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Alaska braces for fallout of Shell Arctic drilling decision

File - In this July 30, 2015 file photo, the Royal Dutch Shell PLC icebreaker Fennica heads up the Willamette River under protesters hanging from the St. Johns Bridge on its way to Alaska in Portland, Ore. Royal Dutch Shell will cease exploration in Arctic waters off Alaska's coast following disappointing results from an exploratory well backed by billions in investment and years of work. The announcement that came on Monday, Sept. 28, was a huge blow to Shell, which was counting on offshore drilling in Alaska to help it drive future revenue. Environmentalists, however, had tried repeatedly to block the project and welcomed the news. (AP Photo/Don Ryan, File)
File - In this July 30, 2015 file photo, the Royal Dutch Shell PLC icebreaker Fennica heads up the Willamette River under protesters hanging from the St. Johns Bridge on its way to Alaska in Portland, Ore. Royal Dutch Shell will cease exploration in Arctic waters off Alaska's coast following disappointing results from an exploratory well backed by billions in investment and years of work. The announcement that came on Monday, Sept. 28, was a huge blow to Shell, which was counting on offshore drilling in Alaska to help it drive future revenue. Environmentalists, however, had tried repeatedly to block the project and welcomed the news. (AP Photo/Don Ryan, File) File - In this July 30, 2015 file photo, the Royal Dutch Shell PLC icebreaker Fennica heads up the Willamette River under protesters hanging from the St. Johns Bridge on its way to Alaska in Portland, Ore. Royal Dutch Shell will cease exploration in Arctic waters off Alaska's coast following disappointing results from an exploratory well backed by billions in investment and years of work. The announcement that came on Monday, Sept. 28, was a huge blow to Shell, which was counting on offshore drilling in Alaska to help it drive future revenue. Environmentalists, however, had tried repeatedly to block the project and welcomed the news. (AP Photo/Don Ryan, File)

By Associated Press 1 min read

ANCHORAGE, Alaska (AP) – Environmental groups are celebrating Royal Dutch Shell’s decision to end exploratory drilling off Alaska’s northern coast, but officials in Alaska say the finding is going to hurt.

Gov. Bill Walker says Shell’s decision to end exploration in offshore Alaska “for the foreseeable future” means Alaska will have to turn elsewhere to solve its economic woes.

He’s suggesting the federal government open a small portion of the Arctic National Wildlife Refuge to natural gas drilling.

Shell announced Monday that its exploratory well in the Chukchi (chuk-CHEE) Sea had found oil and gas, but not in commercial quantities that justified the huge expense of Arctic offshore drilling.

Spokesman Curtis Smith says a return to Alaska waters will depend on how drilling prospects compare to other areas.