Shell’s plan hides huge financial risk of Alaskan Arctic project, says Greenpeace

Last edited 29 January 2015 at 9:43am
29 January, 2015

Responding to Shell’s CEO statement on spending plans Charlie Kronick, campaigner at Greenpeace said:

“Despite announcing cuts Shell has missed the opportunity to cut its most high-cost high-risk project. Shell is taking a massive risk doggedly chasing oil in the Arctic, not just with shareholder value, but with the pristine Arctic environment. A spill there will be environmentally and financially catastrophic. It’s time for investors to recognize that it’s impossible for Shell to justify its continued pursuit of offshore Arctic oil.”

“Since 2012, Shell has invested more than $6bn billion dollars trying to find oil in the Alaskan Arctic, with no significant return on its investment likely before 2040, if ever.” 

The US Arctic Ocean presents almost a perfect storm of risks. Shell’s efforts to date resulted in a cascade of operational problems – from failure to meet regulatory targets to grounding and scrapping of its principle drilling rig, the Kulluk. The most recent of many setbacks was Shell’s leading contractor in Alaska, Noble Drilling, pleading guilty to eight felony offences and agreeing to $12.2 million in fines and community service payments in December 2014 [1].

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[1] http://www.adn.com/article/20141218/shell-contractor-noble-drilling-be-sentenced-felony-violations

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