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Climate Progress

Your Taxes Will Pay For The Coast Guard To Babysit Shell’s Arctic Drilling

by Michael Conathan

The Weather Channel’s reality series “Coast Guard Alaska” gives viewers an exhilarating taste of what life is like for coasties stationed in the distant reaches of our 49th state, conducting search-and-rescue and fishery enforcement missions in some of the harshest weather conditions known to man.

But starting this summer, the U.S. Coast Guard will have a new purpose in Alaska: babysitting. And you and I will be paying for it.

At a time when budget restrictions have forced belt-tightening across the Coast Guard’s suite of missions, it is making a major commitment of taxpayer dollars and limited assets to monitor Royal Dutch Shell’s Arctic Ocean oil and gas drilling.

The Coast Guard is already stretching is dollars to try to overhaul its fleet of cutters — most of which were built in the 1960s — while continuing to keep our waterways and mariners safe. Under the proposed budget for fiscal year 2013, it already faces funding cuts that even budget hawk Rep. Robert B. Aderholt (R-AL) called “challenging for us to accept” because they “bluntly [gut] operational capabilities.”

Yet the Coast Guard plans to deploy key resources to the Arctic this summer exclusively for Shell’s plans to begin exploratory oil drilling in the Beaufort and Chukchi Seas — activities the insurance giant Lloyd’s of London called out for posing a “unique and hard-to-manage risk.”

The Coast Guard will send up one of the service’s three new National Security Cutters, a sea-going buoy tender, and two helicopters from the closest Coast Guard station in Kodiak, AK — over 1,000 miles away.

Taxpayers won’t just be paying the financial price. Because the service has a finite number of ships, aircraft, and personnel, we will also sacrifice part of the Coast Guard’s ability to carry out other missions, including homeland security, migrant and narcotics interdiction, fisheries enforcement, and search-and-rescue operations.

At a July 2011 Senate hearing on Arctic drilling, Coast Guard Commandant Robert Papp seemed to question his service’s capacity to respond to a potential spill in the Arctic, saying “if [a spill] were to happen off the North Slope of Alaska, we’d have nothing.  We’re starting from ground zero today.” He elaborated on those comments at a December hearing, saying his “most immediate operational need is infrastructure.”

On April 16, Papp confirmed that the Arctic deployment, “will come at the expense” of other missions:

Read more

Climate Progress

Insurance Giant Lloyd’s of London Warns Of ‘Unique And Hard-To-Manage Risk’ Of Arctic Ocean Oil Drilling

by Kiley Kroh and Michael Conathan

Analysts at one of the world’s largest insurance markets are warning that offshore drilling in the Arctic would “constitute a unique and hard-to-manage risk” and urged companies to “think carefully about the consequences of action” before exploring for oil in the region.

Lloyd’s of London, a large UK-based insurance pool, issued a report today outlining the severe environmental and economic risk of oil and gas drilling in Arctic waters. The stunning report comes as Royal Dutch Shell prepares for exploratory drilling operations in the Arctic – even while leading experts warn that there’s virtually no infrastructure in place to clean up an oil spill in the fragile region.

As Arctic ice continues to melt due to climate change, Lloyd’s estimates the region will attract $100 billion in new investment over the next decade. However, analysts warn that responding to an oil spill in a region “highly sensitive to damage” would present “multiple obstacles, which together constitute a unique and hard-to-manage risk.”

The environmental consequences of disasters in the Arctic have the potential to be worse than in other regions. The resilience of the Arctic’s ecosystems in terms of withstanding risk events is weak, and political sensitivity to a disaster is high. As a result, companies operating in the Arctic face significant reputational risk.

It’s easy for oil companies to dismiss environmentalists concerned about the Arctic as politically-motivated. But when a centuries-old company that has made billions of dollars judging risks and insuring everything from Betty Grable’s legs to the World Trade Center’s new Freedom Tower, thinks an operation might be a little too edgy for them, it ought to make oil companies stand up and take notice.

Richard Ward, Lloyd’s chief executive, “urged companies not to ‘rush in [but instead to] step back and think carefully about the consequences of that action’ before research was carried out and the right safety measures put in place.”

Lloyd’s report includes a laundry list of reasons why oil companies ought to hit the pause button on offshore Arctic drilling, including:

  • Significant knowledge gaps across the Arctic need to be closed urgently
  • Arctic conditions will remain challenging and often unpredictable
  • The environmental consequences of disasters in the Arctic are likely to be worse than in other regions
  • The politics of Arctic economic development are controversial and fluid.

Here in the U.S., Shell is on the brink of permits to begin drilling in the pristine Arctic Ocean this summer, despite the concerns of environmental groups, Alaska Native communities, and even federal agencies such as the US Coast Guard and NOAA.  Aside from the long-term climate risk, their chief concerns revolve around Shell’s ability to respond to an oil spill challenging region – which can be dark, frigid, extremely remote, and sorely lacks even the most basic infrastructure.

The challenges posed by these harsh and unpredictable conditions are outlined in the Center for American Progress report, Putting a Freeze on Arctic Ocean Drilling: America’s Inability to Respond to an Oil Spill in the Arctic.  As the two-year anniversary of the Deepwater Horizon tragedy approaches, it is critical to remember the plethora of personnel and resources needed to facilitate the largest, most coordinated oil spill response effort in our nation’s history. A similar undertaking would be impossible in the Arctic.

These warnings are echoed in the Lloyd’s report, as well as in a new independent federal report issued by the Government Accountability Office, which concluded that Shell’s “dedicated capabilities do not completely mitigate some of the environmental and logistical risks associated with the remoteness and environment of the region.”

As both the CAP report and Lloyd’s recommend, a substantial commitment to science and monitoring is necessary to “close knowledge gaps, reduce uncertainties and manage risks.”  In addition, “full-scale exercises based on worst-case scenarios of environmental disaster should be run by companies,” as well as a significant investment in infrastructure and monitoring to facilitate “safe economic activity.”

If the world’s largest insurance market is warning companies to slow down because we are unprepared for the enormous risks of Arctic exploration, then the U.S. ought to think carefully before we encourage drilling.

Kiley Kroh is Associate Director of Communications for Oceans Communications at the Center for American Progress. Michael Conathan is the Director of Ocean Policy at the Center for American Progress.

NEWS FLASH

North Sea Gas Rig Blowout Is An ‘Explosion Waiting To Happen’ | A deepwater rig in the North Sea off the coast of Scotland suffered a blowout five days ago, and is uncontrollably leaking natural gas in what experts fear is an “explosion waiting to happen.” “Relief drilling would take six months and require boring through 4 kilometers of rock with painstaking precision in order to intercept the gas pocket, one engineer said.” “All 238 staff were evacuated from the Elgin platform after the gas leak was discovered on Sunday afternoon. Shell is also removing workers from two offshore installations close to the Elgin platform,” the Guardian reports.

Climate Progress

Shell Wins ‘Safety’ Permit From Obama Administration To Start Dangerous Drilling In Arctic Seas

“The Bureau of Safety and Environmental Enforcement (BSEE) today issued an approval of Shell Gulf of Mexico, Inc.’s Oil Spill Response Plan for the Beaufort Sea,” the Department of Interior agency tasked with approving oil spill plans has announced. Shell plans to drill up to four shallow water exploration wells in Alaska’s Beaufort Sea this summer, beginning on July 1. The expansion of offshore drilling into the dangerous and fragile Arctic seas not only threatens that ecosystem with unmanageable disaster, but represents a reckless disregard for the urgency of decarbonizing the global economy to avoid the risk of unstoppable global warming.

Update

Michael Conathan, Director of Ocean Policy at the Center for American Progress, released the following statement:

We appreciate the administration’s commitment to holding Shell to rigorous standards when drilling in the fragile and untested Arctic. Still, it’s surprising and disappointing that the Department of the Interior will allow drilling activity to continue through the end of October, when it specifically cut short Shell’s Chukchi Sea operations 38 days earlier because of concerns about severe weather and icy conditions. The raging winds and encroaching ice will be no less severe in the Beaufort than they will be in the Chukchi.

While the Department of the Interior and Shell have taken critical steps to enhance safety and preparedness, the fact remains that with the nearest permanent Coast Guard facility over 1,000 miles away, no major roads, railroads, or ports along the North Slope, and extreme and unpredictable weather patterns, any coordinated response effort would be daunting—a challenge that increases exponentially in a longer drilling season. For this reason, we recommended shortening the duration of the drilling in our recent report, “Putting a Freeze on Arctic Ocean Drilling: America’s Inability to Respond to an Oil Spill in the Arctic,” which includes a map detailing the lack of resources and existing infrastructure to respond to an environmental disaster off the North Slope.

Climate Progress

60 Members of Congress and Nearly 400,000 American Citizens Urge Obama to Halt Arctic Offshore Drilling

As the Obama Administration moves to open up Arctic waters for exploratory offshore oil and gas drilling, a raising tide of opposition is emerging to counter the decision.

In the last two weeks, dozens of members of Congress, hundreds of scientists, and tens of thousands of concerned citizens have expressed their concerns about the environmental impact of drilling in Arctic waters.

In an open letter signed yesterday by 60 members of Congress, federal lawmakers called on Interior Secretary Ken Salazar to halt all leases for the Arctic in the agency’s five-year plan until a more sound review of disaster-response capabilities can be conducted:

“Successful oil spill response methods … cannot simply be transferred to the Arctic. The Arctic is a unique environment with significant hurdles that the DOI and related agencies must genuinely address before considering any new leasing in the region prior to including Arctic areas in a five-year plan.”

This follows a months-long investigation into disaster preparation in the Arctic by the Center for American Progress oceans team, which found a complete lack of infrastructure to deal with an oil spill:

There are no U.S. Coast Guard stations north of the Arctic Circle, and we currently operate just one functional icebreaking vessel. Alaska’s tiny ports and airports are incapable of supporting an extensive and sustained airlift effort. The region even lacks such basics as paved roads and railroads. This dearth of infrastructure would severely hamper the ability to transport the supplies and personnel required for any large-scale emergency response effort. Furthermore, the extreme and unpredictable weather conditions complicate transportation, preparedness, and cleanup of spilled oil to an even greater degree.

Just two weeks before, 573 scientists sent a letter to the White House urging the Obama Administration to take a science-based approach to issuing leases in the Arctic and to avoid opening up the region because of political pressure to expand drilling:

“Doing so prior to authorizing new oil and gas activity in the Arctic Ocean will respect the national significance of the environment and cultures of U.S. Arctic waters and demonstrate the value that your Administration places on having a sound scientific basis for managing industrial development of the Outer Continental Shelf.”

If one were to follow these concerns about taking a science-based approach to their logical conclusion, it’s highly unlikely that anyone would consider drilling for more fossil fuels in the Arctic. In its environmental impact statement, the Department of Interior even admits that “the Arctic is experiencing variations that are accelerating faster than previously realized” due to climate change — ironically making the region more attractive for oil and gas extraction as sea ice continues its downward spiral.

Apparently, the plan isn’t sitting well with many interested citizens either. Today was the final deadline for public comments, and almost 400,000 people have asked President Obama to stop the sales of leases in the Department of Interior’s five-year plan, according to the Alaska Wilderness League.

The Obama Administration is set to approve exploratory Arctic drilling permits to Royal Dutch Shell for operations next summer — a company that recently spilled 218 tons of oil in the North Sea and has the worst spill record in the UK since 2000.

Climate Progress

Putting a Freeze on Arctic Ocean Drilling: America’s Inability to Respond to an Oil Spill in the Arctic

Have we learned nothing from the disastrous 2010 oil spill in the Gulf of Mexico?

Below is the summary of a comprehensive report on the inadequate disaster response capabilities in the Arctic.

by Kiley Kroh, Michael Conathan and Emma Huvos

When the Deepwater Horizon oil rig exploded in the Gulf of Mexico in the early morning hours of April 20, 2010 it spawned one of the worst environmental disasters in U.S. history. BP Plc’s Macondo well blowout lasted 89 days, spewing nearly 5 million barrels of oil into the Gulf of Mexico, and taking the lives of 11 men. The catastrophe showed the clear need for a massive, well-coordinated response when disaster strikes.

Though the refrain “never again” was echoed time and again in the wake of the BP oil catastrophe, we are now facing a new oil spill threat. After spending over five years and $4 billion on the process, the Royal Dutch Shell Group is on the cusp of receiving the green light to begin exploratory drilling in Alaska’s Beaufort and Chukchi Seas next summer. Though Shell emphasizes it would drill exploratory wells in shallow water rather than establishing deep-water production wells like Macondo, the fundamental characteristics of the vastly unexplored and uninhabited Arctic coastline may increase the likelihood of a spill and will certainly hamper emergency response capability.

The decision to move forward with drilling in some of the most extreme conditions on Earth has deeply divided Alaska Native communities, drawn stark criticism from environmental groups, and caused other federal agencies such as the U.S. Coast Guard and the National Oceanic and Atmospheric Administration, or NOAA, to raise concerns about the glaring absence of sound science in the region. This is highlighted in a recent letter to the Obama administration, signed by nearly 600 scientists from around the world, calling on the president and Secretary of the Interior Ken Salazar to follow through on their commitment to science and enact recommendations made by the U.S. Geological Survey before approving any drilling activity in the Arctic. In addition to the lack of a scientific foundation, the Arctic has inadequate infrastructure to deal with an oil spill, and response technologies in such extreme environmental conditions remain untested.

As we detail in this report, the resources and existing infrastructure that facilitated a grand-scale response to the BP disaster differ immensely from what could be brought to bear in a similar situation off Alaska’s North Slope. Even the well-developed infrastructure and abundance of trained personnel in the Gulf of Mexico didn’t prevent the Deepwater Horizon tragedy. Our Arctic response capabilities pale by comparison.

Read more

NEWS FLASH

Seven-Year Oil Leak In Gulf Of Mexico Still Spilling | Hundreds of thousands of gallons of oil have been leaking continuously into the Gulf of Mexico from a well damaged by Hurricane Ivan for over seven years, a lawsuit brought against Taylor Oil by the Waterkeeper Alliance reveals. Aided by satellite and overflight imagery from SkyTruth and SouthWings, the plaintiffs “filed suit to stop the spill and lift the veil of secrecy surrounding Taylor Oil’s seven-year long response and recovery operation.” In a related report, the organizations describe the failings of the nation’s monitoring and reporting systems for oil disasters, which is why the Center for American Progress opposes current plans to begin offshore drilling in the Arctic.

Climate Progress

Center For American Progress: The Arctic Should Remain Off-Limits To Offshore Drilling

A comparison of the oil spill response capability in Alaska and the Gulf of Mexico. Click to enlarge.

A major report on the prospect of offshore drilling in the Arctic by the Center for American Progress concludes that the oil industry is not prepared to prevent disaster to this remote and fragile region. The Obama administration’s offshore drilling oversight agency, the Bureau of Ocean Energy Management, has approved Royal Dutch Shell’s plan to begin exploratory drilling in the Chukchi Sea beginning in the summer of 2012, pending approval by other agencies.

In “Putting a Freeze on Arctic Ocean Drilling: America’s Inability to Respond to an Oil Spill in the Arctic,” the authors, Kiley Kroh, Michael Conathan, and Emma Huvos, investigate the prospect of drilling in some of the most extreme conditions on Earth, and find the preparations by the oil and gas industry, federal agencies, and Congress are inadequate, overstretched, and untested:

This report outlines the specific shortcomings in both Shell’s response plans and the private- and public-sector response capabilities to a devastating oil spill in the Arctic region of the United States. Failing to meet the targets laid out here will expose the residents and natural resources of one of the last unspoiled places on the planet to an unacceptable level of risk. Until the oil and gas industry and its federal partners can demonstrate with certainty that they can identify and respond to a true worst-case scenario incident, the Arctic should remain off-limits to exploration and drilling.

In one telling example of dangerous shortcuts in the rush to drilling, Shell’s spill response plan describes a “worst-case scenario” of a spill happening in the relatively warm month of August, although it submitted plans to drill into the drastically harsher month of October.

The report also contrasts the very limited infrastructure for oil spill response in Alaska to the robust infrastructure in the Gulf of Mexico (which was still unable to prevent serious harm from the BP Deepwater Horizon disaster).

In October, National Oceanic and Atmospheric Administrator Jane Lubchenco told ThinkProgress Green that the implications of accelerating climate change by drilling for oil and gas in the Arctic has “huge implications for the global system.” Although NOAA is the nation’s top oceanographic agency, its scientists play only a minor, advisory role in the government’s approval of offshore drilling, which is run by the Interior Department. NOAA plays a larger role in cleaning up after oil spills.

Below is the summary of CAP’s recommendations for what needs to happen before offshore Arctic drilling should proceed: Read more

Climate Progress

Scientists Beg Obama To Slow Arctic Drilling Rush

In his State of the Union address, President Obama announced he would push forward with new offshore drilling — which includes the pristine waters of the Beaufort Sea, Chukchi Sea, and Cook Inlet off Alaska’s coast. The U.S. Geological Survey (USGS) wrote a report in June 2011 that described dozens of areas that required further scientific research before taking the risks of disrupting the unique ecosystems on behalf of the oil industry. Now, nearly 600 scientists from around the world have signed an open letter urging President Obama and Interior Secretary Ken Salazar to base Arctic drilling decisions on science, not politics:

We, the undersigned 573 research scientists, call upon the Administration to follow through on its commitment to science by acting on the USGS recommendations. Doing so prior to authorizing new oil and gas activity in the Arctic Ocean will respect the national significance of the environment and cultures of U.S. Arctic waters and demonstrate the value that your Administration places on having a sound scientific basis for managing industrial development of the Outer Continental Shelf.

“Already stressed by rapidly melting summer ice, the whales, walrus, ice seals, polar bears, and other wildlife in these waters are especially vulnerable to oil spills and industrial activity,” the Pew Environment Group and the Ocean Conservancy explain in a full-page ad they will run in the New York Times and Politico highlighting the letter.

Drilling for fossil fuels in a melting Arctic would accelerate the potentially catastrophic destabilization of the planet’s thermostat. As National Oceanic and Atmospheric Administration chief Jane Lubchenco told ThinkProgress Green, “We don’t fully understand what the consequences of that are going to be.”

An upcoming report from the Center for American progress, due to be released later this month, will examine in greater detail America’s deficiencies in regard to Arctic infrastructure and oil spill response preparedness, and suggest steps to be taken before activities, such as drilling, commence in the world’s last unspoiled frontier.

Climate Progress

Santorum: Offshore Oil Rigs Are The ‘Best Way’ To Create A ‘Safer Florida’

The Deepwater Horizon disaster ruined Florida's shores.

Since Florida suffered more than $1 billion in loss from the 2010 Deepwater Horizon disaster, offshore drilling has been a controversial subject for the state. Rick Santorum was asked last night at the NBC debate why those few thousand drilling jobs are worth the millions of jobs and billions of dollars at risk in the tourism and recreation markets. Instead of answering, Santorum sidelined the question by attacking the president on the Keystone XL pipeline and arguing for more rigs, drilling, and pipelines:

Pipelines are the safe way, building those rigs, into our shores is the best way to create a good economy and a safer Florida.

Watch it:

But Santorum ignores that more than 1 million people are currently employed by Florida’s tourism economy and recreation contributes $67,595 million annually to the economy and generates 794,841 jobs in the South Atlantic region.

Santorum, however, says this industry is more threatened by high oil prices than by the risk of an oil spill. The question still remains for the GOP candidates why Florida should risk its beaches to save Americans mere pennies in gas prices.

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