This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Critics Say Grounding Shows Arctic Drilling Danger

"It's remote. There are no roads. There's no real, true spill response capability like you would have in the gulf, where you have ports and harbors and boats and fishing boats and vessels everywhere," she said.

Shell has said its preparations will allow it to operate safely far from the Coast Guard base. Like a backcountry camper, Shell has promised to carry all the response equipment needed to the isolated drilling sites: a fleet of more than 20 response vessels that could respond in either the Beaufort of the Chukchi.

Shell spokesman Smith said the company remains confident in its ability to operate safely.

"We encountered severe weather basically all summer long in the Arctic," he said. "While it was challenging, the personnel and the assets and the rigs performed very well."

When a massive ice flow moved toward the drill ship operating in the Chukchi after less than a day of drilling, Shell released the vessel from anchors and moved out of the way.

"As disappointing as that was, given how long we had waited to start drilling â¿¿ we were only a day in â¿¿ we had the time and made the decision to disconnect from anchors and safely move off," Smith said. "That's how responsible operators work in the Arctic, or anywhere, really."

The Aiviq has towed the Kulluk more than 4,000 miles and experienced conditions seen before the grounding, Smith said. It was no accident, Smith said, that additional vessels were standing by in Seward.

It's too soon to know what led to the grounding, Smith said, but the failure of the Aiviq's engines for a time after the initial separation and the inability to re-establish an ideal tow connection were factors.

"It's clear that a sequence of unlikely events compounded over a short period of time, underscored by the complete loss of power to the engines of the Aiviq," he said.

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
4 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!
SYM TRADE IT LAST %CHG

Markets

DOW 18,203.37 -85.26 -0.47%
S&P 500 2,107.78 -9.61 -0.45%
NASDAQ 4,979.9010 -28.1950 -0.56%

Partners Compare Online Brokers

Free Reports

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