Royal Dutch Shell has been forced to delay plans to drill for oil and gas in Alaska after suffering a major setback in its preparations.
The company has committed to have "containment domes" in place during drilling to cap any well that suffered a leak or explosion, similar to BP's Gulf of Mexico disaster.
Shell says during testing in the last few days a containment dome was damaged and that "some days" will be required to repair and re-test it.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
This means the whole schedule of operations has had to be moved back as the company also has to accommodate whaling operations and ice floe movements, with winter on its way.
Instead of drilling into possible hydrocarbon zones the company will instead begin as many wells, known as `top holes,' as time remaining in this season allows.
These initial well digs will be capped and abandoned for the winter but there is no chance of any discovery until at least 2013.
BS
-
Cash in on the growth prospects of Europe's companiesOpinion Marcel Stötzel, co-portfolio manager of the Fidelity European Trust, selects three stocks
-
Is the AI boom another dotcom bubble?25 years on from the dotcom bubble bursting, is it time for investors to consider the sustainability of the AI boom in the stock market?
