Law of supply in action

The law of supply is that the quantity supplied increases as price increases and decreases as price decreases. The announcement by Shell that it is ceasing exploration in offshore Alaska illustrates that the effects on the quantity supplied may not be obvious immediately but, instead, may take years to appear."'Shell will now cease further exploration activity in offshore Alaska for the foreseeable future.'" "[W]hile it had found 'indications' of oil and gas, 'these are not sufficient to warrant further exploration' in the area."

Here is another account that states more explicitly the effect of lower oil prices on drilling and exploration.

Here are two follow-up questions.

1. What will happen (or fail to happen) to the supply of gas and oil in the future as a result of Shells' decision?
2. Would the indications of oil and gas be more likely to be sufficient to warrant further exploration when the price of oil is $100 per barrel or when the price is $40 per barrel?