It’s official. It’s over after only one (1) dry hole (or virtual dry hole). See the gcaptain article. Shell cites low oil prices, inconsistent regulations, and failure to find oil. Analysts claim that Shell may lose as much as $9 billion on its Arctic adventure.
What are the economic impacts for Alaska? Lots of jobs are going to disappear in Anchorage and with some contractors.
I doubt that Crowley will see much lost work. Foss will certainly lose some business.
The impact on Alaska Mariners will probably be fairly modest as not that many of us got in on this bonanza anyway. At least flights to Dutch Harbor should become move available and room rates should drop at the Grand Aleutian. Shell’s departure will probably stall efforts to bring working cell data to Dutch Harbor. What am I missing?
[QUOTE=tugsailor;169545]What are the economic impacts for Alaska? Lots of jobs are going to disappear in Anchorage and with some contractors.
I doubt that Crowley will see much lost work. Foss will certainly lose some business.
The impact on Alaska Mariners will probably be fairly modest as not that many of us got in on this bonanza anyway. At least flights to Dutch Harbor should become move available and room rates should drop at the Grand Aleutian. Shell’s departure will probably stall efforts to bring working cell data to Dutch Harbor. What am I missing?[/QUOTE]
I don’t see any hideous losses for Alaska…afterall very few of the workers for Shell’s contractors even came from the west coast yet alone the 49th state… If there was any single West Coast company invested in Shell it was Foss with their Arctic tugs they are building and the lease on Seattle’s Terminal 5.
I just want to see the AIVIQ cold stacked now and all the rubes on it forced to do real work rather than collect fat paychecks holding up a pier in Everett for years on end. I have heard stories…
Now that Shell is abandoning Alaska, there’s no need for USCG to build a new polar icebreaker to police them.
[QUOTE=Tups;169548]Now that Shell is abandoning Alaska, there’s no need for USCG to build a new polar icebreaker to police them.[/QUOTE]
But it takes decades to build new Ice Breakers according to the Government, so by the time they finish with the Ice Breakers Shell will be ready to go back north.
I have a feeling that Foss will come out of this smelling like a rose with fat contract termination fees.
The Foss Arctic tugs under construction will enjoy a huge Shell subsidy that more than offsets their extra ice class costs (they are not “ice breakers”) and they will be available for other work, including supporting Prudhoe Bay and Point Thompson.
The USCG icebreaker program is going to be set back for years.
As I recall, Shell owns AIVIQ. I bet it will be repurposed as an Antarctic research vessel.
[QUOTE=tugsailor;169551]As I recall, Shell owns AIVIQ.[/QUOTE]
According to ABS database entry, Aiviq is owned by Offshore Service Vessels LLC.
[QUOTE=Tups;169554]According to ABS database entry, Aiviq is owned by Offshore Service Vessels LLC.[/QUOTE]
Which is ECO
[QUOTE=tugsailor;169551]I have a feeling that Foss will come out of this smelling like a rose with fat contract termination fees.
The Foss Arctic tugs under construction will enjoy a huge Shell subsidy that more than offsets their extra ice class costs (they are not “ice breakers”) and they will be available for other work, including supporting Prudhoe Bay and Point Thompson.[/quote]
your likely right and Saltchuk never became that heavily invested in Shell that even if the contracts they have with Shell do go south, Saltchuk would not hurt that badly
The USCG icebreaker program is going to be set back for years.
there certainly is a little less reason that the USCG will feel the need to fasttrack any newbuilds but I am sure they want them all the same
As I recall, Shell owns AIVIQ. I bet it will be repurposed as an Antarctic research vessel.
No, ECO owns the AIVIQ but rest assured that Mister Gary has a very firm longterm contract with Shell for the vessel which I well imagine gives Shell no out of short of them buying out of the contract with severe penalties worth at least as much as the actual contract. As far as ECO trying to force the AIVIQ at the Antarctic for research, first there is no funding anymore for the NSF and second, the vessel is not designed for research and hideously expensive to operate…the NSF would howl if told they had to take it. I doubt there is anyone in Congress that can force the AIVIQ onto the NSF against their will although Ted Steven could have when he was there. Certainly Lisa Murkowski might try, but as much as she is in Shell’s pocket, I do not believe she has that much stroke and she isn’t Chair of the Senate Appropriations Committee like Uncle Ted was with the ability to magically create that missing funding. Frankly, I think politically, it would be an easier in Washingtoon to sell the AIVIQ to the USCG, but the vessel would almost need to be gifted by Shell after they buy it outright from ECO. Shell could do well to make such a gesture. Then again if they really wanted to flog themselves in public, they could donate it to Greenpeace.
I believe the CG will still push for new ice breakers. The two Polar Class vessels are WAY past their service life and whether or not it’s actually the case they will argue that militarily they need a presence at the poles…