• Environmental risk of drilling in Arctic too high, CEO of oil giant Total says

    By NBC News wire services

    LONDON -- Energy companies should not drill for crude oil in Arctic waters because the environmental risks are too high, Total SA Chief Executive Officer Christophe de Margerie told the Financial Times on Wednesday.

    The newspaper, which operated behind a pay wall, described de Margerie's comments as the first time a major oil company has publicly criticized offshore exploration in the Arctic.

    The risk of an oil spill in such an environmentally sensitive area was simply too high, according to de Margerie.

    "Oil on Greenland would be a disaster. A leak would do too much damage to the image of the company," he said.

    Earlier this month, Gazprom OAO delayed the start of oil production at its Prirazlomnoye field, the first Russian Arctic offshore oil deposit to be developed, due to safety concerns.

    A report from the National Snow and Ice Data Center shows the Arctic's melting ice is resulting in the lowest sea ice levels since satellites started tracking the measurements in 1979. NBC's Brian Williams reports.

    The Arctic is seen as a key source in the next decade for Russia, the world's largest oil producer.

    Plans to drill for crude in the Arctic have raised concerns among environmental activists, who launched protests last month at the offshore platform that operates the Gazprom project.

    Shell admits Arctic drilling defeat, for now

    Earlier this month Royal Dutch Shell PLC had to abandon hope of drilling into oil reservoirs in the Chukchi Sea off Alaska after its containment dome was damaged during tests.

    Environmentalists pointed to those setbacks as more evidence that offshore drilling in the Arctic is too risky.

    Sen. Mark Begich, (D-AK), discusses what a delay in Arctic drilling means for the future of oil prices and exploration in the U.S.

    "Letting Shell do top-hole drilling and other preparatory activities when they are clearly not ready to respond to an oil spill is like telling a drunk driver that as long as he stays off the freeway everything should be OK," said Rebecca Noblin, Alaska director of the Center for Biological Diversity, after Shell won approval to carry out additional preliminary drilling off Alaska -- this time in the Beaufort Sea.

    More environment news on NBCNews.com

    The remoteness, the extreme cold and the threat from ice floes crushing equipment pile more costs on top of those imposed by restrictions on drilling during hunting and breeding seasons and requirements for expensive emergency equipment to be on standby.

    And industry executives acknowledge that the economics of Arctic exploration is also shaky.


    NYT: China joins nations seeking treasure in warming Arctic

    Nevertheless, Shell and other international oil and gas companies are moving into the Arctic because of increasing resource nationalism and dwindling production in their traditional heartlands of the Middle East, South America, the United States, the North Sea and elsewhere.

    Persistently high oil prices are also making the huge engineering challenges of working in such a hostile environment look more worthwhile. In addition, the climate change that burning hydrocarbons contributes to has pushed back the ice, opening up access to, and markets for, the hydrocarbons there.

    Arctic sea ice reaches new low, shattering record set 3 weeks earlier

    The prize of success could be huge. The International Energy Agency (IEA) estimates that some 30 percent of the world's undiscovered natural gas and 13 percent of its oil is waiting to be exploited in the Arctic.

    Reuters contributed to this report.

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  • Brazil files criminal charges against Chevron, Transocean over oil spill

    By msnbc.com news services

    An aerial view shows oil that seeped from a well operated by Chevron at Frade, on the waters in Campos Basin in Rio de Janeiro state November 18, 2011.

    RIO DE JANEIRO -- A Brazilian federal prosecutor filed criminal charges against U.S. oil company Chevron and drill-rig operator Transocean for a November oil spill off the coast of Rio de Janeiro, the prosecutor's office said on Wednesday.

    The prosecutor, Eduardo Santos de Oliveira, also filed criminal charges against 17 executives and employees at Chevron and Transocean, owner of the world's largest oil rig fleet. Among the defendants is George Buck, 46, a U.S. national in charge of Chevron's operations in Brazil, the office said in a statement.

    The charges allege that the spill created "a prolonged contamination time bomb" that threatens the entire marine ecosystem.

    At least 110,000 gallons of oil seeped through cracks on the ocean floor near a Chevron Corp. appraisal well off the Rio de Janeiro coast in November. The well, drilled by Transocean Ltd., has since been sealed, but a small amount of seepage reappeared in recent days, raising concern the damage is not yet over.

    In addition to Buck, prosecutors leveled criminal charges against five other Americans, five Brazilians, two Frenchmen, two Australians, a Canadian and a Briton.

    Prosecutors have also asked that that all the assets of those charged be seized, that each person be fined $555,555 and each company $5.6 million.

    Brazil has seen much worse oil spills, but the Chevron leak is the biggest test of offshore drilling safety since massive deposits were discovered in recent years, reserves that could hold 50 billion barrels of oil. Prison sentences could reach as high as 31 years.

    The spill was less than 0.1 percent of the size of the 4-million-barrel BP oil disaster in the Gulf of Mexico in 2010.

    This article includes reporting by Reuters and The Associated Press.

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  • Actress Lucy Lawless boards ship to protest Arctic oil drilling

    Actress Lucy Lawless is shown protesting Arctic oil drilling Friday aboard the ship Noble Discoverer at Port Taranaki, New Zealand.

    By Becky Bratu, msnbc.com

    Actress Lucy Lawless and six other Greenpeace activists boarded an Arctic-bound Shell oil-drilling ship in Port Taranaki, New Zealand, on Friday morning, causing authorities to limit port access.

    The group scaled a 53-meter derrick on the Liberian-flagged Noble Discoverer around 7 a.m. local time.

    Lawless told msnbc.com that her heart was pounding and she was "a little shell-shocked" as they boarded, but that she now felt safe.

    "We don’t need to trash the Arctic to get three more years' worth of oil," she said in a telephone interview from the ship.

    Even as police warned them that they were breaking the law, protesters remained aboard.

    After about five hours, police told the protesters, including Lawless, they were under arrest and should come down.

    Lawless told police the group wasn't leaving and "we feel we have no choice morally but to stay here and get our message out," New Zealands' 3 News reported.

    Earlier, Greenpeace and Lawless tweeted the occupation.

    “I’m on one of the oldest drill rigs on the planet and it’s heading to the Arctic. Tell Shell to stop,” Lawless tweeted.

    Unique species
    James Turner, a spokesman for Greenpeace, told msnbc.com the occupation was the organization's last resort to stop Shell from drilling in the Arctic.

    "We simply don’t believe Shell's reassurances that this is safe," Turner said.

    He said the Arctic is the home of many unique species, and an oil spill would be virtually impossible to contain, given the area's remoteness. Turner also accused Shell of having a "poor record" regarding oil spills.

    Shell says it was "disappointed" with Greenpeace's actions, 3 News reported.

    "Actions such as this jeopardize the safety of everyone involved," the company said in a statement. "While we respect the right of individuals to express their point of view, the priority should be the safety of Noble Discoverer’s personnel and that of the protesters."

    "Shell has undertaken unprecedented steps to pursue safe, environmentally responsible exploration in shallow water off the coast of Alaska," the statement said.

    The ship was due to depart on a 6,800-mile journey to the Chukchi Sea off the coast of Alaska, New Zealand’s 3 News reported.

    A weekend departure was planned, but Shell said the protest halted ship operations.

    Turner said that Shell has a limited drilling window, given the Arctic's extreme weather conditions. Drilling can only take place when the sea ice in Alaska melts, usually between July and early fall, he said. During the rest of the year, thick ice makes drilling impossible.

    Turner said the occupiers have supplies for several days. "We’re there to stop the tanker from leaving," he said.

    'A peaceful protest'
    But Lawless, 43, said she wasn't sure how long they'd last aboard.

    "Our main aim is that this be a peaceful protest, but the law will do what the law has to do," Lawless told 3 News. "We do what we feel we have to do." She told msnbc.com that she and the other protesters have respect for the police.

    One person was arrested at the port gate, 3 News said.

    The police commander for New Plymouth, Inspector Blair Telford, told the New Zealand Herald that his office's role was to ensure any protest was lawful and that owners and crew of the ship were allowed to go about their lawful business.

    "The protesters are clearly breaking the law by trespassing on the ship and we are currently liaising with the Port of Taranaki and the harbormaster to decide the most appropriate course of action. Public safety is paramount.''

    Lawless is best known for her television title role as "Xena: Warrior Princess" and currently stars in Starz's "Spartacus" as Lucretia.

    She told msnbc.com she hopes her children will live in a better world. "Climate change profiteers should not be allowed to destroy our children’s future," she said.

    "Companies are addicted to oil; they’re begging an intervention," Lawless said. "Shell has the technology to be one of the world leaders in a clean energy economy."

  • 4 dead, dozens missing after Russian oil rig capsizes

    By msnbc.com staff and news services

    Updated at 5:05 a.m. ET: Four workers were killed and 49 missing after an oil drilling platform capsized Sunday in the Sea of Okhotsk off Russia's east coast.

    The Emergencies Ministry said in a statement Sunday that there were 67 people aboard the platform as it was being towed about 120 miles off the coast of Sakhalin Island in stormy conditions. It said 14 people had been rescued.

    "According to reports from the scene of the rescue operation, the Kolskaya platform has sunk completely," Reuters quoted the local head of the Emergencies Ministry, Taimuraz Kasayev, as saying. 

    A spokeswoman for the Emergency Ministry in the Far East, told The Associated Press that the rescue team had found four lifeless bodies in the water. They had not yet been retrieved.

    The search operation was being hampered by a fierce storm in the area. The Transportation Ministry said the platform started sinking after a strong wave broke some of its equipment and portholes in the crew's dining room.

    Updated at 1 a.m. ET: At least two people were killed and another 14 were rescued after a drilling rig with 67 people aboard overturned and sank Sunday in the Sea of Okhotsk in the Russian Far East, news agency Ria Novosti reported, citing a local emergency service.

    "As of 4 p.m. local time, 14 people were lifted from the rig; their condition is satisfactory. Also the bodies of two people without any signs of life were found. They will be lifted aboard the Magadan ice breaker," Taimuraz Kasayev, a spokesman for the regional emergencies service, said, according to Ria Novosti.

    A distress signal was sent while the platform was being towed by an icebreaker through high seas and strong winds afer finishing its drill mission, Russia Today news channel said.

    The platform was about 125 miles off Sakhalin Island.

    All workers at the rig have warm swimming suits and life vests, the rescue service told Russia Today. There were also four inflatable rafts on the facility.

    The Kolskoe rig was built in 1985, Russia Today said. At 230 feet by 262 feet, it is one of the largest oil rigs in Russia. It was due to set sail for drilling off the Vietnamese coast at the end of its current mission, Russia Today said.

    The rig was operated by Russian exploration company Arktikmorneftegazrazvedka, Reuters reported.

    The accident poses no environmental risks, Ria Novosti reported.

    "Fuel stocks at the Kolskoe drilling rig are minimal and are stored in hermetically sealed tanks, and there is no danger of a fuel spill," Taimuraz Kasayev, a spokesman for the regional emergencies service, told the agency.

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    The Associated Press, Reuters and msnbc.com staff contributed to this report.