Obama designated areas in the Arctic and Atlantic oceans as "indefinitely off limits" to future leasing.
The move is widely seen as an attempt to protect the region before President Obama leaves office in January.
The White House said the decision was for "a strong, sustainable and viable Arctic economy and ecosystem."
It cited native cultural needs, wildlife concerns, and the "vulnerability" of the region to oil spills as some of the reasons for the ban.
While Canada will review the move every five years, the White House insists Obama's declaration is permanent.
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