Shell Suspends Alaskan Offshore Drilling

By Eric Haun
Thursday, January 30, 2014
AP photo

Faced with an earnings slump and added pressure from a recent federal court ruling, Shell has abandoned plans for offshore drilling near Alaska in 2014.

Shell’s new CEO Ben van Beurden announced to investors today that the company will undergo a major refocus aimed at reversing down financial results, and part of that plan involves leaving Alaska off its agenda—at least for 2014.

The major cog Van Beurden referenced was a federal ruling that said the U.S. government miscalculated the scope of potential oil activity when selling leases in 2008 and underestimated how much drilling would take place. “The recent Ninth Circuit Court decision against the Department of the Interior raises substantial obstacles to Shell’s plans for drilling in offshore Alaska. As a result, Shell has decided to stop its exploration program for Alaska in 2014.”

“This is a disappointing outcome, but the lack of a clear path forward means that I am not prepared to commit further resources for drilling in Alaska in 2014,” van Beurden said. “We will look to relevant agencies and the Court to resolve their open legal issues as quickly as possible.”

Shell has not extracted any oil in the region to date, despite reportedly spending nearly $6 billion on the endeavor in total.

Van Beurdan went on to say that Shell will make other “hard choices” in 2014, including cutting capital spending from $46 billion in 2013 to $37 billion in the coming year.

 

Maritime Reporter March 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Hapag-Lloyd, CSAV Merger Finalized

Hapag-Lloyd and CSAV binding agreement signed / In return for contributing its container business, CSAV becomes new core shareholder of Hapag-Lloyd / Hapag-Lloyd

MAS Debuts Exclusive Armor Systems

Following on from the continued success of the product, Marine Armor System (MAS) announced its global launch and updated website. MAS is a nonlethal vessel

All Items Approved at Stolt-Nielsen Meeting

Stolt-Nielsen Limited announced that all agenda items were approved and all nominated directors were elected at its Annual General Meeting of shareholders held yesterday in Bermuda.

Finance

All Items Approved at Stolt-Nielsen Meeting

Stolt-Nielsen Limited announced that all agenda items were approved and all nominated directors were elected at its Annual General Meeting of shareholders held yesterday in Bermuda.

Three European firms win Angola deepwater deals

Three European companies have won contracts for almost half the value of Angola's $16 billion ultra-deepwater Kaombo oil project, confirming a trend toward bigger

Litigation Can Cost Shipbrokers an Arm & a Leg

A survey of London solicitors by specialist intermediaries insurer ITIC has highlighted the high cost of litigation for shipbrokers and others seeking judgment in the English courts,

Environmental

US: $4B in Loan Aid for Renewable Energy

The U.S. Energy Department on Wednesday unveiled a plan for up to $4 billion in loan aid for renewable energy companies to help rejuvenate a program that faced

Search Resumes in S. Korean Ferry Disaster

Poor weather conditions may hamper effort; Mystery surrounds capsize of ship; Nearly 280 people still missing, many of them teenagers South Korean coastguards

Update: Spill Response Continues in Miami

U.S. Coast Guard crewmembers are responding to a fuel spill in the vicinity of Government Cut in Miami Wednesday, following a leak discovered aboard the 95-foot tug Neptune Tuesday night.

Energy

US: $4B in Loan Aid for Renewable Energy

The U.S. Energy Department on Wednesday unveiled a plan for up to $4 billion in loan aid for renewable energy companies to help rejuvenate a program that faced

North Sea: Potential VLCC Moves to South Korea

North Sea Forties crude differentials were unchanged on Wednesday in very quiet pre-Easter trade, with dealers still watching two potential VLCC shipments to Asia

Petrobras, Mitsui Study South Brazil LNG Import Terminal

Brazil's state-run oil company Petroleo Brasileiro SA and Japanese trading house Mitsui Corp will study building a liquefied natural gas (LNG) terminal in the country's southernmost state,

News

Treadwell: Arctic Security Should Be National Priority

Lt. Governor Mead Treadwell delivered the keynote address yesterday at the Arctic Collaborative Workshop in Fairbanks. Treadwell discussed five reasons why

SC Ports Report Record Pier Container Volumes

Georgetown grows 10 percent fiscal year to date Today South Carolina Ports reported March pier container volumes were the highest since August 2008. Last month the Port handled 85,

Hapag-Lloyd, CSAV Merger Finalized

Hapag-Lloyd and CSAV binding agreement signed / In return for contributing its container business, CSAV becomes new core shareholder of Hapag-Lloyd / Hapag-Lloyd

People in the News

Treadwell: Arctic Security Should Be National Priority

Lt. Governor Mead Treadwell delivered the keynote address yesterday at the Arctic Collaborative Workshop in Fairbanks. Treadwell discussed five reasons why

US Sens. Kaine and Reed Visit Newport News Shipbuilding

Huntington Ingalls Industries (HII) hosted U.S. Sens. Tim Kaine (D-Va.) and Jack Reed (D-R.I.) Tuesday for a tour of the company's Newport News Shipbuilding division.

Least Known Navy Activity? Underwater Shipwreck Archeology

Robert S. Neyland, Ph.D., director of the Underwater Archeology Branch (UAB) of the Naval History and Heritage Command (NHHC) in Washington, D.C., manages the people who protect more than 17,

Arctic Operations

Treadwell: Arctic Security Should Be National Priority

Lt. Governor Mead Treadwell delivered the keynote address yesterday at the Arctic Collaborative Workshop in Fairbanks. Treadwell discussed five reasons why

Coast Guard Battles 24-inch Plate Ice

Coast Guard Cutters Morro Bay and Katmai Bay, homeported in Cleveland and Sault Ste. Marie, Mich., conducted ice breaking operations in Marquette, Mich., Sunday.

Foss Meets Growing Modular Business with New Barge

Foss Maritime is building a new ocean-going barge that will give the company an additional asset to transport large modules both domestically and internationally.

 
 
Maritime Contracts Naval Architecture Navigation Offshore Oil Pipelines Port Authority Salvage Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1701 sec (6 req/sec)