deming, Joseph B. Fuller, Rachel Lipson, Kerry McKittrick, Ali Epstein and Emma Catalfamo

You are here

3e fuels shell's ehs compliance management.

Background Shell Oil is a global group of energy and petrochemical companies with around 102,000 employees in more than 100 countries and territories. Shell continually places a strong emphasis on environmental regulatory compliance, and the company is committed to managing its environmental impact as it strives to meet the world’s growing energy needs.  Challenges As a large global company, Shell faces many challenges in its quest to achieve environmental regulatory compliance in the context of constantly changing international regulatory initiatives.  The company is burdened with identifying, tracking, maintaining, and complying with international regulatory guidelines to protect the health and safety of employees and consumers, as well as the environment. The regulations, initiatives, and directives devised and enforced by regulatory and governing bodies throughout the world are individually published in a variety of formats and locations. This information is scattered amongst hundreds of disparate sources and is not easily shared among various personnel within a company who need to reference it. Most recently, compliance with the EU’s REACH (Registration, Evaluation and Authorization of Chemicals) and with all of the national implementations of the United Nation’s Globally Harmonized System has been an especially time-consuming task.  “Complying with REACH is a huge challenge for us,” said Allen Schmit, Global Manager of Product Regulatory Support, Shell. “I would estimate that this is where we are spending the greatest amount of time right now.” “Keeping up with GHS implementation around the world has also been quite difficult,” continued Mr. Schmit. “Our regulatory team is constantly working to stay on top of who is doing what, and what is happening where. We have found it increasingly difficult to plan ahead and design systems to meet regulatory requirements that are a moving target.”  Challenges resulting from changing regulatory initiatives have also impacted Shell’s ability to efficiently and effectively produce and maintain the currency of SDSs, labels, and other hazard communication documents for its products.  Effective, compliant, and up-to-date documents—especially SDSs—are not only a global requirement, but serve as the critical foundation for facilitating and supporting best practices for effective product stewardship throughout the product's lifecycle. With high standards for quality, Shell recognized that merely producing an SDS is not enough. Quality, accuracy and currency are critical components in fulfilling the original intentions for requiring such documentation in the first place. To produce these top-quality documents, Shell needs access to comprehensive and reliable regulatory content.  The Company was also burdened with a massive SDS Authoring workload and was searching for a reliable and reputable service provider that could offer supplemental assistance during peak periods of especially high volume. The Solutions Integrated Content for SAP Shell employs 3E Optimize into their SAP EHS Management system in order to optimize the authoring of GHS and otherwise compliant SDSs. In fact, Shell relies on the seamless integration of 3E Optimize content into their SAP EHS system for a wide range of processes. SAP EHS Management can only be optimized when comprehensive content, prepared by regulatory experts, is integrated into the application. This content includes regulatory data covering the geographical scope of the user's business, Expert Rules to automate checking products against regulations and running complicated classification calculations, a library of phrases covering each of the languages which need to be used for documents, and document templates reflecting the current regulatory requirements and best practice for each of the countries in the user's business scope. Shell relies on integrated content for their SAP EHS Management system for use by their team of authors. Having centralized access to comprehensive, current global chemical and regulatory information significant reduces the amount of time required to author compliant documents.  “Shell has been relying on integrated content solutions for the last ten years,” said Mr. Schmit. “The breadth and depth of their coverage is unparalleled, with extensive coverage of regulated chemicals throughout the world at multiple levels of jurisdiction.”  Indeed, the Company’s enduring relationship with 3E has been mutually beneficial; as an early subscriber of 3E Insight for Chemicals, Shell has significantly influenced the development of 3E’s unique SAP content integration tools, which optimize the loading and management of 3E Insight for Chemicals in SAP solutions.  SDS Co-authoring When Shell’s internal authoring team needs supplemental assistance during the inevitable ebb and flow of workload, Mr. Schmit reaches out to 3E for assistance in authoring Safety Data Sheets (SDSs). The Shell team and the 3E Authoring team collaborated to devise a strategy for authoring the new documents quickly and efficiently. The solution was for 3E’s Authoring experts to access Shell’s own SAP EHS Management platform via a co-sourcing arrangement.  This arrangement has enabled 3E and Shell to collaborate on the authoring and production of SDSs from Shell’s own authoring system. 3E’s authors utilize secure, remote access to Shell’s platform in order to perform authoring activities. 3E’s own team of multilingual authors follow Shell’s corporate authoring guidelines and a collaboratively developed formal review and approval process that results in the most efficient and cost-effective solution. The strategy has been very successful, with 3E efficiently authoring accurate and compliant documents in accordance with Shell’s deadlines. In fact, the strategy has been so successful that during the course of its multi-year relationship, 3E has completed a number of critical Authoring projects for Shell. In 2008, the Company undertook a project with a demanding timetable for Shell’s Downstream business. As part of the project, 3E was tasked with completing work on specific sections on 1500 of Shell’s lubricant SDSs. The project began in September 2008 and needed to be completed by November 30, 2008. 3E’s Authoring team completed the documents by the stated deadline, and eventually received additional documents for completion in December. More than 1600 documents were authored in five months.  The Authoring team also handled two projects for Shell in 2009. The team assisted in a migration project for multiple Vietnamese SDSs in which they extracted legacy documents from an existing system and populated that data into Shell Downstream’s SAP EHS Management system. The team also completed Authoring work for Shell’s lubricant products, creating an additional 110 documents. Most recently, 3E authored close to 100 documents for Shell’s low boiling point naphtha and heavy fuel oil products as well as additional documents for Shell’s Fuels products. In addition, 3E, together with Shell, participated in the review and audit of more than 300 documents which had been updated to meet the new marine pollutant regulations. 3E Insight for Chemicals The Company also relies on 3E Insight for Chemicals , an online chemical regulatory compliance reference tool that puts the regulatory data for Shell’s global EHS compliance programs one click away. 3E Insight for Chemicals intuitive web browser interface provides access to accurate, comprehensive, up-to-date, and usable regulatory content that can be used to ensure compliance with local, state, federal regulations, as well as international regulatory initiatives like REACH and GHS. Shell currently has 175 3E Insight for Chemicals users. They rely on 3E Insight for Chemicals as a research tool that provides the necessary information to support decisions related to a variety of business issues that must be considered when manufacturing products, such as:

• Making sure SDSs are compliant within the markets in which the products are sold
• Making sure labels are acceptable in the destination market
• Identifying regulatory authorities who require notification when exporting
• Knowing which agencies have to be notified in the event of a chemical release or spill
• Ensuring products can be sold in the intended markets 

3E Insight for Chemicals provides and allows access to the regulatory data, which provides full text documents as well as compliance guides, in addition to extensive coverage of regulated chemicals throughout the world at multiple levels of jurisdiction, from international, U.S. federal and state, to European Union as well as EU Member States and non-member states. The data also contains transportation related data as well as chemical property and hazard data. Since Shell is a global company, it employs all content modules, including North America; European Union and Western Europe; Central and Eastern Europe; Latin America; Asia-Pacific; Middle-East/Africa; Global Inventories; RegsLink US Code of Federal Regulations (CFRs); Chemical Property and Hazard Data, RegTrans Transportation Data, ChemEXPERT Phys/Chem. Tox Eco Tox Data. Results Shell and 3E have enjoyed a productive relationship for more than ten years. Shell has been very pleased with Verisk 3E’s comprehensive suite of chemical, regulatory and compliance information services throughout the years. The company relies on Regulatory Content as the foundation of multiple business decisions, but also to assist in the creation and development of accurate and compliant SDSs. “We have also found great value in 3E’s SDS Authoring Services ; the 3E team has been instrumental in helping us understand what we need to deliver with our SDSs,” said Mr. Schmit. “Since the regulations are constantly changing, we greatly appreciate their relevant and expert support and advice.” 

Location: Houston, TX, USA 3E Services:  3E Optimize, 3E Insight for Chemicals, SDS Authoring Services Industry/Market:  Energy & Petrochemicals Company Web Site: http://www.shell.com

• ©2024 3E. All rights reserved.
• Privacy Notice

CONNECT WITH US

• International edition
• Australia edition
• Europe edition

Shell says it ‘lobbies for energy transition’ during climate ruling appeal

Company is fighting Dutch court ruling that says it must emit 45% less CO2 by 2030 than in 2019

Shell has argued that it “lobbies for, not against, the energy transition” on the final day of its appeal against an important climate ruling.

The fossil fuel company is fighting the decision of a Dutch court in 2021 that forces it to pump 45% less planet-heating CO 2 into the atmosphere by 2030 than it did in 2019. In court on Friday, Shell argued the ruling is ineffective, onerous and does not fit into the existing legal system.

Lawyers for Milieudefensie (Friends of the Earth Netherlands), which brought the case against Shell, repeated their calls for the company to act in line with climate science and international agreements to stop extreme weather from growing more violent. They said the outcome of the case will determine how much the climate changes.

“It’s not just about Shell,” said Donald Pols, the Milieudefensie chief executive, after the hearing. “We want to hold all companies accountable – to combat dangerous climate change.”

Shell argued in court that it plays its role in energy transition and pointed to the lobbying it had done in favour of climate policies such as the EU emissions-trading scheme and the US Inflation Reduction Act.

Milieudefensie said it was “quite clear” that Shell had used its social influence to safeguard the role of oil and gas and that it had continued to do so with its policies. In recent months, Shell has backtracked on a series of clean energy ambitions.

“I think it’s a little bit far-fetched from Shell to argue they are in favour of the energy transition, at least to the extent of being in line with the Paris agreement,” said Roger Cox, Milieudefensie’s lawyer in the case.

The appeal wraps up just days after the European court of human rights sided with a group of 2,400 Swiss women who sued their government over its climate policy.

Both Shell and Milieudefensie cited the Swiss case to support their arguments on Friday. Shell argued that the decision of the 17 Strasbourg judges showed it was up to states, rather than companies, to rein in emissions. Milieudefensie said it showed that “judges have an important role to play in the complex debate on preventing dangerous climate change”.

A report last week found that 57 companies are linked to 80% of carbon emissions since 2016, though the bulk of that comes from their customers burning the fuels they sell.

At the appeal, Milieudefensie argued that Shell should not achieve the original emissions reduction target by simply selling off fossil fuel assets, which may then land in the hands of companies with less public scrutiny and dirtier operations. Shell argued that the original ruling gave it the freedom to do so and said the activist group had failed to contest this point by lodging a cross-appeal.

after newsletter promotion

Frans Everts, director of Shell in the Netherlands, said in the company’s closing remarks that he was concerned by the “unintended consequences” of the lawsuit. He said the activists wanted to limit the supply of Shell’s products before its customers are “able, willing or ready to switch to less fossil fuels”.

He said: “As long as the demand for these products doesn’t change – and people can just go to the competitor – there is not one less carbon molecule in the air. And without a clean alternative to oil and gas products, the energy transition will not benefit either.”

In 2021, after evidence for the original case was filed, the International Energy Agency published a report on reaching net zero emissions by 2050 that found no room for new oil and gas exploration . Companies including Shell have since continued to invest in new oil and gas fields despite protests from climate scientists and activists.

A verdict is expected on 12 November 2024.

• Greenhouse gas emissions
• Climate crisis
• Netherlands
• Fossil fuels

More on this story

Surge of new US-led oil and gas activity threatens to wreck Paris climate goals

‘Tone-deaf’ fossil gas growth in Europe is speeding climate crisis, say activists

Emissions connected to top oil and gas firms may cause millions of heat deaths by 2100, study finds

Climate activists across Europe block access to North Sea oil infrastructure

Shell waters down emissions cut pledge despite crucial climate decade

UK government accused of trying to ‘stoke culture war on climate issues’

BP claws back £1.8m from sacked boss Looney and hands new CEO £8m pay deal

Ministers could use loophole to water down carbon reduction commitments

UK quits treaty that lets fossil fuel firms sue governments over climate policies

Most viewed.

SustainCase – Sustainability Magazine

• trending News
• Climate News
• Collections
• case studies

Case study: How Pilipinas Shell promotes employees’ mental health

Pilipinas Shell Petroleum Corporation is an integrated fuel refining and marketing (R&M) company in the Philippines which produces, imports, blends, transports, distributes and markets a wide range of high-quality fuels, lubricants, bitumen, and other specialty oil-based products. For Pilipinas Shell, mental health is an advocacy and a wellness discipline.     Tweet This! Accordingly, Pilipinas Shell established a mental health support programme in 2018, promoting access to mental health care and creating an enabling environment for persons affected by mental health conditions.

This case study is based on the 2019 Annual and Sustainability Report by Pilipinas Shell published on the Global Reporting Initiative Sustainability Disclosure Database  that can be found at this link . Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.

Implementing best practices on building and sustaining health and wellness in the workplace – including, most importantly, mental health – is a key priority for Pilipinas Shell. In order to promote employees’ mental health Pilipinas Shell took action to:

• promote a Speak Up culture
• encourage help-seeking behaviour among employees
• maintain an Employee Assistance Programme (EAP)
• comply with the Mental Health Act

Subscribe for free and read the rest of this case study

Please subscribe to the SustainCase Newsletter to keep up to date with the latest sustainability news and gain access to over 2000 case studies. These case studies demonstrate how companies are dealing responsibly with their most important impacts, building trust with their stakeholders (Identify > Measure > Manage > Change).

With this case study you will see:

• Which are the most important impacts (material issues) Pilipinas Shell has identified;
• How Pilipinas Shell proceeded with stakeholder engagement , and
• What actions were taken by Pilipinas Shell to promote employees’ mental health

Already Subscribed? Type your email below and click submit

What are the material issues the company has identified?

In its 2019 Annual and Sustainability Report Pilipinas Shell identified a range of material issues, such as economic performance, corporate governance and transparency, asset integrity and process safety, product development and innovation. Among these, promoting employees’ mental health stands out as a key material issue for Pilipinas Shell.

Stakeholder engagement in accordance with the GRI Standards              

The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.

Key stakeholder groups Pilipinas Shell engages with:

To identify and prioritise material topics Pilipinas Shell engaged with its stakeholders through the following channels:

What actions were taken by Pilipinas Shell to promote employees’ mental health ?

In its 2019 Annual and Sustainability Report Pilipinas Shell reports that it took the following actions for promoting employees’ mental health:

• Promoting a Speak Up culture
• Pilipinas Shell employees are encouraged to have open and honest conversations about their mental health. As part of the umbrella of human performance and care programme, Pilipinas Shell created a space where people are free to speak up and let their leaders know what they are going through. Venues include one-on-one dialogues with supervisors, mindfulness talks during team huddles, town hall sessions, and mental health awareness forums during Pilipinas Shell’s observance of World Mental Health Day.
• Encouraging help-seeking behaviour among employees
• Once an employee recognises that they need help, the next step is to find out what kind of help they need and draw up a menu of support services available. Pilipinas Shell employees may avail of professional counselling services through the company’s Wellness Hub. In addition to in-house counselling, the Health team also assists in matching the needs of the employee with the availability of external counsellors and psychiatrists, if needed.
• Maintaining an Employee Assistance Program me (EAP)
• Pilipinas Shell has a network of 16 professional counsellors to help employees cope with anxiety, depression, and other psychological well-being concerns. On-site EAP services are offered once a month at the Finance Centre and twice a month at the Tabangao Refinery. Co-management with a psychiatrist ensures integrated and holistic management for those who need it. Pilipinas Shell also offers Team Resilience Coaching, to help employees reintegrate back to work and have an unbiased sounding board. During transition or organisational changes, staff are also provided with Career Planning sessions (with or by the counsellor) to help them maintain self-confidence and a positive mindset.
• Complying with the Mental Health Act
• develop appropriate policies and programmes on mental health in the workplace to raise awareness on mental health issues,
• correct the stigma and discrimination associated with mental health conditions,
• identify and provide support for individuals at risk, and
• facilitate access of individuals with mental health conditions to treatment and psychosocial support.

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standard addressed in this case is:  Disclosure 403-6 Promotion of worker health

  Disclosure 403-6  Promotion of worker health corresponds to:

• Sustainable Development Goal (SDG) 3 : Ensure healthy lives and promote well-being for all at all ages
• Targets: 3.7, 3.8

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that  responsible companies can look to the future with optimism .

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, IEMA, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

• Exclusive FBRH template to begin reporting from day one
• Identify your most important impacts on the Environment, Economy and People
• Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
• Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates. References:

1) This case study is based on published information by Pilipinas Shell, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original, please revert to the original on the Global Reporting Initiative’s Sustainability Disclosure Database at the link:

http://database.globalreporting.org/

2) https://www.globalreporting.org/standards/gri-standards-download-center/

Note to Pilipinas Shell: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us .

Privacy Overview

• Business Reports
• Case Studies
• Industry Case Packs
• Free Resources

Company Specific Case Studies

Case related links.

Detailed Subject-wise Listing Company-wise Listing Case Study Method Best Selling Case Studies Prize Winning Case Studies ICMR Cases Used in Textbooks Institutions Using ICMR Cases ICMR News

Research Proposal: A Case Study of Shell Oil Company

Introduction.

For my research, I decided to focus on one of the largest oil companies in the world, Shell oil company. Shell is an oil company with its headquarters in the United Kingdom, boasting over 80000 employees and an annual revenue of 261,504,000 US dollars. Shell was founded on April 23, 1907, via a merger between The Shell Transport and Trading Company and Royal Dutch Petroleum Company of the United Kingdom and the Netherlands, respectively (Lawrence, 2017, p.190). I am interested in researching this company because of its large size and ability to influence the economy, environment, and the world at large. The main question of my research is how Shell company runs and is managed based on its large size. The main focus is its marketing strategies, environment conservation strategies, and management strategies.

I also look into Shell’s vision for future strategies for sustaining the enterprise and the environment. Shell is also suitable for research because it has its main headquarters and several enterprises worldwide, making it easy for me to carry out qualitative and quantitative research. This research is going to take a conducive number of finances and time due to the ready availability of data to research on. Researching Shell oil companies will be useful in understanding how international businesses are able to successfully manage their wide-based enterprises while ensuring high returns, customer satisfaction, and environmental protection (Lawrence, 2017, p.190). Also, the data will be useful in helping organizations analyze the causes of their success and failure and mitigation strategies. Moreover, the research will be helpful in finding out how an oil company can operate efficiently while still ensuring that the environment does not suffer the consequences. Lastly, the research will be impactful in determining future inventions and improvements in energy production, such as investment into more environmentally safe methods of energy production, such as solar and wind.

Research Methodology

For my research to be effective and impactful, I decided to combine qualitative and quantitative research methods to get the best results. For the qualitative research method, I took a case study, which is a Shell global oil company. I carried out a grounded theory research method through the study of available documents and interviews with the management and staff of the Shell outlet near me. By interviewing the staff, I would get information on the organization’s management methods, marketing strategies, and environment conservation methods. Studying available documents, especially from the Shell oil company’s official website, I would get a lot of information. The documents are a very rich source of Data on the running of the organization, especially since it is directly from the organization. Apart from information from the Shell official website, many other secondary sources provide information on Shell, such as previous research documents on Shell.

On the qualitative research methodology, a descriptive research design would be very productive in explaining how the Shell oil company works and carries out different procedures such as staff recruitment and marketing. Also, correlational research on the performance of the company between different periods is very useful in determining the factors and conditions that are necessary for its success and also the conditions that lead to a decline in its performance. By combining different research methods, the research will cover an extensive amount of information on the case study, yielding the success of the research and a rich source of analyzed data that will be helpful. Due to the ready availability of data and people to be interviewed for data, research into this company will be easy and cost-effective. Also, the research will not take a lot of time as most information is readily available, and only a few interviews and surveys are needed to complete the research. The results will also help achieve the main aims of the research. The research mainly involves going through secondary data sources, making things easier as the data is already collected and organized.

Data and Analytics

The major aim of this research is to use the above research methodologies to be able to gather and analyze data on the company of focus, Shell global oil company. The data to be collected involves several aspects of the business, such as its financial performance over time, its marketing strategy, its contribution towards a sustainable environment, and its impact on the energy production market, among others. By having these main areas of research, data research can be more concise and focused on finding specific data rather than general data that is hard to analyze. To get the necessary information required, reports had to be gathered, interviews performed, and research on existing information performed. The different areas of focus are discussed below:

• Environmental conservation

Shell’s main business strategy is to shift its main focus to oil and gas and bank more on renewable energy. Some of their alternative investments include solar energy, electric energy, and wind energy. This strategy is very important as it helps them establish two important goals, environmental sustainability and risk spreading. By diversifying into more environmentally safe energy production, Shell addresses one of its major goals, creating a cleaner and safer environment. Also, in an interview, Shell’s Technolog y  Director confirmed that Shell’s major goal is to have production of all their products produce no emissions (Pickl, p.100370, 2019). By doing this, Shell will help reduce the effects of air pollution and global warming. Also, Shell aims to reduce carbon emissions from the burning of their energy-producing products. Lastly, Shell plans to collaborate with their customers in decarbonization and help them eliminate emissions (Pickl, p.100370, 2019).

Although Shell deals with a product that might be the largest air pollutant, they also aim to reduce pollution by 2050. To ensure that they are on the right track towards ensuring lower carbon emissions and reduction of the greenhouse effect, Shell releases a sustainability report frequently to show where the company is at in the process of attaining its mission of securing the environment (Pickl, p.100370, 2019). Also, environmental authorities and activists can use the sustainability report to see whether Shell is living up to their promise and carrying out their environmental responsibilities. Shell’s transparency in its progress with the process of creating a safer environment and the provision of required reports and press statements is useful in analyzing its performance concerning environmental sustainability (Pickl, p.100370, 2019).

• Marketing Strategy

Being an oil manufacturing company, Shell has a product that is demanded globally. Also, being a large company, marketing must be correctly strategized to benefit from it. According  to , Shell mainly uses the geographical segmentation marketing strategy. This means that the customers are grouped according to their geographical location, that is, countries. This marketing strategy makes their work easier since the company is large, and marketing it as a whole might be difficult and ineffective. Also ,  Shell argues that this marketing strategy is effective because personalized and customized marketing can be done in different countries to achieve the best outcome (Gloria, p.25, 2022). Moreover, by considering factors such as the culture and population of the different segments, the marketing strategy is useful in designing the most efficient and appropriate marketing and advertising tools.

Also, Shell uses positioning as a marketing strategy in order to reach all the communities and equally provide services. By being positioned globally, Shell as a brand is already marketed and trusted by the customers. In addition, Shell, a large brand that boasts of quality products and environmental sustainability, gains a lot of customer trust. Shell is in more than 60 countries in the world. Also, Shell uses partnering and alliances for marketing the company. By strategically partnering with some firms and collaborating with them, Shell has gained more skills in service delivery and technical skills, leading to better marketing. Shell has collaborated with companies such as Gordon Murray Design (Gloria, p.27, 2022) .  Lastly, since Shell has a diversified business product, marketing becomes easier.

• Shell Company Financial Performance

To analyze the financial performance of Shell company over the years, I must check financial reports and documents published by Shell annually. These documents are very helpful in determining how Shell has been doing financially over the past years and evaluating whether it is progressing or regressing. Since the financial documents provide information on spending, earnings, liabilities, and revenues over the years (Gloria, p.29, 2022) .  Financial documents are very important in dictating mitigation action in the case of loss, and they also help investors decide whether to invest in the business. The financial documents are readily available on Shell’s official webpage. Also, data analysis is much easier with a comparison already made for the company’s performance within the past several years. The document below is a sample of part of a financial statement comparing Shell’s financial performance from 2017 to 2021:

With such detailed and organized data as the above, interpretation and analysis become much easier. For example, it is noticeable that revenue dropped drastically in 2020, probably due to the Covid-19 pandemic. Investors would be interested in investing due to Shell’s quick rise between 2020 and 2021, as they speculate better returns in consequent years as long as there is no disruption to the normal supply chain (Gloria, p.25, 2022). The data is useful to many parties, such as investors, financial analysts, and competing firms. By placing its financial information publicly, Shell expresses its transparency, a positive trait required of a company (Gloria, p.25, 2022). Besides the annual financial statements, Shell posts financial results every four months, providing more concise information on their financial operation. On top of financial documents, Shell provides organized information to investors to fill them up on the company’s current performance and decisions made in the company. Lastly, Shell also releases official information through the press to inform the whole public of the financial and general performance of the company. With all this information readily available, Shell’s financial performance analysis becomes much easier, less time-consuming, and more cost-effective.

• Influence of Shell Oil company on the Energy Market.

Since Shell is among the largest and most influential oil and gas companies, it greatly influences the general market. Being in the market for more than 100 years, Shell has become one of the determinants of the trends in the energy market. This has happened especially with the milestones and innovations Shell has done over time, setting a bar for other companies (Hurst & Mackenzie, p.120, 2022). From designing oil tankers that are safe for water transportation to automation of oil drilling, better oil refining, conversion of gas to liquid form, recovery of oil, and field optimization, Shell has been able to invent better and safer ways of energy production while still considering the environment (Hurst & Mackenzie, p.120, 2022). Apart from these milestones, the evolution of shell throughout the long period it has been there, Shell has acted as a reference point and blueprint for many companies that aspire to be as successful as its efficient and safe energy production. Also, due to its size, Shell has hugely impacted the prices, demand, and supply of energy products over time.

It is also a major determinant in deciding oil and gas prices. An example was in July when Shell’s CEO was able to predict a rise in oil prices due to the disparity between supply and demand (Hurst & Mackenzie, p.120, 2022). Shell’s wide customer base is also responsible for dictating oil and gas supply worldwide. A supply disruption in Shell’s products implies disruption in Shell’s enterprises in more than 60 countries and more than 1000 outlets (Hurst & Mackenzie, p.120, 2022). This has a huge impact on the market. Shell is also a major determinant in formulating policies that relate to decision-making in the energy production industry due to the authority it has over the market. Lastly, Shell has been seen to influence other companies to work towards ensuring that their energy production process does not result in environmental degradation. Other oil and gas companies are now aiming at moving towards reducing carbon emissions and greenhouse effects for a more sustainable environment. In the mentioned ways, Shell is a large global determinant of the energy generation industry.

• Shell’s Ability to Operate in Different Countries in the World

According to Shell oil company, providing services to different countries requires awareness of their differences regarding culture, politics, religion, and many other factors. Using this, they can efficiently run their separate branches in different countries and also venture into new places and start new enterprises (Stevens, p.123, 2016). Understanding the needs of people in a certain place is relevant to know what services are required and how they need to be delivered efficiently. Shell has strategies such as segmentation to run such a large company effectively. Moreover, through collaborations and alliances in different locations of the world, Shell gets an opportunity to venture into different locations with suitable conditions for business and setting them up. With a stable and conducive political, cultural, and physical environment, Shell can manage the company’s running well in different areas of the world (Stevens, p.123, 2016). Also, by understanding how the different political and cultural aspects of different countries work, Shell is able to run efficiently while ensuring that they do not engage in any activities that could be considered inappropriate in the country. By understanding Shell’s operation in diverse environments, it becomes easier to understand the strategies used to operate in such a wide environment.

Validity and Reliability of Research Instruments

The instruments and methods chosen to carry out the research are efficient in that. First, they provide information that is up-to-date and well-organized. Also, the sources are reliable and valid because most of the data is obtained from the Shell oil company’s official web page and certified research papers. Moreover, the research instruments proved to be very conducive as they do not require a lot of cost, procedures, and time in order to access them. Also, having secondary sources as the main tool for the research is very beneficial as it requires little effort to access the information. Moreover, information from the secondary sources comes in an already organized form, making it very easy to analyze data from them.

Sources such as the CEO’s speech as he approached retirement and press releases are very valid and reliable as they are not mediated or interpreted by anyone, making them very original and useful in data analytics (Hurst & Mackenzie, p.120, 2022). However, the large size of the company makes conducting interviews and surveys very difficult. Also, it makes them less reliable since the results of the company’s outlet in just one locality are not very useful in determining the performance of the outlets in the more than 60 outlets worldwide. Hence size is a big hindrance to the reliability of the research tools (Smink & Hekkert, p.90, 2015). Apart from this problem, the available secondary sources are reliable and valid research tools.

Throughout the proposal, it is evident that combining different research methods is crucial in ensuring the best outcome for the research. Also, outlining the specific areas of research and not carrying out a general study with no focus is important in ensuring the research is carried out efficiently and the results can be analyzed and used for the improvement of the industry. Research into the Shell oil company is very important in that it can give detailed explanations of its impact on the different components of the business environment. The research could also provide an understanding of the company’s methods of operation, different business strategies, and the company’s impact (Smink & Hekkert, p.90, 2015). For example, the research aims to look deeply into how Shell impacts the environment, controls its impact, and plans to improve the environment in the future and how it will do this.

Other factors, such as its development over the years, its achievements, and its milestones, can also be understood better. However, the results can only be accurate if the chosen research methods are suitable for obtaining correct, relevant, and recent data. Failure to do this the results found will not be helpful in achieving the main goals of the research, making it a waste of time. To determine whether the methods chosen are efficient or not, an analysis of the validity and reliability of the research tools chosen needs to be done. Through this, challenges in the research can be identified early and dealt with early enough. With all the challenges taken care of, there will be lesser hindrances to the research. Lastly, I believe that comprehensive research on the Shell oil company will be very useful in business analysis, investment decisions, environmental assessment, and improvement in the energy production industry (Smink & Hekkert, p.90, 2015).

Gloria, B. (2019)  Royal Dutch Shell Organizational complexity ,  Organizational Theory . Available at: https://orgtheory.home.blog/2019/10/03/royal-dutch-shell-organizational-complexity/ (Accessed: December 31, 2022).

Hurst, L. and Mackenzie, T. (2022)  Shell CEO sees risk of even higher oil prices on tight supply ,  Bloomberg.com . Bloomberg. Available at: https://www.bloomberg.com/news/articles/2022-07-28/shell-ceo-sees-risk-of-even-higher-oil-prices-on-tight-supply?leadSource=uverify+wall (Accessed: December 31, 2022).

Lawrence, A.T., 2017. The drivers of stakeholder engagement: Reflections on the case of Royal Dutch/Shell. In  Unfolding stakeholder thinking  (pp. 185-199). Routledge.

Our Strategy: Powering Progress  (2022)  Shell Global . Shel. Available at: https://www.shell.com/about-us.html (Accessed: December 31, 2022).

Pickl, M.J., 2019. The renewable energy strategies of oil majors–From oil to energy?  Energy Strategy Reviews ,  26 , p.100370.

Smink, M.M., Hekkert, M.P. and Negro, S.O., 2015. Keeping sustainable innovation on a leash? Exploring incumbents’ institutional strategies.  Business Strategy and the Environment ,  24 (2), pp.86-101.

Stevens, P., 2016. International Oil Companies.  The Death of the Old Business Model, Chatam House, London, UK .

Cite This Work

To export a reference to this article please select a referencing style below:

Related Essays

Personal philosophy of leadership, a framework for an industry supported destination marketing information system, research paper: abz consulting company, simple and compound interest and the ethical issues, social media marketing strategies for luxury business travel: a case of the ritz-carlton’s hotel, case study: starbucks company, popular essay topics.

• American Dream
• Artificial Intelligence
• Black Lives Matter
• Bullying Essay
• Career Goals Essay
• Causes of the Civil War
• Child Abusing
• Civil Rights Movement
• Community Service
• Cultural Identity
• Cyber Bullying
• Death Penalty
• Depression Essay
• Domestic Violence
• Freedom of Speech
• Global Warming
• Gun Control
• Human Trafficking
• I Believe Essay
• Immigration
• Importance of Education
• Israel and Palestine Conflict
• Leadership Essay
• Legalizing Marijuanas
• Mental Health
• National Honor Society
• Police Brutality
• Pollution Essay
• Racism Essay
• Romeo and Juliet
• Same Sex Marriages
• Social Media
• The Great Gatsby
• The Yellow Wallpaper
• Time Management
• To Kill a Mockingbird
• Violent Video Games
• What Makes You Unique
• Why I Want to Be a Nurse
• Send us an e-mail

Energy. Environment. Economy.

A reporting project of   npr member stations.

A construction site of Shell's Falcon Pipeline in Beaver County as the line was being built in August 2019. Photo: Reid R. Frazier

 Reid R. Frazier / StateImpact Pennsylvania

Attorney General files criminal charges against Shell on whistleblower reports over pipeline spills

Reid R. Frazier / StateImpact Pennsylvania

Pennsylvania Attorney General Michelle Henry charged Shell Pipeline Friday with chronically underreporting spills of industrial waste during construction of a pipeline feeding the company’s Beaver County ethane cracker.

The charges were made based on testimony from whistleblowers who worked on the Falcon Pipeline during its construction from 2019 to 2020.

Several former pipeline employees told state investigators that the company was underreporting or failing to report spills of drilling mud so as to avoid costly shut-downs. One told investigators Shell had “a strategy” of underreporting spill amounts so as not to invite time-consuming inspections by the Department of Environmental Protection (DEP).

In addition, Shell allegedly failed to install real-time data logging devices on its drilling equipment, in violation of its state permit.

Henry filed 13 misdemeanor  charges  against Shell Pipeline at a magistrate’s court in Washington County.

In a statement, Henry said Shell “chose to ignore” laws designed to protect the environment.

“Pennsylvania’s environmental laws are in place to keep families and communities safe from harm caused by major construction projects, such as pipelines,” Henry said. “This company chose to ignore those laws and kept quiet issues that should have been disclosed to prevent potential impacts.”

Problems along the pipeline route

According to the court records, Shell contractors did not report to the DEP all of the spills, or “losses of circulation” of drilling mud.

The mud is used to lubricate the drill bit and stabilize the hole in horizontal directional drilling, a common technique used to bore holes underground for pipelines.

Drilling mud contains clay and sometimes chemical additives, and is classified as industrial waste under state law. According to the complaint, drilling mud ended up in several streams and a wetland along the pipeline’s route.

The Falcon pipeline is a 97-mile pipeline that sends ethane, a component of natural gas, to Shell’s Beaver County ethane cracker, which opened in 2022. About 45 miles of the pipeline were built in Pennsylvania, including Washington, Allegheny, and Beaver County. The ethane cracker itself received over $1 billion in state tax credits, the largest in state history.

Shell spokeswoman Virginia Q. Sanchez said the company is “reviewing the complaint and has been in contact” with the attorney general’s office.

“From the beginning of the construction of the Falcon Pipeline project, (Shell Pipeline) has cooperated with all relevant local, state, and federal agencies and the affected communities to ensure its pipeline was constructed in a safe and environmentally responsible manner,” Sanchez said, in an email. Sanchez said the company will “continue its cooperation with all relevant agencies” and the company was committed to “being a responsible neighbor.”

In 2022, the DEP fined Shell $670,000 for drilling mud  spills along the pipeline.

“DEP works with the Office of the Attorney General when necessary to ensure adherence to Pennsylvania’s environmental laws and regulations,” a DEP spokesperson, Lauren Camarda, said in an email, referring all questions about the complaint to the attorney general’s office.

According to the complaint, Shell and its contractors repeatedly under-counted how much drilling mud they lost during construction. In one case, a spill was initially reported to the DEP at 100 gallons, low enough to avoid a shutdown. Weeks later, the company reported 48,000 gallons were actually spilled that day.

Whistleblower complaint alerts DEP to problems

The investigation was kicked off by a whistleblower, Frank Jacob Chamberlin IV, who was fired from the Falcon Pipeline along with his spouse, in May 2019, after working four months on the project.

Chamberlin sent documentation of spills that underreported or not reported at all in 2019 to the DEP. He later told investigators “that the motivation for underreporting is done to avoid shut-downs, which costs Shell time and money.”

According to the criminal complaint, investigators spoke with a number of pipeline and DEP employees who affirmed Chamberlin’s basic allegation.

One former environmental consultant who was fired from the Falcon pipeline project told DEP investigators “that Shell was under-reporting or failing to report (spills) to avoid mandatory shut-down provisions” outlined by the pipeline’s permit, according to the complaint.

DEP inspectors found drilling log entries filed by the company, noting a release on April 24, 2019 of 150 gallons of drilling mud, even though photos indicated “a larger release.”

Another former pipeline worker, Sean Larson, a former coordinator of horizontal directional drilling on the pipeline, “confided to the DEP that Shell has a strategy of under-reporting IRs volumes so as not to arouse DEP suspisions and avoid work stoppages,” the complaint said. Larson told investigators from the attorney general’s office and DEP that a Shell Project Manager, Doug Scott, told him that “the less we give them (DEP), the better off we are.”

Larson told investigators there was “an unspoken understanding amongst the (drilling) inspectors to minimize the volume of a release because it would result in less down time while waiting for DEP to say they could resume drilling.”

Larson recalled one specific incident when Scott, the Shell project manager, warned him: “I’m not going to let you have the DEP jeopardize this project,” according to the complaint.

Larson was fired from the project in September, 2019. He told investigators he believed the firing was for being “too open and honest with the DEP.”

Another employee, Erica Lillian Kasundra, a regional project manager in a “Senior Pipeline Engineering role” for Shell, told investigators that she filed an ethics complaint with Shell, alleging that the pipeline contractor, Minnesota Limted LLC “was under-reporting fluid losses to the DEP.”

Kasundra told investigators that inspectors’ reports of volumes of drilling mud spilled, or ‘lost’, were different than those reported to the DEP.

She told investigators she thought the contractor was submitting loss volumes to the DEP “just under what would require a field visit from DEP.”

After filing the report, she reported being “cut out of the loop” on the pipeline project and was no longer invited to attend construction meetings.

Employees say company wanted to avoid costly shutdowns

Kasundra told inspectors that shut-downs of the pipeline construction project cost Shell $40,000 a day. With maximum fines at $10,000 under state laws, the company had little incentive to stop work, one DEP official told investigators.

Chamberlin, whose whistleblower complaint kicked off the probe, told investigators he once disputed the volume of a spill at one site “which was under-reported on the first day of the drill.”

After that, Chamberlin said he was “given the cold shoulder from the other inspectors.”

In another drilling incident, Chamberlin reported seeing a spill of 1500 gallons of drilling mud, only to be told by a supervisor to “make it 75 gallons” in his report.

Chamberlin told investigators “that the motivation for under-reporting is done to avoid shut-downs, which costs Shell time and money.”

After Chamberlin alerted DEP to the problems on the pipeline, a “water quality specialist” from the agency met with Eric DeLong, a construction manager for the pipeline project in November, 2019.

The DEP water quality specialist asked why the company wasn’t notifying the agency of spills until after the fact. According to the complaint, “DeLong attempted to argue the point that” if an inadvertent return (IR), or spill, happened twice in the same spot, “that’s expected. It’s not an IR anymore, it’s a controlled release.” The DEP specialist said she “had never heard this term used before, and stated it does not comport with DEP’s definition of an inadvertent return,” according to the complaint.

Another DEP supervisor in the agency’s waterways and wetlands program told investigators that Shell contractors insisted that as long as the mud that was spilling during an incident was getting cleaned up, it was considered ‘controlled’ or ‘managed’, even if no such term existed under the company’s construction permits.

The DEP water quality specialist told investigators that she suspected Shell or its contractors “made a financial decision to continue to drill and not report IRs. It was more beneficial to keep going and face the penalties.”

Editor's Picks

Centralia, wash.’s coal plant has to close next year. can pa. communities learn from centralia’s transition, coal transition: how a weatherization grant helped a music venue build community, coal transition: betting on hydrogen with an energy technology grant, coal transition: raising fish and a workforce with an economic development grant, about stateimpact pennsylvania.

StateImpact Pennsylvania is a collaboration among WITF , WHYY , and the Allegheny Front . Reporters Reid Frazier , Rachel McDevitt and Susan Phillips  cover the commonwealth’s energy economy. Read their reports on this site, and hear them on public radio stations across Pennsylvania.

Climate Solutions partners

(listed by story count)

• The Marcellus Shale, Explained 873
• The Pennsylvania Guide to Hydraulic Fracturing, or 'Fracking' 740
• DEP: The Department That Regulates and Oversees Drilling 654
• Climate Change 577
• Delaware Watershed 454
• Mariner East: A pipeline project plagued by mishaps and delays 301
• Pipelines: The new battleground over fracking 216
• Your guide to pipelines 201
• Gov. Tom Wolf 185
• Tom Corbett (Pa. governor, 2011-2015) 169

Climate Solutions , a collaboration of news organizations, educational institutions and a theater company, uses engagement, education and storytelling to help central Pennsylvanians toward climate change literacy, resilience and adaptation. Our work will amplify how people are finding solutions to the challenges presented by a warming world.

StateImpact Pennsylvania Team