Interior Approves Arctic Drilling off Alaska, But Not in Oil Zone Yet
SEAFOODNEWS.COM [Bloomberg] By Mark Drajem - July 23, 2015
Royal Dutch Shell Plc received limited permits to drill two wells off Alaska’s Arctic coast, leaving the company still short of its desire to tap into the offshore oil reserves.
The U.S. Interior Department approved Shell’s applications to drill in the Chukchi Sea, while saying the company may not reach the oil reserves until safety equipment is in place. The company’s capping stack, a last line of defense against an uncontrolled well blowout, isn’t in the Arctic after the icebreaker hauling it had its hull damaged this month.
Once the capping stack arrives, Shell can apply to modify the drilling plan so that it can drill into the hydrocarbon zone, the Interior Department said in a statement. A capping stack can weigh 100 tons and plugs or redirects a blown-out well.
“Once we have determined the area is clear of sea ice, support vessels are in place, and the Polar Pioneer is safely anchored over the well site, drilling will begin,” said Kelly op de Weegh, a company spokeswoman. The Polar Pioneer is a drilling ship.
“This is an important approval today, and we look forward...
To Read Full Story Login Below.