Shell suffers early arctic setback

JUNEAU, Alaska, July 8 (UPI) -- Royal Dutch Shell confirmed an icebreaker carrying a piece of safety equipment to a drilling site in arctic Alaskan waters suffered a minor hull breach.

A Shell spokesman confirmed in a statement emailed to Alaska Public Media a "small breach" was discovered in the hull of MV Fennica, chartered to carry a capping stack to drilling sites in the Chuckchi Sea.

Shell is proposing as many as six wells in a region known as the Burger prospect, located in shallow waters off the coast of Alaska, using the Noble Discoverer and Polar Pioneer rigs. Shell would need the capping stack positioned near drilling sites under the terms of federal permits.

Industry group American Petroleum Institute in July 2014 outlined recommended practices for the installation of so-called capping stacks, a mechanism developed in the wake of the 2010 oil spill in the Gulf of Mexico.

An interim well containment system was made available to the industry in early 2011 by the Marine Well Containment Co., a non-profit collaboration between ExxonMobil, Chevron, ConocoPhillips and Shell.

The Noble Discoverer rig suffered setbacks during a 2012 campaign off the coast of Alaska and activists opposed to arctic drilling plans said it's evidence that Shell is not prepared to handle an oil spill in the region of any degree of magnitude.

Alaskan oil production is in decline as many of its fields reach maturity. State and business leaders have said the Shell campaign is an important part of the future of the Alaskan energy sector.