Also this year, Eni and Statoil completed a
US$5.5 billion joint project to build the oil rig
Goliat and ship it to the Norwegian region of the
Arctic. At 574 feet (175 meters), Goliat stands 16
stories higher than Norway’s tallest building. When
it begins pumping about 100,000 barrels of oil each
day, it will join Russia’s platform in the Pechora Sea
as the only offshore rigs producing oil in the Arctic.
Arctic drilling has become more attainable as ice
melts at faster rates due to global warming. Still,
potential drilling sites remain extremely remote.
The Alaskan Arctic’s closest port is 1,000 miles
( 1,609 kilometers) away, which means that project
teams installing oil rigs lack nearby infrastructure
to support them quickly if something goes wrong.
“If you do have difficulties, it’s extremely time-con-
suming and expensive to remedy those difficulties,”
says Robert Bea, PhD, professor emeritus at the
Center for Catastrophic Risk Management, Uni-
versity of California, Berkeley, California, USA.
That’s not the only major challenge the far-flung
location poses. “There’s not a whole lot of infrastructure anywhere near there in terms of equipment to move the oil and gas once they find it and
develop it,” Mr. Mellen says.
In addition, project teams have a tight timeline
to complete their work. “Where Shell is planning
to drill is the real Arctic,” Mr. Mellen says. “They
have maybe two and a half to three months [July-
September] when it’s even physically possible to
drill. It will be iced over most of the year, and all
By contrast, Eni and Statoil’s project is located in
the Norwegian sub-Arctic, so it’s relatively closer
to infrastructure and suffers comparatively less
STARTUPS FORCE A WAKE-UP CALL
Across a variety of industries, startups are doing more than just grabbing market share from established enterprises:
They’re forcing old players to quickly adapt to new technologies, ways of operating and customer expectations.
By Ben Schaefer
NEW CONTENDERS LEARNING FROM THE YOUNG
Leaders at established organizations see the following
differentiating qualities in nimble, younger firms, to
varying degrees: 98% of
ness leaders and
Europe and Asia
say new category
believe the disruption is severe.
thinking and insight
28% Use techno-
logical innovation to
disrupt the status quo
23% Use digital plat-
forms and channels to
speed time to market
36% Embrace nontraditional approaches
and are willing to fail