Marvin Odum, director of Shell Upstream Americas, said in a statement that the company continues to see “important exploration potential” in an area that is roughly half the size of the Gulf of Mexico.
“However,” he added, “this is a clearly disappointing exploration outcome for this part of the basin.”
The so-called Burger J exploration well, located in Alaska’s Chukchi Sea, was drilled to a depth of 6,800 feet. And while indications of oil and gas were found in the well, Shell said they were not sufficient to warrant further exploration.
The well will be sealed and abandoned in line with U.S. regulations, Shell added.
Environmentalists cheered the development, calling it a win for a hard fought campaign to block the drilling, despite the Obama administration’s controversial decision to grant a permit — the first for the remote area in more than 20 years.