Why Big Oil Is Giving Up on the Arctic

In 2007-2008, oil companies invested heavily in Arctic leases due to rising oil prices. The Arctic was seen as a promising, untapped resource with vast oil and gas potential. However, the energy sector faces challenges as it requires large discoveries for sustained production, unlike shorter-term shale fields. Globally, countries like Norway and Russia are also interested in Arctic exploration. The future of U.S. Arctic oil auctions is uncertain, with potential cancellations and price considerations affecting decisions.

What challenges do oil companies face in making discoveries in the Arctic?

What factors could influence Shell's decision to return to Arctic exploration?