Shell announces indefinite halt to its Alaska drilling plans
By John Donovan; Published 27 February 2013 PM
The following announcement has just been published on shell.com under the headline: Shell announces pause in Alaska drilling programme
It is notable that the so-called "pause" is indefinite.
Shell has got a bad case of corporate frostbite and may take some time to regroup and recover.
The current management was exposed as being inexperienced and hopelessly incompetent.
This is what happens when corner-cutting bean counters, Voser & Henry, are in charge of an oil company, assisted by Odious Odum.
27 Feb 2013
Royal Dutch Shell plc ("Shell") today announced it will pause its exploration drilling activity for 2013 in Alaska's Beaufort and Chukchi Seas to prepare equipment and plans for a resumption of activity at a later stage.
"We've made progress in Alaska, but this is a long-term programme that we are pursuing in a safe and measured way," said Marvin Odum, Director, Upstream Americas. "Our decision to pause in 2013 will give us time to ensure the readiness of all our equipment and people following the drilling season in 2012."
Alaska holds important energy resources. At the same time, securing access to those resources requires special expertise, technology and an in depth understanding of the environmental and societal sensitivities unique to the region. Shell is one of the leaders in an industry move into offshore Arctic exploration. The company continues to use its extensive experience in Arctic and sub-Arctic environments to prepare for safe activities in Alaska.
Alaska remains an area with high potential for Shell over the long term, and the company is committed to drill there again in the future. If exploration proves successful, resources there would take years to develop.
Shell completed top-hole drilling on two wells in 2012 in the Beaufort and Chukchi Seas, marking the industry's return to offshore drilling in the Alaskan Arctic after more than a decade. This drilling was completed safely, with no serious injuries or environmental impact. After the drilling season ended, however, one of Shell's drilling rigs, the Kulluk, was damaged in a maritime incident related to strong weather conditions. The Kulluk and the second drilling rig, the Noble Discoverer, will be towed to locations in Asia for maintenance and repairs.
"Shell remains committed to building an Arctic exploration program that provides confidence to stakeholders and regulators, and meets the high standards the company applies to its operations around the world," said Odum. "We continue to believe that a measured and responsible pace, especially in the exploration phase, fits best in this remote area.
Notes for editors
Royal Dutch Shell plc ("Shell") is a leading oil and gas exploration player, with upstream activities in over 50 countries world-wide. Exploration and deals in conventional basins and resources plays added 12 billion barrels of oil equivalent (boe) resources for Shell in 2010-2012.
Shell has ambitious exploration plans worldwide. Exploration drilling activity will step up in 2013-14. Shell expects to drill over 40 high-potential wells in 18 conventional basins, and test 10 key resources plays for tight gas and liquids-rich shales. Plans for 2013 call for a $7 billion exploration and appraisal programme spanning both early production opportunities and longer-term development plays.
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