In the aftermath of the New Year’s
Eve grounding of the drilling rig Kulluk
in the Gulf of Alaska, the Interior Department ordered a high-level review of Shell’s 2012 Arctic offshore drilling
operations.
In a March 14 teleconference to
discuss the report’s findings, Interior Secretary Ken Salazar reconfirmed the
Obama administration’s commitment to exploring the Arctic, but also insisted
that Shell improve its management of operations and oversight of subcontractors.
“This is a Shell-specific report,”
said Salazar, “and Shell will not be allowed to move forward into the Arctic to
do any kind of exploration unless they have this integrated management plan
that is put in place that is satisfactory to the Department of the Interior.
It’s that plain and simple. Shell screwed up in 2012 and we’re not going to let
them screw up whenever they [resume Arctic operations unless] they have these
systems in place.”
These systems include a requirement
that Shell submit a comprehensive,
integrated plan describing every phase of its operation from preparations
through demobilization. The report also recommends that Shell’s management plan
be audited by a third party to confirm that the plans are appropriate for the
Arctic and that Shell has addressed the problems encountered in 2012.
Shell spokesman Curtis Smith said the company “appreciates the
Department of Interior’s review and takes seriously the findings and
recommendations. We also appreciate the recognition of Shell’s successes in
Alaska and the commitment we have made to setting a high bar for Arctic
exploration.
“Consistent with our
recent decision to pause our 2013 drilling program, we will use this time to
apply lessons learned from this review, the ongoing Coast Guard investigation
and our own assessment of opportunities to further improve Shell’s exploration
program offshore Alaska. Alaska remains a high potential area over the
long-term, and we remain committed to drilling there safely, again.”