The U.S. Interior Department's Bureau of Safety and Environmental Enforcement has issued the last two required permits to Royal Dutch PLC to drill for oil in the Arctic region. Following the initial approval last May, the Obama administration finally gave Shell complete access to the Chukchi Sea, but with certain conditions.
One of these is top well drilling only, since the vessel that carries equipment capable of capping off the well in case of oil spills, is not available. The M/V Fennica icebreaker, which holds the equipment, is on its way to Portland, Ore. to have a 3-foot puncture repaired, according to the NBC News.
Part of Shell's proposal is to drill in two separate areas within 15 miles of each other called the Burger Prospect. The administration disapproved this request, only allowing them to drill on one location at a time. The machinery and rigs that drill near each other have the potential of upsetting walruses and other wildlife in the area, LA Times reported.
Environmental groups deny support for these activities since the location is very remote. The distance from civilization is a determining factor that will put the whole ecological system in harms way should there be an oil spill, similar to what happened in the Gulf of Mexico, which would be difficult to clean up, said in the Associated Press.
Officials in Alaska expressed encouragement for the Arctic drilling since oil is the state's major source of income which makes up more than 90 percent. This will help their economy since oil transportation will pass by the trans-Alaska pipeline. Other oil companies, not only Shell, are determined to have access to drilling the United States' remaining oil reserves. It is estimated that the Arctic region has 26 billion barrels of oil, Yahoo News reported.
