September 9, 2025

New Oil Exploration in Alaska’s West Harrison Bay

News Summary

A Texas company, Narwhal Exploration, is set to drill its first wells in Alaska’s West Harrison Bay, targeting the Nanushuk geological formation. This venture follows Shell’s exit from the region and is expected to cost around $150 million. The local community in Nuiqsut is observing as Narwhal aims to redefine the oil landscape amid environmental concerns. The exploration could lead to significant discoveries, but the economic viability remains uncertain, with potential investments exceeding $8 billion amidst ongoing discussions about ecological impacts.

Alaska – Narwhal Exploration, a small oil company based in Texas, is preparing to drill its first exploratory wells in West Harrison Bay this winter, following the exit of Shell from the area. This significant drilling venture represents the first exploration effort in West Harrison Bay, which is believed to possess abundant oil reserves. The drilling plan comes after Shell relinquished its leases last year due to increasing pressure from climate-conscious investors concerned about Arctic oil development.

Narwhal aims to drill up to five exploration wells in the Nanushuk geological formation, an area that has previously been overlooked but is now being utilized by other major projects, including ConocoPhillips’ Willow project and Santos’ Pikka project. The closest community to Narwhal’s drilling site is Nuiqsut, located about 30 miles to the south. Experts in the field, including petroleum engineers, believe that the potential for oil discovery in this area could be considerable, although the economic viability of such a development remains uncertain.

The cost of Narwhal’s drilling initiative is projected to be around $150 million, primarily funded by a private equity group based in Florida. In contrast, Shell, which had acquired its leases in West Harrison Bay in 2012, faced challenges in conducting major exploration due to difficulties in finding a co-owner to share costs. Narwhal had sought to purchase Shell’s leases and looked for potential partners, but these efforts were unsuccessful before Shell ultimately decided to give up its leases in the region.

Following Shell’s exit, Narwhal secured the remaining tracts of land in a state auction through its affiliate, EE Partners, along with Juneau Oil and Gas, which invested nearly $9 million. While Juneau Oil and Gas has not released details regarding its winter drilling plans, the company primarily focuses on oil prospects in the Gulf of Mexico.

The overall cost of building an oil field in West Harrison Bay is expected to exceed $8 billion. However, this project could potentially progress more quickly due to Alaska’s more flexible permitting laws, which differ from those in federally managed areas. Narwhal has received a federal permit allowing it to disrupt up to 20 bowhead whales and over 2,000 seals, raising concerns from environmental groups such as the Center for Biological Diversity, which worry about the impacts of oil exploration on endangered species in the region.

Shell’s earlier exploration efforts in the area faced hurdles as they cited logistical challenges and difficulties in attracting viable partners as reasons for not proceeding with drilling. The remote location of West Harrison Bay adds to these logistical complexities, making oil exploration and development particularly challenging.

While Narwhal has shown commitment to its drilling plans, comprehensive details regarding its drilling strategies and specific timelines have yet to be disclosed to the public or regulatory bodies. The upcoming exploration efforts will be closely monitored as they could significantly impact the local environment and the area’s economy.

This recent development highlights a shift in the landscape of Arctic oil exploration, particularly following Shell’s exit. As Narwhal Exploration attempts to establish its foothold in Alaska’s oil industry, the stakes remain high for both the economic benefits and the environmental considerations that come with such projects.

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Author: STAFF HERE GEORGETOWN

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