Greenpeace activists demonstrate on March 16, 2012 in the port of
Helsinki as other activists occupy a Shell-contracted icebreaker
preparing to sail for the Arctic. Shell has ceased offshore oil and gas
exploration in Alaska, citing insufficient amounts and high costs. PHOTO
| AFP
Anglo-Dutch energy giant Royal Dutch Shell said Monday it had
scrapped its controversial offshore exploration in Alaska after failing
to find sufficient quantities of oil and gas.
Shell
announced that its Burger J well in the Chukchi Sea, off the northwest
coast of Alaska, did not warrant further exploration, adding it would
now stop its activities in Alaskan waters.
OBAMA AUTHORISATION
The
energy major began drilling in July, two months after US President
Barack Obama authorised Arctic oil drilling, a decision that infuriated
environmental groups.
"Shell has found indications of
oil and gas in the Burger J well, but these are not sufficient to
warrant further exploration in the Burger prospect," the London-listed
group said in a statement. "The well will be sealed and abandoned in
accordance with US regulations."
It added: "Shell will now cease further exploration activity in offshore Alaska for the foreseeable future.
"This
decision reflects both the Burger J well result, the high costs
associated with the project, and the challenging and unpredictable
federal regulatory environment in offshore Alaska."
ARCTIC DRILLING RESISTANCE
In
reaction to Obama's decision in May, Greenpeace denounced the US
president and urged people to sign an online petition to block offshore
Arctic drilling.
Justifying his move to allow Shell to drill in the area, Obama had described US oil production an "important" source of energy.
However,
Greenpeace described oil drilling in the region as a "terrible mistake"
that could damage the fragile Arctic environment and potentially spark
an ecological disaster.
The pressure group had vowed to fight Shell and urged Obama to stop the firm's exploration activities in the region.
Shell
said on Monday that Alaska was still of major importance for the United
States, but added it was disappointed with its exploration results.
"The
Shell Alaska team has operated safely and exceptionally well in every
aspect of this year's exploration program," said Marvin Odum, director
of Shell Upstream Americas.
"Shell continues to see
important exploration potential in the basin, and the area is likely to
ultimately be of strategic importance to Alaska and the US. However,
this is a clearly disappointing exploration outcome for this part of the
basin," Marvin added
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