Late ice floes could delay Shell's offshore Alaska drilling by
weeks: Odum
Washington (Platts)--14Jun2012/430 pm EDT/2030 GMT
Shell might drill three exploratory wells in Alaska's Beaufort and
Chukchi seas this summer, rather than the five planned, if unusually
late ice cover delays the start of drilling into mid-August, company
President Marvin Odum said Thursday in an interview.
Odum said during a taping of the "Platts Energy Week" television show
that the company nevertheless remains confident that the closely watched
Arctic exploration would go ahead this summer -- the first drilling in
the remote area in three decades.
"It's a little ironic, isn't it, that this is the year it looks like
we'll finally move forward with the drilling process, and what we find
through our analysis is there's more ice in the Arctic this year than
there has been in the last decade," Odum said during the interview.
"That's just Mother Nature.
"It runs through these cycles; we just happen to be in a heavy ice
year. That potentially delays the start of what we would call the
drilling season by as much as a couple of weeks," he said.
Shell plans to drill three wells in the Chukchi Sea and two in the
Beaufort Sea. The Kulluck and Noble Discoverer drillships, which were
refurbished in Seattle, and a well capping stack built in Portland are
expected to head to the remote region within weeks.
Before securing drilling permits, the company must perform live drills
with the equipment in similar water depths and pass inspections of the
oil spill response systems.
"We are confident we'll pass those tests," Odum said.
Odum said drilling would most likely start in the first two weeks of
August. But if heavy ice persists and pushes drilling to the middle of
August, as a worst-case scenario, the company could only realistically
drill two Chukchi wells and one Beaufort well.
"Again, that's just part of the uncertainty that we deal with when we
enter an area like this," he said. "We're fully prepared for that. It's
not completely unexpected. So it's not as far as we'd like to get, but
it will still be suitable."
Of the five wells ever drilled in the Chukchi, Shell performed four of
them.
Odum said what differentiates the 1980s exploration and this summer's
program is modern three-dimensional seismic surveying that hopefully
provides a more reliable map of the fossil fuels trapped below the
seabed.
"We have done all of this before," he said. "We've drilled into some of
these reservoirs before. What we need to do is drill into them in
exactly the right places."
The project has attracted considerable attention from environmental
groups concerned about possible well blowouts and oil spills in the
remote and delicate area.
Odum said he remains confident in the company's multiple redundancies
for safety and in oil spill response systems that would deploy within an
hour of any accident.
"Nobody's more concerned about it than us," he said. "The first question
and the issue that we had to get over was: internally, were we
absolutely sure we could do this in a safe way, in a way that would
protect the environment? And that's where we are."
"Platts Energy Week" airs Sundays in Washington at 8 a.m. on WUSA and in
Houston at 4 p.m. (both local times) on the PBS channel KUHT. The show
is also available online at www.plattsenergyweektv.com.
--Meghan Gordon,
meghan_gordon@platts.com
--Edited by Keiron Greenhalgh,
keiron_greenhalgh@platts.com
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