In what is sure to be only the latest event in a long case of protracted legal wrangling, a San Francisco federal appeals court has ordered Royal Dutch Shell Plc's (NYSE: RDS.A) vessels to stop all operations in the Beaufort and Chuckchi Seas. Environmental groups and Eskimo villages are seeking greater research into the effect drilling will have on marine wildlife in the region, and the judge agreed to give them time.

Shell isn't too happy. The company claims to have spent $200 million on the project already, including extensive research on the effect drilling will have on the environment, and has also formulated a plan to deal with oil spills. Of course, it's easy to be skeptical of an oil company's studies on environmental impact.

The Department of the Interior has supported drilling but, given the recent scandals involving global warming and political pressure on scientists, the department is not as high on credibility as it once was.

Given the amount of time it will take for any oil from the region to be brought to market, and the relatively small amount that is thought to be feasible for drilling, this probably won't have a material impact on energy prices anytime soon.

Shell ordered to stop Arctic drilling originally appeared on BloggingStocks on Sun, 22 Jul 2007 16:40:00 EST. Please see our terms for use of feeds.