Roundtable Discussion; The Future of Mineral Sands. Watch the video here.

Less Ads, More Data, More Tools Register for FREE

Greens urge U.S. to refuse Shell's final Arctic drilling permits

Tue, 14th Jul 2015 22:41

By Timothy Gardner

WASHINGTON, July 14 (Reuters) - Environmental groups onTuesday urged the U.S. government not to grant Royal Dutch Shell final permits for Arctic oil exploration after anicebreaker with safety equipment to cap wells was put out ofaction.

Ten groups, including Oceana, Greenpeace, and the SierraClub, said in a letter that under Shell's exploration plans, theU.S. Interior Department cannot allow it to begin exploring foroil in the Chukchi Sea off northern Alaska while the icebreaker,the Fennica, is unavailable.

Shell is sending the Fennica to Portland, Oregon for repairsafter crew discovered a 39 inch (1 meter) gash on the ship'shull last week. It is believed that a shoalcaused the rip, even though the Fennica was in charted waters.

The company is hoping to return to Arctic drilling laterthis month for the first time since 2012, when it lost controlof an oil rig forcing an evacuation of 18 workers in high seasby the Coast Guard. The Kulluk rig grounded and had to bescrapped.

"Shell's continuing problems make clear that the company hasnot remedied the systemic deficiencies made evident in 2012 andthe (Interior Department) should not grant further approvals,"the letter to U.S. Interior Secretary Sally Jewell said.

The Fennica, one of two icebreakers Shell is leasing,contains a capping stack, or emergency equipment that couldcontain a blown-out well. Shell is sending nearly 29 ships tothe Chukchi and has spent about $7 billion on Arctic drilling. It hopes to start producing oil offshore in 10 or 15 years.

On Monday, Shell said it can proceed with preparatorydrilling in the Chukchi before the Fennica returns to the regionas long as it does not go to the undersea zone that contains oiland gas. The company had no comment on Tuesday about the letter.

Shell needs the two final authorizations, calledapplications for permits to drill, from the Interior Departmentbefore starting this season. (Reporting by Timothy Gardner; Editing by Andrew Hay)

Related Shares

More News
27 Oct 2022 07:30

Shell announces $4bn share buyback as Q3 profits beat expectations

(Sharecast News) - Oil giant Shell announced a $4bn share buyback on Thursday as it posted better-than-expected third-quarter profits.

21 Apr 2022 11:53

Shell turning to China to offload Russian business - report

(Sharecast News) - Shell is reportedly looking to China as it looks to offload its Russian business.

15 Feb 2022 15:54

Shell preparing to sell North Sea gas fields - report

(Sharecast News) - Shell is reportedly preparing to launch the sale of its stakes in two clusters of gas fields in the southern British North Sea, par...

7 Feb 2022 10:52

Berenberg nudges up target price on Shell

(Sharecast News) - Analysts at Berenberg slightly raised their target price on oil and gas giant Shell from 2,350.0p to 2,375.0p on Monday, stating th...

31 Jan 2022 10:53

TOP NEWS SUMMARY: Shell and BHP share unifications go into effect

TOP NEWS SUMMARY: Shell and BHP share unifications go into effect

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.