Dozens of seal carcasses, some showing signs of hair loss, are being reported in northern Alaska.
The company said it was unable to find "sufficient" amounts of oil and natural gas to warrant continued drilling.
Melting sea ice appears to be causing the animals to flee the ocean, which scientists say highlights the rapidly changing conditions in the Arctic.
Environmentalists say there's no safe way to drill for oil in the harsh and remote conditions of the Arctic.
A coalition of environmental groups say the federal government granted Shell conditional approval to drill in the Arctic illegally by overlooking a regulation for protecting walruses.
A coalition of environmentalists and native Alaskans are suing the federal government in an effort to block Shell's plans to drill in the Arctic this summer.
As Shell prepares to drill for oil this summer in the Arctic Ocean, President Obama is asked how he can support the project if he's concerned about climate change.
Environmentalists and Seattle politicians are trying to block Shell's efforts to drill in the Arctic Ocean this summer.