April 24, 2024

Shell’s Move to Fix Drill Vessels Imperils Arctic Plans

The new potential delay in drilling does not necessarily doom Shell’s seven-year, $4.5 billion quest to open a new oil frontier in the far north, but it may strengthen the position of environmentalists who have repeatedly sued to stop or postpone exploration that they claim carries the risks of a spill nearly impossible to clean up.

It may also give the Obama administration considerably more time to decide whether to allow Shell to continue operations in two Arctic seas after repeated accidents, failed inspections and mechanical problems that have called into question the company’s safety management.

The administration has supported Shell’s efforts to explore what could be a huge new oil field that has the potential to produce hundreds of millions of barrels of oil over decades. But two separate federal inquiries, one into the New Year’s Eve grounding of one of the drill vessels, the Kulluk, and a more general review of Shell’s safety controls and oversight of contractors, have also stalled its plans.

Shell executives said the decision to send the two drill vessels to Asia, where there are extensive dry dock facilities for repair work, was voluntary and the extent of the work needed was unknown.

“We have not made any final decision on 2013 drilling in Alaska,” said Curtis Smith, Shell’s spokesman in Alaska. “The outcomes of inspections and the scope of repairs needed in Asia will decide that.”

For drilling to proceed, two vessels are needed, one to stand by to drill relief wells in case of a blowout. It would be difficult to find other suitable ships for drilling in the Arctic.

Shell executives said the Kulluk had sustained damage to its hull when it was grounded in a fierce storm on tiny Sitkalidak Island. Seawater also caused electrical damage.

They said the propulsion systems on the second drill vessel, the Noble Discoverer, needed maintenance work and might need to be replaced for the ship to be seaworthy and pass Coast Guard inspections.

The Noble Discoverer dragged its anchor last July and nearly ran aground on the Alaska coast, and four months later it was damaged by an explosion and fire while in port in the Aleutian Islands. In late November, a Coast Guard inspection team found problems with the Noble Discoverer’s pollution control systems.

“Shell can’t get away from the fact this has been a difficult, complex operation that didn’t go well,” said Lois Epstein, an environmental engineer at The Wilderness Society and a member of an Interior Department advisory panel on offshore drilling safety. “They knew they were under tremendous scrutiny and they still couldn’t perform.”

A separate oil spill response barge failed Coast Guard inspections in August and was fined for four illegal fluid discharges. When a containment dome carried on the barge was tested last summer off the coast of Washington State, it came loose while being lowered into the water. As the dome floated to the top, the steel siding bent under the water pressure.

Without the necessary containment equipment, Shell’s two drill vessels were not able to drill in deep zones containing oil and gas. Instead they drilled a couple of top holes in preparation for deeper drilling next summer.

The brief window for drilling, based on ice floes and agreements with Alaska Natives to protect whales and other wildlife, opens in July and continues into October. Over the last four years, Shell was prepared to drill but was stopped by court challenges, regulatory delays, a moratorium on drilling after the 2010 BP spill in the Gulf of Mexico and failed permit tests.

The two drill vessels are aging, which may have contributed to the problems.

The Noble Discoverer, built in 1966, was a log carrier before it was converted into a drill ship in 1972. It has been upgraded several times, but environmentalists have questioned whether it is fit to operate in the winds and ice of the Arctic. After a day of drilling last September, Shell was forced to disconnect the rig from its seafloor anchor as a large ice pack approached 10 miles away.

The Kulluk was built in 1983 and has drilled a dozen wells in the Beaufort Sea. But it has not drilled a complete well since 1993, and it was moored for 17 years in the Canadian Arctic. Shell has already spent more than $200 million overhauling the vessel.

The Noble Discoverer will undergo maintenance in South Korea. A decision on the location for maintenance of the Kulluk has not been made.

Article source: http://www.nytimes.com/2013/02/12/business/shells-move-to-fix-drill-vessels-imperils-arctic-plans.html?partner=rss&emc=rss

Nuclear Cleanup Plans Hinge on Unknowns

The widely divergent outlooks underscore the basic uncertainties clouding any forecast for Fukushima: when cooling stems will be restored and radiation emission halted; how soon workers can access some parts of the plant; and how bad the damage to the reactors, their fuel, and nearby stored fuel turns out to be. The United States Nuclear Regulatory Commission has warned that at least one reactor’s fuel may even have leaked out of the reactor pressure vessel, something that has never before happened in a nuclear accident.

A global team led by Hitachi said Thursday that it would take at least three decades to return the site to what engineers refer to as a “green field” state, meaning within legal limits of radiation for any residents. Toshiba, Japan’s biggest supplier of nuclear reactors, said it could take as little as 10 years

Both companies have large nuclear-related businesses and appear to be eager to speak about endgame scenarios to a crisis that has heightened global public mistrust over nuclear power. There are also billions of dollars likely at stake in the clean-up, which could help Hitachi and Toshiba buoy their sinking bottom lines. The two said this week that annual profits would fall short of their forecasts because of the widespread disruptions in production and supply chains.

At a roundtable with reporters on Thursday, Toshiba’s chief executive, Norio Sasaki, wielded an inch-thick proposal outlining the dismantlement plan submitted to the plant’s operator, Tokyo Electric Power, last week. Hitachi has presented a competing plan.

The scale and complexity of the challenge is unprecedented. No nuclear reactor has ever been fully decommissioned in Japan, let alone the four certain to be dismantled at Fukushima, after being flooded with seawater to avert meltdowns, and after suffering explosions and other damage. The final fate of the two other reactors there has not been announced, but they too may need to be decommissioned.

The accident at Three Mile Island in 1979 involved just one reactor, and thought there was a partial meltdown of the nuclear fuel rods, the chamber holding them did not rupture. The cleanup there still took 14 years and cost about $1 billion. (Two reactors that continue to operate at the site are set to be decommissioned in 2014.)

Recovery from the disaster at Cherynobyl in 1986, meanwhile, is an example engineers are not eager to study. Following the multiple explosions and fire that sent huge radioactive plumes into the atmosphere, workers covered the remains of the reactor with sand, lead and eventually entombed it with concrete to halt the release of radiation. The concrete coffin still remains at Chernobyl, and the area remains uninhabitable.

For now, workers continue to try to stem leaks of highly radioactive water from the plant even as they add to the flow by continuing to pump in water — now fresh, not salts. They are also are racing to revive the contained cooling systems that circulate water and do not bleed contaminants.

But serious challenges that remain, including what Japan’s nuclear regulator said Thursday were rising temperatures at one of the units , as well as a series of strong aftershocks. Later, Hidehiko Nishiyama, the deputy director-general of Japan’s Nuclear and Industrial Safety Agency, said the situation at the plant remained “difficult.”

Still, Toshiba’s engineers expect the plant to stabilize “in several months,” Mr. Sasaki said, and for full-scale cooling to resume. It would be five years before engineers would be able to open up the pressure vessels to remove the nuclear fuel, he said, and dismantling the reactors and cleaning up radiation at the plant would take at least another five years.

Toshiba’s team includes engineers from Westinghouse, whose majority owner is Toshiba, and the Babcock Wilcox Company, an energy technology and services company that handles the disposal of hazardous materials. The two companies helped shut down the damaged reactor at Three Mile Island.

A Hitachi spokesman in Tokyo, Yuichi Izumisawa, said that the 10-year scenario was overly optimistic. He said that Hitachi’s engineers expect that it will take that long just to remove the nuclear fuel rods from the plant and place them in casks to transport to a safe storage facility.

Only then can dismantling the plant’s structures begin, he said, followed by cleaning up remaining radiation.

Hitachi, the country’s second-biggest supplier of reactors, has a team of 50 experts working on its dismantling plan. It has a joint nuclear venture with General Electric and is also working with the American nuclear operator, Exelon, and Bechtel, the engineering firm.

“You basically need to dismantle the plant from the inside, and the inside is till very radioactive,” he said. “At Hitachi, we are baffled over what kind of technology would allow everything to be finished in 10 years.”

Tetsuo Matsumoto, a professor in nuclear engineering at Tokyo City University, said that how long the decommissioning process would take depended heavily on the state of the nuclear fuel.

“Will it still be shaped like rods? Or will it have melted and collapsed into a big mass?” he said. “It could be 10 years or it could be 30. You just won’t know until you open up the reactor.”

Ken Ijichi contributed reporting.

Article source: http://feeds.nytimes.com/click.phdo?i=c36d02a2e3aab120669e3f7b5bafd299