{"id":8443,"date":"2015-05-25T05:44:05","date_gmt":"2015-05-25T10:44:05","guid":{"rendered":"http:\/\/olduvai.ca\/?p=8443"},"modified":"2015-05-25T05:44:05","modified_gmt":"2015-05-25T10:44:05","slug":"shell-approval-may-trigger-resource-race-in-the-arctic","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=8443","title":{"rendered":"Shell Approval May Trigger Resource Race In The Arctic"},"content":{"rendered":"

Shell Approval May Trigger Resource Race In The Arctic<\/a><\/h3>\n

In a few short months Shell will (re)enter the Chukchi Sea. The oil and gas major still awaits approval from a number of state and federal agencies, but in early May the company received the\u00a0consent\u00a0<\/a>of the Obama administration to explore the remote Arctic sea 70 miles off the coast of Alaska.<\/p>\n

\"AlaskanSea\"<\/p>\n

Source:\u00a0Nicolas Rapp, Fortune<\/a><\/p>\n

If it sounds familiar, that\u2019s because it is. Shell was in the Chukchi and Beaufort Seas for much of 2012 \u2013 a\u00a0stint<\/a>\u00a0that ended with more headaches than drilling. Following some high-profile failures with its Noble Discoverer and Kulluk rigs, Shell put its Arctic operations on pause in early 2013. Amid slumping profits, the group called off its 2014 plans to resume. Today, the economic indicators are\u00a0not much better<\/a>\u00a0\u2013 Shell lost $1.1 billion in the Americas in the first quarter of 2015 \u2013 but the company is committed to moving forward.<\/p>\n

Related:\u00a0Oil Prices Will Fall: A Lesson In Gravity<\/strong><\/a><\/p>\n

One of the richest sedimentary basins in the world, the Arctic Alaska Petroleum Province is estimated to\u00a0hold<\/a>\u00a0approximately 28 billion barrels of technically recoverable oil and 122 trillion cubic feet of non-associated gas spread across Alaska\u2019s continental shelf and rift shoulder.<\/p>\n

For Shell in particular, it expects the Arctic to be its biggest source of crude oil globally within the next 20 years. Estimates vary, but the Bureau of Ocean Energy Management\u00a0calculates<\/a>\u00a0the hurdle, or breakeven, price to be roughly $38 in the Chukchi Sea. With a profit margin of around 39 percent \u2013 probably generous \u2013 Shell could be\u00a0earning<\/a>\u00a0$1 billion or more in annual profits for each 100,000 barrels produced per day at prices not much higher than today\u2019s.<\/p>\n

 <\/p>\n

…click on the above link to read the rest of the article…<\/p>\n","protected":false},"excerpt":{"rendered":"

Shell Approval May Trigger Resource Race In The Arctic In a few short months Shell will (re)enter the Chukchi Sea. The oil and gas major still awaits approval from a number of state and federal agencies, but in early May the company received the\u00a0consent\u00a0of the Obama administration to explore the remote Arctic sea 70 miles […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3,4],"tags":[2037,1018,5652,3121,5651,5364,5365,1419,1729,945,2100],"class_list":["post-8443","post","type-post","status-publish","format-standard","hentry","category-energy-2","category-environment","tag-alaska","tag-arctic","tag-arctic-alaska-petroleum-province","tag-arctic-drilling","tag-beaufort-sea","tag-bureau-of-ocean-energy-management","tag-chukchi-sea","tag-drilling","tag-oil-and-gas-industry","tag-oil-rigs","tag-shell"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/8443","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8443"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/8443\/revisions"}],"predecessor-version":[{"id":8444,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/8443\/revisions\/8444"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8443"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8443"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8443"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}