Shell start drilling on 'thin ice'

Royal Dutch Shell have started drilling in the Arctic after one of the biggest summer melts on record, but experts are warning that access to Arctic oil is not an energy solution, and diplomatic battles could ensue if companies do not drill responsibly.

There is a lot at stake in the Arctic, and several companies operating in countries around the region are more than aware of the vast reserves being stored under the ice. The US, Norway, Russia, the Netherlands and several other countries are all home to oil companies that will be looking to pitch a stake in the oil reserves hidden under the Arctic, which could turn into some ugly diplomacy in the future.

Environmentalists are also very concerned with moves to drill in the region, with the opening of trade routes through the Arctic allowing more companies from polluting industries to operate. It is believed that access to the Arctic has been granted because of global warming, which could be further exacerbated by irresponsible drilling.

But whatever fears there may be, the reality is that drilling has commenced in the Arctic, with Royal Dutch Shell sending its Noble Discoverer to start drilling in the Chukchi Sea off the north coast of Alaska, beginning preparations to become the first company to drill for oil in the US Arctic in decades.

The US Interior Department has given the company permission to perform preparatory works as it awaits a final permit to drill for oil. Kelly op de Weegh, a Houston-based spokeswoman for the company, said: "Today marks the culmination of Shell’s six-year effort to explore for potentially significant oil and gas reserves, which are believed to lie under Alaska’s Outer Continental Shelf."

Shell has invested some $4.5 billion (£2.8 billion) on the offshore leases and equipment and fought at least 50 lawsuits from environmental groups, opposing the first wells in the Arctic waters in about 20 years.

Posted by Lauren Steadman