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New ConocoPhillips and Shell Arctic Oil Permits Raising Alarms

By Pierre Bertrand | December 22, 2011 2:07 AM GMT


Alaskan environmentalists are sounding the alarm bells this week, responding to two major oil industry victories in a state that has been a recurring flash point between environmental groups, legislators and the giants of petroleum exploration.

The latest news to stir the seas came Monday, when ConocoPhillips reported it will have access to the Alaskan National Petroleum Reserve. That followed Royal Dutch Shell’s announcement last Friday that its plan to drill for oil in the Chukchi Sea was conditionally approved by the Bureau of Ocean Energy Management.

Both projects are planned in environmentally sensitive areas of the state.

“We are not ready,” Lois Epstein, Arctic Program Director for The Wilderness Society told the International Business Times, noting the Arctic waters are known for harboring humpback whales and polar bears, and that a major oil spill in the region would be catastrophic.

Epstein also cited the lack of scientific study on environmental impacts, the absence of planned ecological exclusion zones to protect the region’s ecosystem, and the dearth of knowledge scientists have about how to clean up any potential Arctic offshore oil slicks. Clean up and containment strategies that might work elsewhere, she noted, become ineffective when dealing with ice cover and polar weather.

“We are not so desperate that we need to go there,” she added.

The plan approved this week by the Army Corps of Engineers, which has jurisdiction over federal water ways, gives ConocoPhillips permission to build a drill pad, six miles of road, an above-ground pipeline and four bridges on the Arctic Coastal Plain in the oil reserve.

Last Friday, the Bureau of Ocean Energy Management, which is part of the Department of the Interior, gave Shell its conditional stamp of approval to drill offshore in the Chukchi Sea. Shell must satisfy further regulations and commitments before its plan to drill six exploration wells in the area commences in the summer of 2012.

The Bureau, however, only plans to conclude a comprehensive environmental study of the area, which it is currently conducting alongside the University of Texas, by 2016.

Environmentalist fear that oil prospecting in the region will lead to oil discoveries — which will prompt greater interest in the Arctic oil likely found within such sensitive and hard to reach areas as ice-locked seas — further endangering regional ecosystems.

Between the Exxon Valdez spill of 1989, and two spills caused by ruptured BP pipelines this decade, the Arctic has seen its fair share of oil spills.

Epstein, who currently serves on a federal offshore drilling advisory committee to the Department of the Interior, said as difficult as it was for authorities to clean up the BP spill last year, the difficulty will only be magnified if the same type of event were to take place in the arctic.

“It’s pathetic that we are doing the same things we were doing [to clean up oil spills] with the Exxon-Valdez spill,” Epstein said.

Dan Ritzman, the program director with the Alaskan Sierra Club, said he will be trying to prevent oil drilling from happening in the Arctic Ocean, period.

The BOEM’s greenlight for Royal Dutch Shell’s plan to drill six exploratory wells in the Chukchi Sea comes at an ironic time, Ritzman said, considering the capsizing of Russian oil rig Kolskoye in an arctic storm earlier this week.

Epstein said her concerns are only aggravated by the fact Shell has had two spills this week alone.

In an online presentation on Shell’s website, the company said it is confident it can drill in the region without incident, citing its previous experience.

“Shell has gone to great lengths to make sure a worst case scenario, such as an oil spill, never takes place,” the presentation stated. The document, with an appended video, stressed that if a spill happens, on-site response crews would be able to begin recovering spilt oil within one hour of the event.

The company’s risk-abatement strategies include placing multiple blowout preventers on the well, drilling relief wells, and having resources — such as chemical dispersants and controlled burn equipment — in case a spill does happen. Ice breakers will also be available to keep waterways clear of ice.

For the Army Corps of Engineers, ConocoPhillips’ entrance into the Petroleum Reserve follows a year-long review process, and in a 134-page decision, required the oil company to use the “least environmentally damaging practicable alternatives as required by law,” according to the release dated Dec. 19.

“[Monday's] decision is entirely consistent with the mission of the Corps of Engineer’s Regulatory Program, which is to protect the Nation’s aquatic resources while allowing reasonable development,” said Kevin Morgan, the corps’ Alaskan District regulatory chief. “It’s indicative of a program that is fair, flexible and balanced.”

To report problems or to leave feedback about this article, e-mail: p.bertrand@ibtimes.com

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Greens in shock over Shell drilling rights

Drilling is planned near heritage-listed Ningaloo Reef.

CONSERVATIONISTS say they may appeal a Government decision to allow Shell to drill near the World Heritage-listed Ningaloo Reef.

The Department of Environment said Shell could drill the Palta-1 exploration well, about 50km west of the Ningaloo Marine Park border, if it abided by conditions, including taking measures to avoid significant impacts on threatened species and migratory creatures such as whales.

The controversial decision has sparked outrage among conservationists, including The Wilderness Society, the World Wildlife Fund and the Greens.

The Wilderness Society WA marine co-ordinator Jill St John said the group would ask the Federal Environment Minister Tony Burke for a statement of reasons for his decision and for any evidence used to make his decision, before deciding whether to appeal to the Federal Court.

“In our view, this is an indefensible decision,” Ms St John said.

“The Minister has failed to properly consider the location of this well in relation to the World Heritage Area, which is a Commonwealth protected matter.

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Shell led Sakhalin II construction threatens endangered gray whales

The multi-billion-dollar project, led by Royal Dutch Shell, has also been accused of inflicting large-scale damage on Sakhalin’s ecosystem, including illegal deforestation, the dumping of toxic waste, and soil erosion.

The construction of a third oil platform for the Shell-led Sakhalin II energy project may threaten a critically endangered population of gray whales off Russia’s eastern coast, the World Wildlife Fund (WWF) said on Monday.

The company, which already has two platforms in the Russian Far East, announced in December its plans to build another one near the crucial feeding habitat of the gray whale population.

“The construction and operation of an additional off-shore platform could have numerous negative impacts on the whales, potentially disrupting feeding behavior and increasing the chance of fatal ship strikes,” WWF said in a statement. “Also, a third platform heightens the risk of an environmentally catastrophic oil spill in this sensitive habitat.”

Activists from various environmental groups have repeatedly voiced their concern about the possible negative impact of seismic work on gray whales, listed in the International Red Book of endangered species.

“Just around 30 female western gray whales of breeding age remain – the population is already on the brink of disappearing forever,” the statement quoted Alexei Knizhnikov, Oil ans Gas Environmental Policy Officer for WWF-Russia, as saying. “The loss of even a few breeding females could mean the end for the population.”

The multi-billion-dollar project, led by Royal Dutch Shell, has also been accused of inflicting large-scale damage on Sakhalin’s ecosystem, including illegal deforestation, the dumping of toxic waste, and soil erosion.

MOSCOW, January 17 (RIA Novosti)

Shell/Sakhalin Energy blame Exxon/BP/Rosneft for threat to endangered whales

Oil and gas exploration by energy giants Exxon, BP and Rosneft is seriously threatening one of the world’s most critically endangered whales, according to a panel of top scientists in a new report. The Western Gray Whale Advisory Panel (WGWAP), composed of 11 scientists and representatives from Shell and Sakahlin Energy…

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Shell To Shift Alaska Exploration Plans

After battling native communities and environmental groups on Alaska’s North Slope over its offshore drilling plans, Royal Dutch Shell said Wednesday that it was scaling back its exploration program in the Beaufort Sea.

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BP & Exxon ignore pleas to help worlds most endangered whales

“On the one hand, we have Shell and Gazprom at least looking at their plans to see if impacts on whales can be reduced and on the other hand we have BP, Exxon and Rosneft not even telling scientists what their plans are.”

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Lawsuit pending against NOAA over ribbon seal protection

Smith said Shell has published detailed plans, tested procedures, trained and demonstrated to regulators and community leaders the oil company’s capacity to deal with any conceivable spill event in arctic ice and open arctic water.

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Unexpected friends

When a consortium called Sakhalin Energy, led by Royal Dutch Shell, announced plans to build an oil platform and lay pipelines in the only bay where the whales were known to congregate, these protests proliferated.

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The Great Game Moves North

The U.S. Ninth Circuit Court, for example, ruled last November that before the Royal Dutch Shell company can move forward with exploratory drilling in the Beaufort Sea north of Alaska — for which it had already paid the U.S. government billions of dollars in leases — the U.S. Interior Department needs to further study the environmental impacts of drilling on the sea’s bowhead whale population and nearby indigenous communities.

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WWF says whales leaving Sakhalin waters due to oil, gas projects

Oil and natural gas development off the coast of Sakhalin Island in Russia’s Far East could have forced endangered whales to leave their habitat in the area, a local WWF spokesperson said on Thursday.

Click to continue reading “WWF says whales leaving Sakhalin waters due to oil, gas projects”