Groups seek US SEC probe of Shell Arctic drilling risk disclosures

An environmental group and a law clinic have petitioned the US Securities and Exchange Commission to investigate whether Royal Dutch Shell has adequately disclosed to investors the risks of oil exploration in Arctic waters, the groups said on Tuesday. The US Interior Department is mulling whether Shell can drill test wells for crude and natural gas off Alaska this summer. The company abandoned exploratory drilling efforts in 2012 after an accident-plagued season in a region with little infrastructure for emergency response.
Oceana, an international environmental group, and the Abrams Environmental Law Clinic at the University of Chicago, said the action they filed on Monday is part of a longer effort to get Shell to disclose risks to investors of the costs of any catastrophic oil spill and other potential accidents. "There is no proven way to clean up a spill in the icy Arctic conditions and Shell has an obligation to make investors aware of that," said Andrew Sharpless, chief executive officer of Oceana.