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Shell
Shell's Noble Discoverer drilling rig sits above an oil field in Alaska's Chukchi Sea on Saturday, Sept. 8.
More than 20 years after the last drill bit went into the Chukchi Sea floor off northern Alaska, a Shell drilling rig on Sunday began work that the company hopes will lead to a bonanza that adds to its bottom line and extends Alaska's oil economy.
"Today marks the culmination of Shell’s six-year effort to explore for potentially significant oil and gas reserves, which are believed to lie under Alaska’s Outer Continental Shelf," Shell Alaska Vice President Pete Slaiby said in a statement.
Welcomed by the Obama administration, the exploration in Alaska's Arctic waters has become a major battleground for environmental groups, which fear oil spills in the pristine area already threatened by warming temperatures and reduced sea ice.
"The melting Arctic is a dire warning, not an invitation to make a quick buck," said Dan Howells, a campaign director for Greenpeace.
Shell has paid the U.S. $2.8 billion for lease rights to areas in the Chukchi and neighboring Beaufort Sea, and the U.S. estimates those waters hold 26 billion barrels of recoverable oil and 130 trillion cubic feet of natural gas.
On Aug. 30, Interior Secretary Ken Salazar announced that Shell, even though its spill response barge was not yet certified by the Coast Guard, would be permitted to drill pilot holes and then dig what's called a cellar to hold a critical safety device.
The pilot holes will be 1,300 feet below the ocean floor and roughly 4,000 feet above a known petroleum reservoir.
Marvin Odum, Shell Oil president, discusses Tropical Storm Debby and its impact on oil production, oil drilling in Alaska and more, with CNBC's Maria Bartiromo.
Shell argues there's little chance of a spill like BP's 2010 Gulf of Mexico disaster. Drilling will be in water about 130 feet deep, it says, versus 5,000 at the site of the gulf spill, and wellhead pressure is expected to be far less.
Support vessels could quickly choke off and cleanup any spill, Shell adds.
Workers on Friday moored the drill ship, the Noble Discoverer, in heavy seas with eight anchors that each weigh 15 tons. The diameter of the circular pattern of anchors is more than 6,500-feet, it added.
The immediate goal is to dig a 20-by-40-foot mud-line cellar that will house a blowout preventer below the seafloor, protecting it from ice scraping the bottom.
Shell's oil spill response barge remains in Bellingham, Wash., and is expected to undergo sea trials over the weekend, Shell said.
Shell
This illustration shows how far drilling will go for now, as well as what the cellar for the blowout preventer will look like.
Shell last explored in the area in 1991, but it was not economically viable to produce from there at the time.
Shell's other Arctic Ocean drill ship, the Kulluk, is in the Beaufort Sea waiting for the fall whale hunt to end before moving to the drill site.
The company isn't expecting to drill for oil until next year, since it only has a few weeks before sea ice forms in the area. It will then resume drilling next summer.
The Associated Press contributed to this report.
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Drilling our way to extinction. Our ignorance to brain size ratio is 10 to 1. The human species will NOT last another 100 years. No way, no how. When you melt all the ice that keeps the climate in balance you die. I will bet any amount of money on the following statement: Human population will NOT reach 9 billion by 2050. It will not reach 9 billion EVER. The math doesn't support it. Extinction is the RULE and Humans are NOT an exception to that rule. God ain't gonna save your ass. Pray all you want to but reality trumps bull$h*t.
Drill away I wont be here in 100 years either way.
Yeah FJerry - Make your grand-kids pay for your SUV. heck of a job there, FJerry.
No kids here. ;)
FJerry. Good for you. A lot of people do have kids and would like to leave something for future generations. Selfish whacks like you and the big oil companies don't want to leave anything but barren wastelands for future generations. Thanks, but no thanks.
FJerry sounds childish and self centered--however he is probably a lot "greener" than any of us whom DO HAVE KIDS. You have to factor in reproduction into your footprint.
FJerry comes from the same mind set as a certain VP prospect, who along with his siblings received Social Security benefits as a teen, and now promotes the dismantling of "entitlements". A mind set called "I got mine, to heck with all of you".
I care too much for any offspring I may have had to bring them onto this doomed hellhole of a planet, cant even imagine how it will be in 100 years.
FJerry,
No doubt there is plenty of reason for pessimism, but you have to realize it take courage and responsibility to be optimistic. If we all throw in the towel on the future then it's guaranteed to turn out badly, as long as there is a chance we are obligated to ourselves to take it -- to make the best of a bleak situation.
Back in the '80s I could barely imagine how we were going to avoid a civilization (if not species) ending nuclear exchange long before now. And were still not out of the woods on that but things are far better now in that respect. There were close calls that most ppl don't even know about and dumb luck played a shamefully big part, but we made it so far. Many times in recent history and things looked much worse then today -- WW2 for example.
adds to shells bottom line lol.
So last month it was the liberals fault because they wouldn't allow new refineries to be built and when the refinery in California had a fire gas prices went up because they couldn't meet demand. Now it's the liberals fault because they have WAAAAAAAAY too much refinery capacity but they aren't allowed to drill. But less than a month ago production was so tight ONE LOUSY REFINERY going offline caused gas prices to go up. CAN YOU SEE HOW FREAKING STUPID THIS IS?!!! You're being played like a cheap violin. I heard Ryan is blaming Obama for the high gas prices. SERIOUSLY?!! When prices shot up just before the last election the cry went out that Bush doesn't control gas proces and if a FREAKING OIL MAN AND HIS OIL COMPANY VICE PRESIDENT can't control gas prices just how is Obama doing it? Answer - He's not, YOU'RE BEING FREAKING PLAYED!! Stop, take a deep breath and think for yourself. If it stinks and has a stripe down its back it's probably a skunk no matter how much it tells your that you want to hear.
"elcomed by the Obama administration"?They must have been made to buy 5000 volts in ordert to get the permit.What a puff piece! The Obamy administration has stopped nearly all new permits for drilling,anywhere! This project must have been in the approval stage when Obamy got his hands on it!Just another election ploy to get votes.Obamy wants now to be the "energy president"! Not!
Personally, I can't wait till Mother Nature bucks everyone off this planet. Mankind is doing nothing but destroying the only home he has. What a bunch of idiots. Keep drilling and when the planet explodes, I guess we are all paid for, so no big deal. Right?
The planet will not explode. Little "good" will come out of drilling at this point(unless you own stock in the companies drilling) but nothing catastrophic will happen from this action.
Now, the best thing you and I can do about this is to continue to push for the alternatives that are being implemented... wind and solar. I am preparing to build a solar heat exchanger for my home and will soon attempt to install 7kw of panels right nest to it. Wind generators are still going up all over the place and will surpass nuclear in a few short years. Wide spread use of electric cars will be next(I'm also working on an electric go kart to see what potential there is for short distance travel) and before you know it, there will be little need for drilling.
The only way to remove oil from use is to implement a substitute for it over time. Until then, try to not let it drive you crazy. ;)
Hobby
Hobby. I know the planet will not explode, but at the rate we are upsetting the balance of nature, how long will it be before the sustainability of the planet is gone. It's not just the drilling for oil, there are many other ways man is destroying this planet. The more the population grows, the worse it will get.
Good for you for implementing alternate energy sources. If more people would, our obsession with oil could go away. The biggest problem I see for the individual is lack of money. Poor folks can't afford to do lofty things and I don't know of any resources that help people go green on energy. And good luck with your electric go cart. That is a splendid idea for short distance travel. You figure some big company could have come up with that idea by now.
Lacy... I make about 36k per with a wife and kid... not exactly poor but you get the picture. I happen to have learned a few things about solar energy(the internet is a wonderful tool for learning) and more specifically how to do things myself. I also happen to be in the field of custom manufacturing so I have a somewhat unique opportunity to use equipment resources that many don't have. That is how the heater and go kart can be made a reality. As to the solar panels, just save and keep an eye out for the deals when they come along. It will be something that a home improvement loan would be appropriate for and maybe some good ole tax breaks will help.
I would like to think that the planet will be able to handle the next 20 or 30yrs before all this comes to pass but it will be a race against time and the more people do what I'm trying to do, then the better off we will be and the less the "powers that be" can do about it. You will never be able to legislate oil out of use... only can be done with your pocket book and your drive to be "individually" energy independent. If you don't need energy, no one can sell it to you. If you generate your own energy, it can always be sold just like the power companies do now.
This is a good starting point if you really wish to be an activist in green energy...
www.motherearthnews.com/Renewable-Energy.aspx
Copy and paste. stupid site wont allow links to green energy apparently. :(
I have heard of Mother Earth News. I will check it out. It is good to have the ability do things because of your job. I am currently out of work and going to college to get my degree in Health Information Technologies. It will be a few years before I get my degree and a job. Maybe then I can be more active in green energy and do my little part in helping our planet. Thanks for the information. Have a good night and keep up the good work.
Shell Oil is a fine Dutch owned company welcomed by the Obama Administration. I wonder why no American companies are involved? One would think they would receive favorable treatment. Of course, with Obama Americans are always slighted and pushed down the list. One would think Obama is not American by the way he treats this country. Shame on him and shame on all you people who blindly vote for him.
Hey Larry, I don't think Royal Dutch Shell just entered US oil fields this year. Don't think BP and Citgo just entered the US either. BTW just who is the alternative for voting for Obama? Romney? Sorry Larry, don't think so. The drilling would go on with even less regulation, increased tax benefits for big oil and wealthy individuals and companies, more regulation on individuals. So, what's that again? Who is treating this country poorly?
Larry,
American companies will almost certainly be involved as well as many others. This is just the beginning, apparently Shell took the initiative and is getting the ball rolling. (assuming it pans out)
define gravity is the right way to our beloved planet if locomotion is so important then do it no more polution plaese............sorry oil producers go fly a kite.water locomotion is acceptable too
You people make me sick, it does not matter who is in office the rich get richer , the middle class pays all the taxes, and the lower class is there to scare the middle class so they keep working.
no no no!! The arctic is under so much stress already! Incredible backward thinking.
There are so many other options...
I would be more worried if one of these wells pops when the ice is several feet thick and they can't get to it.
I've found the silver lining to the high price of gas. Now every time I fill up, I double the value of my car!!
Never see gas in a car going to the scrap yard anymore! My ole work truck I can leave the keys in it. Wont steal the truck but Ive had gas siphoned out.
Most of you people slay me! Really! You think mankind is responsible for global warming? What a bunch of idiots. When Mt.St Helens blew, more dirt was blown into the atmosphere than was collectively moved by man in his existence. EVERY active volcano in the world (by themselves) puts more CO2 in the air in an hour than mankind does in a year. 500,000 years ago, give or take, the planet was in cased in ice. The first volcano poked a hole in the ice and we have been having global warming ever since. You all give yourselves WAY TOO MUCH CREDIT.
jim,
You don't have any idea what your talking about. Volcanoes account for less then 1% of total CO2 emissions. There have been many ice-ages since 0.5M yr.s ago. Since the industrial revolution begun CO2 levels in atmosphere have hit levels not seen in some 10M yr.s on earth. And perhaps far worse then climate change -- something YOU haven't even heard of -- the oceans have become 30% more acidic from dissolved CO2 with potentially devastating consequences as it will get much worse before it gets better no matter what we do now. You need to quit regurgitating nonsense put out by the drug addicts like Beck and Limbaugh or other ignorant fools telling you feel good rubbish, and instead do a few minutes of actual research.
stupid terricolas,this oil is not for us...is the fuil to keep the bad angels at 7000 decres F in the core of the earth
I trust shell and b.p. like I trust a rattlesnake. for them it is all about the MONEY, they don't give a damn about the animals or the environment or people and anyone who who believes otherwise is just fooling him or herself.
jim overlin,you forgot one factor,the earth do not have no longer a proper protective umbrella of ozone over us ,we created the problem,yes we are stupid people including yourself
Drill baby drill!
Oh, No the poor caribou have lost their vacation spot ! Oh, the humanity ! LMFAO
If Shell paid the US $2.8 BILLION dollars for lease rights, where in the H E L L did that money go? the news always talks about S H I T but u really never hear a comprehensive solution or figure out whoto point a finger at. It is like the US knows exactly how many illegal immigrints are here , who ever is counting them should be escorting there butts out of here. This 2.8 and other statistics like the illegal immigrations stuff is what makes u go crazy in your own mind knowing that certain people know this stuff but are not doing jack sqat but filling up there pockets. Well when the 6th SEAL is opened up, and the sun is blackened and the moon is blood red, they will not be able to hide behind or under anything because the LORDS rath will be upon them, so go ahead and fill your pockets till the flow over and turn a blind eye to all the wrong that is being done and not doing anything about it, your day will come, it is called JUDGEMENT DAY, I am done ranting and raving. like or dislike this article or even comment: the fact remains, get right soon or IT MAY BE TOO LATE LATER.
I agree,GREED has totally taken the world over.
hard ball,
On Judgement Day it matters none what one has done as long as they accept Jesus as their savior all else is forgiven. Greed?--hell that's for pikers--heaven is full of mass murderers, genocidal maniacs and torturous tyrants whom have taken to Jesus on their deathbed.
SO WHERE IS THE 2.8 BILLION dollars at? where is it, why dont we hear....... about where that damn money is?
We better get to drilling,Saudi arabia is running out of oil.We [usa] will be the biggest exporter in the world very soon.
Shell will ruin it. Guaranteed. They're not bright enough not to cause a spill.
Wish they'd honor the $25 gift card I have. Attendants at Shell service stations tell me 'pumps won't accept gift cards at this time'...ALL the time! When contacting Shell, they want my personal information to give to the local Shell...y e a h, not gonna happen. I don't like the involuntary contribution of my $25 to their cause. Aggravates me when I watch their ads on TV.
Anyone else have a gift card they are not honoring?
Oil you can't live with it and you can't live without it. Where have I heard that before.
Ooooh for the folly. Nitwits and nincom poopz. Some of the stupidest statements from so called "Educated" Collegians w/Phds, etc, etc., Governors, Senators, Congressmen, Legislators, Judges and Juries. WOW for sure idiots abound here in Meximerica, (melting POT of the USA.)
stop stop stop stop we runnig out of oxigen (the curse for us is this stupid oil.keep it where belongs)