Posts Tagged ‘Royal Dutch Shell’

Melting Arctic sea ice drives walruses onto land

August 25, 2011

By Deborah Zabarenko, Environment Correspondent
WASHINGTON | Wed Aug 17, 2011 4:52pm EDT
(Reuters) – Original article here

Photo Credit: Liz Labunski/USFWS

Fast-melting Arctic sea ice appears to be pushing walruses to haul themselves out onto land, and many are moving around the area where oil leases have been sold, the U.S. Geological Survey reports.

Walruses are accomplished divers and frequently plunge hundreds of feet (meters) to the bottom of the continental shelf to feed. But they use sea ice as platforms to give birth, nurse their young and elude predators, and when sea ice is scarce or non-existent, as it has been this summer, they come up on land.

Last September, the loss of sea ice caused an estimated 10,000 to 20,000 walruses to venture onto land, and as sea ice melts reached a record last month, U.S. government scientists are working with Alaskan villagers to put radio transmitters on some of the hauled-out walruses to track their movements around the Chukchi Sea.

“The ice is very widely dispersed and there is little of it left over the continental shelf,” researcher Chad Jay of the U.S. Geological Survey said in a statement on Wednesday. “Based on our tracking data, the walruses appear to be spreading out and spending quite a bit of time looking for sea ice.”

The loss of sea ice puts Pacific walruses at risk, according to the U.S. Fish and Wildlife Service, but other, higher-priority species will get attention first. In February, the wildlife service listed Pacific walruses as candidates for protection, though not protection itself.

Walruses are protected under the Marine Mammal Protection Act, which means these animals cannot be harvested, imported, exported or be part of interstate commerce.

Polar bears, which also use sea ice in the Chukchi Sea as platforms for hunting, have been designated as threatened under the U.S. Endangered Species Act because of declining sea ice in the Arctic.

Compared to last year’s massive haul-out, there are few walruses on land, and there is no solid count, Jay said.

“There is a lot less ice than there used to be on the continental shelf this time of year,” he said. “So we might be headed into a new normal.”

Transmissions from the radio-tagged walruses offer a good picture of where these creatures are in the Chukchi Sea in a U.S. Geological Survey graphic updated approximately weekly.

SHRINKING ARCTIC SEA ICE

Available online here , the graphic shows where the walruses were when they were first tagged (shown as red Xs) and how they moved around the water (shown as yellow dots).

The graphic also shows changes in sea ice cover in the far north, indicating nearly ice-free conditions in areas where the walruses are moving. Many are within the boundaries of an oil lease sale area that stretches along the northwestern Alaska coast and far into the Chukchi Sea.

Royal Dutch Shell, ConocoPhillips and Statoil hold leases in the Chukchi Sea, though no drilling has started.

Last month saw Arctic sea ice drop to its lowest extent — meaning that it covered the smallest area — for any July since satellite records began in 1979, according to the U.S. National Snow and Ice Data Center. Typically, Arctic sea ice hits its lowest extent for the year in September.

This record-low ice extent for July is lower than July ice extent in 2007, when ice extent shrank in September to its smallest area in the satellite record.

(Editing by Sandra Maler)

Russia Embraces Offshore Arctic Drilling

February 26, 2011

By ANDREW E. KRAMER and CLIFFORD KRAUSS Published: February 15, 2011 in the New York Times – Original article here

The Prirazlomnaya oil platform was brought to the Arctic seaport of Murmansk, 906 miles north of Moscow, to be adjusted.

MOSCOW — The Arctic Ocean is a forbidding place for oil drillers. But that is not stopping Russia from jumping in — or Western oil companies from eagerly following.

Russia, where onshore oil reserves are slowly dwindling, last month signed an Arctic exploration deal with the British petroleum giant BP, whose offshore drilling prospects in the United States were dimmed by the Gulf of Mexico disaster last year. Other Western oil companies, recognizing Moscow’s openness to new ocean drilling, are now having similar discussions with Russia.

New oil from Russia could prove vital to world supplies in coming decades, now that it has surpassed Saudi Arabia as the world’s biggest oil producer, and as long as global demand for oil continues to rise.

But as the offshore Russian efforts proceed, the oil companies will be venturing where other big countries ringing the Arctic Ocean — most notably the United States and Canada — have been wary of letting oil field development proceed, for both safety and environmental reasons.

After the BP accident in the gulf last year highlighted the consequences of a catastrophic ocean spill, American and Canadian regulators focused on the special challenges in the Arctic.

The ice pack and icebergs pose various threats to drilling rigs and crews. And if oil were spilled in the winter, cleanup would take place in the total darkness that engulfs the region during those months.

Earlier this month, Royal Dutch Shell postponed plans for drilling off Alaska’s Arctic coast, as the company continued to face hurdles from wary Washington regulators.

The Russians, who control far more prospective drilling area in the Arctic Ocean than the United States and Canada combined, take a far different view.

As its Siberian oil fields mature, daily output in Russia, without new development, could be reduced by nearly a million barrels by the year 2035, according to the International Energy Agency. With its economy dependent on oil and gas, which make up about 60 percent of all exports, Russia sees little choice but to go offshore — using foreign partners to provide expertise and share the billions of dollars in development costs.

And if anything, the gulf disaster encouraged Russia to push ahead with BP as its first partner. In the view of Russia’s prime minister, Vladimir V. Putin, BP is the safest company to hire for offshore work today, having learned its lesson in the gulf.

“One beaten man is worth two unbeaten men,” Mr. Putin said, citing a Russian proverb, after BP signed its Arctic deal with Rosneft, the Russian state-owned oil company. The joint venture calls for the companies to explore three sections in the Kara Sea, an icebound coastal backwater north of central Russia.

The BP agreement touched off little public reaction in Russia, in part because the environmental movement is weak but also because opposition politicians have no way to block or hinder the process.

The Arctic holds one-fifth of the world’s undiscovered, recoverable oil and natural gas, the United States Geological Survey estimates. According to a 2009 report by the Energy Department, 43 of the 61 significant Arctic oil and gas fields are in Russia. The Russian side of the Arctic is particularly rich in natural gas, while the North American side is richer in oil.

While the United States and Canada balk, other countries are clearing Arctic space for the industry. Norway, which last year settled a territorial dispute with Russia, is preparing to open new Arctic areas for drilling.

Last year Greenland, which became semi-autonomous from Denmark in 2009, allowed Cairn Energy to do some preliminary drilling. Cairn, a Scottish company, is planning four more wells this year, while Exxon MobilChevron and Shell are also expected to drill in the area over the next few years.

But of the five countries with Arctic Ocean coastline, Russia has the most at stake in exploring and developing the region.

“Russia is one of the fundamental building blocks in world oil supply,” said Daniel Yergin, the oil historian and chairman of IHS Cambridge Energy Research Associates. “It has a critical role in the global energy balance. The Arctic will be one of the critical factors in determining how much oil Russia is producing in 15 years and exporting to the rest of the world.”

Following the template of the BP deal, Rosneft is negotiating joint venture agreements with other major oil companies shut out of North America and intent on exploring the Arctic continental shelf off Russia’s northern coast. That includes Shell, its chief executive said last month. Rosneft’s chief executive, Eduard Y. Khudainatov, said other foreign oil company representatives were lining up outside his office these days.

Artur N. Chilingarov, a polar explorer, has embodied Moscow’s sweeping Arctic ambitions ever since he rode in a minisubmarine and placed a Russian flag on the bottom of the ocean under the North Pole, claiming it for Russia, in a 2007 expedition.

“The future is on the shelf,” Mr. Chilingarov, a member of Russia’s Parliament, the Duma, said in an interview. “We already pumped the land dry.”

Russia has been a dominant Arctic oil power since the Soviet Union began making important discoveries in the land-based Tazovskoye field on the shore of the Ob Bay in Siberia in 1962. The United States was not far behind with the discovery of the shallow-water Prudhoe Bay field in Alaska five years later.

What is new is the move offshore.

The waters of the Arctic are particularly perilous for drilling because of the extreme cold, long periods of darkness, dense fogs and hurricane-strength winds. Pervasive ice cover for eight to nine months out of the year can block relief ships in case of a blowout. And, as environmentalists note, whales, polar bears and other species depend on the region’s fragile habitats.

Such concerns have blocked new drilling in Alaska’s Arctic waters since 2003, despite a steep decline in oil production in the state and intensive lobbying by oil companies.

In Canada, Arctic offshore drilling is delayed as the National Energy Board is reviewing its regulations after the gulf spill.

Mr. Chilingarov placed a Russian flag on the bottom of the ocean under the North Pole, claiming the area for Russia, in a 2007 polar expedition.

But Russia is pressing ahead. The central decision opening the Russian Arctic easily passed Parliament in 2008, as an amendment to a law on subsoil resources. It allowed the ministry of natural resources to transfer offshore blocks to state-controlled oil companies in a no-bid process that does not involve detailed environmental reviews.

Until recently Russia regarded the Kara Sea, where BP and Rosneft intend to drill, as primarily an icy dump. For years, the Soviet navy released nuclear waste into the sea, including several spent submarine reactors that were dropped overboard at undisclosed locations.

Rosneft executives say their exploration drilling will not stir up radiation.

But in any case, Mr. Chilingarov, the advocate for Russian polar claims, said a little radiation was nothing to worry about. He said that his son was born on Novaya Zemlya, an Arctic testing site for nuclear weapons during the cold war, and is now “a bit taller than me.”

“In small doses,” Mr. Chilingarov said, “radiation is good for growth.”

Andrew E. Kramer reported from Moscow and Clifford Krauss from Houston.

This article has been revised to reflect the following correction:

Correction: February 19, 2011
A chart on Wednesday with an article about Russia’s eagerness to drill for oil in the Arctic Ocean gave an incorrect unit of measurement for estimates of natural gas reserves in the region. The shaded areas in the chart are believed to hold more than 100 trillion cubic feet of natural gas, not cubic tons. The unit of measurement was correct in an online version of the chart, available at nytimes.com/business.

Arctic Drilling Poses Untold Risks, Study Concludes

November 13, 2010

The idiocy continues.
Hornfar

Original article here in The New York Times “Green” blog

By LESLIE KAUFMAN

An image of a an oil-spill response vessel from a Shell commercial promoting Arctic drilling.

Green: Science

Now that the moratorium on deep-sea oil and gas drilling has been lifted by the Obama administration, the battle for the Arctic is heating up again.

The suspension of deep-sea drilling was of course a reaction to the disastrous blowout in the Gulf of Mexico that gushed from April to July, producing the biggest offshore oil spill in the nation’s history. The moratorium was lifted last month, about six weeks before a Nov. 30 expiration date.

As soon as it was lifted, my colleague Cliff Krauss reported last week, Royal Dutch Shell began lobbying eagerly to get final approval for its long-delayed plans for exploratory drilling in Alaska’s Beaufort Sea. The petro-giant is paying for national advertising as part of a campaign to convince the public and the government that it is taking safety precautions that would prevent the kind of catastrophe that unfolded in the gulf from happening in the Arctic.

Yet the Arctic is well known to be more fragile ecologically than the gulf. And on Thursday, the Pew Environment Group released a detailed report brimming with charts and maps that explores the question of how well the government and industry would be equipped to deal with a blowout and spill there. The report concludes, not so well. And here are some word-for-word highlights on why:

  • The Arctic Ocean is a unique operating environment, and the characteristics of the Arctic OCS [outer continental shelf] — its remote location, extreme climate and dynamic sea ice—exacerbate the risks and consequences of oil spills while complicating cleanup.
  • Oil spill contingency plans often underestimate the probability and consequence of catastrophic blowouts, particularly for frontier offshore drilling in the U.S. Arctic Ocean.
  • The impact of an oil well blowout in the U.S. Arctic Ocean could devastate an already stressed ecosystem, and there is very little baseline science upon which to anticipate the impact or estimate damage.
  • Oil spill cleanup technologies and systems are unproved in the Arctic Ocean, and recent laboratory and field trials (including the Joint Industry Project) have evaluated only discrete technologies under controlled conditions.
  • Certain environmental and weather conditions would preclude an oil spill response in the Arctic Ocean, yet an Arctic spill response gap is not incorporated into existing oil spill contingency plans or risk evaluations.

So the researchers concluded that far more study is needed of the Arctic marine ecosystem. Modeling should be devised to project the trajectory of oil flow in sea ice conditions should a spill occur, they added.

And deployment exercises should be conducted to determine how effective a spill response would be in such a remote, sparsely populated region “before introduction of new offshore oil spill risks,” the report said. (The study includes a detailed critique of Shell’s planning scenarios in the Chukchi and Beaufort Seas.)

In other words, the study’s message is that the Arctic is not ready for such deep-sea drilling operations.

Asked about the Pew report’s conclusions, a Shell spokeswoman, Kelly op de Weegh, said in an e-mail that the company had “taken extraordinary steps to compensate for the harsh conditions we expect to encounter in the Arctic, and that is evident in all aspects of our program, including ice management, a commitment to oil spill response and new baseline science.”

“Our Arctic exploration plan has been scrutinized by regulators, stakeholders and the courts, and we look forward to demonstrating once again that we can operate safely and responsibly in the Arctic,” she added.

The study’s conclusion was also disputed by lawmakers who support the drilling. “I disagree with Pew’s insistence on an unspecified moratorium on Arctic development, because the perfect set of conditions simply never occurs,” Senator Mark Begich, Democrat of Alaska, said in a statement. “I’ll continue to push the Obama administration for responsible Arctic development now to help meet America’s energy, national and economic security.”