Shell remains unsure about 2011 Arctic oil plans
by Christopher Eshleman / ceshleman@newsminer.com
Oct 03, 2010 | 2934 views | 8 8 comments | 4 4 recommendations | email to a friend | print
FAIRBANKS — Royal Dutch Shell, the biggest offshore lease holder north of Alaska, said Saturday that new drilling regulations announced last week leave questions unanswered as it cements plans for next year.

A top Shell Alaska executive said last month, days before the Interior Department announced the rules, that his firm planned exploratory drilling for the Beaufort Sea in 2011.

The company — which holds hundreds of leases in the Beaufort and Chukchi seas — thinks the new rules mirror its existing safety plan, spokesman Curtis Smith said Saturday.

“What remains unclear is our ability to obtain the necessary permits that will actually allow a return to work,” he told the Daily News-Miner by e-mail Saturday.

The Department of the Interior announced regulations Thursday covering “safety equipment, well control systems, and blowout prevention practices on offshore oil and gas operations” aimed at improving workplace safety.

Roughly one week earlier, Pete Slaiby, a vice president at Shell Alaska, told a state legislative panel that oil companies preparing to explore for oil — but not produce, which is easily a decade away in the Beaufort sea — are working with researchers to study Arctic waters and have prepared robust safety and contingency plans for their work there.

Smith said Saturday that Shell feels the announcement didn’t distinguish between a federal moratorium and suspension, respectively, on offshore “deepwater” drilling — generally conducted in the Gulf of Mexico — and exploration elsewhere on the Outer Continental Shelf, including the Arctic seas. He said only that the new rules appear to apply to the Arctic “in some way.”

Slaiby and a counterpart at ConocoPhillips, another major offshore lease holder, told the legislative resources panel last month that shallow-water offshore projects near Alaska could be much safer than those in the deep waters above the Gulf of Mexico’s high-pressure underwater reservoirs. ConocoPhillips said the two companies have worked with the Norwegian Statoil and University of Alaska Fairbanks scientists while preparing an “integrated environmental study program” aimed at better understanding the oceanography.

Legislative resource leaders called the hearing last month, five months after the start of the Deepwater Horizon spill in the Gulf of Mexico, to gauge safety plans covering any Arctic offshore work. Some said signs indicate the federal moratorium could end later this year. Anchorage Sen. Bill Wielechowski, D-Anchorage, said it “seemed only prudent” to review environmental regulations covering waters near Alaska's norther shores.

Slaiby told lawmakers his firm was waiting to see the result of federal reviews of the Horizon disaster including an investigation by a presidential commission. He said oil companies' plans in the Arctic focus only, as opposed to heavy production near Mexico, on exploration and research needed to prepare production plans.

The new federal rules announced Thursday “closely match” the safety standards already in place by Shell, which has invested more than $3.5 billion in its Alaska offshore projects, Smith said Saturday. But unknowns still exist, he said.

“Our intent is to drill in 2011,” Smith said. “Where those wells will be drilled has yet to be determined.”

The federal government's stated moratorium regularly refers to "deepwater" drilling, and Gov. Sean Parnell and the state last month filed a lawsuit in federal court opposing any moratorium applying here.

Contact staff writer Christopher Eshleman at 459-7582.

Comments
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Charliebussell
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October 03, 2010
Flatus...the only connection I can see this administration and, the recent 4 years of the Congress is the use wall street to harvest money...and to use them to take over many of American's businesses turning them into bastins of sociallism under the directions of SIU and other powerful labor unions...The rapid growth of Government is another great example of our heading for more sociallist control...
Flatus
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October 03, 2010
Shell is in the same boat most of us are...with this crazy far left sociallist administration and congressional leadership, none of us know if we will be in business next year...

I agree:1)Shell is in the same boat as us;2)none of us know if we will be in business next year.

But please explain why you attribute this to a crazy far left socialist administration.

This administration is dominated by Wall Street more than any administration I've ever seen. Is your point that Wall Street is crazy far left socialist? If so, please friggen explain. I'm in the dark as to how that is in the slightest bit plausible.

Charliebussell
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October 03, 2010
Chakachumna Hydro could be on line in three years and at least the first phase of Susitna could be on line in a decade, and would be needed by that time...We need to be selling our gas not buring it to generate Electrical energy.

We spent a good deal of time and effort, over the years in pursuit of our Hydro assets, with Sourheastern Alaska doing quite well but have lost focus following the development of Bradley Hydro...We squandered $500,000,000.00 on a failed experiment at HCCP and wasted several valueable years in the process.

We need to refocus and do it right this time... develop our renewable resources for in State us and develop and sell our non-renewable resources to an energy and resourse hungry world....
robir8
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October 03, 2010
For once I'm going to have to agree with Oldowl. Lets put some focus on renewals. Lets start with Susitna Dam and then get our timber industry back on its feet in the Tongass. Cut baby cut?
Charliebussell
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October 03, 2010
Shell is in the same boat most of us are...with this crazy far left sociallist administration and congressional leadership, none of us know if we will be in business next year...
out_in_the_cold
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October 03, 2010
For those that like to get their "news" first hand .. here are a few web sites worth following.

Department of Interior

http://www.doi.gov/index.cfm

Department of Energy

http://www.energy.gov

Oil and Gas Journal

http://www.ogj.com/index.html

National Marine Fisheries Service

NOAA Fisheries / NMFS / Alaska Regional Office

United States Coast Guard

http://www.uscg.mil/top/missions/

Now that we have all the mules lined up .. time for some "Mule Skinner Blues" and spanking time.

USCG (aides to navigation, search & rescue, oil spill lead agency) response location Kodiak.

NMFS (fisheries and marine mammal management) location Juneau .. only have one ship to do ocean research in the Bering Sea and Arctic Ocean.

Oil & Gas industry (got projects going on all over the place) .. and everyone needs to keep a eye on what Russia has planned for their share of the Arctic Ocean .. because we could say "NO" on our side of the pond and still get a little colored water. But if Big Oil is whinny about the itty-bitty bite from the horse tail fly .. guess we could always get out the whip and try (several times) to scare the pest away, if they think they can stand all the pain in the process.

Department of Interior and the Department of Energy .. yep, a couple of hay burners. Let's see where shall we start. Have they got all the on-shore oil and gas sucked out of the ground or are we putting unnecessary restraints on ourselves .. a hobbled mule just can't keep up.

Now you want to take a lick on the popsicle punch, with "hay" in your eyes. hum-m-m,

1.) now where was that coast guard station? 2.) how many boats got ice breaker capability?

3.) how mush spill containment booms and clean up material is on hand, on site?

4.) where is the nearest supply harbor?

5.) have you done a through review of the fishery and environmental assessment?

NMFS .. start studing palo-ichthyology of the saber tooth salmon, because the work you have done to date in the upper Bering Sea, Chuchi Sea and Beaufort Sea, with one rubber boat dinghy doesn't qualify for modern science investigations.
oldowl
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October 03, 2010
I will agree with the two posts below. Our governor is doing his best to help out his oil company friends instead of working harder to diversify Alaska's economy and move toward renewables, which we have a surplus of.
99712
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October 03, 2010


Lets review what the psychopaths at Shell wish to do: (This would not be needed if the News-Miner presented balanced articles- you know, articles where both sides offer their point of view so readers are actually informed.)

Off shore drilling in the Arctic:

1. No royalties for Alaska- not one dime.

2. No Severance for Alaska- not one dime.

3. No incentive to drill on state leases- much better to go off shore and be tax free.

4. No ability to clean up an oil spill.

5. No roads along the North Slope to even get access to the oiled beaches, whales, polar bears, seals, and all the other marine mammals injured or killed.

6. No sunlight for many months out of the year making any attempt at an oil spill cleanup even more unlikely.

7. Extreme weather- like minus 100 wind chills- unlike the balmy 80 degree weather in the oil soaked Gulf of Mexico.

8. No adequate oversight with a demonstrably corrupt and incompetent MMS.

9. No Alaska politicians with brains enough to stand up to this insanity.

10. A proven record of Big Oil abuse in Alaska by buying politicians, fouling Prince William Sound, (thanks Exxon) dumping toxic waste (thanks Randy Ruedrich and Doyon Drilling)firing ADEC regulators trying to do their job (thanks Tony Knowles) pipelines run to failure resulting in massive spills (thanks BP).

But lets drill baby drill. Screw the consequences.

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