• 4 minutes Is $60/Bbl WTI still considered a break even for Shale Oil
  • 7 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 11 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 15 minutes Wonders of Shale- Gas,bringing investments and jobs to the US
  • 14 hours Old - New Kim: Nuclear Negotiations With U. S. Will Never Resume Unless Washington Changes Its Position
  • 41 mins IMO 2020 could create fierce competition for scarce water resources
  • 7 hours Theresa May to Step Down
  • 10 hours IMO2020 To scrub or not to scrub
  • 13 hours India After Elections: Economy And Hindu Are The First Modi’s Challenges
  • 6 hours Evil Awakens: Fascist Symbols And Rhetoric On Rise In Italian EU Vote
  • 3 hours Apartheid Is Still There: Post-apartheid South Africa Is World’s Most Unequal Country
  • 2 hours IRAN makes threats, rattles sabre . . . . U.S. makes threats, rattles sabre . . . . IRAQ steps up and plays the mediator. THIS ALLOWS BOTH SIDES TO "SAVE FACE". Then serious negotiations start.
  • 10 hours Devastating Sanctions: Iran and Venezuela hurting
  • 3 hours Total nonsense in climate debate
  • 227 days Epic Fail as Solar Crashes and Wind Refuses to Blow
  • 12 hours Compensation For A Trade War: Argentina’s Financial Crisis Creates An Opportunity For China
  • 8 hours Level-Headed Analysis of the Future of U.S. Shale Oil Industry
Vietnam Is On The Verge Of An Energy Crisis

Vietnam Is On The Verge Of An Energy Crisis

As Vietnam looks down the…

Shell to Abandon Arctic Oil Exploration Plans for 2013

Since winning licenses to drill for oil in Alaska’s Beaufort and Chukchi Seas in 2005, Royal Dutch Shell (NYSE: RDS.A)has spent $4.5 billion, yet all of its efforts have been met by setback after setback at every turn. Shell has now decided to call off all Arctic drilling activity this year giving it time to prepare fully for the 2014 season.

Shells operations in the Arctic are being closely followed by many in the industry to try and determine whether the risks are worth the reward, so taking time to be extra sure that everything is ready is a sensible strategy.

After spending several years developing the correct equipment that could operate in the extreme environment found in the Arctic, and jumping regulatory hurdles to prove its ships and rigs were ready, Shell began exploration last year.

Related article: Oil Industry Unfazed by Shell's Arctic Follies

During the year one of its rigs grounded just off the coast of Kodiak Island, and the other came perilously close to grounding in Unalaska Bay after it slipped its anchor. Support vessels and safety equipment also experienced problems; the containment dome, an important part of the equipment needed to deal with oil leaks, failed to earn important certificates, a fire broke out on the Noble Discoverer, and the Aiviq tow ship experienced engine failures.

Earlier this month Shell announced that both of its drill rigs were being sent to Asia for repairs, and now they have decided to forego the entire Arctic drilling season, which starts in just a few weeks, in order to “give us time to ensure the readiness of all our equipment and people,” according to Marvin Odum, director of Upstream Americas.

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News