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OIL AND GAS
Appeals court backs Shell's Alaska campaign
by Daniel J. Graeber
Washington (UPI) Jun 12, 2015


No more oil sands, green group says
Washington (UPI) Jun 11, 2015 - Canadian oil sands and associated infrastructure are standing in the way of the transition to a low-carbon economy, an environmental group said.

The National Resources Defense Council said it had the support of more than 100 economists and climate scientists in calling for a moratorium on oil sands development.

"We need to stop further development of this dirty fuel--along with projects like Keystone XL--and instead speed the transition to clean energy with more investments in wind, solar and energy efficiency," Anthony Swift, project director for Canadian operations at NRDC, said in a statement.

The low price of crude oil is presenting challenges to the North American energy market. The Canadian Association of Petroleum Producers said it estimated Canadian oil production would reach 5.3 million barrels per day by 2030, up from the 3.7 million bpd produced last year. In June, when crude oil prices were $40 more per barrel, CAPP estimated 2030 output at 6.4 million bpd.

Most of Canada's oil is in the form of a heavier grade dubbed oil sands, a type viewed as more of a threat to the environment than others. CAPP expects oil sands production to account for about 75 percent, or 4 million barrels per day, of total production by 2030.

TransCanada, the company behind Keystone XL, has said pipelines produce the fewest amounts of emissions among oil transit options. The provincial government in Alberta, meanwhile, said its environmental standards were "at least as high" as those for the oil industry in the United States.

The NRDC said its backers from the scientific community said no new oil sands projects should be developed without rigorous environmental safeguards.

"Tar sands oil simply is the dirtiest oil on the planet," Swift said.

A federal appeals court ruled in favor of Royal Dutch Shell in a challenge from environmental groups to the company's oil spill response plans offshore Alaska.

The 9th U.S. Circuit Court of Appeals ruled in a 2-1 decision the Bureau of Safety and Environmental Enforcement, a division within the Department of Interior, acted appropriately when approving Shell's leases from 2005, 2007 and 2009 in the Beaufort and Chukchi Seas.

"The panel rejected plaintiffs' contention that the bureau violated by National Environmental Policy Act by failing to prepare an Environmental Impact Statement before approving the plans," the court's ruling stated.

The challenge was filed by environmental groups Sierra Club, Natural Resources Defense Council and others, who charged that the federal approval process was "arbitrary" and "capricious." None of the campaign groups had a statement on the ruling.

Shell, in a statement, said the circuit court's opinion is "welcome news and validates" the federal approval process for work off the coast of Alaska.

"We remain confident that BSEE's approval of our plans meets all legal and regulatory requirements," the company said.

Opposition has continued against Shell as it prepares for drilling this summer for offshore Alaska. The company is proposing as many as six wells in a region known as the Burger prospect, located in shallow waters, using the Noble Discoverer and Polar Pioneer rigs.

Shell is using the Port of Seattle as a staging ground for Alaskan operations. Seattle Mayor Ed Murray has expressed opposition to Shell's lease, saying he'd rather work to attract clean companies, "rather than the polluting industries of yesterday."

Greenpeace kayakers block Arctic-bound Shell rig
Washington (AFP) June 15, 2015 - Greenpeace activists paddling in kayaks formed a blockade Monday to keep a mammoth Shell oil rig from departing from Seattle on a mission to drill in the Arctic.

Dozens of boats assembled in an arc around the towering yellow and while Polar Pioneer before dawn as tug boats were preparing to embark on the slow journey north to waters off Alaska, said John Hocevar, a Greenpeace activist who was also one of the kayakers.

Protesters shouted "Shell, no!", banged their oars on the sides of their boats and paddled around to play cat-and-mouse with police speedboats that started making arrests a few hours after the water-borne protest began.

"We are difficult to deal with," Hocevar, Greenpeace's national director for Oceans, told AFP. As he spoke by phone, the shouts of protesters on the water could be heard.

Hocevar said he had a police boat just a few feet away from him and he expected to be arrested shortly, although he said the atmosphere was calm and violence-free.

It was the latest chapter in a ongoing battle between environmentalists and Royal Dutch Shell over the latter's plan to station the 38,000-ton rig in a body of water called the Chukchi Sea to drill this summer.

Environmentalists say it is one of the world's most ecologically sensitive regions. They oppose drilling there for a variety of reasons, saying among other things a spill would be particularly catastrophic because of the lack of capacity to deal with such a messy scenario.

"This is not an acceptable risk," Hocevar said.

A first attempt by Shell to carry out exploratory drilling in the Arctic in 2012 was plagued with problems. Among other mishaps, one rig slipped its tug line and ended up grounded on an uninhabited Alaska island during a winter storm.

In March of this year, six Greenpeace activists boarded the Polar Pioneer rig as it was being tugged to Seattle from Hawaii.

The Polar Pioneer -- it rises 300 feet (90 meters) above the water -- is scheduled to be pulled along the Duwamish River through downtown Seattle, past the US tech hub's famed Space Needle on its way out to Elliot Bay and then further north.

The kayakers out Monday brought provisions to try to stay out as long as they could.

"Every minute they are out there is another minute for President Obama to reconsider," said Travis Nichols, Greenpeace's director for Arctic issues.

Obama last month approved Shell's plan to drill in the Arctic this summer.

Obama has said that while the United States needs to wean itself from fossil fuels, there has be a transition period and so long as it can be done safely, "US production of oil and natural gas is important."


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