Washington: The US government has cancelled plans to allow oil drilling along the Arctic coasts of Alaska for the next two years, the interior department announced.
The decision signifies the elimination of offshore lease sales for oil drilling rights in the Chukchi and Beaufort Seas, and comes less than a month after the Shell oil company decided to suspend its exploration for crude and natural gas on the Alaska coast, EFE reported on Saturday.
On September 28, the Anglo-Dutch oil company announced the suspension of its plans in Alaska due to some “disappointing” results from an important oil well in the sea off Chukotka, that unfortunately coincided with a time when the price of crude was at its lowest in recent years.
“Shell will now cease further exploration activity in offshore Alaska for the foreseeable future,” the oil company said at the time. “This decision reflects both the Burger J well result, the high costs associated with the project, and the challenging and unpredictable federal regulatory environment in offshore Alaska.”
“In light of Shell’s announcement, the amount of acreage already under lease and current market conditions, it does not make sense to prepare for lease sales in the Arctic in the next year and a half,” interior secretary Sally Jewell said.
The Barack Obama administration also decided to refuse the requests of Shell and Norway’s Statoil to move to a later date the lease contracts in the Arctic they obtained from the government of George W. Bush.
The two offshore lease sales that the US had planned for the next two years were the one in 2016 for drilling rights in the Chukchi Sea and the other in 2017 for the Beaufort Sea.
Despite the hold on bidding during the next two years, the interior department still has plans for possible lease sales for drilling rights in the Arctic for the years 2020 and 2022.
The final decision in those two cases will be up to the US president elected in 2016.
Meanwhile, environmentalists have opposed all plans to drill for oil in the Arctic, warning that such operations could harm polar bears and seals.
Sampad Yadav, who sells electrical goods in a shop in the business hub of Gurugram on the outskirts of New Delhi, says Chinese goods such as LED lamps are popular with customers. “When people make a price comparison and want to move towards the cheapest goods, those are usually Chinese products.”
As in many other countries, Chinese products such as lamps, electronics, smartphones and engineering goods from the manufacturing giant have flooded Indian markets.
However, India has long fretted that areas in which it is strong such as generic drugs and Information Technology services, which make up some of its main exports to Western markets, remain shut out of China. That has made it difficult to bridge a ballooning trade deficit of about $50 billion between the two countries.
But there is optimism this could change following a meeting this week between the commerce ministers of the two countries in New Delhi.
“The Chinese side have agreed to work on the issue, prepare a roadmap to bring the trade to balanced level over a period of time,” Indian Commerce Minister Suresh Prabhu said after discussions with his Chinese counterpart, Zhong Shan.
Trade experts hope the growing tensions on trade issues between the United States and China will prompt Beijing to open up its markets more to Indian exports. “I think China is definitely under pressure now, looking into the kind of initiation which has happened against China,” says Ajay Sahai, who heads the Federation of Indian Exports Organization.
The meeting between the Indian and Chinese commerce ministers this week came amid efforts to de-escalate tensions between the Asian neighbors following a period of rocky ties and a tense 70-day face-off between their troops in the Himalayas last year.
Despite a long-lingering boundary dispute and an often-fraught diplomatic relationship, trade ties between the Asian giants have gained significant momentum and China is now India’s largest trading partner. Bilateral trade in 2017 topped $80 billion rising by more than 20 percent over the previous year.
But worryingly for New Delhi, the trade deficit remains high despite a marginal growth in Indian exports – they add up to about $16 billion versus Chinese imports into India of about $68 billion.
India exports mainly raw materials like iron ore, copper and cotton yarn to China. “In whatever value-added exports where we are competitive, unfortunately, the market is not open for us,” says Sahai.
However, China has promised to give greater market access to Indian goods, particularly pharmaceuticals and agricultural goods such as rice, as well as service exports, according to the Indian commerce minister. “They have decided to work in a way that will address security issues from their side as well as introduce Indian companies to those who can buy these products in China,” says Prabhu.
New Delhi, which is trying to ramp up domestic manufacturing, is also urging China to manufacture more goods exported to India within the country.
Whether the promised actions translate into concrete outcomes remains to be seen. But exporters are hopeful. Sahai points out that China has invited Indian traders to what is being billed as the country’s first importers fair to be held in Shanghai later this year – it is being showcased as a measure to further open up China’s market.
The positive tenor of talks between the two countries comes days after U.S. President Donald Trump announced plans to impose tariffs on Chinese imports valued at $60 billion.
New Delhi could also face U.S. ire on trade issues – although its exports to the United States are comparatively small, it has a high trade deficit in its favor and Washington has often complained of protectionist barriers in India. In February, Trump called out India for imposing higher duties on Harley-Davidson motorcycles than the U.S. does on Indian motorbikes.
Amid growing fears that global trade faces uncertain times, analysts have called on countries like India to focus on increasing trade within the region.
India and China also said they will strengthen cooperation in the World Trade Organization and other multilateral and regional frameworks to maintain their common interests. VOA