A global oil glut has tanked prices and cut profits—so why won’t Shell give up on the north? ... geologists believe that beneath Burger J—70 miles offshore and 800 miles from the Anchorage command center—lie up to 15 billion barrels of oil. An additional 11 billion barrels are thought to be buried due east under the Beaufort Sea. All told, Arctic waters cover about 13 percent of the world’s undiscovered petroleum, or enough to supply the U.S. for more than a decade, according to government estimates. ... Surprise lurks in the Chukchi, whose frigid waters north of the Bering Strait span from Alaska to Siberia. Logistical and legal obstacles have repeatedly delayed the Arctic initiative, on which Shell is spending more than $1 billion a year—more than $7 billion so far and counting. The single well in the Chukchi Shell aims to excavate this summer could be the most expensive on earth, and it hasn’t yielded its first barrel of crude. ... Shell’s Scenarios group, an in-house think tank that management points to as an emblem of its open-mindedness, has done extensive work undergirding the company’s support for government policies encouraging development of renewable energy sources, she says. But the Scenarios research also justifies aggressive exploration for more crude. With the global population rising from 7 billion to more than 9 billion by 2050 and total energy demand nearly doubling ... Most of the world’s “easy oil” has already been pumped or nationalized by resource-rich governments, Pickard says, leaving independent producers such as Shell no choice but to pursue “extreme oil” in dicey places.
Most gamblers were still asleep, and the gondoliers had yet to pole their way down the ersatz canal in front of the Venetian casino on the Las Vegas Strip. But early on the chilly morning of Feb. 10, just above the casino floor, the offices of the world’s largest gaming company were gripped by chaos. Computers were flatlining, e-mail was down, most phones didn’t work, and several of the technology systems that help run the $14 billion operation had sputtered to a halt. ... Computer engineers at Las Vegas Sands Corp. (LVS) raced to figure out what was happening. Within an hour, they had a diagnosis: Sands was under a withering cyber attack. PCs and servers were shutting down in a cascading IT catastrophe, with many of their hard drives wiped clean. The company’s technical staff had never seen anything like it. ... The people who make the company work, from accountants to marketing managers, were staring at blank screens. “Hundreds of people were calling IT to tell them their computers weren’t working,” says James Pfeiffer, who worked in Sands’ risk-management department in Las Vegas at the time. Most people, he recalls, switched over to their cell phones and personal e-mail accounts to communicate with co-workers. Numerous systems were felled, including those that run the loyalty rewards plans for Sands customers; programs that monitor the performance and payout of slot machines and table games at Sands’ U.S. casinos; and a multimillion-dollar storage system. ... In an effort to save as many machines as they could, IT staffers scrambled across the casino floors of Sands’ Vegas properties—the Venetian and its sister hotel, the Palazzo—ripping network cords out of every functioning computer they could find, including PCs used by pit bosses to track gamblers and kiosks where slots players cash in their tickets. ... This was no Ocean’s Eleven. The hackers were not trying to empty a vault of cash, nor were they after customer credit card data, as in recent attacks on Target (TGT), Neiman Marcus, and Home Depot (HD). This was personal. The perpetrators wanted to punish the company, or, more precisely, its chief executive officer and majority owner, the billionaire Sheldon Adelson. Although confirming their conjectures would take some time, executives suspected almost immediately the assault was coming from Iran.