Breitling Oil and Gas Morning Podcast #157 9-25-12

Shell scrapped plans to drill for oil and gas off Alaska this year after a spill containment system crucial to the company’s efforts to explore in the icy Arctic waters was damaged during a test.

The company is pledging to continue to drill and cap the top portion of exploratory wells in both the Chukchi and Beaufort seas in order to try to hit the ground running next year.

Shell had successfully completed a series of tests of the first-ever Arctic Containment System, but the containment dome onboard the company’s Arctic Challenger barge was damaged during a final test.

The accident is the latest setback for Shell’s long-delayed trailblazing quest to start Arctic oil-and-gas drilling off the Alaska coast this year, an effort that has been folded in with the larger politics over the Obama administration’s energy record before the election.

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