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U.S. allows Shell to drill for oil in Arctic Ocean off Alaska

August 18, 2015

U.S. allows Shell to drill for oil in Arctic Ocean off Alaska

Company hopes to drill 2 wells in the Chukchi Sea by late September

The U.S. government on Monday gave Royal Dutch Shell the final permit it needs to drill for oil in the Arctic Ocean off Alaska’s northwest coast for the first time in more than two decades.

The Bureau of Safety and Environmental Enforcement announced that it approved the permit to drill below the ocean floor after the oil giant brought in a required piece of equipment to stop a possible well blowout.

The agency previously allowed Shell to begin drilling only the top sections of two wells in the Chukchi Sea because the key equipment, called a capping stack, was stuck on a vessel that needed repair in Portland, Ore.

Since the vessel arrived last week, Shell is free to drill into oil-bearing rock, estimated at 2,400 metres below the ocean floor, for the first time since its last exploratory well was drilled in 1991.

“Activities conducted offshore Alaska are being held to the highest safety, environmental protection, and emergency response standards,” agency Director Brian Salerno said in a statement Monday. “We will continue to monitor their work around the clock to ensure the utmost safety and environmental stewardship.”

Arctic Offshore Drilling

Shell’s icebreaker Fennica, shown here in Portland, Ore., earlier this summer, arrived in Alaska Aug. 11 carrying vital equipment to use in the event of a blowout. Final permits for drilling hinged on its arrival. (AP Photo/Don Ryan)

Environmental groups oppose Arctic offshore drilling, saying industrial activity will harm polar bears, Pacific walrus, ice seals and threatened whales already vulnerable from climate warming and shrinking summer sea ice. They say oil companies have not demonstrated that they can clean up a spill in water choked by ice.

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