Current:Home > FinanceItalian Oil Company Passes Last Hurdle to Start Drilling in U.S. Arctic Waters -FutureWise Finance
Italian Oil Company Passes Last Hurdle to Start Drilling in U.S. Arctic Waters
View
Date:2025-04-25 15:51:47
The Trump administration has issued the first permit to drill in federal waters of the U.S. Arctic since Shell’s failed attempt ended in 2015.
As soon as December, the Italian oil company Eni could begin drilling exploratory wells on a lease that was set to expire at the end of the year.
The approval came after “a thorough and complete review of Eni’s well design, testing procedures and safety protocol,” according to Mark Fesmire, the director Alaska region of the Bureau of Safety and Environmental Enforcement. “Exploration must be conducted safely, and responsibly in relation to the Arctic environment and we will continue to engage Eni as they move forward with drilling its exploratory well,” he said.
There is widespread opposition to offshore drilling in the Arctic among conservationists and some native Alaskans, who fear it could impact marine animals that migrate through the area, including bowhead whales that subsistence hunters rely on for survival. Scientific research also points to the need to keep most fossil fuels in the ground to avert the worst consequences of climate change; a 2015 study in the journal Nature identified oil reserves in the Arctic as unburnable if the world hopes to keep global warming to within 2 degrees of pre-industrial times.
Unlike Shell, which was drilling in the open waters of the Chukchi Sea, Eni plans to access federal waters by drilling more than six miles from an artificial island in the Beaufort Sea. The island, called Spy Island, is in state water and is already home to wells and production facilities.
In 2015, Shell pulled out of a $7 billion Arctic drilling project after failing to find sufficient oil in one exploratory well and after a slew of equipment problems, culminating in the running aground of its drill barge, the Kulluk.
Despite the difference in the projects, Kristen Monsell of the Center for Biological Diversity said any drilling in the Arctic is “an accident waiting to happen.”
“The Trump administration is risking a major oil spill by letting this foreign corporation drill in the unforgiving waters off Alaska,” she said. “Offshore drilling threatens coastal communities and wildlife and will only push us deeper into the climate crisis.”
The approval of Eni’s permit comes as the Trump administration is weighing a proposal by Houston-based Hilcorp to construct a 24-acre artificial island for drilling in federal waters near Prudhoe Bay. The federal Bureau of Oceans and Energy Management (BOEM) expects the proposed project to produce 58,000 barrels a day. Hilcorp made headlines in Alaska this year after a gas pipeline leaked into Cook Inlet for months, revealing the company was unable to stop it while ice covered the water.
The period for public comments on the Hilcorp project was recently extended to Dec. 8.
At the same time, the Senate is expected to vote this week on a tax bill that includes a provision for opening the Arctic National Wildlife Refuge to oil drilling.
veryGood! (9)
Related
- Hackers hit Rhode Island benefits system in major cyberattack. Personal data could be released soon
- 'Sopranos' creator talks new documentary, why prequel movie wasn't a 'cash grab'
- Judge considers bumping abortion-rights measure off Missouri ballot
- How different are Deion Sanders, Matt Rhule with building teams? Count the ways.
- Off the Grid: Sally breaks down USA TODAY's daily crossword puzzle, Triathlon
- Mayor of Alabama’s capital becomes latest to try to limit GOP ‘permitless carry’ law
- Dolphins, Jalen Ramsey agree to record three-year, $72.3 million extension
- Man arrested in the 1993 cold case killing of 19-year-old Carmen Van Huss
- Sarah J. Maas books explained: How to read 'ACOTAR,' 'Throne of Glass' in order.
- Nebraska is evolving with immigration spurring growth in many rural counties
Ranking
- Krispy Kreme offers a free dozen Grinch green doughnuts: When to get the deal
- 'Words do not exist': Babysitter charged in torture death of 6-year-old California boy
- Winners and losers of Chiefs' wild season-opening victory over Ravens
- Vanderpump Rules Alum Kristen Doute Is Engaged to Luke Broderick After 2 Years of Dating
- NHL in ASL returns, delivering American Sign Language analysis for Deaf community at Winter Classic
- Man charged with plotting shooting at a New York Jewish center on anniversary of Oct. 7 Hamas attack
- Students, here are top savings hacks as you head back to campus
- A body in an open casket in a suburban Detroit park prompts calls to police
Recommendation
Scoot flight from Singapore to Wuhan turns back after 'technical issue' detected
Vanderpump Rules Alum Kristen Doute Is Engaged to Luke Broderick After 2 Years of Dating
Supreme Court Justice Alito reports German princess gave him $900 concert tickets
LL Flooring, formerly Lumber Liquidators, closing all 400-plus stores amid bankruptcy
Costco membership growth 'robust,' even amid fee increase: What to know about earnings release
Taylor Swift Leaves No Blank Spaces in Her Reaction to Travis Kelce’s Team Win
Investigators say Wisconsin inmate killed his cellmate for being Black and gay
Appeals court upholds conviction of former Capitol police officer who tried to help rioter