Shell Shocked

SHELL Exploration & Production may be forced to forfeit this year’s attempt to drill exploration wells on the Outer Continental Shelf in the Beaufort & Chukchi seas, due to a fuels contamination problem discovered today aboard its Noble Discoverer Drillship and a similar problem aboard other support vessels scheduled to begin the OCS drilling program next week. This mishap most likely occurred from cross-contamination when the drillship and escort ships’ fuel tanks were filled from various sources along the route from Seattle to the Arctic Ocean. The EPA limit approved by the “Permit to Construct” issued to SHELL limits the sulfur content to less than 15ppm. Recent tests results from a 3^rd party testing lab, a requirement of the permit, indicated a cross-contamination level exceeding 25ppm. Due to this contaminated diesel fuel with higher than normal sulfur content, operating out-of-specifications could damage the technologies designed into the ship’s environmental air quality degradation equipment and used in efforts for the EPA permitting process.  Because of the latter fact, a waiver from the EPA would be an  impossibility at this stage as this mishap has consequences beyond a simple deviation of the permit, with the application of an addendum. The only other option at this late stage in the controversial drilling game would be an exchange of fuel that meets the “permit” criteria.  But to find a convenient place to off load the diesel fuel then purge the tanks of the high-sulfur constituents, it would take time, thus limiting the time available for this year’s drilling season, already shortened due to stubborn ice shows. More to come on this latest set-back for SHELL E&P.