Shell president terms North Slope visit a measure of respect

TAMAR BEN-YOSEF

April 18, 2008 at 10:02AM AKST

Shell Oil is making a comeback into Alaska’s oil industry, and it wants residents and the state government to know it is serious about its future in the state.

For that reason, and to show his respect for the people and cultures at hand, John Hofmeister, president of Shell Oil in the United States, paid his visit to the North Slope in February, during which he made stops in Barrow, Nuiqsut, Point Lay and Wainwright.

"This purpose of my visit was to reassure them that this is a long-term play by Shell and that the timeframe for the development of natural resources will be extended over many, many years," Hofmeister told reporters during a phone-in press conference on April 8.

He spoke of a 12-year timeframe before any production is started, should the company find hydrocarbons in the Chukchi Sea.

"This is a totally new frontier for development in Alaska," he said.

"We are looking at environmental requirements and integration of local knowledge, particularly in the Arctic Circle," he said.

During testimony in front of Congress in March, Hofmeister declared the country is lacking in an energy policy and a set of short-, medium- and long-term plans for its energy, including renewable energy. Part of that needed strategy should include more access to sources.

"Shell would be interested in seeing how opportunities present themselves, and at the same time we only approach opportunity when we can also manage the social, environmental and cultural aspects simultaneously," he said.

Hofmeister criticized those parties that have tried, through litigation, to oppose Arctic oil and gas development and said they are being unfair to the American people and to Alaskans specifically.

He gave Kivalina’s recent lawsuit against energy companies as an example.

"The country needs more energy, and we believe we can work cooperatively to find solutions," he said.

During his visit, Hofmeister met with city mayors, community leaders, whaling captains and residents in a series of organized meetings.

In those discussions, Hofmeister said that Shell has a keen interest in advocating revenue sharing both on the community and the state level. Hofmeister said he sensed the communities all felt development offshore was inevitable and were concerned how this would effect future generations.

Shell’s answer to those concerns is continued cooperation with local residents.

"All of that development would go hand in glove with Native lifestyle by offering Shell knowledge about Arctic winters," Hofmeister said.

Responding to a question on whether local communities could benefit directly from the oil extracted from the Arctic Ocean, Hofmeister said there is not enough demand in the region to justify building a refinery that would supply the villages. He also said the high prices of oil will likely continue to rise further or remain the same until the government allows access to more oil resources on and offshore.

"The moratorium on 85 percent of the outer continental shelf of the Lower 48, which has been in place for decades, has denied U.S. oil companies the opportunity to produce more hydrocarbons, on federal lands as well," Hofmeister said.

"Failure to present opportunity for production of new carbons has led the nation to its current high price of gasoline."

While in Barrow, the president met with Trent Blankenship, superintendent of the North Slope Borough School District, and with teachers and students in the classrooms.

"Some of those youngsters would be the first employees working on the Chukchi Sea," the president said. He said the company will work with the schools to enhance their math and science programs to prepare the students for the possible employment opportunities the industry will offer.

Another school visited was Ilisagvik College, where Hofmeister officially presented the school’s Inupiat Studies department with a $224,000 grant for development of Inupiat skills and background.

Hofmeister visited the villages with his wife, Karen. The two dined on local Alaska Native food and particularly enjoyed spicy muktuk given to them at a school dinner in Nuiqsut.

Hofmeister braved the dance floor during a session of Native dances and said he was fascinated going from table to table listening to elders and their stories.

For part of his visit, Hofmeister wore a parka loaned to him by Leonard Lante and made by his mother.

"Everyone told me, ‘That is not your parka,’" he said.

In Wainwright, the Hofmeisters dined with a group of whaling captains and heard their experiences and learned about their sacred relationship with the whale.

"My wife and I had a great sense that they knew our visit intended to show our respect for them and their lifestyle," Hofmeister concluded.

Tamar Ben-Yosef can be reached at (907) 348-2419 or toll-free at (800) 770-9830, ext 419.