Published on : Sep 30, 2015
Shell announced its plans to quit its Arctic oil exploration campaign after it drilled one well with no results. The move comes as an absolute surprise as it decides to completely shut shop for oil and gas exploration being conducted under the Chukchi Sea, off the coast of Alaska.
According to a spokeswoman from Shell, the decision is absolutely commercial. The exploration turned out to be very disappointing and did not seem like a profitable thing to continue with. The exploration in the Arctic region did witness some opposition with the most recent person to join this opposition was Hillary Clinton.
A statement released by the company announced that a Burger J exploration well, which was some 2000 metres straight into the seabed, yielded very little oil and gas which negated further reasons for exploration. This well was dug in July 2015.
The spokeswoman further added that the well only made Shell’s case weaker and thus prompted them to move out the region. The company will also shut down its offshore exploration activity in Alaska in the near future.
Shell had invested somewhere around US$7 billion in this project. This project had earlier reached a halt in 2012 due to controversies regarding environmental damage. It was later resumed in mid this year despite the strong opposition from several environmental groups.
This move will surely ease a tension off President Barack Obama. The American President was caught in the mire of controversies when on one hand he visited Alaska to talk about growing dangers of global warming and on the other hand also supported Shell’s drilling activity.