Shell says it will 'pause' drilling in Arctic Ocean for 2013
2012 drilling was plagued by problems
The Associated Press
Posted: Feb 27, 2013 4:18 PM CST
Last Updated: Feb 27, 2013 4:12 PM CST
The conical drilling unit Kulluk was grounded 64 kms southwest of Kodiak, Alaska, in 2012. (U.S. Coast Guard/Petty Officer 2nd Class Zachary Painter/Reuters)
Related
Royal Dutch Shell PLC announced Wednesday that it will suspend its offshore petroleum drilling program in the Arctic Ocean for 2013, taking a break to make sure it can do so safely.
The company announced it will "pause" exploration in the Chukchi Sea off Alaska's northwest coast and in the Beaufort Sea off the state's north coast to prepare equipment and vessels for drilling in the future.
"We've made progress in Alaska, but this is a long-term program that we are pursuing in a safe and measured way," Shell Oil Co. President Marvin Odum said in the announcement. "Our decision to pause in 2013 will give us time to ensure the readiness of all our equipment and people following the drilling season in 2012."
Environmental groups opposed to drilling cheered the announcement.
"This is the first good decision we've seen from Shell," said Mike LeVine, an Alaska spokesman for Oceana. "Given the disastrous 2012 season, our government agencies must take advantage of this opportunity to reassess the way decisions are made about our ocean resources and to reconsider the commitment to explore for oil in the Arctic Ocean."
16 safety violations found by coast guard
Shell completed top-hole drilling on two wells in 2012 in the Beaufort and Chukchi seas, but the first drilling in more than two decades was plagued by problems before and after the short summer open-water season.
The company's spill response plan required a spill response barge to be on site before drill bits dug into petroleum-bearing zones. That never happened. A key piece of equipment, a containment dome, was damaged in testing off the Washington coast.
Seasonal ice in the Chukchi Sea delayed Shell vessels from moving north. When Chukchi drilling began Sept. 9, a major ice floe forced Shell's drill ship off a prospect less than 24 hours later.
When the drilling season ended, the Coast Guard announced that it had found 16 safety violations when the Noble Discoverer, which drilled in the Chukchi, was in dock in Seward, Alaska. The Coast Guard said last week that it has turned its investigation of the vessel over to the U.S. Department of Justice.
The problems crested in late December when the Kulluk, a round Shell drilling barge designed for use in sea ice, broke away from its towing vessel on its way to a Pacific Northwest shipyard in Washington state.
The Kulluk ran aground off a remote Alaska Island near Kodiak Island. It was pulled off six days later but requires repairs. The Kulluk left under tow Tuesday for the Aleutians Island port of Dutch Harbor, where it will be loaded onto another vessel for transport to a shipyard in Asia. The Noble Discoverer also will undergo maintenance and repairs in Asia.
Interior Secretary Ken Salazar has announced that his department would perform an "expedited, high-level assessment" of the summer drilling season. Salazar said the review would pay special attention to challenges that Shell encountered with the Kulluk, with the Noble Discoverer and with the company's oil spill response barge. The Interior Department oversees offshore drilling permits, and Salazar said drilling in frontier areas such as the Arctic demand a higher level of scrutiny.
The Coast Guard also is reviewing the grounding of the drill vessel. Rear Adm. Thomas Ostebo said the investigation will look at every aspect of the incident, from possible failure of materials to evidence of misconduct, inattention or negligence.
Drilling could resume in 2014
Shell has said the grounding was a maritime transport problem. Drilling in 2012, Odum said Wednesday, was completed safely.
"Shell remains committed to building an Arctic exploration program that provides confidence to stakeholders and regulators, and meets the high standards the company applies to its operations around the world," Odum said. "We continue to believe that a measured and responsible pace, especially in the exploration phase, fits best in this remote area."
Shell Alaska spokesman Curtis Smith said drilling could resume in 2014.
"It's possible, depending on the result of ongoing reviews and the readiness [of] our rigs, and frankly the confidence that lessons learned from our 2012 drilling program have been fully incorporated."
Damage to the Kulluk will be fully assessed at the shipyard.
"Even before we get a closer look at these vessels, we've made an internal decision to pause," Smith said. "The overriding factor is our commitment to a drilling program that meets Shell's high standards for safety and operational excellence."
Share Tools
Latest North News Headlines
- Cree election not publicized enough, says youth chief
- One James Bay Cree Youth Chief says the nominations for regional Cree leadership are low because of a lack of publicity. more »
- Man charged in Pond Inlet sexual assault
- A 21-year-old man has been charged in a case of sexual assault reported six months ago in Pond Inlet, Nunavut. more »
- Boats collide, killing 77-year-old woman
- A 77-year-old woman is dead after two boats collided outside Trout Lake, N.W.T., Wednesday afternoon. more »
- Police deem N.W.T. woman's death suspicious
- The RCMP in Fort Resolution, N.W.T., are treating the death of 23-year-old Melissa Payne as suspicious. more »
Must Watch
Top News Headlines
- Toronto Mayor Rob Ford fires chief of staff
- A week after bombshell allegations that Toronto Mayor Rob ford was videotaped smoking crack, the mayor's chief of staff was fired and Ford is continuing to stonewall reporters. more »
- Federal Court won't remove MPs over robocall allegations
- The Federal Court says it won't throw six MPs out of their seats over allegations of widespread vote suppression through automated robocalls in the 2011 federal election. more »
- Alleged Ford crack video seller not responding to calls
- The journalist who broke the story alleging Toronto Mayor Rob Ford was recorded on video smoking crack cocaine says he may never be able to get his hands on the evidence. more »
- Bridge collapses on Washington State highway
- The Washington State Patrol says the Interstate 5 bridge over the Skagit River at Mount Vernon has collapsed, dumping vehicles and people into the water. more »
- Police deem N.W.T. woman's death suspicious
- Body of missing Fort Resolution, N.W.T., woman found
- Japanese plane makes unscheduled landing in Whitehorse
- MMA fighter gets jail for assaulting ex-girlfriend
- Boats collide, killing 77-year-old woman
- Yukon couple hold record for longest marriage in country
- Iqaluit cab driver not guilty in dispute with laundromat owner
- Hunters not to blame for caribou decline, says NTI
- Yukoners knit wooly mammoth a new coat

