Arctic Lovers Can Thank Falling Oil Prices for this Gift

The high cost of drilling for oil in the Arctic, combined with the lowest oil prices in five years, have caused Chevron Corp. to drop their test well drilling program in Canada's Beaufort Sea.

2 minute read

December 19, 2014, 8:00 AM PST

By Irvin Dawid


"Chevron Corp. told Canadian regulators Wednesday that it has 'indefinitely' suspended plans to drill for oil in Arctic waters, citing uncertainty over the outlook for crude prices," writes Chester Dawson of The Wall Street Journal.

Chevron holds an exploratory license to a Beaufort Seas lease 155 miles off the coast of Tuktoyaktuk, a town in the Northwest Territories. The company planned to start exploratory drilling by 2020, according to the [National Energy Board], Canada’s chief energy regulator

The second largest U.S. oil company is experiencing the fall-out from plummeting world oil prices, "50% since June." Unconventional sources, be they shale oil, oil sands, or drilling in the Arctic are all expected to see capital investment recede due to their higher drilling and exploratory costs. [See "Fracking's Formidable Foe"].

The Arctic holds billions of barrels of untapped oil reserves, but offshore-drilling costs there are among the highest in the world due to its remote location and severe weather.

On another Arctic front, but in a different sea, country and with a different oil company, Alex Guillen of Politico Morning Energy writes that over 100 House Democrats have written [PDF] Interior Secretary Sally Jewell to request that she reject a new Environmental Impact Statement [a requirement of the National Environmental Policy Act (NEPA)] for a lease sale in the "Chukchi Sea off the Northwest of Alaska" originally sold to Shell OIl in 2007. Among the reasons they cite is the "complete inability to respond to an oil spill in this remote and sensitive region."

Wednesday, December 17, 2014 in The Wall Street Journal

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

June 11, 2025 - Diana Ionescu

Metrorail train pulling into newly opened subterranean station in Washington, D.C. with crowd on platform taking photos.

Congressman Proposes Bill to Rename DC Metro “Trump Train”

The Make Autorail Great Again Act would withhold federal funding to the system until the Washington Metropolitan Area Transit Authority (WMATA), rebrands as the Washington Metropolitan Authority for Greater Access (WMAGA).

June 2, 2025 - The Hill

Large crowd on street in San Francisco, California during Oktoberfest festival.

The Simple Legislative Tool Transforming Vacant Downtowns

In California, Michigan and Georgia, an easy win is bringing dollars — and delight — back to city centers.

June 2, 2025 - Robbie Silver

Man in teal shirt opening door to white microtransit shuttle with cactus graphics and making inviting gesture toward the camera.

Albuquerque’s Microtransit: A Planner’s Answer to Food Access Gaps

New microtransit vans in Albuquerque aim to close food access gaps by linking low-income areas to grocery stores, cutting travel times by 30 percent and offering planners a scalable model for equity-focused transit.

June 13 - U.S. Department Of Transportation

Group of people at table set ouf with picnic food on street during a neighborhood block party.

This City Will Pay You to Meet Your Neighbors

A North Kansas City grant program offers up to $400 for residents to throw neighborhood block parties.

June 13 - The Kansas City Star

Crowd gathered with protest signs on April 5, 2025 on steps of Minnesota state capitol protesting Trump cuts to social security and other federal programs.

Commentary: Our Silence Will Not Protect Us

Keeping our heads down and our language inoffensive is not the right response to the times we’re in. Solidarity and courage is.

June 13 - Shelterforce Magazine