Shell abandons Alaska Arctic drilling

In a statement today, Marvin Odum, director of Shell Upstream Americas, said: “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.”“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.”

Shell said it would have to take a hit of around $4.1bn on future earnings as a result of the decision but it is unclear what the final bill will be.

Source: Shell abandons Alaska Arctic drilling | Business | The Guardian