Narwhal Exploration- A Bold New Chapter in Arctic Oil after Shell’s Retreat from West Harrison Bay
Last year, Shell, once a dominant force in Arctic energy, relinquished several promising offshore leases in West Harrison Bay, part of Alaska’s North Slope. This decision, widely attributed to climate-conscious investor pressure, sparked debate over the future of oil exploration in the Arctic—especially in high-cost, technically challenging offshore zones. But who would venture where a global giant hesitated?
Enter Narwhal Exploration, a small, Texas-based firm. Far from a multinational behemoth, Narwhal has quietly positioned itself for what industry observers call one of the most compelling Arctic drilling efforts in years. This winter, the company plans to drill up to five exploration wells targeting the Nanushuk formation in West Harrison Bay—a first for the area (Alaska Beacon, Anchorage Daily News).
This post explores the full narrative—from Shell’s exit to Narwhal’s emerging Arctic venture—and what it could mean for Alaska’s oil future.
1. Shell’s Exit from West Harrison Bay: A Turning Point
In May 2024, Shell formally walked away from its last major North Slope leases in West Harrison Bay. The decision, symbolizing the struggle between fossil fuel ambitions and climate-related investor expectations, triggered statewide concern over whether any company would take on such expensive and remote development (KTOO).
Shell’s northern ambitions had faltered before. In 2020, it submitted a multi-year exploration plan, with optimistic timelines for winter drilling to consolidate leases under one unit, contingent upon finding partners to share cost and risk. But delays, mounting logistical and permitting challenges, and shrinking capital allocations amid the pandemic put Shell on track for a graceful retreat (Alaska Business Magazine).
When no partner emerged and internal approvals faltered, Shell quietly abandoned the leases—opening the door for smaller players.
2. Narwhal Exploration Steps In
A surprising successor, Narwhal Exploration, began accumulating acreage in West Harrison Bay as early as 2016. The company secured approximately 57,950 acres across multiple Beaufort Sea lease sales, with further acquisition of adjacent leases via its affiliate EE Partners in 2023—bringing total acreage to over 77,800 acres (aws.state.ak.us, petroleumnews.com).
In November 2024, the Alaska Department of Natural Resources approved the formation of the “Narwhal unit,” consolidating these holdings into one operational area. Their Plan of Exploration (POE) outlined a multi-year strategy: preparatory work in 2024–2025, followed by drilling up to two wells in 2026, and potentially more in 2027, with an initial plan of development by 2028 (petroleumnews.com).
Simultaneously, Narwhal embarked on an aggressive technical and permitting campaign—reprocessing seismic data, negotiating supply logistics, building community outreach, and filing Incidental Harassment Authorization (IHA) applications under U.S. environmental laws (aws.state.ak.us, petroleumnews.com, NOAA Fisheries).
3. Why West Harrison Bay Now? The Magnetic Appeal of the Nanushuk Formation
West Harrison Bay lies atop the Nanushuk formation, a geologically promising oil play overlooked until recent years. This same formation underlies major onshore projects—ConocoPhillips’ Willow and Santos’ Pikka—currently under construction (Alaska Beacon).
The area benefits from relative proximity to infrastructure, shallow water, and state jurisdiction—factors that lower certain risks compared to Shell’s earlier offshore Chukchi Sea ventures (Alaska Beacon, KTOO). Still, it’s remote and logistically challenging. A discovery could take years and billions of dollars to develop—Narwhal estimates $8 billion for full field infrastructure, comparable to Willow’s budget and more than double Pikka’s (Alaska Beacon, aws.state.ak.us).
4. The Roadmap: Permitting, Planning, and Drilling Timeline
Narwhal’s timeline is methodical:
- 2024–2025: Non-drilling groundwork—including permits, rig mobilization, seismic and hazard surveys (petroleumnews.com, aws.state.ak.us).
- Winter 2025–2026: Execution of first exploration wells (up to two) to assess Nanushuk, and possibly Torok, targets (petroleumnews.com).
- 2027: Additional wells depending on early results. Completion by 2028 includes submitting a Plan of Development (petroleumnews.com).
- Narwhal has also secured state-approved permits and an IHA (valid until mid-2026), allowing limited disturbance of marine mammals, pending mitigation measures—this includes designated numbers of bowhead whales and seals that may be “taken” by harassment during exploration (Federal Register, NOAA Fisheries).
5. Environmental and Community Dimensions
As required under the Marine Mammal Protection Act, the IHA permits limited impact on marine mammals with the stipulation that such effects be minimized and monitored. The National Oceanic and Atmospheric Administration (NOAA) and NMFS issued the IHA in August 2025, alongside a Biological Opinion affirming no significant environmental impact (Federal Register, NOAA Fisheries).
However, environmental groups—like the Center for Biological Diversity—have warned of risks to threatened ice seals, bowhead whales, and other Arctic wildlife (Alaska Beacon). Narwhal has also engaged with local Iñupiaq communities, the Alaska Eskimo Whaling Commission, and other stakeholders, as part of its Plan of Cooperation—a critical step in ensuring cultural and subsistence concerns are addressed (aws.state.ak.us).
6. Economic Stakes for Alaska and Industry Outlook
Narwhal’s venture may serve as a litmus test for Arctic oil’s viability in a world shifting to lower-carbon energy. For Alaska, a successful discovery could inject substantial revenue, as state land development promises higher royalty shares and potentially faster permitting compared to federal lands (Alaska Beacon, KTOO).
Still, this is high-stakes exploration—a small company wagering hundreds of millions in a remote frontier where Shell chose not to tread. If drilling proves compelling, larger players or public markets might follow. If not, Alaska’s remaining Arctic prospects may face even steeper challenges.
7. Challenges Ahead: Infrastructure, Costs, and Uncertainty
Even if Narwhal strikes oil, building supporting infrastructure—pipelines, platforms, processing hubs—could cost upward of $8 billion, and take years. The location’s remoteness exacerbates logistics, from ice road construction to supply chain reliability (Alaska Beacon, aws.state.ak.us).
Narwhal faces pressure to deliver. The state requires performance bonds if exploration wells aren’t drilled by set deadlines; failure to meet timelines can trigger lease termination (petroleumnews.com). The company needs to maintain investor confidence, community trust, and regulatory compliance through each stage.
8. What It All Means for Arctic Oil’s Future
Shell’s retreat symbolized major players’ skepticism about Arctic oil’s financial and reputational viability. Narwhal’s ambition marks a counterpoint—a smaller, nimble player willing to do what giants would not.
If Narwhal succeeds, it could revitalize interest in frontier Arctic exploration, attract new investment, and reaffirm Alaska’s role in the U.S. energy mix. On the flip side, failure would underscore the formidable obstacles inhibiting Arctic energy development in modern times.
Either outcome is instructive—and will be closely watched by industry, policymakers, and environmentalists alike.
Narwhal Exploration’s plan to drill in West Harrison Bay captures a pivotal moment in Alaska’s oil saga. A small Texas company is stepping into the vacuum left by Shell—armed with seismic data, permits, and high stakes for the state and its communities. The Nanushuk formation, once overlooked, now beckons amid shifting energy dynamics and climate pressures.
Will Narwhal rise to the challenge? Can it make a “sizable discovery” that justifies multibillion-dollar infrastructure? Only time—and drilling results—will tell.
Stay tuned as the winter 2025–2026 drilling season unfolds. It may shape the next chapter not just for Alaska, but for Arctic energy’s future.