Dutch petroleum company Shell on Thursday reported a net loss of income of 70 percent compared to the same quarter of last year. The company has been hit hard with $8.2 billion in charges relating to failed and unsuccessful exploration projects in Canada and the Alaskan Arctic, coupled with the current low price of Brent Crude.
The Anglo-Dutch oil company, Shell, announced it will be closing down its operations in Alaska’s Chukchi Sea due to the high costs and strict regulations that govern the exploration for oil. Director of Shell Upstream Americas, Marvin Odum reported that the company is disappointed at the exploration results that came from the Burger J exploration well in the region, and will now cease further exploration activity off Alaska's coastline for the foreseeable future.
Greenpeace has launched a boycotting action against Shell in response to the oil company receiving the final go-ahead from the American government for drilling in Alaska
Shell has dispatched the first ship that is part of the fleet that will do exploratory drilling for gas and oil in the Arctic. The company announced on Thursday that the Arctic Challenger, one of the dozens of support vessels for the oil rigs, has left from Seattle and is heading towards Alaska, NU reports.
Alaska has large potential oil reserves that the world is going to demand in the future, Shell CEO Dick Benschop told AD. Oil in the region is increasingly difficult to recover, however, the company's technological potential fits the challenge.