• 6 minutes U.S. Shale Oil Debt: Deep the Denial
  • 12 minutes Knoema: Crude Oil Price Forecast: 2018, 2019 and Long Term to 2030
  • 17 minutes WTI @ $75.75, headed for $64 - 67
  • 10 mins Trump vs. MbS
  • 4 hours Nuclear Pact/Cold War: Moscow Wants U.S. To Explain Planned Exit From Arms Treaty
  • 45 mins Why I Think Natural Gas is the Logical Future of Energy
  • 2 hours Merkel Aims To Ward Off Diesel Car Ban In Germany
  • 6 hours Get on Those Bicycles to Save the World
  • 1 day The Dirt on Clean Electric Cars
  • 12 hours Can “Renewables” Dent the World’s need for Electricity?
  • 2 hours A $2 Trillion Saudi Aramco IPO Keeps Getting Less Realistic
  • 1 day Owning stocks long-term low risk?
  • 15 hours Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 3 hours Long-Awaited Slowdown in China Exports Still Isn’t Happening
  • 6 hours Can the World Survive without Saudi Oil?
  • 13 hours Satellite Moons to Replace Streetlamps?!
Alt Text

U.S-Saudi Clash Could Spell Disaster For OPEC

The Khashoggi case could have…

Alt Text

North Sea Oil Renaissance Could Flop

Despite a string of takeovers…

Alt Text

U.S. Oil Production May Jump To 14 Million Bpd By 2020

Secretary of the Interior Ryan…

Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Trending Discussions

Big Oil Pulls The Plug On Arctic Oil, Relinquishes Drilling Rights

The prospect of producing oil from the U.S. Arctic looks increasingly remote as the oil industry walks away from drilling leases.

After Royal Dutch Shell pulled the plug on its drilling program in the Chukchi Sea last autumn, there had been little chance that the industry would return to the region anytime soon. But several companies officially forfeited their rights to drill in the Arctic on May 1, having declined to pay the U.S. government to renew licenses, according to a Freedom of Information Act request filed by the environmental group Oceana. Shell, Eni, Statoil, and ConocoPhillips all decided against paying to hold onto those drilling rights in recent weeks.

"Hopefully, today marks the end of the ecologically and economically risky push to drill in the Arctic Ocean," Michael LeVine, senior regional counsel for Oceana, said in a statement emailed to UPI. Related: 90% Off Sale On Offshore Drilling Rigs?

Bloomberg reports that collectively the companies have surrendered the right to drill in 2.2 million acres of the Chukchi Sea. They spent more than $2.6 billion to obtain those licenses, and Shell ultimately poured in about $8 billion in its disastrous drilling campaign, walking away with little to show for its struggles. Shell also gave up on drilling rights in the Beaufort Sea. "These actions are consistent with our earlier decision not to explore offshore Alaska for the foreseeable future," Shell spokesman Curtis Smith told Bloomberg. Still, Shell decided to keep the one tract that it drilled in 2015 in order to hold onto the data that it collected from its operations. Aside from that, Repsol remains the last company to have drilling rights on some tracts, although the company has no drilling plans.

With these companies foreclosing on the opportunity to drill in the Chukchi Sea, Arctic drilling is now dead for years at least. The Interior Department could theoretically hold another auction for drilling rights, but even if it did so, it would be years away. The agency cancelled lease sales for 2016 due to limited interest from the industry.

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:


x


Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News