Shell drops plans for Beaufort Sea drilling in 2011

Paula Dittrick
OGJ Senior Staff Writer

HOUSTON, Feb. 7 -- Shell Alaska dropped its plans to drill in the Beaufort Sea this year, Shell Alaska Vice-Pres. Peter Slaiby said during a Feb. 3 news conference in Anchorage. The announcement came after a ruling last month revoked federal clean air permits to allow the drilling.

A federal environmental appeals board in January ruled the US Environmental Protection Agency needs to do more extensive analysis of nitrogen dioxide emissions from vessels involved in drilling operations. The ruling was based upon appeals from Alaska Native and conservation groups.

Slaiby said Shell’s decision to delay Beaufort exploratory drilling stemmed from “continuous regulatory delays.” Royal Dutch Shell PLC has worked for 5 years and invested more than $50 million pursuing air permits to drill in Arctic waters off Alaska, he said.

Shell intends to work closely with the EPA to identify an improved process for delivering air permits for 2012, Slaiby said.

“Shell has dedicated significant time and resources to commencing a world-class, environmentally responsible exploration program for Alaska, and the loss of another drilling season is extremely disappointing,” he said.

Previously, Shell Alaska had planned exploratory drilling during 2010 in both the Chukchi and Beaufort seas, but those plans were put on hold following the oil spill in the Gulf of Mexico from the deepwater Macondo well operated by BP PLC.

Sen. Lisa Murkowski (R-Alas.) issued a statement after Shell’s announcement. Murkowski said the government’s decision could “result in all of us paying more for gasoline—not to mention the loss of jobs and revenue that responsible development brings.”

“We talk a lot about the economy, but rarely do our actions match our rhetoric,” Murkowski said. “That’s unfortunate.”

Shell Offshore Inc. last year submitted an application to the US Bureau of Ocean Energy Management, Regulation, and Enforcement for a permit to drill an exploration well in the Beaufort Sea in 2011. The application was for the shallow waters of Camden Bay (OGJ Online, Oct. 7, 2010).

Contact Paula Dittrick at paulad@ogjonline.com.

Related Articles

PDO to use solar to displace gas in thermal EOR work

07/09/2015

Petroleum Development Oman (PDO) plans to use a solar plant to displace natural gas in enhanced oil recovery (EOR) efforts in Amal oil field.

Ending crude export ban would help rural US areas, House panel told

07/09/2015 Rural US communities generally have benefited from the nation’s crude oil production renaissance, and potentially could be helped more if restricti...

MOL completes Ithaca Norge acquisition

07/09/2015 MOL Group, Budapest, has completed its acquisition of Ithaca Petroleum Norge from Ithaca Energy Inc. for $60 million plus possible bonuses of up to...

Husky Energy reports unplanned maintenance at Lloydminster upgrader

07/08/2015

Husky Energy Inc. reported unplanned maintenance at its Lloydminster heavy oil upgrader in Saskatchewan.

AER orders Apache Canada to address integrity of pipeline system

07/08/2015 Alberta Energy Regulator has directed Apache Canada Ltd. to address the integrity of its pipeline management system because of “failure to follow p...

Stone confirms oil pay with Cardona development well in deepwater gulf

07/08/2015 Stone Energy Corp., Lafayette, La., encountered 288 ft of net pay in two intervals with its Cardona No. 6 development well on Mississippi Canyon Bl...

EIA: US oil output fell 50,000 b/d in May

07/07/2015 Total US crude oil production dropped 50,000 b/d in May compared with April and is expected to continue falling through early 2016 before growth re...

Cidade de Itaguai FPSO anchors in Lula field

07/07/2015 Petroleo Brasileiro SA (Petrobras) reported that the Cidade de Itaguai floating production, storage, and offloading vessel has arrived at the Irace...

Statoil lets Johan Sverdrup drilling contract to Baker Hughes

07/07/2015

Statoil ASA has let an integrating drilling contract valued at 1.5 billion kroner to Baker Hughes Norway for the Johan Sverdrup development.

White Papers

UAS Integration for Infrastructure: More than Just Flying

Oil and gas companies recognize the benefits that the use of drones or unmanned aerial systems (UAS) c...

Solutions to Financial Distress Resulting from a Weak Oil and Gas Price Environment

The oil and gas industry is in the midst of a prolonged worldwide downturn in commodity prices. While ...
Sponsored by

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by
Available Webcasts


The Resilient Oilfield in the Internet of Things World

When Tue, Sep 22, 2015

As we hear about the hype surrounding the Internet of Things, the oil and gas industry is questioning what is different than what is already being done. What is new?  Using sensors and connecting devices is nothing new to our mode of business and in many ways the industry exemplifies many principles of an industrial internet of things. How does the Internet of Things impact the oil and gas industry?

Prolific instrumentation and automation digitized the industry and has changed the approach to business models calling for a systems led approach.  Resilient Systems have the ability to adapt to changing circumstances while maintaining their central purpose.  A resilient system, such as Maximo, allows an asset intensive organization to leverage connected devices by merging real-time asset information with other critical asset information and using that information to create a more agile organization.  

Join this webcast, sponsored by IBM, to learn how about Internet of Things capabilities and resilient systems are impacting the landscape of the oil and gas industry.

register:WEBCAST



On Demand

Taking the Headache out of Fuel License and Exemption Certificates: How to Ensure Compliance

Tue, Aug 25, 2015

This webinar, brought to you by Avalara, will detail the challenges of tax document management, as well as recommend solutions for fuel suppliers. You will learn:

-    Why it’s critical to track business partner licenses and exemption documents
-    The four key business challenges of ensuring tax compliance through document management
-    Best practice business processes to minimize exposure to tax errors

register:WEBCAST


Driving Growth and Efficiency with Deep Insights into Operational Data

Wed, Aug 19, 2015

Capitalizing on today’s momentum in Oil & Gas requires operational excellence based on a clear view of what your business data is telling you. Which is why nearly half* of oil and gas companies have deployed SAP HANA or have it on their roadmap.

Join SAP and Red Hat to learn more about using data to drive process improvements and identify new opportunities with the SAP HANA platform running on Red Hat Enterprise Linux. This webinar will also show how your choice of infrastructure impacts the performance of core business applications and your ability to achieve data-driven insights quickly and reliably.

*48% use SAP, http://go.sap.com/solution/industry/oil-gas.html

register:WEBCAST


OGJ's Midyear Forecast 2015

Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected