BP spill repercussions spill over / News / The Foreigner

BP spill repercussions spill over. The BP spill didn’t only affect the Gulf of Mexico (GoM). It has broad global consequences, hitting access to oil and gas in the Arctic. With increased governmental restrictions taken by most countries claiming areas in the Arctic, including Norway, projects will be partially deprived of resources, leading to an increase in oil and gas prices. Statoil is hitting government restrictions head on about drilling in Arctic waters and is expecting possible production delays, with further rules and regulations.

bp, tony, hayward, president, barack, obama, gulf, of, mexico, oil, spill, disaster, opec, ec, european, commission, statoilpetroleum, safety, authority, stavanger



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BP spill repercussions spill over

Published on Thursday, 29th July, 2010 at 17:23 under the news category, by Ramona Tancau and Michael Sandelson   .

The BP spill didn’t only affect the Gulf of Mexico (GoM). It has broad global consequences, hitting access to oil and gas in the Arctic.

Meeting between BP and Pres. Obama
Meeting between BP and Pres. Obama
Photo: Official White House PhotoPete Souza/WC


Tougher

With increased governmental restrictions taken by most countries claiming areas in the Arctic, including Norway, projects will be partially deprived of resources, leading to an increase in oil and gas prices.

Statoil is hitting government restrictions head on about drilling in Arctic waters and is expecting possible production delays, with further rules and regulations.

“There will be new regulations and requirements that we need to take into account,” Hege Marie Norheim, head of Arctic development at Statoil told Bloomberg.

With concerns over offshore safety and natural resources reserves’ depletion, there could also be stoppages from OPEC countries.

In the recent OPEC-EU Energy Dialogue meeting in Brussels, the European Commission (EC) Commissioner for Energy, Günther Oettinger, urged the EU to respond to the need for stricter safety standards, urging cooperation between all relevant parties.

“The Commission is proposing to organize a joint EU-OPEC roundtable with the aim of exchanging views on this crucial matter,” he said in his introductory keynote speech.

Environmental disaster

The Arctic waters, where Norway, Canada, Ireland, the US, and Russia each own areas, are believed to contain approximately 90 billion barrels of crude oil.

The region’s extreme weather conditions would turn any oil spill into a natural disaster because cleanup procedures cannot be properly conducted.

Even though Arctic wells aren’t deepwater ones and don’t have pressure problems, Norheim believes the main challenges are “darkness, ice, lack of infrastructure, remoteness and cold.”

Arctic temperatures can drop below freezing, even in the summer. Crude oil congeals at lower temperatures, which is partly why the 1989 Exxon Valdez oil spill is still contaminating the beaches of Alaska, according to officials overseeing the restoration of the region.

Environmentalists have also expressed concerns.

 “We have just seen a dramatic demonstration that oil companies can’t clean up a spill in calm waters and good weather in the Gulf of Mexico, so compare that with broken sea ice in the Arctic where you have freezing temperatures and darkness throughout much of the year,” senior policy advisor at Washington-based Defenders of Wildlife Richard Charter said.

Priorities

Meanwhile, the BP GoM oil spill has shown that the risks overweigh the gains. US authorities and a federal court have both halted Royal Dutch Shell Plc’s plans to explore the Alaskan waters, whilst BP has put off their plans to drill in the Beaufort Sea.

Norway is also making efforts in raising the safety standards for offshore drilling by currently reviewing the procedures for handling blowouts, according to Inger Anda of the Norwegian Petroleum Safety Authority in Stavanger.

It looks as though the GoM message has hit home.

“We all want to learn from the Gulf of Mexico, and if that requires more time, we will take that time,” Statoil’s Norheim declared.




Published on Thursday, 29th July, 2010 at 17:23 under the news category, by Ramona Tancau and Michael Sandelson   .

This post has the following tags: bp, tony, hayward, president, barack, obama, gulf, of, mexico, oil, spill, disaster, opec, ec, european, commission, statoilpetroleum, safety, authority, stavanger.





  
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