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Drilling at a controversial BP (LSE:BP.) deepwater oil well off the coast of the Shetland Islands could begin within days in spite of recent controversy over the well’s environmental impact. The oil giant was given the go ahead to begin drilling after thorough review of the well’s environmental impact and emergency contingency plans by the U.K. Department of Energy and Climate Change.
The North Uist well, located 80 miles off the coast of the Shetlands, will be drilling in water roughly three quarters of a mile deep. Just yesterday, Chancellor of the Exchequer George Osborne announced £3 billion of tax breaks for drilling west of the Shetlands. Drilling at the well was inteneded to commence in 2010, but a series of safety improvements have continually delayed the project.
Environmental Concerns
Many critics of the project are concerned about the environmental impact of the well in an area rich with aquatic life. According to BP’s evaluation, a worst-case scenario oil spill at the site could see twice as much oil leak into the sea as the Macondo well did in April 2010. This scenario could see a leak of 75,000 barrels per day for 140 days. BP has tried to allay concerns by assuring that the North Uist well is outfitted with state-of-the-art safety technology.
Nevertheless wildlife and environmental activists have been vocal in their opposition to the project.
“New deep-water drilling is just not worth the risk because we should be phasing out our use of oil instead of chasing ever more difficult sources. A major spill from this well would be a disaster for fishing, tourism and wildlife, with oil washing up in the Northern Isles and as far away as Norway,” said Dr. Richard Dixon, director of the World Wildlife Fund in Scotland.
Jonathan Hughes, director of the Scotland Wildlife Fund, sees the project as a regression, both for BP and Scotland. “BP is a company making baby steps towards diversifying into a sustainable energy generation business. This is a business model it will absolutely need to embrace if it is to have a long-term future as a global corporate success story. Drilling under highly risky deep water off Shetland – one of Europe’s most important marine wildlife areas – is a retreat into the past for BP, but also a wasted opportunity for Scotland. Their investment could instead have been made in clean, renewable alternatives.”
BP has called the risk of a spill, and ensuing environmental disaster, “extremely remote.” Furthermore, Energy Minister Charles Hendry reinforced the oil giant’s claims. “Before giving consent, my department has very carefully scrutinised BP’s plans and their emergency response measures to ensure their operations are conducted to the highest possible standards,” said Hendry.
Company Spotlight
BP is one of the world’s largest oil and gas companies operating in countries around the globe providing petrol and petrochemical products, alternative energy, shipping, and a host of other related businesses.
References
↑ Company History
↑ BBC News
↑ The Press Association
↑ The Telegraph
↑ BP Business Portfolio
