U.S. permits Shell to drill for oil in Arctic off Alaska

The U.S. government gave Monday Royal Dutch Shell a final green light to drill for oil and natural gas in the Arctic Ocean, providing the company a long-sought victory and escalating a battle with environmentalists over President Barack Obama’s climate and energy agenda.

The Interior Department said it has issued a permit to Shell RDSB, -0.52% RDS.A, -0.62% to drill an exploratory well into oil-bearing zones in the Arctic Ocean. In July, the department had issued a permit that allowed the company to drill to only the top of such zones because it didn’t have a particular emergency response vessel on hand, which is now present in the region.

“Activities conducted offshore Alaska are being held to the highest safety, environmental protection, and emergency response standards,” said Brian Salerno, director of the Interior Department’s Bureau of Safety and Environmental Enforcement. “We will continue to monitor their work around the clock to ensure the utmost safety and environmental stewardship.”

The Interior Department in May conditionally approved Shell’s drilling plans, but said the company needed several other government permits before it could move forward. The company has until late September to drill before ice in the frigid waters makes it too difficult to drill, according to a spokesman.

Source: MarketWatch