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Crude rush as company discovers signs of oil off Greenland
Published on August 25, 2010 by oilprices · No CommentsThe Arctic is set to become the world’s last dash, or “crude rush” for oil after Edinburgh based Cairn Energy signals that oil may be found off Greenland, one of the world’s last untapped fields.
Underlining its efforts to ensure safe drilling off Greenland, Cairn Energy said “Cairn has always recognised that drilling offshore Greenland would present significant logistical challenges and has approached the design of its drilling programme with the aim of reducing all of the associated risks in accordance with the ‘as low as reasonably practicable’ principle. This is a practical approach to risk mitigation that is common across many industries.”
One of the hazards facing exploration in Baffin Bay is the threat of icebergs. The firm, run by former rugby player Sir Bill Gammell, stressed that its crew were so far managing icebergs “successfully”, with only two or three per day coming within a 15.5 mile radius of the two drills.
The Edinburgh based company is drilling in a basin the size of the North Sea, meaning the find is potentially of enormous significance.
Greenland’s waters could hold 50 billion barrels of crude and gas, enough to meet the energy demands from every country in Europe for almost two years. But Cairn’s find has already attracted the attention of environmental campaigners who are furious that the untouched beauty of the Arctic is being put at risk.
Critics have slammed the operation as reckless and dangerous. Speaking by satellite phone from the protest ship Esperanza, members of Greenpeace said they would continue attempts to disrupt work.
Greenland is self-governing but barring a severing of ties with Denmark, a major oil find will put the Danes in the unlikely position of becoming an oil rich nation on a par with the likes of Saudi Arabia.