14 DAY TRIAL // California is facing its worst drought in decades, and many scientists agree that man-made climate change and global warming are to blame. Even so, it was earlier this week that the US federal government announced plans to open part of the Chukchi Sea for oil drilling.
The leases reaffirmed by the country's Department of the Interior were first proposed in 2008 under President George W. Bush. Since then, green groups have been going on and on about how drilling in the Arctic is sure to damage the planet beyond repair.
Still, the Department of the Interior is determined to lease a total of 30 million acres of the Chukchi Sea off the coast of Alaska to oil companies hoping to make a few bucks exploiting oil reserves in the region. Not at all surprisingly, Shell is looking to take advantage of the situation.
Why is the US government allowing drilling in the Arctic?
In the statement announcing its decision to reaffirm the 2008 leases, the US Department of the Interior says that, climate change or no climate change, the fact of the matter is that the country needs to access oil reserves in this corner of the world if it is to keep its energy industry afloat.
True, drilling for oil in the Chukchi sea is tricky, what with harsh environmental conditions in the region making it nearly impossible to clean up, should an accidental spill ever come to happen, but given the right safety precautions, it can be done.
“The Arctic is an important component of the Administration’s national energy strategy, and we remain committed to taking a thoughtful and balanced approach to oil and gas leasing and exploration offshore Alaska,” Interior Secretary Sally Jewell said in a statement.
The US federal government promises that, before a company is given permission to actually go ahead and look for oil in the Arctic, its planned working agenda will be carefully reviewed. It further adds that no exploration or exploitation activities will be carried out until first proven safe.
Shell's tempestuous history in the Arctic's Chukchi Sea
Oil and gas giant Shell last tried its hand at drilling in the Arctic's Chukchi Sea about 3 years ago. Unfortunately, things didn't work out quite as planned. Kulluk, one of the company's oil rigs, broke free from the tow ship carrying it and eventually grounded on the south-east coast of Sitkalidak Island.
Following this incident, Shell was left with no choice but to postpone its plans to exploit the Chukchi Sea. It is estimated that the company has until now invested about $5 billion (€4.64 billion) in its Arctic program. As for profits, nothing to report yet.
Since the odds are clearly not in its favor, you'd think that Shell's would have abandoned its plans to drill in the Arctic by now. Well, no such thing has happened. In fact, the oil and gas company is more determined than ever to plant at least 2 rigs in the Chukchi Sea.