U.S. lawmakers had their say on the conditional consent given to Shell's plans for offshore Alaska, saying it's an affirmation of the industry's track record.
While some permitting processes remains, the federal government gave conditional approval to a multiwell plan by Shell for operations in the arctic waters of the Chukchi Sea.
Rep. Rob Bishop, R-Utah, chairman of the House Natural Resources Committee, said the federal nod is an affirmation of an industry commitment to safety. While offshore operations are "absolutely safe," he said many barriers remain in the permitting process.
"As we look for more opportunities to expand responsible energy development offshore, these barriers must be overcome," he said in a statement. "The committee will do its part to help address these challenges through oversight of the Administration and by greater engagement with both states and the private sector."
Shell is proposing as many as six wells in a region known as the Burger prospect, located in shallow waters, using the Noble Discoverer and Polar Pioneer rigs.
Before the company can start drilling, it needs additional permits from state and federal agencies, including those governing the environment. Alaska Gov. Bill Walker signed a bill into law Monday that calls for an enhanced oil spill prevention and response plan in the state's arctic waters.
The next day, Sen. Lisa Murkowski, R-Alaska, introduced legislation meant to increase the state share of revenue from oil and natural gas production in state waters.
"With exploration proceeding in the Chukchi, and the Alaska offshore emerging as a key part of our national energy security, it is critical that we ensure revenue sharing for the state and coastal communities and invest in the workforce development, science and infrastructure necessary to bring these vast resources to market," Murkowski, chair of the Senate Energy Committee, said.
The Dutch supermajor said in a statement it viewed conditional approval as a sign of regulator confidence in its exploration plans. Drilling operations could begin as early as this summer.
