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The Schork Report Editor Stephen Schork on the grounded Alaskan oil rig and its potential impact on further Arctic drilling.
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Turning to Alaskan oil -- turbulent seas and strong winds causing major concern for an oil drilling -- stranded off the coast of southern Alaska.
Emergency crews unable to board the rig to check for damage since it went around last Friday officials say there are no signs of -- -- as of now.
Here to drill down on the -- and the possible impact on future oil exploration.
Chart and editor of the -- report thanks so much for being here and happy new year -- to be here.
I'm good thank you the -- is said to be stable for now but whether obviously delaying anyone from getting -- and doing anything about this.
What you think are the odds that we see a leak or spill here I mean they know it's hard to tell but based on what you know what you think.
-- right -- -- -- it is hard to tell and right now given the unpredictability of the weather mean we are talking about a -- the -- part of the world with regard to whether at this time of the year -- high -- Right now what we can tell the vessel is pinned up on the rocks on -- in have little.
-- and right across from Kodiak there in Alaska.
So the odds are of the -- are I mean they're they're pretty long at this point that we're talking about 3600.
Barrels -- Diesel fuel and -- oil and hydraulic fluids fluids that are on the vessel itself.
-- -- -- to minimize this but we're not -- -- a great deal of oil.
But at this point that from what we can say at this at this juncture.
It was okay -- -- officials now yes shell officials said that the rig was built with a double hold reinforced steel.
-- that is three inches thick -- recently went under underwent almost 300 million dollars in improvements before being put out to serve.
You have to wonder and I hate to say this but there is so much oil up there but -- it's too hard to do health.
Well you know this is what they were saying about -- oil I just ten years ago about but the economics -- -- if you make oil prices -- up as with any commodity.
You will have the technology gap will be able to get -- this oil.
So right now this is a learning process at this point shell has invested for five billion dollars.
Into getting -- this oil they certainly are on the vanguard.
They are running up against that with the weather that is unfortunate.
But this is information this is data being provided to the company to the industry.
That will certainly -- -- the endeavor that yeah which is more secure going forward.
What do you think would be the impact on prices if we gave up on drilling in the Arctic.
Well right now there will be no immediate impact because we are not drilling or we are not getting oil out offshore in the Arctic at this point.
The biggest fear from a long term standpoint right is that Washington which does support in this program and this administration.
As we -- know is certainly no friend of this industry they do back this.
But the fear now is that god forbid if we do get a a spell that Washington does lose its political backbone and they -- back out on the potential.
Estimates that there are potentially -- -- -- million barrels a day of oil sitting sitting up there in the Arctic Ocean.
So when you consider that US production to six and a half million barrels a day we're talking a considerable amount of oil.
That could get to the market.
Down the road so we do not see this oil.
Well look we know oil demand is only going one way worldwide in the eyes pop out -- are out there -- we do not bring to the market.
Is another reason why prices will stay higher Stephen thank you so much.
Thanks for some time now for the few.
