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Shell and the Arctic
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In 2005, Royal Dutch Shell (Shell) invested in oil exploration leases in the Beaufort Sea in the Alaska Arctic. A few years later, additional leases were acquired in the nearby Chukchi Sea. After years of delays, Shell began drilling in the summer of 2012 with two drillships. More delays and the short drilling season resulted in only two partially drilled wells. On the journey south after drilling was completed, one of the ships had an engine fire and the other one ran aground. The Kulluk, the drillship that ran aground, was eventually scrapped. After spending more than $5 billion on its Arctic exploration program between 2005 and 2015, the company had very few results for its efforts, raising questions about Shell's and the industry's ability to manage large complex oil and gas projects in the Arctic.