Shell exec’s confidence rising that feds will allow Arctic drilling

The president of Royal Dutch Shell's U.S. operations is increasingly confident that the Obama administration will give the company long-sought-after approvals to begin drilling in Arctic waters off Alaska's coast next year.

"My confidence is going up that the administration is behind it and that 2012 may be the year," said Shell Oil Co. President Marvin Odum on Thursday, speaking to reporters after a speech at the U.S. Chamber of Commerce.

Odum cited draft air-pollution permits that the Environmental Protection Agency has issued and President Obama's recent creation of an interagency task force to coordinate permitting for Alaskan energy projects.

Odum said he's "cautiously optimistic, with a big 'cautiously.' "

"We have been in this situation before, of course, year after year," he said.

Shell has for years been seeking permission to drill in the Beaufort and Chukchi seas, but faces opposition from environmental groups that fear the impact of drilling in the ecosystem that's home to endangered and fragile species.

The company's multibillion-dollar quest to drill in the harsh Arctic seas is frequently cited by Republicans that allege the White House has placed undue restrictions on U.S. energy development.

The GOP-controlled House recently passed legislation aimed at speeding up permitting and easing some air-pollution requirements.

Odum said the company has filed two exploration plans with the Interior Department to drill as many as 10 wells over two years.

The company is vowing to drill with robust safety and spill-response plans.

"It’s relatively simple drilling; it’s a very, very sensitive environment," Odum said.