Tanker Rates Skyrocket To Fill Colonial Pipeline Shortages
By Elizabeth Low (Bloomberg) Oil tanker charter rates skyrocketed in the U.S. with refiners scrambling for ships to store fuel that has nowhere to go due to a cyberattack on...
The Anglo-Dutch oil major is preparing “an armada of 25 vessels” to begin a two-year programme to explore two to three wells in the Chukchi Sea off the coast of Alaska, Chief Financial Officer Simon Henry said on Thursday.
“We are currently on track. Some of the permits are issued at the last moment,” he told reporters.
Although Shell had to pull out of the region in 2012 after an oil rig ran aground, the Arctic oil reserve “remains a massive value opportunity,” Simon said.
Shell has submitted plans to explore the Arctic to the U.S. Interior Department after the Obama administration last month upheld a 2008 Arctic lease sale, clearing an important hurdle for Shell.
The Department of the Interior will now consider the company’s drilling plan, which could take 30 days.
Shell has lined up the necessary equipment and vessels to deal with any mishaps, which Henry said are of a “very low probability”.
Environmental organisations fear that an oil spill would be destructive for an ecologically sensitive region and extremely hard to clean up in a remote area with rough and frigid seas. (Editing by Keith Weir)
© 2015 Thomson Reuters. All rights reserved.
Join the 68,457 members that receive our newsletter.
Have a news tip? Let us know.