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Friday, May 29, 2015

Arctic blowout clean-up costs could exceed Shell’s financial resources

Arctic blowout clean-up costs could exceed Shell’s financial resources

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Screen Shot 2015-05-29 at 13.13.19From a regular contributor 

THE BEAR FACTS -EMERGENCY RESPONSE MAY TAKE TWO OR THREE MONTHS TO ARRIVE!

“The risk of a blowout or spill is always present when a well is drilled. The US government estimates the probability of such an event in Alaska at 75%. In many cases a relief well is the only way in which a blowout can be brought under control, especially if the well casing is breached. There is no “new technology” in existence that eliminates the risk of a blowout, or provides a guarantee that a blowout can be quickly brought under control if it occurs. 
The requirement for “same season” relief well capabilities is intended to avoid a situation where a blowout occurs late in the season and continues unabated until the weather improves sufficiently to undertake well control operations in the following year. The time required to mobilise a second rig, drill a relief well, and kill a blowout may be 2-3 months or more. The “same season” relief well requirement therefore effectively shortens the summer drilling season to just a few weeks. If this requirement is enforced, exploration and development of the Arctic will be almost impossible. If this requirement is not enforced and Shell has a blowout which continues through the winter, the clean-up costs may far exceed Shell’s financial resources. 



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