New NRDC Report Shows Arctic Oil Development Needs to be Put on Hold

August 23, 2012 by admin  
Filed under Toxic Spills, Uncategorized

With the Department of the Interior considering whether to grant Shell permits to drill in America’s Arctic Ocean, and Shell scrambling to get started amid a flurry of problems, a new NRDC report details the huge risks that come with the rush toward oil and gas development off of Alaska’s North Slope.

The findings are eye-opening for anybody who has listened to Big Oil’s laissez-faire approach to drilling in one of the world’s last truly pristine and wild places.

The author of the report is Jeff Goodyear, Ph.D., an accomplished oceanographer and marine ecologist with over twenty-five years of experience contributing to new scientific discoveries, who has led field research projects in the Alaskan and Canadian Arctic. This report combines his expertise with interviews of local residents, scientists and officials. To read the full report, click here. Some highlights:

  • Alaska’s North Slope lacks the infrastructure to support any significant spill cleanup. Essentially, there are no roads, few airports, no deep-water ports and the nearest Coast Guard base is 1,000 miles away.
  • The likelihood of spills in the Arctic is high – too high. In fact, the report shows, on average there has been a spill of oil or associated chemicals once a day since oil and gas development began on the North Slope.
  • Shell’s claims about its capabilities to clean up an oil spill in icy water are overblown. Traditional means of recovery and clean up—booms and skimmers, in-situ burning, and chemical dispersants—have each been shown to be dramatically less effective in conditions typical of the Arctic than in calmer, warmer waters such as those in the Gulf of Mexico. Given these factors, effectively responding to an oil spill would be nearly impossible.

The release of this report could not be more timely—the final drill permits have not yet been issued and last week Secretary of the Interior Ken Salazar announced he would “hold [Shell’s] feet to the fire in terms of making sure that we are doing everything we can to abide by the standards and regulations that we have set and make sure the environment in the Arctic seas are protected.”

Peter E. Slaiby, Shell’s vice president in charge of Alaskan operations, responded, “We absolutely expect to drill this year.” Shell is chomping at the bit to begin drilling in the final weeks of the already short window of relief from ocean ice. However, the Arctic Challenger, a major component of Shell’s oil spill response plan, is undergoing a major retrofit in a shipyard near Seattle and is not yet certified by the Coast Guard. Raising additional concerns over Shell’s preparedness to safely and responsibly operate in the harsh, unpredictable conditions of the Arctic Ocean is the incident last month when the Noble Discoverer (a 1960’s log ship converted into a drill ship in the 1970’s) slipped anchor while in harbor.

Shell is acting as if drilling this summer is a done deal, as if final approval has been granted. It has not. And Shell is not ready to begin drilling in Arctic waters. The administration must absolutely hold Shell to its commitments. Secretary Salazar must stand by his words, “It’s a necessity for Shell to be able to demonstrate that they have met regulatory requirements…if they are not met, there won’t be Shell exploration efforts that will occur this year.”

America’s Arctic Ocean is too precious to wager on hasty oil and gas development. The risks involved, as the report shows, warrant postponing offshore drilling in the Arctic until comprehensive research can be completed and a proven and thoroughly effective system for responding to spills is in place.

The administration needs to hold Shell’s feet to the fire.

Clint Kincaid aided Chuck Clusen with this post.

Article source: http://switchboard.nrdc.org/blogs/cclusen/new_nrdc_report_shows_arctic_o.html

Analysis: After BP spill, U.S. drill permits slow to a trickle

April 19, 2011 by admin  
Filed under Toxic Spills


HOUSTON |
Mon Apr 18, 2011 5:55pm IST

HOUSTON (Reuters) - Nearly a year after BP Plc’s Gulf of Mexico oil spill spurred a shutdown of new U.S. deepwater oil and gas drilling, offshore regulators have begun to approve a trickle of new permits.

But the 10 new wells that have received permits from the newly created U.S. Bureau of Ocean Energy Management so far this year pale in comparison to the rate of permitting in prior years, according to a Reuters analysis of permits.

The pace of government-issued permits so far in 2011 is about a third the rate for the same period in each of the previous five years, 40 versus an average of 119 in 2006 through 2010.

Oil company executives are more hopeful they can get back to work after months of regulatory and legal delays after the worst offshore oil spill in U.S. history prompted President Barack Obama to ban deepwater drilling from May 27 to October 12 last year. The Gulf of Mexico provides 30 percent of U.S. oil production and 11 percent of natural gas output.

With crude oil prices soaring to over $100 a barrel — and gasoline flirting with $4 a gallon — lawmakers have been pressuring the administration to remove impediments to domestic U.S. energy production.

The permitting halt blocked enough new drilling that in 2011 and 2012, Gulf oil production will fall by 190,000 barrels per day, or about 12.7 percent of its current level, according to data from the U.S. Energy Information Administration, the statistical arm of the Energy Department.

“You need new wells, new production coming online to offset the natural decline,” said Doug Morris, an EIA analyst.

Most new production comes from deepwater projects like BP’s Macondo, which blew out on April 20, 2010, killing 11 workers, sinking the Deepwater Horizon rig and spewing more than 4 million barrels of oil into the ocean.

Industry officials complained that lack of clarity over new rules spurred a “de-facto” moratorium on Gulf drilling that stretched months longer. With new regulations in hand, Gulf of Mexico drillers are getting back to work.

“We could comply with whatever they wanted. We just needed them to say what they wanted,” said John Hollowell, executive vice president of the deepwater Gulf for Shell Oil Company. “I think the fog has lifted in that regard.”

Stringent new requirements called for the industry to prove it had rapid-response systems that could control a Macondo-like spill. Exxon Mobil Corp and Helix Energy Solutions Group organized consortiums to provide such systems.

With that, permit approvals have begun and “continue at a steady pace,” said Melissa Schwartz, spokeswoman for the U.S. Bureau of Ocean Energy Management.

NOT A SPIGOT

The pace of deepwater permitting probably will be slow in coming months as the government recruits more scientists and engineers to apply more stringent rules, said analyst Kevin Book of Washington-based ClearView Energy Partners.

“It’s not a spigot. It’s going to be a drip valve. They’re going to trickle them out,” Book said.

Article source: http://in.reuters.com/article/2011/04/18/us-oil-spill-permits-idINTRE73H0CY20110418