Large amounts of recoverable oil and gas could lie beneath the Beaufort and Chukchi Seas off Alaska: energy sorely needed to address the energy challenge.
In 2005, we were awarded leases to explore offshore in Alaska and carried out initial seismic work in 2006. In 2008, we were awarded a further 275 exploration leases in the Chukchi Sea.
If exploration were to be successful, these positions could one day lead to big projects. But it will take time. They are in waters that are home to whales and seals and are central to the way of life of the local Inupiat people. We have learned, sometimes the hard way, that building relationships and trust with these communities cannot be rushed. In 2007, several environmental and community groups challenged in court the environmental impact assessments that the federal government carried out before granting us our permit to explore in the Beaufort Sea. We have suspended all plans for exploratory drilling there in 2009, while the court finalises its decision.
We remain determined to move with caution and work with local communities. Over the last three years, we have spent more than $40 million on scientific baseline studies and impact assessments. These studies are helping us get a good understanding of the region’s ecology and how we can reduce our impact on it. Together with the communities, we are developing ways of conducting our exploration that aim to respect their traditions, and generate economic development in an area where it is urgently needed.
