Shell chief: Arctic return timeline uncertain

{mosads}During the summer 2012 drilling season, Shell did not win approval for its spill containment system, which Voser called a “big disappointment.” The company was able to begin preliminary drilling but didn’t get the Interior Department’s blessing to drill into oil-bearing zones.

Interior, which has beefed up oversight in the wake of the 2010 BP disaster, is now crafting Arctic-specific drilling standards.

Voser also held out the prospect that Shell’s Alaskan Arctic development efforts could be put on ice, at least for an extended period of time, depending on how the exploration goes and other factors.

“If, for whatever reason, Shell comes to the conclusion that this is not worth doing and we have other, better opportunities at this stage, then we will take that decision, if that is needed. And if that results in a write-off, that’s part of our business risk,” Voser said.

Voser said that while there are environmental challenges, the company is developing in a “sustainable way” and the technical aspects of drilling in the Arctic are not as tough as the Gulf of Mexico.

“It’s shallow water, low pressure. In the Gulf of Mexico, it’s deep water and high pressure. But the environment itself, the ice, with the natural habitat, there are different dimensions; it’s the climate too. But that fits in with our innovation drive,” he said.