Shell puts its $9bn Arctic drilling project on ice

Shell said that exploratory results had been disappointing
Shell said that exploratory results had been disappointing
GARY BRAASCH/CORBIS

Royal Dutch Shell ordered a retreat from the Arctic yesterday, as it abandoned plans to drill for oil in Alaska’s Chukchi Sea, despite forfeiting nearly $9 billion in total costs.

After a disastrous exploration programme and amid increasing criticism of its environmental impact, Shell said that it had decided to cease exploration at its Burger J prospect 80 miles off the Alaskan coast after drilling a “dry hole” during a two-month weather window when activity in the area is possible.

Shell said that it had found oil but only in small quantities and insufficient to press ahead with the huge expense of continuing the project. “Shell will now cease further exploration activity in offshore Alaska for the foreseeable future,” the company said, as it ordered