Aera Energy LLC
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Aera Energy LLC (Aera) is the California-based joint venture of Shell Oil Company and Mobil Oil. Approximately 1,100 Aera employees7 are based in California. The company's head office is in Bakersfield, California.
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[edit] Business areas
Aera Energy LLC, a California limited liability company, is one of California’s largest oil and gas producers1, with an approximate 2006 revenue of $4 billion.7
With headquarters in Bakersfield, California, most of Aera’s production is centered in the San Joaquin Valley. The company also has oilfield operations in the Los Angeles Basin and in Ventura and Monterey Counties. Aera produces approximately 185,000 barrels (29,400 m³) of oil7 and 67 million cubic feet (1,900,000 m³) of natural gas each day1 and has proved oil and gas reserves equivalent to more than 900 million barrels (140,000,000 m³) of oil.1 Aera produces thirty percent (30%) of California’s oil and gas — more oil than is produced by the state of Oklahoma.7
The workforce needs of Aera are provided by Aera Energy Services Company (Aera Services), a Delaware corporation. Aera and Aera Services provide employment for more than 1,100 people and hundreds of contractor companies.1
The company began operating as Aera Energy LLC on June 1, 1997 and consists of the California onshore and offshore exploration and production (E&P) assets previously operated by CalResources LLC (a former Shell Oil Company affiliate), Mobil Exploration & Producing U.S. Inc. (now an ExxonMobil Corporation affiliate), and ARCO.1
Today, Aera is jointly owned by Royal Dutch Shell and ExxonMobil and is operated as a stand-alone company through its own board of managers (directors). The California-based refining, retail petroleum marketing and pipeline operations of Shell and ExxonMobil are not included in Aera.1
The company prides itself on excellent safety and environmental performance, innovative business practices, application of cutting-edge technology, dynamic company culture, and active community involvement.1
[edit] Business Relationships
- Aera Energy LLC holds the company's assets.1
- Aera Energy Services Company provides the work force for the company.1
- CalResources LLC (a former Shell Oil Company affiliate) was wholly merged into Aera.1
- Mobil Exploration & Producing U.S. Inc. (now an Exxon Mobil Corporation affiliate) merged California production into Aera.1
- ARCO traded California production with Mobile Oil Corporation which added it into Aera.1
- Royal Dutch Shell is the majority (52%) owner of Aera.1
- Exxon Mobil Corporation is the minority (48%) owner of Aera.1
- Toll Brothers is a home builder for Aera's Vista del Verde real estate development in Yorba Linda, CA.4
- The PACE labor union represent some Aera employees.2
[edit] Environmental Issues
[edit] Wildlife Corridor
Aera Energy LLC is involved in a controversy over its attempts to develop ecologically important land in Southern Los Angeles County, California. Activists from local communities have fought for over 30 years to preserve this area, which they believe to be one of the last major wildlife corridors in Southern California.3
Aera Energy and its parent companies, Shell Oil and ExxonMobil, own 3,000 acres (12 km²) of land in the hills between Diamond Bar and Brea, California. Since 1894 the area has served as a low capacity, yet productive oil field and as a pastureland for cows. Since the cities of Brea and Diamond Bar have expanded immensely over the last 103 years, the land has inadvertently served as a wildlife corridor between the 4,000-acre (16 km²) preserve in Whittier and the 13,000-acre (53 km²) preserve in Chino Hills State Park. If the corridor is preserved it will serve as a link between nature preserves that extend from the San Gabriel River in the west to Temecula far in the southeast.3
With diminished oil output and the escalating value of Southern California land, Aera has sought to developed their territory into a 3600 home resendential area, complete with parks and a golf course. They plan to leave 55% of the site as open land to appease those seeking a corridor.3
Beyond the environmental concern, opponents argue that the influx of new people will congest an area already seen as impacted. Many believe the development will further degrade the environment through increases in coastal runoff and more waste production, strain local water supplies and the transportation infrastructure, and overcrowd schools and other public services.3
In 2003, Los Angeles and Orange Counties prepared a Draft Environmental Impact Report (DEIR) to assess Aera's development proposal. It was determined that Aera's land is located in what Los Angeles County refers to as a Significant Ecological Area (SEA). In April of 2006, the Technical Committee that analyzed the DEIR found Shell Aera's development plan not to be in compliance with regulations governing SEA's. Aera was given three choices to continue: build with a negative recommendation from a large committee over their head, undertake the costly venture of replanning the development, or convince a city to annex the territory to remove its unincorporated status. Aera chose option three and turned to the city of Diamond Bar to annex the territory. Diamond Bar is not subject to the rules governing SEA's since Los Angeles only classifies unincorporated territory as Significant Ecological Areas. As of July 30, 2006, the annexation has not yet occurred.3
As the matter has not been solved yet, several websites have been created to inform the public of both sides' arguments. Aera Energy's website details their development plan. Several coalitions have been formed to organize local community members' fight against Aera. Two of the most prominent are the Sierra Club Los Angeles Chapters' Save the Wildlife Corrider and Save the Missing Middle.
[edit] Coles Levee Ecosystem Preserve
The Coles Levee Ecosystem Preserve consists of 6,059 acres (24.52 km²) of wildlife habitat, in which more than a dozen endangered and threatened species are present. The preserve is along the last two miles (3 km) of the Kern River, where it drains into the former Buena Vista Lake, approximately 20 miles (32 km) west-southwest of Bakersfield, California. After acquiring the former ARCO properties in California in 1998, Aera collaborated with the California Department of Fish and Game to set up this preserve. The preserve is largely riparian habitat, and is surrounded by active oil fields (the North Coles Levee Oil Field, and South Coles Levee Oil Field, as well as the enormous Elk Hills Oil Field to the west, run by Occidental Petroleum). The preserve was initially set aside in 1992 by ARCO.
The intent of the Preserve is to maintain a stretch of continuous rather than fragmented habitat in a region in which much of the former species habitat has been replaced by agricultural or petroleum fields. Aera and the CDFG also had an educational and public outreach intent in establishing the preserve; students from local schools and colleges do field work in the area, and there is a quarter-mile "Nature Tour" in the Preserve.
[edit] Awards
In 2002 Aera's Belridge Producing Complex won the prestigious North American Maintenance Excellence (NAME) Award for its maintenance and reliability program and results.5 In 2004 Aera's North Midway Sunset Unit was awarded a NAME Award.5 Aera is the first E&P company to win the award previously given only to manufacturing organizations. In the manufacturing industry, the NAME Award has been compared to the Malcolm Baldridge National Quality Award.1
[edit] References
- Overview. Aera Energy LLC. Retrieved on June 2, 2007.1
- Aera workers. USW Local 12-6. Retrieved on November 9, 2007.2
- Save the Wildlife Corrider. Save the Wildlife Corrider. Retrieved on November 9, 2007.3
- Affiliates website. Aera Energy LLC. Retrieved on June 2, 2007.4
- List of NAME winners. NAME Award. Retrieved on November 9, 2007.5
- Coles Levee Ecosystem Preserve. Aera Energy LLC. Retrieved on June 2, 2007.6
- Gregory, Vanessa. "Aera CEO widely respected, has critics", The Bakersfield Californian, December 15, 2007. Retrieved on January 8. (English)7
[edit] External links
- Aera Energy LLC website
- Shell in the United States website
- Save the Missing Middle website
- Save the Wildlife Corrider website
- Aera Energy's community development website
- Vista del Verde, Aera Energy's real estate development website
- North American Maintenance Excellence (NAME) Award website
