Royal Dutch Shell presents Plan to Explore Alaskan Arctic region for Oil

On Thursday, Royal Dutch Shell presented a plan to the federal government with an aim to explore for oil in the Alaskan Arctic, once again after years of legal and logistical setbacks as well as series of opposition from environmentalists.

Shell's plan involves two drilling rigs working at the same time in the Chukchi Sea, which could generate over 400,000 barrels of oil a day.

The company has yet to decide whether or not to drill next summer, but the filing with the Interior Department has preserved its options.

Shell's Alaskan Arctic efforts have been undermined by blunders and accidents over the past eight years.

It is possible that the efforts in initial stage can upset environmentalists, who argue that drilling in the Arctic is excessively risky because of ice floes, darkness in winter and the presence of various species of threatened wildlife such as polar bears.

The company has spent about $6 billion for the stint and drilled two shallow wells in Alaska's Arctic during 2012. But the federal government didn't permit Shell to reach the deeper, oil-bearing formations.

ConocoPhillips and the Norwegian oil giant Statoil suspended their Alaskan Arctic drilling plans due to issues with Shell.

A Shell spokesman, Curtis Smith, said the new plan has been prepared after properly mulling over safety features, including new tugboats, an extra helicopter, additional offshore supply vessels and better management of contractors.

"All to say we've taken a critical look at the experiences we've had in Alaska over the last several years and this exploration plan takes those learnings into account", said Curtis Smith.


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