This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Critics Say Grounding Shows Arctic Drilling Danger

Royal Dutch Shell PLC in 2008 spent $2.1 billion on Chukchi Sea leases and estimates it has spent a total of nearly $5 billion on drilling efforts there and in the Beaufort.

Shell Alaska spokesman Curtis Smith said the company has a long, successful history of working offshore in Alaska and is confident it can build another multidecade business in the Arctic.

"Our success here is not by accident," Smith said. "We know how to work in regions like this. Having said that, when flawless execution does not happen, you learn from it, and we will."

The drill ship that operated in the Beaufort Sea, the Kulluk, a circular barge with a funnel-shape hull and no propulsion system, ran ashore Monday on Sitkalidak Island, which is near the larger Kodiak Island in the gulf.

The ship had left Dutch Harbor in the Aleutian Island under tow behind the 360-foot anchor handler Aiviq on Dec. 22. It was making its way to a Pacific Northwest shipyard for maintenance and upgrades when it ran into a vicious storm â¿¿ a fairly routine winter event for Alaska waters.

The tow line snapped Dec. 27. Shell vessels and the Coast Guard reattached tow lines at least four times. High wind and seas that approached 50 feet frustrated efforts to control the rig, and it ran aground on a sand and gravel beach.

Shell, the drill ship operators and transit experts, and the Coast Guard are planning the salvage operation.

Calmer weather conditions on Wednesday allowed a team of six salvage experts to be lowered by a helicopter to the Kulluk to conduct a three-hour structural assessment. Information the team gathered will be used for the final salvage plans, officials said late Wednesday in a release. Also taken to the Kulluk was a state-owned emergency towing system for use in the operation.

2 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,079.57 -42.44 -0.25%
S&P 500 1,996.74 -3.38 -0.17%
NASDAQ 4,557.6950 -11.9260 -0.26%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs