Shell’s Largest Oil Companies Get The Green Light For Oil And Gas Exploration In The Arctic Ocean
October 22nd, 2009 | File Under : Oil and Gas - Petroleum
Shell, the biggest oil company has received the green light for the activities of oil and gas exploration in the Arctic Ocean. Mineral Management Service has given permission to the Shell oil company to drill two oil wells in the offshore areas in the Beaufort Sea. Shell plans to drill between July and October 2010.
Plan for oil and gas exploration in the Arctic Ocean had previously met with resistance from environmental groups because of the activities of oil and gas exploration in the Arctic Ocean could pollute the environment and community life in the exploration area.
The villagers fear that drilling operations will disrupt the seasonal migrations of bowhead whales during the summer.
To deal with these concerns, Shell agreed to interrupt its operations halfway through the drilling season to allow for the whaling activity by villagers from Kaktovik and Nuiqsut, according to the federal agency.
Shell’s activities will be completely suspended on Aug. 25, 2010, and the company will remove its vessels from the drilling site during the whale hunts. Once the whaling season is over, Shell will be allowed to return until October, if ice and weather conditions permit.
Shell has also scaled back the size of its drilling fleet, which its opponents have characterized as an “armada,” and now plans to use just one drill ship instead of two, and fewer support vessels.
“We sincerely believe this exploration plan addresses concerns we have heard in the North Slope Communities which have resulted in the programs being adjusted accordingly,” said Shell Alaska vice president Pete Slaiby, according to The Associated Press.
While the permit brings Shell one step closer to begin drilling, the company still needs an air permit from the Environmental Protection Agency.
The government’s leasing policy in Alaska has been mired in court battles for years. In May, a federal court asked the federal government to review its 2007-2012 leasing plan for Alaska. That decision does not affect drilling in Shell’s two Beaufort Sea leases, which it acquired in 2005 and 2007.
Shell, which does not produce on the North Slope, has bet heavily on Alaska’s offshore potential. In 2008, it paid $2.1 billion for leases in both the Beaufort and the Chukchi Sea, and now has about 200 offshore leases.
Environmental groups said they were disappointed by the decision and criticized the government for endorsing a leasing rush that was sanctioned by the Bush administration. Several groups said that Shell’s drilling would emit tons of air pollutants and water waste, and that it risked damaging the environment.
“M.M.S. is again trying to implement an overly aggressive Bush-era drilling plan in one of the riskiest areas on the planet to drill,” said Whit Sheard, the Alaska program director at Pacific Environment. “Although fishermen, traditional indigenous communities, the courts and the global scientific community have all condemned this plan, the Arctic continues to be treated like a sacrifice zone.”
Chuck Clusen, the director for the national parks and Alaska projects at the Natural Resources Defense Council, warned about the risks of an oil spill in Alaska.
“The reality of offshore oil drilling is that accidents will happen,” he said. “And when oil spills in Arctic ice, there is no cleaning it up. A blow-out like the one that recently despoiled waters off the coast of Australia would leave oil in the waters off the coast of the Arctic National Wildlife Refuge for decades, killing whales, seals, fish and birds and turning irreplaceable spawning and feeding grounds into an ecological wasteland.”
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