Bristol Bay Times by Jim Paulin. Royal Dutch Shell's new chief executive said last week that the company is shelving its Alaska exploration program, at least for this year, a move that will impact the economy of Unalaska/Dutch Harbor.
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Unalaska served as Shell's base in 2011 and 2012, as the nearest port with year-round open water and well-developed port facilities, despite being about 1,000 miles from the offshore oil prospects to the north in the Arctic Ocean.
"It's a pretty substantial hit," said Tom Enlow, of Unisea, which operates the Grand Aleutian Hotel in Unalaska. Shell had planned to rent between 70 and 75 hotel rooms daily from April through September, at an average of $139 per day, he said Monday.
The oil company's pullout means a loss of not only hotel rental revenue, but also food and beverage expenses, for both Unisea and other local restaurants, as well as less money for the local marine support sector that provides parts and services to ships, Enlow said.
The city government will also lose out because of reduced fees and sales taxes generated by Shell's activity, said Enlow, who is also a member of the Unalaska City Council.
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