Shell announces plans to drill for Arctic oil this summer

Shell has announced that they intend to revive their oil drilling plans in the Arctic waters of off Alaska. But environmentalists, whom have campaigned against these plans for years, warn that Shell is taking a massive risk that could potentially end in disaster for the pristine Arctic environment and its wildlife.

The giant's chief executive, Ben van Beurden, acknowledged to the BBC that these fossil fuel development plans for the Arctic may “divide society”, but that they are needed to meet increased global demands for oil and gas. It’s estimated that around 24 billion barrels of oil can be extracted from Alaska – potentially being the biggest oil reserve in the world.

Shell’s plans are not new. For the past decade, the energy giant has spent around $6 billion on unsuccessful attempts to extract oil in the fragile region. Shell has also announced a $15 billion cut in global spending, and recent profit figures has disappointed investors. It’s clearly not going that well for Shell. And with plummeting global oil prices many are questioning whether these Arctic plans are economically beneficial.

“Despite announcing cuts, Shell hasn't taken the opportunity to cut its most high-cost high-risk project,” said Greenpeace's Charlie Kronick. “Shell is taking a massive risk doggedly chasing oil in the Arctic, not just with shareholder value, but with the pristine Arctic environment. A spill there will be environmentally and financially catastrophic,” Kronick said. “It's time for investors to recognise that it's impossible for Shell to justify its continued pursuit of offshore Arctic oil.”

In spite of concerns about the risks of devastating oil spills in the Arctic’s sensitive ecosystems and the impact on our climate from exploiting new sources of fossil fuels, Shell claim that they can drill for oil safely and responsibly. “We will only do this if we feel that we can do it responsibly,” Ben van Beurden said. “I think that we are as well prepared as any company can be to mitigate the risks.”

Promises aside, to drill in the Arctic is a very risky business and Shell’s latest attempt in the Arctic ended in fiasco in late 2012 when their oil rig drove up on land. And their track record when it comes to oil spills are not comforting. For example, the company recently had to pay $84 million in clean-up costs after a major oil spill in Nigeria.

Before Shell can set their plans in motion they first need approval from the US government to start drilling in Arctic waters. Greenpeace is now pushing for US President Barack Obama to block Shell’s oil drilling plans and to protect the Arctic.