Shell said it drilled the well to a depth of 6800 feet this summer in a basin that “demonstrates numerous key attributes of a major petroleum basin”.
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In a brief “update” on the Burger J exploration well located in the Chukchi Sea, Shell said that while it found indications of oil and gas in the Burger J well, “these are not sufficient to warrant further exploration in the Burger prospect”.
Those weak oil prices are forcing oil companies around the world to cancel or delay new exploration, especially in risky or high-cost areas.
Walker said he has contacted the White House to set up meetings about the impact of Shell’s decision on the state. The company’s well, he says, “had turned up not much at all, in fact close to zero”.
In afternoon trading in London, Shell’s share price was down 2.7 percent at 1,515 pence in a weak overall market.
Shell’s Chukchi leases are due to expire in five years unless regulators stretch the lease deadline or the company begins producing hydrocarbons at the site.
Shell’s announcement was welcomed by environmentalists who have been trying to convince the company to halt its plans to explore in the Arctic.
These environmentalists have criticized Shell’s drilling plans in the Arctic, as it is home to a sensitive population of whales, walruses and polar bears. “Today they have made history”, said Anne Leonard, Greenpeace USA Executive Director, in a press release.
Earlier this year, Shell faced a flotilla of “kayaktivists” in Seattle during the departure of its Arctic drilling fleet.
In July, an icebreaker called the Fennica that was part of Shell’s fleet was sent to Vigor’s Swan Island dry dock in Portland for repairs, prompting protesters with Greenpeace to suspend themselves from the St. John’s bridge to prevent the Fennica from returning to the arctic. “All along the conservation community has been pointing to the challenging and unpredictable environmental conditions”.
Opponents point to the treacherous conditions of the Arctic and the possibility of irreparable harm to the region’s delicate ecosystem in the event of an accident, as well as the overarching threat of climate change from the burning of fossil fuels like oil and gas.
The company has spent a few $7 billion on the exploration project.
It’s one small victory for O’Brien, who has been vocal about his opposition to Shell’s Arctic exploration for oil.
A transition to production could have taken a decade or longer.
Alaska for the foreseeable future.
But Senate Energy and Natural Resources Chairwoman Lisa Murkowski (R-Alaska) said she was “extremely disappointed” by Shell’s decision, which she blamed on onerous government regulations.
JACKIE NORTHAM, BYLINE: Shell’s announcement today that it will stop drilling in the Arctic came as a surprise to many. Giving up has got to hurt at a company that prides itself on scientific and technical prowess.
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One, the Kulluk, washed ashore after breaking loose from towing vessels in stormy seas in southern Alaska in January that year.
