The Obama administration on Friday cancelled all remaining lease sales for drilling in the Arctic, just weeks after Shell said its latest venture in the frozen north would not be economically viable.
“In light of current market conditions and low industry interest, the U.S. Department of the Interior today announced that it will cancel the two potential Arctic offshore lease sales scheduled under the current five-year offshore oil and gas leasing program for 2012-17,” the Department of Interior said. It added that Shell’s announcement was a deciding factor in cancelling all remaining drilling leases.
It noted that Shell said it will “cease further exploration activity in offshore Alaska for the foreseeable future” in support of its decision.
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The announcement was immediately followed by praise from environmentalists, which have criticized the administration’s approval of Shell’s request to drill in the Arctic sea. Several large environmental groups said the president was gambling with the environmental health of the Arctic region, and was risking a major oil spill in making the approval.
Interior Secretary Sally Jewell said “it does not make sense to prepare for lease sales in the Arctic in the next year and a half” given Shell’s decision.
