USA curbs Arctic offshore drilling

The Shell announcement Jewell is talking about is the oil giant’s decision last month to halt its Arctic drilling after accidents, delays, and $7 billion with nothing to show for it, the Times reports.

The U.S. Interior Department announced Friday it is canceling future lease sales and will not extended current leases in Arctic waters off Alaska’s northern coast, a decision that significantly reduces the chances for future Arctic offshore drilling. She says the decisions are a long time coming.

The United States government has declared new reins on gas and oil exploration off Alaska’s northern shore. Much will depend on the victor of next year’s presidential election.

“This is a stunning, short-sighted move that betrays the Interior Department’s commitments to Alaska and the best interests of our nation’s long-term energy security”, said Murkowski, who chairs the Senate Energy Committee.

One of the Arctic campaigners for Oceana, Mr. Michael LeVine said that this is not an end to Arctic drilling forever, but are great steps towards the right direction.

While environmental groups are cheering the decision, the rationale Jewell gave for it was strictly economic: oil prices are now too low to justify the expense and risk of drilling in the harsh conditions of the Alaskan waters. Shell has not found an economical resource base to drill in the region; it wouldn’t mean that doors have been shut for companies.

Critics of the project argued that any oil reserves in the Arctic must be left in the ground in order to avoid the worst effects of climate change, and said any oil spills during operations would be almost impossible to contain in such unpredictable weather conditions.

The Obama administration’s decision Friday to cancel two auctions of Arctic drilling rights and turn down two companies’ requests for more time to explore the area likely close off new energy development in the region for years to come.

Walker says he’s vey “adamant and aggressive” about opening up the small patch of the coastal plain of the refuge to drilling to help the economy of his oil-dependent state.

Murkowski said she plans to push forward on legislation that would force the Interior Department to hold regular lease sales in the offshore Arctic. The Interior Department has not ruled out future lease sales after 2017.

The next leasing blueprint won’t be final until at least the middle part of next year, and the department may opt to take out any of the lease sales it had conditionally included in its proposal earlier this year.

“After Shell pulled out, it’s not like a lot of companies were clamoring to go up there anyway”, Herrlin said in an interview.