WASHINGTON — The Obama administration is suspending proposed
exploratory drilling in the Arctic Ocean.
Interior Secretary Ken Salazar
says in a report to be delivered to the White House on Thursday that he will not
consider applications for permits to drill in the Arctic until 2011. Shell Oil
is poised to begin exploratory drilling this summer on leases as far as 140
miles offshore.
An administration official familiar with the plan said
Salazar wants to allow further study of proposed drilling technology and oil
spill response capabilities in Arctic waters. The official spoke on condition of
anonymity because the plan is not yet public.
Salazar has said he wants
to take a cautious approach in the Arctic.
President Barack Obama ordered
Salazar to conduct a review of the nation’s offshore oil drilling safety after
the Gulf of Mexico oil spill last month.
In March, Obama and Salazar
canceled a planned 2011 lease sale in Alaska’s Bristol Bay, where oil
development was proposed by the Bush administration. They canceled four
scheduled lease sales in the Chukchi and Beaufort seas and said no additional
leases would be offered there until more scientific data are
collected.
An administration official said Salazar believes that
fisheries, tourism and environmental values in Bristol Bay make the area
inappropriate for oil and gas drilling.
Shell, which has leases in both
the Beaufort and Chukchi Seas, had sought to begin drilling five exploratory
wells in those areas this summer. Salazar’s announcement means those wells will
not be considered until 2011.
Salazar also is directing the U.S.
Geological Survey to conduct an independent evaluation of oil spill risks and
spill response capabilities in the state.
Shell Oil, the U.S. arm of
Royal Dutch Shell PLC, has the backing of Alaska’s political leaders. With few
exceptions, they support offshore drilling, a stance articulated by former
Alaska Gov. Sarah Palin, the 2008 GOP nominee for vice president.
About
90 percent of Alaska’s general fund revenue comes from the petroleum industry.
State leaders look to offshore oil to provide jobs and keep the trans-Alaska
pipeline from running dry.
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