Arctic: no oil at the North Pole but at the Arctic Circle

[moinsdewatt]

The US administration unveils the new rules for future Arctic drilling projects in the USA (in Alaska therefore)
The 2016 and 2017 drilling licenses were previously canceled.

Obama administration sets rules for future Arctic drilling

Last Modified: July 07, 2016 By The Associated Press
WASHINGTON

With no new drilling planned in the Arctic waters off Alaska, the Obama administration is setting rules to ensure that any future energy exploration in that area meets safety and environmental standards.
The Interior Department said rules issued Thursday do not authorize any Arctic offshore drilling either now or in the future, but they set minimum standards for operations if and when leasing is approved. A five-year offshoring leasing plan that includes the Arctic is expected later this year.

Assistant Interior Secretary Janice Schneider said the new rules support a "thoughtful and balanced approach" to any oil and gas exploration in the Arctic region.
"The rules help ensure that any exploratory drilling operations in this highly challenging environment will be conducted in a safe and environmentally responsible manner, while protecting the marine, coastal and human environments, and Alaska Natives' cultural traditions,"Schneider said.

Royal Dutch Shell announced last year it is ending exploration in the Chukchi and Beaufort seas after spending nearly $ 7 billion on Arctic exploration. The company cited disappointing results from a well drilled in the Chukchi and the unpredictable federal regulatory environment.

Interior Secretary Sally Jewell later canceled federal petroleum lease sales in US Arctic waters that were scheduled for 2016 and 2017. Current market conditions and low industry interest made the leasing decision easier, Jewell said.
Environmental groups hailed the new safety rules, but said Arctic drilling would harm marine mammals already hurt by a loss of sea ice and exacerbate global warming.
“No amount of safeguards or standards can ever make drilling safe,” said Athan Manuel of the Sierra Club.
The National Ocean Industries Association, an industry group, said that despite taking years to write, the new rules do not accurately reflect current industry capabilities and include unnecessary requirements, such as same-season relief wells, that may not be needed.
Requirements imposed by the rule "could thwart industry innovation and development of new technology, and may not actually increase operational safety," NOIA President Randall Luthi said in a statement.

http://www.americanpress.com/20160707-Arctic-Drilling

.......The rules include having equipment on hand to stop oil spilled after a blowout, such as stationing a second drilling rig nearby to punch a relief well, and spill-response equipment like a containment dome to capture escaping crude.......

http://www.adn.com/business-economy/ene ... tic-ocean/

[moinsdewatt]

The oil giant Statoil and its partners gave the green light Tuesday to a project of 5 billion euros in the Norwegian Arctic, a region which however struggles to meet the staggering expectations of the sector.

After having succeeded in dividing the estimated costs by two to make the project commercially viable, the consortium decided to develop the Johan Castberg deposit which should start operating at the end of 2022 in the Barents Sea.

The northernmost field in the country, it is also "the largest offshore oil and gas project in the world to receive a green light in 2017" with recoverable reserves estimated between 450 and 650 million barrels of oil equivalent, Statoil said in a statement.

However, its future has long been uncertain.

The investment required was initially estimated at more than 100 billion crowns (more than 10 billion euros), requiring a barrel of 80 dollars to be profitable.

But, thanks to a redefinition of the technological concept used and the fall in costs in the oil sector, Statoil, the Italian Eni and the Norwegian public company Petoro have reduced the provisional invoice to 49 billion crowns.

At this price, the deposit will be profitable with a barrel at less than 35 dollars while it is currently around 62 dollars.

While conservationists have denounced a project "indefensible", the investment is good news for the oil sector in Norway, where black gold production has halved since its peak in 2000-2001.

The government hailed "a milestone" good for employment, which will bring in 138 billion crowns in tax revenues.

The technological solution chosen for Johan Castberg "facilitates the further development of this oil province", also welcomed the Norwegian Petroleum Directorate.

This public body has placed great hopes in the Barents Sea which, according to its estimates, conceals nearly 65% ​​of the reserves remaining to be discovered off the coast of Norway.

Prospecting campaigns, however, ended in very disappointing results in 2014 and this year.
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http://www.boursorama.com/actualites/le ... 4c36284377

Barents Sea: the developing Johan Castberg field

Published 05 / 12 / 2017 lemarin.fr

Statoil and its partners Eni and Petoro have decided to develop the Johan Castberg oil field, in the Norwegian Barents Sea. They submitted the development and operation plan (PDO) to Oslo on December 5.


Johan Castberg is the largest offshore development approved in 2017. (Illustration: Statoil)

http://www.lemarin.fr/secteurs-activite ... eloppement