The US government has given the Hilcorp Energy company permission to extract oil in the Arctic. It is the first time that the US federal government has built a permanent oil production well there. Alaska already allowed oil drilling in the part of the sea that this state has control over.
Hilcorp wants to construct an artificial island in the Beaufort Sea north of Alaska. From there, it can then drill for oil. The permission does contain some restrictions and is dependent on obtaining other permits.
According to Secretary of State Ryan Zinke, the permission fits within the “responsible development of natural resources”.
Environmentalists fear that, among other things, whales suffer damage from the construction of the island. They also fear that the fragile ecosystem in the polar region will be threatened by oil spills.
Peretz M. is an accomplished economist and financial journalist with a deep understanding of the global economy and financial markets. He is a regular contributor to EconomicInform, where he provides expert analysis and commentary on current economic trends and events. With a strong educational background in economics, Peretz has a talent for breaking down complex economic concepts for a general audience and is able to provide insightful perspectives on a wide range of economic issues.
