One key reason for Statoil’s reluctance to rush into Arctic offshore operations is the cost involved. Shell has spent approximately $5 billion on equipment and preparations, only to see its state of the art oil spill response equipment “crushed like a beer can” in a routine test off Puget Sound. And both of the company’s specialized Arctic drilling rigs were so badly damaged in accidents last year that Shell will tow them to Asia for substantial repairs — delaying its own exploration plans until at least 2014.
By Climate Guest Blogger on Mar 9, 2013 at 11:17 am
By Kiley Kroh
This week a top executive with Norway-based Statoil said it would be willing to walk away from Arctic offshore drilling if exploration in the harsh and remote environment proves too risky.
In an interview at the IHS CERAWeek conference in Houston, Tim Dodson, Statoil’s executive vice president of global exploration, acknowledged the numerous challenges associated with Arctic offshore drilling and reiterated his company’s cautious approach to exploration in the region.