Shell said today it would halt exploration activity in offshore Alaska for the foreseeable future after it failed to find significant oil and gas in a Chukchi Sea well. Shell said it found “indications of oil and gas” in the Burger J well, but not enough to warrant further exploration. Marvin Odum, director of Shell Upstream Americas, called it a “disappointing outcome” for the Burger prospect despite the basin’s considerable exploration potential.
Via FuelFix, Shell CEO Ben van Beurden said earlier this year Shell’s Arctic project would only be economically viable “if the structures are full of oil” due to the high production and logistical costs of drilling offshore Alaska.
Shell has faced numerous setbacks in the Arctic. Three years ago it stopped working on two test wells after its drilling rig ran aground. In July, work was delayed when an icebreaker vessel sustained hull damaged while leaving the Aleutian Islands. Gale force winds and high seas caused more delays in late August.
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