Sullivan Reacts to Shell Arctic OCS Announcement

WASHINGTON, DC – U.S. Senator Dan Sullivan (R-AK) released the following statement today after Shell’s announcement that it is abandoning its Arctic drilling program, citing high costs and the “challenging and unpredictable federal regulatory environment.”

Senator Sullivan said: “Shell’s announcement is being cheered by environmental groups, but it’s a very sad day for Alaska and for working Alaskans and Americans across the country. From the beginning, through unprecedented regulatory hurdles and delays, the Obama administration and its environmental allies have created the conditions for Shell to abandon its Arctic drilling program. And they succeeded. Shell spent seven years and $7 billion trying to drill a single well in America’s Arctic, where hundreds of exploratory wells have been successfully drilled. Under such circumstances it would be extremely difficult for any company to move forward.

“Now, countless jobs will be lost, American’s energy security will be diminished, and the Arctic environment will be degraded with the least environmentally responsible countries leading development. Make no mistake: Countries like Russia and China will continue to develop the Arctic’s natural resources, but will do so with little regard for the environment.

“The Obama administration hit the trifecta: killing jobs, undermining energy security, and degrading the environment. Now more than ever we must work to create an efficient, timely and certain regulatory regime for the United States that helps create jobs, energy, and infrastructure, and promotes partnership with the private sector to grow the economy. As Alaskans, we must start weighing each and every regulatory and policy decision as if our economic future depends on it – because it does.”