Shell said, via a press release, that it would “cease further exploration activity in offshore Alaska for the foreseeable future”.
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Royal Dutch Shell’s decision to end its quest for oil in the Arctic waters off Alaska sparked jubilation among environmental activists, who said Tuesday that they will seize the opportunity to seek an end to all drilling to in the region.
“While [Shell’s] recent announcement is disappointing”, Walker said, ” it is a reminder that underscores the need for Alaska to drive its own destiny through development of known gas resources, as well as rich oil reserves in a small area of ANWR”.
After results from the “Burger J” test drill off the Alaskan coast were disappointing, and with big falls in its stock price, Shell seems to have chose to look for easier pickings elsewhere. Therefore, in a political season with much at stake, energy development in the Arctic could clearly have reached a hinge moment when it may conclusively shift in one direction or the other based on the outcome of the 2016 presidential election.
In announcing its decision to stop drilling in the Arctic, Shell took a swipe at the Obama administration, criticizing the federal government’s “challenging and unpredictable federal regulatory environment in offshore Alaska”.
Shell’s departure is especially a blow for company employees and contractors who have worked on the Arctic drilling program over the last seven years. Shell has already spent billion on the project, and companies don’t like to waste money.
While a few groups call for immediate expansion of oil exploration in the Arctic to bolster America’s energy mix, environmental advocates say Monday’s news is a reminder that there’s no time like the present to reduce reliance on fossil fuels.
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This is not the first bill Huffman has authored trying to protect the arctic as he also helped author the bi-partisan bill “Udall-Eisenhower Arctic Wilderness Act” which would protect over 1.5 million acres of coastal plain.
“Arctic oil and natural gas represent incredible potential for American energy security, jobs and revenue for the government.”
The many challenges of Arctic drilling are only augmented by low oil prices.
“The magnitude of potential losses to shareholders should make it clear to the SEC that we need increased transparency from companies engaged or seeking to engage in offshore drilling”.
That year, Shell conducted preparatory drilling on two wells before the wreck of the Kulluk drill rig forced the company to delay exploration drilling for three years. This is a huge victory for our people and our traditional ways of life.
What does this mean for future Arctic adventures? “Shell was the only company with a strong enough balance sheet that was now exploring in the Arctic”.
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Environmental groups, which had staged media campaigns aimed at tarnishing Shell’s reputation and tried unsuccessfully to block Arctic-bound vessels, reveled in Shell’s disappointment. With oil prices in the $40s, investors are more likely to fund relative sure-things in the shale patch than big, uncertain projects like Shell’s.
