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LONDON (Alliance News) - Former BP PLC Chief Executive John Browne said fellow FTSE 100 giant Royal Dutch Shell PLC is risking its long term reputation and finances by deciding to drill n the Arctic, the BBC reported Wednesday.
Shell has recently started preliminary drilling in Alaska's Chukchi Sea following several setbacks, including protesters blocking vessels and equipment deliveries.
Both Browne and Shell Chief Executive Ben van Beurden gave interviews to BBC for a Radio 4 documentary concerning climate change, where Browne said Shell should not be prioritising the Arctic as an area for exploration for a variety of reasons, especially in the current downturn.
"I'm not chairman of Shell. But I think [Arctic drilling] is very expensive and I would always go for hydrocarbons which have less cost and effort involved. Some companies will genuinely believe - they may be right - that they can produce oil safely and environmentally securely in extraordinary conditions" said Browne.
"[But] I've never been a great supporter of right-on-the-margin development, partly because of the cost," he added.
Shell's van Beurden admitted the Arctic environment is a lot more "fragile" and "unforgiving" in terms of climate and weather and that overall the area comes with an "increased risk profile", the BBC said.
"You have to make a judgement: Can I do this in a responsible way?" he said. "That is a bit of personal journey that I had to go through as well and many others associated with the project - we believe that we can responsibly explore for hydrocarbons in Alaska."
"Whether that means that we can develop this in a way that makes commercial sense remains to be seen," van Beurden added.
http://www.bbc.co.uk/news/science-environment-33872486
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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