popular articles

Willow oil project, a “carbon bomb” according to Greenpeace

Joe Biden's decision on the Willow oil project in Alaska is highly anticipated. The economic stakes are enormous, but environmental groups are campaigning to prevent it, pointing to the environmental consequences and the climate commitments of the Biden administration.

Please share:

President Joe Biden must soon decide whether the Willow oil project in Alaska gets U.S. government approval. This decision was taken in a context of strong pressure from environmental associations. The project, originally approved by the Trump administration, was temporarily halted in 2021 by a judge, who referred it for further government review.

The economic stakes are enormous, but Joe Biden’s decision is highly anticipated, as he had promised not to authorize new oil and gas drilling on federal lands. Symbolically, the drilling would be done in a northern Alaskan wilderness area in the Arctic, where temperatures are warming much faster than the rest of the planet, bearing the brunt of the adverse effects of human-related greenhouse gas emissions.

Massive opposition from environmental associations

Supporters of the project see it as a source of jobs, a contribution to U.S. energy independence and, for some, an inevitable step in the transition to other energy sources. However, the environmental associations are making a massive campaign to prevent the realization of the project. “If approved, the Willow project would become the largest oil extraction project on federal lands in the United States,” Greenpeace pointed out, calling it a “carbon bomb.” “We can’t afford it, as a planet,” the Earthjustice organization asserted. An online petition on Change.org has gathered more than three million signatures. A wave of videos opposing the project also broke on the social network TikTok. The hashtag #StopWillow had more than 150 million views as of midday Thursday.

Project Reduction and Environmental Concerns

In early February, the Bureau of Land Management released its environmental analysis, in which it detailed a “preferred alternative.” The latter would reduce the project to three drilling sites instead of five, with approximately 219 wells. This would allow the production of 576 million barrels of oil over about 30 years, according to the office’s estimates. This would result in the emission of 9.2 million tons of CO2 per year. The U.S. agency notes that this amount represents 0.1% of U.S. greenhouse gas emissions in 2019. A fourth drill site could then be added under this scenario.

The American oil giant ConocoPhillips had “welcomed” the publication of this report and considered that the proposed alternative was “a viable path for the future development of (its) lease”.

The U.S. government has also expressed concern about greenhouse gas emissions. The economic stakes are enormous, but the environmental consequences and the Biden administration’s climate commitments must also be taken into account.

Oil proponents pressure Joe Biden

In early March, three Alaska elected officials in the U.S. Congress, including Republican Senator Lisa Murkowski, urged President Biden to approve the “Willow” project. They emphasized the economic benefits to Alaska and the energy security of the United States. However, Joe Biden has pledged to reduce U.S. greenhouse gas emissions and meet the commitments of the Paris Climate Agreement. It remains to be seen what decision will be made on this controversial project.

Register free of charge for uninterrupted access.

Publicite

Recently published in

US crude oil inventories fall by 4.3 million barrels

Commercial crude reserves in the United States declined more than expected, following increased refinery activity according to EIA data published on June 4.
TotalEnergies has signed an agreement with Shell to increase its stake in Brazil’s offshore Lapa field to 48%, while divesting its interest in Gato do Mato.
TotalEnergies has signed an agreement with Shell to increase its stake in Brazil’s offshore Lapa field to 48%, while divesting its interest in Gato do Mato.
SBM Offshore has signed a divestment agreement with GEPetrol to fully withdraw from the FPSO Aseng project in Equatorial Guinea, with an operational transition phase of up to one year.
SBM Offshore has signed a divestment agreement with GEPetrol to fully withdraw from the FPSO Aseng project in Equatorial Guinea, with an operational transition phase of up to one year.
Meren Energy has launched a partial divestment process for its EG-18 and EG-31 assets to attract new partners and reduce its exposure in Equatorial Guinea.
Meren Energy has launched a partial divestment process for its EG-18 and EG-31 assets to attract new partners and reduce its exposure in Equatorial Guinea.

PTAS Aker Solutions secures two-year offshore maintenance contract in Brunei

The oil services joint venture extends its contract with Brunei Shell Petroleum for maintenance and upgrade operations on offshore installations in the South China Sea.
Renaissance Africa Energy confirmed to the Nigerian government the operational takeover of Shell Petroleum Development Company’s onshore assets, stating it had surpassed the 200,000 barrels per day production mark.
Renaissance Africa Energy confirmed to the Nigerian government the operational takeover of Shell Petroleum Development Company’s onshore assets, stating it had surpassed the 200,000 barrels per day production mark.
Australian company Woodside Energy has filed a complaint with ICSID against Senegal, challenging a CFA40bn tax reassessment related to the offshore Sangomar oil project.
Australian company Woodside Energy has filed a complaint with ICSID against Senegal, challenging a CFA40bn tax reassessment related to the offshore Sangomar oil project.
Nigeria introduces a tax credit capped at 20% for oil operators meeting cost reduction targets, with a focus on gas and offshore projects.
Nigeria introduces a tax credit capped at 20% for oil operators meeting cost reduction targets, with a focus on gas and offshore projects.

Morocco funds expert mission to revive offshore exploration

Following the withdrawal of two British companies, Morocco launches a MAD2.5mn ($270,000) expert mission to boost the appeal of its offshore oil and gas sector.
International Petroleum Corporation repurchased 89,200 common shares between 26 and 30 May under its buyback programme compliant with Canadian and European regulations.
International Petroleum Corporation repurchased 89,200 common shares between 26 and 30 May under its buyback programme compliant with Canadian and European regulations.
US energy companies reduced the number of active rigs for the fifth consecutive week, reaching their lowest level since November 2021, according to data published by Baker Hughes.
US energy companies reduced the number of active rigs for the fifth consecutive week, reaching their lowest level since November 2021, according to data published by Baker Hughes.
The Swedish government will implement new disclosure rules for foreign vessels, specifically targeting tankers linked to Russia’s hard-to-trace oil fleet.
The Swedish government will implement new disclosure rules for foreign vessels, specifically targeting tankers linked to Russia’s hard-to-trace oil fleet.

Petrobras signs two agreements in Angola to relaunch its offshore activities

Brazilian group Petrobras formalises its return to Angola with two memorandums of understanding signed with Sonangol and the national oil regulator, targeting offshore exploration without immediate financial commitment.
The Abuja Court of Appeal rejected Malabu Oil & Gas’s lawsuit against Agip, Eni’s subsidiary, by upholding the statute of limitations on the OPL 245 oil block case.
The Abuja Court of Appeal rejected Malabu Oil & Gas’s lawsuit against Agip, Eni’s subsidiary, by upholding the statute of limitations on the OPL 245 oil block case.
Portugal’s Galp expects a production surge in Brazil driven by the offshore Bacalhau field, in partnership with Sinopec, Equinor and ExxonMobil.
Portugal’s Galp expects a production surge in Brazil driven by the offshore Bacalhau field, in partnership with Sinopec, Equinor and ExxonMobil.
North Atlantic has entered exclusive negotiations to acquire the Gravenchon refinery, France’s second-largest, from ExxonMobil in a deal reshaping the industrial landscape of the Seine Valley.
North Atlantic has entered exclusive negotiations to acquire the Gravenchon refinery, France’s second-largest, from ExxonMobil in a deal reshaping the industrial landscape of the Seine Valley.

Shell strengthens position in Nigeria by acquiring TotalEnergies’ stake in Bonga

TotalEnergies sells its 12.5% stake in the offshore Bonga oil field to Shell for $510mn, raising the British group's share to 67.5% in the OML 118 block off the Nigerian coast.
The Trump administration authorizes Chevron to maintain limited stakes in Venezuela while prohibiting oil production and export, marking a decisive shift for the oil sector amid geopolitical tensions with Maduro’s government.
The Trump administration authorizes Chevron to maintain limited stakes in Venezuela while prohibiting oil production and export, marking a decisive shift for the oil sector amid geopolitical tensions with Maduro’s government.
Indonesia Energy announces a ramp-up in its oil assets with a 60% increase in proven reserves and confirms a strategic shift toward gradual energy diversification.
Indonesia Energy announces a ramp-up in its oil assets with a 60% increase in proven reserves and confirms a strategic shift toward gradual energy diversification.
SK Innovation, through its subsidiary SK Earthon, is accelerating investments in offshore oil exploration projects in Southeast Asia, enhancing South Korea's energy security through a regional strategy focused on operational efficiency.
SK Innovation, through its subsidiary SK Earthon, is accelerating investments in offshore oil exploration projects in Southeast Asia, enhancing South Korea's energy security through a regional strategy focused on operational efficiency.

Russia Challenges Adjustment to Price Cap on Its Oil Exports

As Western nations debate an adjustment to the price ceiling on Russian oil, Moscow firmly rejects these measures as market-distorting, citing a lack of significant impact on its current exports.
Carlo McLeod joins the new presidential unit dedicated to hydrocarbons as Namibia centralises oil sector governance under the head of state.
Carlo McLeod joins the new presidential unit dedicated to hydrocarbons as Namibia centralises oil sector governance under the head of state.
Valeura Energy has completed eight wells on Block B5/27 in the Gulf of Thailand, securing stable output and preparing a new investment phase at the Nong Yao field.
Valeura Energy has completed eight wells on Block B5/27 in the Gulf of Thailand, securing stable output and preparing a new investment phase at the Nong Yao field.
Shell recognised Mecpec Trading for its 2023 fuel sales growth and contribution to Singapore's distribution network, with a 23% increase in total volume delivered.
Shell recognised Mecpec Trading for its 2023 fuel sales growth and contribution to Singapore's distribution network, with a 23% increase in total volume delivered.

Advertising