Is Oil Industry Backing Away From Offshore Arctic Drilling ?

 

Shell pulled out from drilling in the Arctic after completing just one unsuccessful exploration well. Then Obama administration cancels two scheduled Arctic Ocean lease sales for 2016 and 2017. To those who aren't oil industry insiders, it seems like the most sudden of turnabouts. 

 

The green guys and environmentalists felt  ecstatic on these developments. But oil industry insiders say that these decisions have nothing to do with love towards enviornment.  The principal difficulty for Arctic offshore drilling right now is economic. The companies may be back for another try at Arctic offshore drilling, in U.S. waters or elsewhere, if economic conditions change.

 

According to  the Weather Space, there could still be Arctic Ocean drilling lease sales in 2020 and 2022, under Interior Department plans. They say industrial activity will harm marine mammals already hurt by a loss of sea ice, and global warming would be accelerated by burning oil found in the Arctic Ocean. 

 

The decision by the Interior Department will ensure there is a long chill on any future oil exploration in the Arctic waters off Alaska, but it clearly delivers a severe blow to a state which depends heavily on energy revenue and is still reeling from Shell's pullout earlier this year.

 

Michael LeVine, Arctic campaigners for Oceana, says that  this is not an end to Arctic drilling forever, but are great steps towards the right direction. 

 

"Any action that limits our ability to explore for more oil - to increase much-needed oil production through the Trans-Alaska Oil Pipeline - creates unnecessary uncertainty and burden on our economy", he said in a statement.