Shell Alaska announced on Wednesday that they would be pausing its exploration drilling activity for the 2013 season to prepare equipment and plans for a resumption of activity at a later date.
“We’ve made progress in Alaska, but this is a long-term program that we are pursuing in a safe and measured way,” said Shell Oil Company President, Marvin Odum. “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.”
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.
It was after the completion of its 2012 drilling season in the northern waters off of the coast of northwest Alaska that Shell ran into trouble as it was moving its drill rig, the Kulluk to Washington. At the end of December, the tug towing the rig encountered engine problems that ultimately ended with the drill rig grounding on the shores of Sitkilidak Island in the Kodiak archipeligo.
That drill rig, after two months, is now traveling to Dutch Harbor and eventually to Asia to address repair needs. A second drill rig, the Noble Explorer will also make the trip to Asia for repairs and maintenance.
Alaska Speaker of the House Mike Chenault and House Resources Committee Co-Chairs Eric Feige and Dan Saddler today offered comments on Royal Dutch Shell’s decision to take a year off from its Arctic drilling program in the Beaufort and Chuckchi Seas.
“It’s hard to argue with tapping the brakes and re-assessing their ability. They should be applauded for that,” Speaker Chenault, R-Nikiski, said. “There’s a lot on the line for Alaska, and Shell. It’s jobs, oil production, and the opportunity to show the rest of America that its only Arctic state is able to provide effective oversight. They’re doing the right thing.”
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“It is unfortunate that Shell has had a setback in their Chuckchi and Beaufort Sea exploration programs,” Feige, R-Chickaloon, said. “I sincerely hope that they will maintain their resolve to explore their offshore leases as soon as they have dealt with their equipment issues.”
“I was disappointed to hear Shell’s decision to stand down Arctic OCS drilling efforts in 2013, as the need for increased oil production is clear to almost every Alaskan,” Saddler, R-JBER/Eagle River, said. “But I am impressed again with Shell’s demonstrated determination to do it right in Alaska, and look forward to resumption of a robust drilling and production program as soon as possible.”
Shell states that Alaska remains an area with high potential and that the company is committed to drill off-shore of Alaska’s coasts in the future.