Obama administration allows Shell's Arctic oil wells but drilling still restricted

Controversial decision from Interior Department is conditional on availability of spill-response equipment, which is currently en route to Oregon for repairs

Barack Obama has removed one of the last obstacles to oil drilling in Arctic waters, granting Shell permission to bore two new exploratory wells.

However, the drilling permit granted by the Interior Department on Wednesday bans Shell from drilling into oil-bearing zones until critical spill-response equipment is in place - and that equipment is aboard a damaged icebreaker en route to Oregon for repairs.