In a sign that the Obama administration is willing to clear the regulatory decks for oil drilling in Alaska's remote Arctic waters, the Interior Department on Friday gave a conditional green light allowing Royal Dutch Shell PLC to explore for oil this summer in Alaska's Chukchi Sea. More than 20 years after sinking its first exploratory well in the Chukchi, only to later abandon the project, Shell is seeking to reopen drilling in the nation's northern-most federal waters. The campaign has already had a colossal price tag. So far, Shell officials say they have sunk $4 billion in the project, including $350 million to build two of their own ice-breaking ships.
If exploration is successful, it will take 10-12 years before Shell can begin producing oil. During that time, the company would have to build a new ice-resistant drilling facility, install 100 miles of subsea pipeline from the pumping rig to the tiny community of Wainwright and construct a 500-mile pipeline from the shoreline to the beginning of the Trans-Alaska Pipeline in Prudhoe Bay. Read More
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