Shell has admitted defeat in the Arctic. According to Reuters:

Shell's offshore drillers have lost their race with the Arctic winter and abandoned hope of striking oil this year but will drill wells before the ice closes in to prepare for a 2013 search for the region's elusive riches.

Shell had until Sept. 24 to drill into oil reservoirs in the Chukchi Sea, according to U.S. rules designed to accommodate t he dangers of drilling in increasing ice and deteriorating weather in the environmentally sensitive region.

But Shell's U.S. offshore Arctic expedition has cost $4.5 billion since 2005, almost one sixth of Shell's annual capital spending budget, and has faced a series of setbacks.

The latest came on Monday when the company said its containment dome, a giant metal box on a barge that is standing by to help contain any oil spill resulting from a well blowout, had been damaged during tests.

"In order to lay a strong foundation for operations in 2013, we will forgo drilling into hydrocarbon zones this year. Instead, we will begin as many wells, known as `top holes,' as time remaining in this season allows," the company said.

By Oct. 31 Shell must halt all operations, including top hole wells which stop short of the oil reservoirs but prepare the way for drilling in earnest next year.

Audubon will continue to carefully monitor the situation to ensure that the birds dependent an the area are safe from harm.

Read more at http://www.reuters.com/article/2012/09/17/royaldutchshell-idUSL5E8KH1AM20120917.