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Statoil Follows Shell in Quitting Alaska

Statoil’s exit comes following Shell’s failed bid to find recoverable oil and gas in the Chukchi and Beaufort Seas after spending $7 billion on exploration there.

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And at the end of the Arctic’s short drilling season, Shell announced it was “indefinitely” postponing the project, which has cost several billion dollars over seven years.

The producer has worked since 2008 “to progress our options in Alaska”, said Executive Vice President of Exploration Tim Dodson.

Statoil has chose to exit Alaska following recent exploration results in neighboring leases, the company said in a news release November 17.

The company found that leases in the Chukchi were no longer considered competitive within its global portfolio, according to a press release issued Tuesday.

“Solid work has been carried out, but given the current…”

Officials said in 2012 they would move forward with exploratory drilling only if Shell hit it big with a discovery on par with productive fields in the Gulf of Mexico.

After Shell grounded its drill rig on an island off Kodiak Island, Statoil in early 2013 began warning it might abandon leases in the Chukchi Sea.

Statoil said the studies, research and activities that have taken place in Alaska have given the company significant skills and expertise that can be leveraged in other opportunities in northern environments in the future.

In September, Shell announced it was ending its Arctic Ocean oil operations after its well, about 150 miles from Barrow, Alaska, didn’t turn up enough oil to make it economically viable. “Hopefully, another company will step in to fill the void left by Statoil, but given the harsh economic climate and the difficulty obtaining lease extensions, the outlook is rather bleak”, Luthi said. “It’s certainly not out of the realm of possibility”.

USA senator Lisa Murkowski, who is pushing to end the federal government’s overreaching regulations, which are hurting Alaskans across the state, stressed her concern about Statoil’s exit due to the uncertainty of the federal government’s support.

“This further emphasizes the need to develop our onshore opportunities, such as the 1002 section of ANWR”, said Walker.

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Meanwhile, environmental groups celebrated.

Statoil Follows Royal Dutch Shell Out Of Alaska