US approves oil and gas drilling in the Arctic Ocean

In a major victory for the petroleum industry, the US has given conditional approval for oil and natural gas drilling in the Arctic Ocean.

America's conditional approval to Royal Dutch Shell to drill in the Arctic Ocean this summer is a "victory" for the oil-and-gas industry, The Wall Street Journal reported.

The decision, however, is a blow to environmentalists who for years have demanded that the administration reject offshore Arctic drilling proposals.

"We have taken a thoughtful approach to carefully considering potential exploration in the Chukchi Sea, recognising the significant environmental, social and ecological resources in the region and establishing high standards for the protection of this critical ecosystem, our Arctic communities, and the subsistence needs and cultural traditions of Alaska Natives," said Bureau of Ocean Energy Management (BOEM) Director Abigail Ross Hopper.

"As we move forward, any offshore exploratory activities will continue to be subject to rigorous safety standards," Hooper said.

Among the conditions of approval is the requirement that Shell obtain all necessary permits from other state and federal agencies, including permits to drill from the Bureau of Safety and Environmental Enforcement (BSEE) and appropriate authorisations under the Marine Mammal Protection Act.

Another condition of approval prevents Shell from commencing drilling operations until all Biological Opinions under the Endangered Species Act have been issued and requires all operations under the plan comply with the terms and conditions included in those Biological Opinions.

Welcomed by US lawmaker, the approval is linked to regulations proposed by the government in February for Arctic drilling operations off the coast of Alaska that could pave the way for additional companies exploring in the region.

"Approval of Shell's exploration plan for Alaska's Chukchi Sea marks another important step toward the US assuming a leadership role in the Arctic," Senator Lisa Murkowski, the Senate Energy and Natural Resources Committee chairman, said in a statement.

With an estimated 25% of the world's undiscovered conventional oil and gas resources and active exploration by countries like Russia, it's critical that the US move forward as a nation and set the standard for responsible development in the Arctic, Murkowski said.

Noting that the approval of the exploration permit is a key step, she felt more needs to be done in the coming weeks to ensure that Shell's exploration programme proceeds this summer.

"There is a total of seven permits that Shell must receive before it can resume drilling. Continued collaboration by the responsible federal agencies to ensure those outstanding permits are not saddled with unworkable conditions will be critical," Murkowski said.

According to Journal, Royal Dutch Shell plans to invest $1 billion in its Arctic project this year, adding to the $6 billion the company has already spent over the past eight years.