Tag Archive | "Shell Oil"

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All In This Together


We think it’s strange, more than anything else – this near-universally held view among energy reporters from the Lower-48 that all native Alaskan communities oppose the responsible development of the state’s abundant energy resources.

Now, we’re not saying that the native population is a monolith on this question; some have consistently opposed exploration for their own unique reasons. Here, the Gwich’in community comes to mind – folks whose principles are so strongly aligned against development that they opposed exploration on the coastal plain of ANWR without even living there. But, by and large, the natives’ position on energy exploration is pretty similar to the rest of the Alaska’s: If you can do it right, and do it safely, and generate revenue and jobs in the process – why the hell would anyone oppose a thing like that?

Heck, according to the dispatch we read in the Anchorage paper this morning, some native groups are actually teaming up with local energy producers to ensure this work gets off the ground offshore:

Shell is partnering with Olgoonik Corp., the Native village corporation for the Chukchi Sea coast village of Wainwright, and Ukpeaegvik Inupiat Corp., the Native village corporation for Barrow, to operate logistics bases in Wainwright and Barrow this summer, Shell spokesman Curtis Smith said.

And apparently Shell’s not the only operator in the area looking to partner with local native communities to turn Wainwright into an effective logistics hub for its offshore exploration activities. Conoco’s contributing to the effort as well:

Conoco Phillips anticipates using Wainwright as a base for small vessels and as a helicopter base in its early exploration of the Chukchi Sea, a Conoco spokeswoman said. Conoco plans to drill in the Chukchi in 2012.

Posted in Beaufort and Chukchi Seas, Energy Security, Jobs, RevenueComments (0)

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Will You Permit Me a Dance?


Imagine a world where one, single government agency would study all potential impacts of energy exploration offshore, and then, upon completion of its work, however long it needed to take, be empowered to issue one, single permit to allow that project to proceed. Now imagine a world with no heaven — it’s easy if you try. No hell below us; above us only sky. Good tune, right? Snap out of it, man: No such government office exists. Even so, the good guys score a win every now and again – and the news out of EPA today on Shell’s pending air permit would certainly qualify as that.  

We’ll let Reuters’ Alaska writer take the story from here:

The U.S. Environmental Protection Agency on Thursday tentatively approved a key air-quality permit that would allow Royal Dutch Shell to conduct oil-drilling operations later this year in Alaska’s Chukchi Sea.

The permit would allow emissions from the drilling ship and associated vessels that Shell plans to mobilize in the Chukchi during the summer and autumn open-water season. …

“We very much appreciate the work done by EPA Region 10 to issue Shell a draft air permit for our 2010 Chukchi drilling program,” Pete Slaiby, Shell Alaska’s vice president, said in a statement. “The issuance of this draft permit starts the clock on a critical timeline of events that will ultimately determine if we can explore our Alaska leases in 2010,” he added.

Interestingly, word of EPA’s long-awaited decision on the air permit hit our mailboxes a full 18 hours before we read about it on the Reuters site. Who gets credit for breaking the story? Not exactly sure it’s the most scientific calculation ever made, but a press release from new Alaska senator Mark Begich migrated into our Outlook at 5:35 PM yesterday afternoon. And the sentiment it contained hit the target squarely on the mark:

“Alaska has long been America’s energy storehouse and a green light on this Shell development means Alaska’s energy will continue to help fuel our nation’s factories and automobiles,” Begich said. “It has become increasingly clear that energy policy is national security policy, and the U.S. needs to focus more on production of our rich energy resources right here at home. Let’s stop paying billions a year to hostile countries and start putting Alaskans to work.”

But while it might’ve slid into a home a half-second late, the Reuters piece is indispensible in one key regard: It adds some much needed context to the challenges that remain before a single drop of oil can ever be produced in the Chukchi. Shell manager Peter Slaiby lays out the landscape in an extended quote toward the bottom of the piece:

“While today’s announcement is good news, the length of the public comment period combined with likely appeals still pushes the boundaries of our ability to drill in 2010,” he said in his statement. “Obviously, the windows in which we have to operate are limited and a decision to move forward is an extremely expensive one. We will continue to monitor our options in the days ahead as we get closer to making that critical decision.”

Ah, yes: The public comment period. Where would we be without it? Seriously: Where would the Interior Department be if it weren’t able to access the sage advice and unique wisdom found in the thousands of identical form letters aggregated and sent in by well-meaning environmental groups? Of course, in reality, these folks aren’t interested in using the public comment period as a force for good – only as a means of delay.

Incidentally, the only public comment period that should matter, in our estimation, is the public hearing that EPA is holding with Alaskans next month – on February 16. The Anchorage paper sheds some additional light on how that effort is slated to go down:

The EPA is taking public comment on its proposed permit through Feb. 17, Begich said. The EPA has tentatively scheduled a public hearing for Feb. 16 in Barrow that would be teleconferenced in Wainwright, Point Lay, Point Hope and Atqasuk, communities that could be affected by Chukchi oil and gas development.

And, by the way: If you can’t make that hearing, you shouldn’t hesitate to shoot off an email from wherever you’re at. According to EPA, you should direct your correspondence here: R10ocsairpermits@epa.gov. And if you click here, you’ll find about 150 other ways in which you can make your voice heard.

Posted in Beaufort and Chukchi Seas, Energy Security, Jobs, RevenueComments (2)

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United We Stand: Asking the Secretary to Get Off His Can


In a letter this week from Alaska Senators Lisa Murkowski and Mark Begich and the state’s at-large congressman, Don Young, to Interior Secretary Ken Salazar, the delegation writes:

We write in support of Shell Oil’s application for the 2010 Chukchi Sea plan of exploration (POE). As you are well aware, the Chukchi represents what is certainly among the largest conventional, unexplored oil and natural gas fields in the U.S. Shell has spent years of work and billions of dollars to satisfy the complex logistics, planning, and permitting process required by law. We have previously communicated to you this significance of this energy resources to Alaska’s economy, the Trans-Alaska Pipeline, and domestic energy security.

So how much has Shell spent? Well, according to the delegations release:

Shell Oil, which early last year spent $2.1 billion for exploration rights in the Chukchi, has been unable to proceed with plans to drill up to two exploratory wells on its leases in 2010 because Interior officials have failed to complete a court-ordered environmental assessment in a timely manner.

The delegation didn’t mince words and was straightforward in their release.

Sen. Murkowski

“This delay has gone on long enough. It’s time to get development of Alaska’s resources back on track.”

Congressman Young

“Natural resources are the lifeblood of any developed country and the Chukchi Sea has some of the largest potential in the U.S.”

And in a separate release, under the headline “Begich Pushes Alaska Oil and Gas Development with Top Obama Officials; Calls for Aggressive OCS Development, Gasline Construction,” Alaska’s junior senator says:

“Alaska has long served as this nation’s energy storehouse and with responsible oil and gas development off our coast and a gasline, we can create thousands of good-paying American jobs, supply American homes and factories with clean-burning energy and improve our energy security.”

Sen. Begich’s release also noted that he’s not afraid to buck the party line and full-court press the administration on responsible, job-creating Alaskan energy development:

Begich urged approval of outer continental shelf (OCS) leasing in Alaska’s Chukchi Sea and said construction of an Alaska gasline project can create more American jobs than any single project on the horizon, at a meeting in his office with Interior Secretary Ken Salazar and Carol Browner, special assistant to the president at the White House Office of Energy and Climate Change.

Posted in Beaufort and Chukchi SeasComments (0)


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