Shell Delays Off-shore Drilling Program

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Shell did not state why they believe the 9th Circuit Court of Appeals was delaying its decision as to whether or not the company could drill the Beaufort Sea. Photo courtesy the AP.

Jamey Kirk

Story Created: Jun 20, 2008 at 11:30 AM AKDT

Story Updated: Jun 20, 2008 at 11:30 AM AKDT

Shell has announced that it will forego its 2008 Beaufort Sea drilling program due to a lagging 9th Circuit Court of Appeals ruling. Shell cited a need for workers and contractors to pursue other opportunities as additional factors in the decision.

Although the drilling program has been pulled, the company plans to wait until next year to begin pursuing the Beaufort program. In a press release issued by Shell, the company states that they believe the decision to withdraw the drilling program to be "responsible", however statements that suggest frustration with the 9th Circuit Court are littered throughout the release. Along with these statements the release includes multiple references to the country's on-going energy crisis.

Shell has also made assurances that the 2008 planned operations and 2009 drilling program will continue, specifically the Beaufort and Chukchi Seas, which will remain under development for the rest of the year. Seismic acquisition in both the Chukchi and Beaufort Seas will continue as scheduled for the third year in a row.

Along with continuing its work in collecting seismic data the company will undertake scientific baseline studies, marine mammal monitoring and data gathering.