Royal Dutch Shell announced it today. The company will cease "offshore drilling operations in Alaska for the foreseeable future." The official decision appears to have been driven by the fact that the Burge J well deposit is not sufficient "to warrant further drilling."

A replica of a polar bear the size of a double-decker bus carried past Shell's headquarters in London. Photo Greenpeace.

Environmentalists and organisations such as Greenpeace — which has long been fighting to prevent the Arctic from becoming a drilling ground in the search for new gas and oil deposits — responded with enthusiasm. "Today is a great day for the Arctic," declared Kumi Naidoo, executive director of Greenpeace International. "This is a huge victory for the millions of people who opposed Shell's plans, and at the same time it is a disaster for the other oil companies that have interests in that region. Shell bet heavily on Arctic drilling and today has suffered a resounding defeat, both in terms of costs and public reputation. The Anglo-Dutch oil giant's project had become the most controversial oil project in the world: now Shell goes home empty-handed."

A U-turn that cost the company no less than 7 billion dollars, according to the Associated Press. "Shell continues to see significant potential in the basin, and the area ultimately remains of strategic importance to Alaska and the United States. However, this is a clearly disappointing result for this part of the basin."

Protest against drilling.

The decision comes just a few weeks after Barack Obama's visit to Alaska to discuss climate change. "If we want to tackle climate change seriously, we need to completely revolutionise the way we think. And drilling in the Arctic is not compatible with this change in vision," said Naidoo. "Greenpeace's campaign to save the Arctic will now continue with greater passion and greater strength. We are calling for the establishment of a sanctuary in the international waters around the North Pole, and after today's news we hope that this goal of ours is closer."