Wednesday, May 13, 2015

Shell’s Record Adds to the Anger of Those Opposing Arctic Drilling

When the Obama administration announced on Monday that it would let Shell drill for oil off the Alaskan coast this year if it met certain conditions, environmentalists were outraged — not just by the administration’s decision to allow drilling, but by its decision to give Shell, in particular, the green light. They said that the company’s track record in the Arctic should rule out another chance for it. Shell tried to drill in the Arctic in 2012, and the company’s multibillion-dollar drilling rig, the Kulluk, ran aground. The operator of a drill ship hired by Shell also pleaded guilty to eight felony offenses and agreed to pay $12.2 million over shoddy record-keeping that covered up hazardous conditions and jury-rigged equipment that discharged polluted water. Shell, Europe’s leading oil company, has spent about $7 billion in the Alaskan Arctic over the last decade, and drilled two shallow wells during the 2012 attempt. But the federal government did not allow the company to reach the deeper oil-bearing formations because the containment dome designed to cap a runaway well had been destroyed in testing. Shell executives said they had shaken up their Alaska team, putting in new management that would emphasize better management of contractors, readiness for any problems and contingency plans to care for any accidents...read more

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