Page 6: of Maritime Reporter Magazine (November 2010)

6 Maritime Reporter & Engineering News

EDITOR’S NOTE

I t would be a drastic understatement to say there is “lin- gering, pent-up frustration” regarding the foot-drag- ging in Washington, DC to get back to business as usual in the business of drilling for offshore oil and gas in the Gulf of Mexico. A continued snail’s pace to resolve the technical and political issues which will allow the offshore industry to re-start its operations in U.S. controlled waters will effectively sabotage the offshore and marine industries for months if not years.

While inside the Gulf of Mexico is the obvious focus of this frustration due to BP’s

Macondo well blow-out earlier this year, the pain extends far beyond the Gulf. Last month the Wall Street Journal reported that Royal Dutch Shell was pressing hard – in- cluding a very large public lobbying campaign – to allow it to win approval for its de- layed plan to drill for oil offshore in the Alaskan Arctic, specifically the Beaufort and

Chukchi seas. With a WSJ-reported $3.5b already invested and regulatory hurdles nearly cleared prior to the GOM disaster started April 20, 2010, the company has obvi- ous reasons to seek a quick resolution.

While initiatives to advance the business of offshore energy discovery and recovery are positive for the entire marine industry – and we are particularly interested to see the current administration fast-track the process by which it approves new off- shore oil and gas deals, for no other reason to keep valuable jobs, vessels and rigs from opting out to fields overseas – the “race to the Arctic” should proceed with rea- sonable caution. Well reported is the global climate change and the resulting shrinkage and thinning of the polar ice cap. While the advent of additional navigable days to the north does indeed hold much promise, both in terms of the offshore O&G business as well as shipping in general, it should be remembered that it remains one of the most challenging environments on the planet to traverse, let alone set up shop and do busi- ness. “Arctic Shipping, Security and Logistics” was the topic of a blue-ribbon panel dis- cussion at the recently concluded Society of Naval Architects and Marine Engineers (SNAME) Annual Meeting and Exhibition, held earlier this month in Bellevue, Wash- ington. To put it bluntly the speakers know their ice! The panel included: Mikko Niini,

President, Aker Arctic Technology, Finland; Jim Sandkvist, Vice President, SSPA,

Sweden; and Cdr. David Soule, Project Director, AOPS PMO, Canada;

According to Sandkvist, drilling for and transporting energy products – or for that matter any products – in the Arctic region is all about Risk: identifying, quantifying, handling, avoiding, minimizing and ultimately, determining how much risk is tolerable.

SSPA offers Icemaster, a decision making tool developed specifically to help owners and operators examine all aspects of operating in this world region.

Cdr. Soule documented the Canadian Navy’s travails in designing and building its new class of Arctic Offshore Patrol Ship. Canadian know the Arctic as well as anyone in the world, and he pointed to some of the more obvious constraints in working in the

Arctic, namely the dearth of repair and support facilities, and the challenges of work- ing in, around and under the ice to clean up the mess should a spill occur.

In this edition, turn to page 40 to read Matt Gresham’s take on the loss of business in the Gulf of Mexico, and specifically regarding its short and long-term effects on the people and companies which make their livelihood here.

Next month look for more in-depth reporting on the evolving situation in the Arctic, which will be found in our “Environmental

Report.” “Our greatest glory is not in never falling, but in rising every time we fall.”

Kong Fu Zi (Confucius)

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