Royal Dutch Shell PLC’s return to oil drilling in the US arctic for the first time since 2012 took a big step forward on Monday when US President Barack Obama’s administration gave conditional approval the company’s exploration plan.
The US Department of the Interior conditionally approved Shell’s plan to explore for oil in the Chukchi Sea off the coast of Alaska.
Shell has already spent about US$6 billion on exploration in the arctic region, which is estimated to contain about 20 percent of the world’s undiscovered oil and natural gas. However, its recovery could be decades away.
Photo: AP
SHELL’S PLAN
Shell proposes to drill up to six wells in water about 40m deep, using two vessels that can serve as relief wells for each other in case of an emergency.
“We have taken a thoughtful approach to carefully considering potential exploration in the Chukchi Sea,” US Bureau of Ocean Energy Management Director Abigail Ross Harper said in a news release.
As part of the conditional approval, Shell must obtain permits from the US federal government and the state of Alaska to begin drilling this summer.
RIG WOES
Shell has not drilled in the region since an incident-plagued 2012 season, when the company was forced to evacuate its Kulluk drill rig, which eventually ran aground.
One of the vessels that Shell plans to use this summer, the Noble Discoverer, also had problems in arctic waters in 2012.
At one point, it had to be towed to port after experiencing vibrations in a propeller shaft.
Several environmental groups are concerned about drilling in an harsh, pristine region with little capacity for emergency response.
“Our government has rushed to approve risky and ill-conceived exploration in one of the most remote and important places on Earth,” said Susan Murray, an official at Oceana, a leading voice against arctic drilling.
Even if Shell gets all the permits it needs, its arctic aspirations could face a hurdle further south.
SEATTLE
Last week, Seattle ruled that its port must apply for a permit to allow Shell to make it a hub for drilling rigs headed to the Arctic.
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