Big oil abandons $2.5B in US Arctic drilling rights

After spending $2.5 billion to secure drilling rights in U.S. Arctic waters, Royal Dutch Shell, ConocoPhillips and others last month abandoned 2.2 million acres of claims.
 
The decision came prior to a May 1 due date when the companies would have had to pay millions of dollars to continue leases started in 2008 with the U.S. government.
 
An ongoing slump in oil prices is forcing energy exploration businesses to cut spending. Shell last year abandoned an $8 billion venture after experiencing discouraging production at a test well in Arctic waters.
 
The U.S. Arctic is estimated to hold 27 billion barrels of oil and 132 trillion cubic feet of natural gas, according to Bloomberg Business.
 
Read more from Bloomberg Business.