U.S. curbs Arctic offshore oil drilling

WASHINGTON — The Obama administration’s decision Friday to cancel two auctions of Arctic drilling rights and turn down two companies’ requests for more time to explore the area likely close off new energy development in the region for years to come.

The decisions ensure a long chill on oil development in U.S. Arctic waters and deal another blow to Alaska, which heavily depends on energy revenue and is still reeling from Shell’s September decision to abandon the region after “disappointing” results at a critical exploratory well.

“In light of Shell’s announcement, the amount of acreage already under lease and current market conditions, it does not make sense to prepare for lease sales in the Arctic in the next year and a half,” Secretary of the Interior Sally Jewell said in a statement.

Industry interest in the planned Chukchi and Beaufort sea lease sales was tepid even before oil prices plummeted and Shell saw disappointing results at a critical exploratory well last month.

When the Interior Department asked oil companies to highlight areas of interest for future Arctic sales, only one unidentified company spoke up, nominating part of the Beaufort Sea for possible bidding.