It’s all about oil prices.
Royal Dutch Shell said Monday it will stop drilling for oil off Alaska’s coast. The move comes after Shell failed to discover a noteworthy amount of undersea oil in a well off northern Alaska despite spending $7 billion on exploration efforts.
The decision will undoubtedly please the many environmentalists who were against the project from the start. But their protests aren’t the reason Shell is calling it quits in Alaska. Instead, Shell’s decision was economic: The price of oil has dropped precipitously over the past year, meaning it’s getting much harder to make a profit on the stuff.