WASHINGTON -- Shell is dropping plans to drill in the Arctic waters off Alaska this year after a 2012 drilling season marred by equipment failures and ongoing investigations by the Coast Guard, Interior Department and the Department of Justice.
Shell's announcement came as the Justice Department investigates 16 safety and environmental violations the Coast Guard found in late November on the Noble Discoverer, one of the company's two Arctic drilling rigs. The other rig, the Kulluk, is the subject of a Coast Guard investigation into the circumstances of its grounding Dec. 31 off Alaska's Kodiak Island.
Environmental groups on Wednesday hailed Shell's announcement that it would suspend drilling. They also said President Barack Obama should withdraw his support.