Royal Dutch Shell announced Monday it is abandoning a multibillion-dollar effort to drill for oil and gas in the Arctic, bowing not to the vocal protests or calls to save the climate, but to cold hard reality. The company’s exploratory well, it turned out, was not finding enough oil or gas.
Shell said that its exploratory drilling at the Burger J well in the Alaskan Chukchi Sea tapped some reserves, but Shell determined they were “not sufficient to warrant further exploration,” according to a company statement.
The project’s results are “a clearly disappointing exploration outcome,” said Marvin Odum, the director of Shell Upstream Americas.
Environmentalists feel otherwise, hailing the company’s decision as a major win for the climate.
“Shell’s abandonment of drilling and cancellation of all exploratory activity in the Arctic is joyous news for our climate, communities along the Arctic Ocean, and the hundreds of thousands of people who have joined in public protests saying ‘Shell No’ to Arctic drilling,” Michael Brune, Sierra Club’s executive director, said in a statement.