Alaska Ping!
Posted on 09/27/2015 11:59:44 PM PDT by Olog-hai
Royal Dutch Shell will cease exploration in Arctic waters off Alaska’s coast following disappointing results from an exploratory well backed by billions in investment and years of work.
The announcement was a huge blow to Shell, which was counting on offshore drilling in Alaska to help it drive future revenue. Environmentalists, however, had tried repeatedly to block the project, and welcome the news.
Shell found indications of the oil and gas in the well in the Chukchi Sea about 80 miles off Alaska’s northwest coast, the company said Monday in a release from The Hague, Netherlands. However, the petroleum was not in quantities sufficient to warrant additional exploration in that portion of the basin, the company said. …
(Excerpt) Read more at bigstory.ap.org ...
Another company on the path to destruction, all because of emperor hussien’s burdensome regulations. The regime hates the domestic energy industry and seeks to exterminate it, per the bidding of the muzzie cabal in control of the administration.
“Monday was Shell’s final day to drill this year in petroleum-bearing rock under its federal permit. Regulators required Shell to stop a month before sea ice is expected to re-form in the lease area.”
Jeez - with all of the “global warming” they are worried about I would think they would at least let them drill for another month.
The headline gives a wrong impression. They stopped because of the “date” on the permit. It appears be only temporary.
Because they were blackmailed into stopping.
challenging and unpredictable federal regulatory environment in offshore Alaska...
$7 billion...
Well, AP is all about wrong impressions.
Shell updates on Alaska exploration
http://www.shell.com/global/aboutshell/media/news-and-media-releases/2015/shell-updates-on-alaska-exploration.html
28 Sep 2015
Shell today provides an update on the Burger J exploration well, located in Alaska’s Chukchi Sea. The Burger J well is approximately 150 miles from Barrow, Alaska, in about 150 feet of water. Shell safely drilled the well to a total depth of 6800 feet this summer in a basin that demonstrates many of the key attributes of a major petroleum basin. For an area equivalent to half the size of the Gulf of Mexico, this basin remains substantially under-explored.
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 well will be sealed and abandoned in accordance with U.S. regulations.
“The Shell Alaska team has operated safely and exceptionally well in every aspect of this year’s exploration program,” said Marvin Odum, Director, 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.”
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.
The company expects to take financial charges as a result of this announcement. The balance sheet carrying value of Shell’s Alaska position is approximately $3.0 billion, with approximately a further $1.1 billion of future contractual commitments. An update will be provided with the third quarter 2015 results.
Shell holds a 100% working interest in 275 Outer Continental Shelf blocks in the Chukchi Sea.
Operations will continue to safely de-mobilize people and equipment from the Chukchi Sea.
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 well will be sealed and abandoned in accordance with U.S. regulations...
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....
What are you talking about? This is a huge world wide company. The company indicated in its statement that there was insufficent oil to produce. Why would someone start drilling more holes if the test hole or holes show there is insufficient oil? This has nothing to do with the government.
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 has found indications of oil and gas in the Burger J well...
Alaska Ping!
They don’t want jobs or oil.
They just want to drive their Subarus down to the sound to paddle their plastic boats with their plastic paddles wearing their high-tech Polypropylene clothing. There is no need for any petroleum production for their enjoyment of their lives.
From the AP article:
Shell will end exploration off Alaska “for the foreseeable future,” the company said, because of the well results and because of the “challenging and unpredictable federal regulatory environment in offshore Alaska.”
Hmm. Don’t know if I missed it or if AP updated, which they do quite often. But thanks.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.