ANCHORAGE, Alaska -- The grounding of a petroleum drilling ship
on a remote Alaska island has refueled the debate over oil exploration
in the U.S. Arctic Ocean, where critics for years have said the
conditions are too harsh and the stakes too high to allow dangerous
industrial development.
MORE: Storm impedes salvage of drilling ship in Alaska
The drilling sites are 1,000 miles (1,600
kilometers) from Coast Guard resources, and environmentalists argue
offshore drilling in the Arctic's fragile ecosystem is too risky. So
when a Royal Dutch Shell PLC ship went aground on New Year's Eve on an
uninhabited island in the Gulf of Alaska, they pounced - saying the
incident foreshadowed what will happen north of the Bering Strait if
drilling is allowed.
For oil giant Shell, which leads the way in
drilling in the frontier waters of the U.S Arctic, a spokesman said the
grounding will be a learning experience in the company's years long
effort to draw oil from beneath the ocean floor, which it maintains it
can do safely. Though no wells exist there yet, Shell has invested
billions of dollars gearing up for drilling in the Beaufort and the
Chukchi seas, off Alaska's north and northwest coast.
MORE: Shell oil-drilling ship runs aground off Alaska
The
potential bounty is high: The U.S. Geological Survey estimates 26.6
billion barrels of recoverable oil and 130 trillion cubic feet of
natural gas exist below Arctic waters.
Environmentalists note the
Beaufort and the Chukchi seas are some of the wildest and most remote
ecosystems on the planet. They also are among the most fragile,
supporting polar bears, the ice seals they feed on, walrus, endangered
whales and other marine mammals that Alaska Natives depend on for their
subsistence culture.
"The Arctic is just far different than the
Gulf of Alaska or even other places on earth," said Marilyn Heiman, U.S.
Arctic director for the Pew Environment Group.
MORE: Shell begins petroleum drilling off Alaska coast
Royal Dutch Shell
PLC in 2008 spent $2.1 billion on Chukchi Sea leases and estimates it
has spent a total of nearly $5 billion on drilling efforts there and in
the Beaufort.
Shell Alaska spokesman Curtis Smith said the company
has a long, successful history of working offshore in Alaska and is
confident it can build another multi-decade business in the Arctic.
"Our
success here is not by accident," Smith said. "We know how to work in
regions like this. Having said that, when flawless execution does not
happen, you learn from it, and we will."
The drill ship that
operated in the Beaufort Sea, the Kulluk, a circular barge with a
funnel-shape hull and no propulsion system, ran ashore Monday on
Sitkalidak Island, which is near the larger Kodiak Island in the gulf.
The
ship had left Dutch Harbor in the Aleutian Island under tow behind the
360-foot (110-meter) anchor handler Aiviq on Dec. 22. It was making its
way to a Pacific Northwest shipyard for maintenance and upgrades when it
ran into a vicious storm - a fairly routine winter event for Alaska
waters.
The tow line snapped Dec. 27. Shell vessels and the Coast
Guard reattached tow lines at least four times. High wind and seas that
approached 50 feet (15 meters) frustrated efforts to control the rig,
and it ran aground on a sand and gravel beach.
Shell, the drill ship operators and transit experts, and the Coast Guard are planning the salvage operation.
Calmer
weather conditions on Wednesday allowed a team of five salvage experts
to be lowered by helicopter to the Kulluk to conduct a three-hour
structural assessment. Also taken to the Kulluk was a state-owned
emergency towing system for use in the operation.
"There are still
no signs of any sheen or environmental impact and the Kulluk appears to
be stable," Coast Guard Capt. Paul Mehler said Wednesday night in a
telephone briefing. He flew over the rig earlier in the day with a Shell
representative and an Alaska Environmental Conservation Department
official.
Mehler said the assessment team that checked the ship
Wednesday was working with salvage planners but it was too early to
speculate on a time line for moving the ship.
He said he saw four life boats on the shoreline but there was no indication that other debris had been ripped from the ship.
The
overflight in rain and 35 mph (56 kph) winds showed a few birds but no
marine mammals near the rig, said Steve Russell of the Environmental
Conservation Department.
The state of Alaska has been an
enthusiastic supporter of Arctic offshore drilling. More than 90 percent
of its general fund revenue comes from oil earnings. However, the
trans-Alaska pipeline has been running at less than one-third capacity
as reserves diminish in North Slope fields. State officials see Arctic
offshore drilling as a way to replenish the trans-Alaska pipeline while
keeping the state economy vital.
In September, two Shell ships
sent drill bits into the U.S. Arctic Ocean floor for the first time in
more than two decades. They created top holes and initial drilling for
two exploratory wells. Drilling ended on the last day of October.
The
grounding in the North Pacific is not a wellhead blowout in the Arctic,
and not a drop of oil has been detected in the water. But environmental
groups say it's a bad sign.
Drill rigs in Arctic waters could be
affected by ice any time during the four-month open water season, said
Heiman of the Pew Environment Group. The other threats - near
hurricane-force winds compounded by cold and darkness - were seen in the
grounding, she said.
"We know that in the Arctic and in the gulf
it's not uncommon to have pretty high seas, and you have to take
precautions," she said. "If you're going to dill in those types of
conditions, or even move vessels in those conditions, you have to have
strong, Arctic-specific gear and equipment and safety training. It has
to be very vigorous, and I don't think we're there yet."
Shell was fortunate in some ways, she said, that the Kulluk experienced problems near Kodiak.
"Up
in the Arctic, you are 1,000 miles away from any Coast Guard station
and the kind of response they were able to deploy in Kodiak," she said.
The Coast Guard the last few summers has staged equipment and personnel
in the Arctic. That has meant a couple of helicopters and possibly a
cutter, Heiman said. It in no way can be compared to the Gulf of Mexico
and the resources available for BP's Deepwater Horizon disaster.
"It's
remote. There are no roads. There's no real, true spill response
capability like you would have in the gulf, where you have ports and
harbors and boats and fishing boats and vessels everywhere," she said.
Shell
has said its preparations will allow it to operate safely far from the
Coast Guard base. Like a backcountry camper, Shell has promised to carry
all the response equipment needed to the isolated drilling sites: a
fleet of more than 20 response vessels that could respond in either the
Beaufort of the Chukchi.
Shell spokesman Smith said the company remains confident in its ability to operate safely.
"We
encountered severe weather basically all summer long in the Arctic," he
said. "While it was challenging, the personnel and the assets and the
rigs performed very well."
When a massive ice flow moved toward
the drill ship operating in the Chukchi after less than a day of
drilling, Shell released the vessel from anchors and moved out of the
way.
"As disappointing as that was, given how long we had waited
to start drilling - we were only a day in - we had the time and made the
decision to disconnect from anchors and safely move off," Smith said.
"That's how responsible operators work in the Arctic, or anywhere,
really."
The Aiviq has towed the Kulluk more than 4,000 miles
(6,437 kilometers) and experienced conditions seen before the grounding,
Smith said. It was no accident, Smith said, that additional vessels
were standing by in Seward.
It's too soon to know what led to the
grounding, Smith said, but the failure of the Aiviq's engines for a time
after the initial separation and the inability to re-establish an ideal
tow connection were factors.
"It's clear that a sequence of
unlikely events compounded over a short period of time, underscored by
the complete loss of power to the engines of the Aiviq," he said.
Associated Press