Shell Oil drops Arctic drilling

Shell Oil Company has suspended its 2014 Arctic offshore drilling operations in Alaska's Chukchi Sea.

Shell says its earnings have dropped by 74 percent because of higher exploration costs, lower production, and worse refining margins.

Senator Lisa Murkowski blasted the 9th circuit court of appeals ruling that said federal authorities conducted inadequate environmental assessments before selling nearly 3 billion dollars in leases for offshore exploratory drilling in the Beaufort and Chukchi seas.

Murkowski said "I understand as a business judgment decision you can't direct millions of dollars, perhaps hundreds of millions of dollars toward a hopeful or a hoped for exploration season, knowing that you have litigation and the threat of injunction to deal with and lack of certainty on the regulatory side."