January 4, 2011
By GUY CHAZAN
Royal Dutch Shell was dealt a new setback in its plans to drill offshore in the arctic, after environmentalists successfully challenged a decision to grant the company air-quality permits.
Shell has invested $3.5 billion in an exploration program in Alaska’s Beaufort and Chukchi seas, but has yet to drill. The company’s plans have been dogged by legal challenges and regulatory obstacles.
Shell had finally overcome all hurdles last spring, until BP PLC’s Gulf of Mexico oil well exploded, triggering the worst offshore oil spill in U.S. history. The Obama administration responded by suspending most new offshore drilling, including in the arctic, throwing Shell’s exploration program into disarray.