US gives Shell final nod to drill for oil in Arctic

Baldino wrote that Shell has also applied to modify its permit for Burger V to drill to oil-bearing depths.

The US Department of the Interior permit allows Shell to drill in the oil-rich Chukchi Sea off the north-west coast of Alaska.

The Interior Department originally restricted Shell to drilling only the top sections of wells and not going deep enough to hit oil. It has been undergoing repairs at Vigor Industrial’s Portland, OR, shipyard after being forced back to Dutch Harbor, AK, after incurring a one inch wide by three foot long hull fracture. The vessel carries the “capping stack”, which the BSEE requires to be easily deployed ahead of drilling in potential oil-bearing zones “in the unlikely event of a loss of well control”.

Salerno stressed that the Arctic drilling taking place about 70 miles from Alaska’s northwest coastline is “being held to the highest safety, environmental protection, and emergency response standards”. Already, Shell has spent some billion in the mishap-prone venture, even before drilling a single well (the photo above is of the Kulluk, a drilling rig that ran aground in 2012 and last year was scrapped). “We remain committed to operating in a safe, environmentally responsible manner and look forward to evaluating what could potentially become a national energy resource base”.

“Shell has stationed safety and support equipment on site and has done everything asked and more, with the approval of federal regulators, to set up for this short drilling season – with no guarantee of success”, said NOIA President Randall Luthi.

Lawrence prefaced his criticism of the go-ahead to Shell by saying Obama has done more to fight climate change than “any other leader in world history”. But BSEE had ordered the company to halt after completing the top 3,000 feet, because critical emergency equipment – and the icebreaker used to deploy it – were not nearby to safeguard the work.

Smith said he could not say whether Shell would reach oil this year. That would provide a foundation for additional drilling in 2016, when Shell has said it intends to return to the region.

Shell is still prohibited from simultaneous drilling at Burger J and V. The company is required to maintain a minimum spacing of 15 miles between active drill rigs during exploration activities to avoid significant effects on walruses in the region.

Michael LeVine, Pacific senior counsel for the conservation group Oceana said the announcement was disappointing.