September 8, 2025

Narwhal Exploration Prepares for Oil Drilling in Alaska

News Summary

Narwhal Exploration, a Texas-based company, is set to begin drilling in West Harrison Bay, Alaska, this winter, following Shell’s exit from the area. Their project aims to tap into the Nanushuk geologic formation, marking a pivotal moment for Arctic oil drilling. While this venture holds economic promise for local communities like Nuiqsut, significant environmental concerns loom regarding the impact on endangered wildlife. As Narwhal invests approximately $150 million, the industry watches closely for potential discoveries that could redefine the regional oil landscape.

Alaska is set to see new oil exploration activity this winter as Narwhal Exploration, a small Texas-based company, moves forward with plans to drill up to five exploration wells in West Harrison Bay. This follows the exit of Shell, which relinquished its leases in the area last year amid pressure from climate-conscious investors. Shell’s departure has prompted questions about the future of oil development in the Arctic, particularly concerning remote North Slope oil plays.

Narwhal’s drilling initiative will focus on the Nanushuk geologic formation, a site that has historically been overlooked by major oil companies. Experts suggest that this region holds the potential for “sizable” oil discoveries. The drilling will position Narwhal as the first company to engage in exploration in West Harrison Bay since Shell acquired leases there in 2012 but failed to undertake significant exploration.

Despite Shell acquiring these leases nearly a decade ago, it encountered challenges in finding a co-owner to share exploration costs and ultimately performed limited activity. In 2022, following public backlash regarding its lack of progress, Shell decided to relinquish the leases, which opened up opportunities for other firms. Narwhal previously sought to either purchase Shell’s leases or partner in the drilling process, but those offers were rejected.

The company and its affiliate, EE Partners, alongside Juneau Oil and Gas, successfully bid nearly $9 million in a state auction for the remaining tracts in West Harrison Bay. However, Juneau Oil and Gas has not announced any plans for immediate drilling, stating it is focusing efforts on prospects in the Gulf of Mexico.

The estimated cost for Narwhal’s exploration efforts is around $150 million. However, developing a new oil field in West Harrison Bay presents significant logistical challenges. The remote location makes infrastructure development potentially exceed $8 billion, and any significant oil discovery would require years to build operational capacity. This complexity highlights the hurdles facing oil developments in the region.

Another key aspect of Narwhal’s drilling project is the environmental concern it raises. The company has been granted a permit allowing for the disturbance of 20 bowhead whales and over 2,000 seals during the exploration activities. This has attracted criticism from environmental groups, who are particularly worried about the potential impacts on Arctic wildlife, which includes endangered species.

Given that the state of Alaska owns the submerged lands in West Harrison Bay, the permitting process is more flexible compared to federally managed areas. This aspect may accelerate the operational procedures compared to those seen in more regulated environments. Narwhal’s drilling project is attracting attention from industry observers, especially due to favorable geological data from nearby historic wells that hint at the presence of oil.

Historically, other companies have found success with near-shore oil exploration in Alaska, contrasting with Shell’s previous attempts, which were mainly focused on deeper offshore areas and yielded little to no results. As a result, Narwhal’s venture marks a pivotal moment in the future of oil exploration in Alaska’s West Harrison Bay, potentially altering the landscape of energy development in the Arctic region.

If successful, Narwhal Exploration’s efforts could signify a new chapter for oil drilling in an area that some believed would remain dormant following Shell’s exit. The coming winter will be closely watched by industry analysts, environmentalists, and local communities as they await the outcomes of Narwhal’s pioneering initiatives in a once-overlooked part of the Arctic.

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Author: STAFF HERE GEORGETOWN

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