During Obama administration, companies find out that drilling for oil or any other form of natural gas won’t be as easy as before, especially in the Arctic Ocean. There will be a finalized rule where companies are required to follow a strict environmental and safety protection plan.
The New Regulation
It doesn’t mean that the new rule doesn’t allow drilling oil or natural gas in the Arctic at all but the drilling companies must have a detailed plan about how they will drill and how their solutions are for any oil spill. They should include any detailed emergency plans for their drilling activities too. Such a new regulation has set companies back because it poses a new fuss and hassle in the production management and contingency.
Companies may not want to drill there for now, but it may not be so in the future. After all, the regulation will also cover other drilling areas such as the Beaufort and Chukchi Seas, along the way of the north and the northwest part of Alaska. Respectively, these companies are required to have a detailed plan and solution for weather and ice forecast, response plans for oil spill issue, and also have the relief rig handy.
Drilling oil in Arctic environment has its own challenges, especially from the operational point of view. From the environment point of view, the native Alaska setting should be protected for their incredible ecosystem. It is a must that such condition is preserved for many years to come. On the other hand, the need of natural gas and oil is increasing. Not to mention that there is a question whether the companies would go with the new regulations or they will want to stop altogether. The Royal Dutch Shell, a drilling company, has delayed their drilling plan in the Arctic area – an obvious response to the new regulation.