ANCHORAGE, Alaska — Shell Oil is downsizing its plan for off-shore drilling in the Arctic this year amid delays completing a spill containment barge required by the federal government, a spokesman said Tuesday.

Shell now hopes to complete two wells in 2012 instead of five. One would be in the Beaufort Sea off the northern Alaska coastline, and the other in the Chukchi Sea off the northwest coast.

The company's ambitious two-year goal of drilling 10 wells remains in place, company spokesman Curtis Smith said.

Valuable data derived from drilling the two wells still in the works will aid Shell with its drilling in 2013, he said.

Gasoline is at $3.50 per gallon for the first time this summer after a sharp run-up in July.The price of gas gained 17 cents per gallon, or 5.1 percent this month. It was the first monthly increase since March. The nationwide average was last at $3.50 per gallon on June 19.Drivers had enjoyed a long stretch of declining prices at the pump as oil fell from more than $100 per barrel in March to below $78 by late June. The average price at the pump fell by 60 cents per gallon in about three months. But oil rose 13 percent from renewed concerns of supply disruptions in the Middle East and

Shares of U.S. Steel jumped 9 percent Tuesday after the manufacturer exceeded Wall Street’s expectations for the second quarter by raising some prices and selling more steel to energy companies.U.S. Steel also said it expects each of its business segments to manage an operating profit in the third quarter, although overall results should decline from the second quarter.Excluding an $11 million after-tax gain on early redemption of senior notes, U.S. Steel reported adjusted net income of $112 million, or 69 cents per share. Analysts predicted net income of 48 cents per share on revenue of $5 billion.Typically, the second quarter is the strongest for the industry. But steel manufacturers have turned in weaker second-quarter performances as a number of key customers reduced demand, including the construction industry.