U.S. President Donald Trump’s administration announced on Jan. 4 its finalized plan to open vast areas of once-protected Arctic Alaska territory to oil development.
Trump Administration Drilling Auction for Arctic Refuge Attracts Little Interest
The U.S. Bureau of Land Management (BLM) released its plan for the National Petroleum Reserve in Alaska (NPR-A), a 23 million-acre swath of land on the western North Slope. The record, signed by Interior Secretary David Bernhardt on Dec. 21, allows lease sales to proceed under relaxed standards.
The decision is one of a number of pro-drilling actions taken by the Trump administration in its final days. On Jan. 6, BLM is scheduled to auction drilling rights in the Arctic National Wildlife Refuge on the eastern North Slope.
The plan allows oil development on about 80% of the reserve. Under Obama-era rules, about half of the reserve was available for leasing, with the other half protected for environmental and indigenous reasons.
The Trump plan allows leasing in vast Teshekpuk Lake, the largest lake in Arctic Alaska and a haven for migrating birds and wildlife. Teshekpuk Lake has been off-limits to leasing since the Reagan administration.
“We are expanding access to our nation’s great energy potential and providing for economic opportunities and job creation for both Alaska Natives and our nation,” said Casey Hammond, principal deputy secretary for the Department of the Interior.
It is unclear whether making this acreage available will boost Alaskan oil production, which peaked more than 30 years ago at 2 million barrels per day (bbl/d). The state now produces roughly 500,000 bbl/d of crude.
The NPR-A decision got a swift response from environmentalists who have already sued to overturn the plan.
“On its way out the door, this administration is sticking to its blunt and destructive approach to management solely for oil development,” David Krause, assistant Alaska director for The Wilderness Society, said in a statement.
Recommended Reading
What's Affecting Oil Prices This Week? (Nov. 4, 2024)
2024-11-04 - For the upcoming week, with the increased geopolitical risk and OPEC+’s delay in phasing out its production cut, Stratas Advisors expect that the price of Brent crude could test $77.
EPA Gives OK to Texas GulfLink Deepwater Port
2024-11-04 - Sentinel Midstream’s Texas GulfLink project is one of several proposals for an offshore oil terminal in the Gulf.
Expand ‘Having Tons of Conversations’ to Power Data Centers with Gas
2024-10-30 - Expand Energy, the largest U.S. gas producer, has some 1 Bcf/d of supply behind pipe that it can turn online when gas markets stabilize, though executives said Oct. 30 it might not be needed for some time.
Oil Prices Rise as OPEC+ Considers Delaying December Output Increase
2024-10-30 - Oil prices rose more than 2% on Oct. 30 after Reuters reported that OPEC+ could delay a planned oil production increase in December by a month or more because of concern over soft oil demand and rising supply.
Fitch Downgrades New Fortress’ Default Rating, Citing Refinancing Risk
2024-08-14 - New Fortress Energy’s issuer default rating and senior secured debt were downgraded by Fitch, which cited a “highly constrained liquidity position,” as a reason behind its rating actions.