Polar bears and walruses spoiling Shell's Artic drilling plans

Royal Dutch Shell’s Artic oil exploration plans reached a roadblock Tuesday after receiving a letter from the U.S. Fish and Wildlife Service.

The letter cites a 2013 regulation that oil companies cannot place offshore drilling rigs within 15 miles of each other due to concerns for local wildlife affected by the noise and activities. The federal agency has effectively halted the company’s plans to sink two new wells in the Chukchi Sea this summer.

Shell has spent $6 billion over the past eight years developing the drilling plan, which currently calls for the rigs to be placed about nine miles apart, and planned to invest another $1 billion this year to continue pursuit of the project.

A company spokesman said Shell hopes to accomplish as much as possible before late September ice ends the year’s drilling season, with a goal to begin producing oil from under the Chukchi Sea within 10 to 15 years.

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