Royal Dutch Shell plc (ADR) (NYSE:RDS.A) has received an approval – a controversial plan for exploration by the Bureau of Ocean Energy Management in the US. The company received green signal, in this regard, on Monday. In due course, the giant in management of ocean energy and oil drilling shall receive approvals from myriad other organizations which include the likes of the Bureau of Safety and Environmental Enforcement in the US.
The drilling project
There has been a range of talks, financial, environmental, ecological and societal considerations. After a series of evaluation of nitty gritties, RDS.A won the approval proposal. The upcoming drilling and exploration project is slated to take place between Russia and Alaska, in the esteemed Chukchi Sea.
Shell had been aggressive in its endeavors, however, it missed out on the link! It had been trying to gain nexus with the apt parties, meeting with utter failure. Since 2009, the company was trying its best, putting its efforts in levelling out and reaching to this belt or region. A number of environmental groups into the fray kept honking with warnings that there were innate risks involved—great as ever!
Disasters may happen in the Arctic
Tim Donaghy, an emeritus senior research specialist, working with Greenpeace stated outright that the federal regulators aren’t bothered in holding Shell accountable. The focus should be on driving the company towards a sustainable future. Instead of nipping the issues in the bud, the regulators are focused on allowing an ill-prepared company to grow in this region, knowing that it doesn’t quite tolerate cutting corners. Tim believes that this can result in a disaster in the region of the Arctic.
Shell shall be cautious
Greenpeace was vocal in opposing Arctic oil exploration. There was a series of oppositions in FY2014-15. As a consequence, Lego was forced to end a 50-year association with Shell. Low oil prices act as a harbinger to low returns finally, on investment. Hence, Shell would be very cautious, as it treads with the Arctic plan.
