On Monday, Greenpeace's international executive director described Shell's announcement as a "defining day" for the Arctic.
"It's a huge victory for the millions of people who stood up against Shell and a disaster for other oil companies with interests in the region. Shell has gambled big and lost big, both in terms of financial cost and its public reputation," said Greenpeace's Kumi Naidoo in a statement on the group's website.
However, Chris Main, an energy strategist at Citi, noted that oil prices had put a number of expensive drilling projects on a backburner, not just those in the Arctic.
"The low oil price is putting under question a huge number of higher cost curve projects — oil sands, LNG (liquefied natural gas), deepwater, Arctic et cetera — and there has been a number of either a) project FID deferrals or b) project cancellations. And given the expected price path over the next few years, I would expect these to very well continue," he told CNBC via email.