Shell Oil’s 2012 Arctic Drilling Window Closing

12:08 pm in Uncategorized by EdwardTeller

On Monday, Interior Secretary, Ken Salazar, wrapping up a trip to Alaska’s North Slope and the offshore Arctic areas where Shell is hoping to drill late this summer, held a press availability:

The opportunity for Shell Oil Co. to drill exploratory wells this year in Alaska’s Arctic is rapidly diminishing and it’s a situation of Shell’s own making, Interior Secretary Ken Salazar told reporters in Alaska on Monday.

While delays already have led Shell to scale back plans for drilling a total of five wells this year in the Chukchi and Beafort seas, Shell maintained through a spokesman that there’s still time before freezeup to complete some wells and begin work on others.

The main holdup has been transforming a 38-year-old barge into an oil spill containment vessel. Shell also has been dealing with lingering sea ice and challenges with an air emissions permit for a drilling rig.

Salazar spent the weekend in Alaska touring the North Slope and flew some 40 miles over sea ice and water north of Barrow. While he saw significant sea ice, he said that the area around Shell’s most promising prospect, the Burger find in the Chukchi Sea, was clear.

The oil spill containment vessel, now called the Arctic Challenger, is a condition of Shell’s approved exploration plan and must pass Coast Guard inspections and an in-water test before it can be certified for the Arctic, officials have said.

“If they had got it done, they may already be up there today,” Salazar said. “Because the waters in the Chukchi around the so-called Burger find are in fact already open. So it’s not a matter of ice. It’s a matter of whether or not Shell has the mechanical capability to be able to comply with the exploration effort that had been approved by the government.”

I wrote here last week that the “Chances of Shell Oil Drilling in Arctic in 2012 [are] Diminishing by the Hour.”  It didn’t seem as obvious then as it might seem now to Salazar, having toured the potential drilling areas.  And today, Kim Murphy, writing another article for the Los Angeles Times about the trouble-plagued oil recovery vessel Arctic Challenger, notes:

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