Royal Dutch Shell announced Monday they are pulling out of oil exploration in the Artic. The decision was made after a test well produced unsatisfactory amounts.
After high expectations for drilling in Alaska, this is a disappointment for the company. The main reason is because of the billions invested in the project.
In a company statement to The Hague, Shell stated, “for the foreseeable future” they are ending exploration in the region and called it “a clearly disappointing exploration outcome.”
Environmentalists are thrilled because they opposed the project from the beginning because they felt it induced global warming. Miyoko Sakashita, oceans program director for the Center for Biological Diversity states, “Polar bears, Alaska’s Arctic and our climate just caught a huge break. Here’s hoping Shell leaves the Arctic forever.”
The Arctic waters in the Chukchi and Beaufort seas contain about 26 billion barrels or more of recoverable oil according to US Geological Survey estimates. Initially, Shell stated the untapped reservoirs could add to America’s energy supply for 50 years.