Dailycsr.com – 01 October 2015 – Shell has made a “surprise announcement” whereby revealing that it would put an end to off shore “oil and gas exploration” in Alaska. The company had hit upon fossil fuel at the depth of the Alaskan sea. However, “an exploratory well” was drilled in the “Chukchi Sea” which presented “disappointing” performance as the company agreed upon that there weren’t “sufficient quantities to justify continued drilling”.
Consequently, the decision has been made to seal the well and abandon the same. The news has delighted many “environmental group” who had shown strong opposition to the idea of exploiting the natural gas and oil that lay under the Arctic.
After, a month later, Shell got a green signal in the form of “a final permit” for drilling “2,070 meter” exploratory well, which is equivalent to “6,800 foot” in depth. The said well was dug for assessing “exploitability of the reserves in U.S. waters”. In fact, the director of “Shell Upstream Americas” pointed out:
“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 U.S. However, this is a clearly disappointing exploration outcome for this part of the basin.”
Shell has made an investment of nearly “$7 billion” which is equal to “£4.6 billion” for the same venture. The said initiative of this scale in a time of falling price of oil market which is plugged with “increasing political uncertainty and public pressure” means a lot. Nevertheless, the company has made up its mind on pulling the plug with this operation.
The prior oil spill that took place in the Gulf of Mexico, posed “mounting concerns” to Shell who had to respond for the same. Nevertheless, the company asserted that it had taken safety procedures for preventing any such mishap. Yet, the environmentalists could not be satisfied until the “latest turn of events” came forward. The executive director of Greenpeace U.K, John Sauven stated:
“Big oil has sustained an unmitigated defeat. They had a budget of billions, we had a movement of millions. For three years we faced them down, and the people won. The Save the Arctic movement has exacted a huge reputational price from Shell for its Arctic drilling programme. And as the company went another year without striking oil, that price finally became too high.”
Moreover, the report informs that:
“Shell was not the only company interested in exploiting the Arctic’s rich deposits. With an estimated 30% of the world's undiscovered natural gas and 13% of its oil, many others are keen to explore the area. Most, however, have been held back by the slump in oil prices, which are now sitting at under $50 a barrel. When prices pick up, it’s expected that the profitability of drilling in the Arctic will rise accordingly”.
References:
http://www.iflscience.com
Consequently, the decision has been made to seal the well and abandon the same. The news has delighted many “environmental group” who had shown strong opposition to the idea of exploiting the natural gas and oil that lay under the Arctic.
After, a month later, Shell got a green signal in the form of “a final permit” for drilling “2,070 meter” exploratory well, which is equivalent to “6,800 foot” in depth. The said well was dug for assessing “exploitability of the reserves in U.S. waters”. In fact, the director of “Shell Upstream Americas” pointed out:
“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 U.S. However, this is a clearly disappointing exploration outcome for this part of the basin.”
Shell has made an investment of nearly “$7 billion” which is equal to “£4.6 billion” for the same venture. The said initiative of this scale in a time of falling price of oil market which is plugged with “increasing political uncertainty and public pressure” means a lot. Nevertheless, the company has made up its mind on pulling the plug with this operation.
The prior oil spill that took place in the Gulf of Mexico, posed “mounting concerns” to Shell who had to respond for the same. Nevertheless, the company asserted that it had taken safety procedures for preventing any such mishap. Yet, the environmentalists could not be satisfied until the “latest turn of events” came forward. The executive director of Greenpeace U.K, John Sauven stated:
“Big oil has sustained an unmitigated defeat. They had a budget of billions, we had a movement of millions. For three years we faced them down, and the people won. The Save the Arctic movement has exacted a huge reputational price from Shell for its Arctic drilling programme. And as the company went another year without striking oil, that price finally became too high.”
Moreover, the report informs that:
“Shell was not the only company interested in exploiting the Arctic’s rich deposits. With an estimated 30% of the world's undiscovered natural gas and 13% of its oil, many others are keen to explore the area. Most, however, have been held back by the slump in oil prices, which are now sitting at under $50 a barrel. When prices pick up, it’s expected that the profitability of drilling in the Arctic will rise accordingly”.
References:
http://www.iflscience.com