| Shell's Arctic Drilling Plan Gets Final Approval from the US | |
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Royal Dutch Shell plc’s (RDS.A arctic drilling plans finally received a green signal from the U.S. government. The Anglo-Dutch major received permission to drill off the Alaskan northwest coast for the first time in over 20 years. This also marks a victory over the environmentalists who have been strongly opposing the move.
The Interior Department issued Shell the permit to drill an exploratory well in this oil-rich area of the Arctic Ocean. The company received permission to drill below the Arctic floor as it now has the necessary equipment to prevent a well blowout. Earlier, Shell had permission to drill only in the top regions. Since the arrival of the necessary equipments, however, the company has been allowed to explore the depths for the first time after its last exploration well in 1991.
Shell is expected to have till late September before drilling gets too difficult due to a frigid winter. The company has two drillships and 28 support vessels in the Chukchi Sea. Transocean’s RIG Polar Pioneer, a semi-submersible drillship leased by Shell, has already started work at the Burger J site.
A company spokesman added that Shell may complete a well by this summer but the ultimate progress will be determined by operational efficiency, with emphasis on safety. However, even if Shell discovers commercially viable oil, it might still take more than 10 years to produce the resource.
Though the company has several billions invested in the region, it is yet to make a find. In 2012, Shell stopped operations in the Arctic area after its primary drilling rig sank and was lost. The integrated energy firm was also fined for polluting the air.
Shell has spent more than $7 billion over the past eight years and plans to invest over $1 billion this year itself. These huge investments are on the presumption that the Arctic region has large reserves of undiscovered oil and gas. In fact, it is believed that the region might possess more than 20% of the world’s remaining undiscovered reserves.
Companies have a narrow window for drilling in the Arctic as the severely cold winter freezes the water. Moreover, it is technically challenging as well as capital intensive, which inhibits most firms from venturing into the region.
Shell will be the first company to operate in this U.S part of the Arctic Ocean. Other energy companies with leases in the Arctic region are ConocoPhillips COP and Statoil ASA STO. But neither has an immediate drilling plan.
Shell is a major integrated energy firm with a large and diversified portfolio of development projects that offer attractive long-term opportunities. Currently, Shell has a Zacks Rank #3 (Hold).
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Royal Dutch Shell
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CODE : RDSA.AS |
ISIN : US7802592060 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Royal Dutch Shell est une société de production minière de pétrole basée au Pays-Bas. Royal Dutch Shell est cotée au Pays-Bas, au Royaume-Uni, aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 187,4 milliards €UR (214,0 milliards US$, 191,9 milliards €). La valeur de son action a atteint son plus haut niveau récent le 24 mai 2018 à 31,38 €UR, et son plus bas niveau récent le 30 octobre 2020 à 10,10 €UR. Royal Dutch Shell possède 8 222 179 840 actions en circulation. |