The US government has launched new curbs on oil and gas exploration in Arctic waters.
The move comes after oil major Shell announced it was pulling out of its drilling activity in the region.
The US Interior department said as well as cancelling two potential Arctic offshore lease sales and would not extend current leases.
Shell has been given approval by the US Department of Interior to carry out limited offshore drilling in the Arctic.
The decison comes amidst strong opposition from environmental groups who fear a potential oil spill in the region could have a lasting impact.
The oil major will not be able to begin drilling until it has all necessary hardware in place to proceed as well as necessary safety measures.