Governor Bill Walker says Alaska will need to focus on monetizing and developing it’s known resources after the “surprising” Shell announcement Sunday.
Gov. Walker: “They have not relinquished their leases, they want to renew them, extend them, and I’m more than happy to help. It’s a glimmer hope I don’t think I would hang my hat on it necessarily but they have not taken steps to relinquish those leases.”
Walker agreed with Alaska’s U.S. lawmakers who have faulted President Obama’s administration for not allowing Shell to explore more wells.
Gov. Walker: “Do I think the research will hurt the topic? Absolutely, there isn’t any question about that, but we have to pick up the pieces from this and move forward, perhaps a little differently perhaps a little more aggressively in certain areas.”
He says Shell’s decision to place drilling on hold accelerates the need to focus on the proposed Alaska LNG Project.
Gov. Walker: “I have to have something that shows that if we’re going to give fiscal certainty we’re going to have project certainty and so that’s what the reserves tax is about, it’s not about collecting revenue now it’s of course it’s about making sure if someone chooses not put their gas into the project, leave it in the ground and not let the project go forward as a result of that there has to be some finical consequences’ in result to that decision.”
One of the short term impacts is that Walker says he feels that the “hope” experienced by Alaskans over Shell exploring oil in the Arctic has been dashed.