After two years without drillings, Norway’s oil major again looks north.
Thomas Nilsen, Independent Barents Observer, 30 August 2016
“Exploration on the Norwegian Continental Shelf, needed and necessary – a Barents Sea deep dive,” was the title when Statoil on Tuesday announced its active drilling program at ONS, Norway’s largest oil conference- and exhibition taking place in Stavanger.
The Barents Sea campaign next year will include five to seven drillings.
Over the last few months, Statoil has increased its share in five licenses in the Norwegian sector of the Barents Sea. Agreements are signed with companies like ConocoPhillips, OMW, DEA and Point Resources.
Drillings will take place at different locations, including a new test-well at Goliat, where Statoil partners with ENI Norge at the only oil-field in production in the Norwegian sector of the Barents Sea. Another drilling for 2017 will take place at the Korpfjell formation near Norway’s maritime border to Russia.
The Korpfjell formation will be one of the northernmost drillings ever made in Norwegian Arctic waters.
Statoil writes in a press-note that new and significant discoveries are crucial in order to maintain production on the Norwegian continental shelf at the current level until 2030 and after that. Areas off the coast of northern Norway will play a pivotal role in achieving this objective.
Statoil underlines that all planned drillings depend on permissions from the authorities.
Cristine Russell, Scientific American (guest blog), 5 November 2015
Call it a contradiction of glacial proportions—an Arctic paradox.
The world pushes for stronger protective measures to curb climate change scientists say is accelerating the destruction of the Arctic—melting ice sheets, thawing frozen soil and threatening the iconic polar bear. Call it plan A.
There is a contingency plan, however, that takes advantage of new Arctic opportunities—in shipping, mining, drilling and national security—if the big melt continues apace. Call it plan B.
Interior Department cancels two future offshore leases in Chukchi and Beaufort seas and will refuse requests from oil companies to renew existing leases
Photo: Jonathan Ernst/Reuters
Suzanne Goldenberg, The Guardian, 16 October 2015
Barack Obama blocked off the prospects for future oil drilling in the Arctic on Friday, imposing new lease conditions that make it practically impossible for companies to hunt for oil in the world’s last great wilderness.
The Department of Interior said it was canceling two future auctions of Arctic offshore oil leases in the Chukchi and Beaufort seas, and turned down requests from Shell and other oil companies for more time on their existing leases.
By Sara Jerving, Katie Jennings, Masako Melissa Hirsch and Susanne Rust
Los Angeles Times, 9 October 2015
Back in 1990, as the debate over climate change was heating up, a dissident shareholder petitioned the board of Exxon, one of the world’s largest oil companies, imploring it to develop a plan to reduce carbon dioxide emissions from its production plants and facilities.
The board’s response: Exxon had studied the science of global warming and concluded it was too murky to warrant action. The company’s “examination of the issue supports the conclusions that the facts today and the projection of future effects are very unclear.”
Yet in the far northern regions of Canada’s Arctic frontier, researchers and engineers at Exxon and Imperial Oil were quietly incorporating climate change projections into the company’s planning and closely studying how to adapt the company’s Arctic operations to a warming planet.
Steven Lee Myers & Clifford Krauss, New York Times, 7 September 2015
TERIBERKA, Russia — The warming Arctic should already have transformed this impoverished fishing village on the coast of the Barents Sea.
The Kremlin spent billions in the last decade in hopes of turning it into a northern hub of its energy powerhouse, Gazprom. It was once the most ambitious project planned in the Arctic Ocean, but now there is little to show for it aside from a shuttered headquarters and an enormous gravel road carved out of the windblown coastline like a scar.
“There are plans,” said Viktor A. Turchaninov, the village’s mayor, “but the facts — the realities of life — suggest the opposite.”
US officials want to make sure companies can handle a blow-out in remote and icy conditions – without inflicting an environmental disaster
Suzanne Goldenberg, The Guardian, 20 February 2015
The Obama administration proposed new rules for Arctic oil drilling on Friday in an attempt to avoid repeating Shell’s disastrous foray into extreme waters.
The proposals, shaped by the 2010 BP oil spill in the Gulf of Mexico, and the grounding of Shell’s drill ship in the Arctic two years later, are aimed at making sure companies could handle a blow-out in remote and icy conditions – without inflicting an environmental disaster on the pristine seas.
The hype over the Arctic recedes, along with the summer ice
The Economist, January 31, 2015
THE Arctic is hot,” joked a Swedish diplomat in 2012. Not any more. In the past six months, the trends that had made it a centre of global attention have changed. It still matters, mainly for environmental reasons. But a surge of interest in its economy and politics has ebbed.
When Statoil acquired the last of three licenses off Greenland’s west coast in January 2012, oil at more than $110 a barrel made exploring the iceberg-ridden waters an attractive proposition.
Less than two years later, the price of oil had been cut by almost half and Norway’s Statoil, the world’s most active offshore Arctic explorer in 2014, relinquished its interest in all three licenses in December without drilling a single well, Knut Rostad, a spokesman for the state-controlled company, said by e-mail.
Statoil’s decision shows how the plunge in oil, with Brent crude trading at about $45 a barrel, has dealt another blow to companies and governments hoping to tap the largely unexplored Arctic. That threatens to demote the importance of a region already challenged by high costs, environmental concerns, technological obstacles and, in the case of Russia, international sanctions.
McKenzie Funk, New York Times Magazine, December 30, 2014
In 2005, Royal Dutch Shell, then the fourth-largest company on Earth, bought a drill rig that was both tall, rising almost 250 feet above the waterline, and unusually round. The hull of the Kulluk, as the rig was called, was made of 1.5-inch-thick steel and rounded to better prevent its being crushed. A 12-point anchor system could keep it locked in place above an oil well for a full day in 18-foot seas or in moving sea ice that was four feet thick. Its drill bit, dropped from a 160-foot derrick, could plunge 600 feet into the sea, then bore another 20,000 feet into the seabed, where it could verify the existence of oil deposits that were otherwise a geologist’s best guess. It had a sauna. It could go (in theory) where few other rigs could go, helping Shell find oil that (in theory) few other oil companies could find. ...