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The Latest: Alaska gov sees ‘loss of hope’ in drilling pause

ANCHORAGE, Alaska — The latest on the Interior Department’s announcement that it is cancelling future lease sales and will not extended current leases in Arctic waters off Alaska’s northern coast (all times local):

2:15 p.m.

Alaska Gov. Bill Walker says the Obama administration’s decision to essentially put drilling in Arctic waters off Alaska’s northern coast off-limits as a “loss of hope.”

Walker said Friday the decision from Interior Secretary Sally Jewell “pretty much shut down offshore” drilling, leaving onshore drilling as the only option in Alaska.

After Shell announced it was pausing its Arctic drilling after poor well results, Walker went to Washington to push Jewell on opening up a small part of the Arctic National Wildlife Refuge. She indicated at the time that opening the refuge might be a political hurdle.

Walker says he’s vey “adamant and aggressive” about opening up the small patch of the coastal plain of the refuge to drilling to help the economy of his oil-dependent state.

He says, “We know where the oil is, we just don’t have access to it.”

12:45 p.m.

The Interior Department says it will not extend Arctic offshore leases held by Royal Dutch Shell and other companies in Arctic waters off Alaska’s northern coast.

Interior Secretary Sally Jewell says she’s also cancelling new lease sales tentatively scheduled for the next two years.

The decision significantly reduces the chances for future Arctic offshore drilling.

Shell announced Sept. 28 it would cease exploration in the Chukchi (chuk-CHEE’) and Beaufort seas after spending upward of $7 billion on Arctic exploration.

The company cited disappointing results from a well drilled in the Chukchi and the unpredictable federal regulatory environment.

Federal leases in the Beaufort Sea are due to expire in 2017 and in the Chukchi in 2020.

Jewell says that in light of Shell’s announcement, it doesn’t make sense to prepare for lease sales in the Arctic in the next year and a half.

In related news, Shell pulls the plug on Arctic exploration.

This article was from The Associated Press and was legally licensed through the NewsCred publisher network.