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Biden government moves to call off oil and gas drilling in Alaska’s Arctic refuge

The Guardian - Energy · Associated Press in Juneau · last updated

The US interior department has canceled seven oil and gas leases in Alaska’s Arctic national wildlife refuge that were part of a sale held in the waning days of the Trump administration, arguing the sale was legally flawed. The interior secretary, Deb Haaland, said with her decision to cancel the remaining leases “no one will have rights to drill for oil in one of the most sensitive landscapes on earth”. However, a 2017 law mandates another lease sale by late 2024. Administration officials said they intend to comply with the law. Two other leases that were issued as part of the first-of-its-kind sale for the refuge in January 2021 were previously given up by the small companies that held them amid legal wrangling and uncertainty over the drilling program. Alaska political leaders have long pushed to allow oil and gas drilling on the refuge’s 1.5m-acre coastal plain, an area seen as sacred to the Indigenous Gwich’in because it is where caribou they rely on migrate and come to give birth. The state’s congressional delegation in 2017 succeeded in getting language added to a federal tax law that called for the US government to hold two lease sales in the region by late 2024. Joe Biden, after taking office, issued an executive order calling for a temporary moratorium on activities related to the leasing program and for the interior secretary to review the program. Haaland later in 2021 ordered a new environmental review after concluding there were “multiple legal deficiencies” underlying the Trump-era leasing program. Haaland halted activities related to the leasing program pending the new analysis. The Alaska industrial development and export authority, a state corporation that won seven leases in the 2021 sale, sued over the moratorium but a federal judge recently found the delay by the interior department to conduct a new review was not unreasonable. The corporation obtained the seven leases to preserve drilling rights in case oil companies did not come forward. Major oil companies sat out the sale, held after prominent banks had announced that they would not finance Arctic oil and gas projects. The coastal plain, which lies along the Beaufort Sea on Alaska’s north-eastern edge, is marked by hills, rivers and small lakes and tundra. Migratory birds and caribou pass through the plain, which provides important polar bear habitat and is home to other wildlife, including muskox. Bernadette Demientieff, executive director of the Gwich’in Steering Committee, in a statement thanked the administration for the lease cancelation but said “we know that our sacred land is only temporarily safe from oil and gas development. “We urge the administration and our leaders in Congress to repeal the oil and gas program and permanently protect the Arctic refuge.”

Related Knowledge Center: Arctic energy development

State of Play

The Arctic region of the United States has been both an important source of crude oil and the subject of unending political debate because of that oil. 

The Prudhoe Bay oil field, along Alaska’s northern coast, for years accounted for about 20 percent of the nation’s oil production. Because of that production, the industry and its allies long have advocated exploration in the coastal plain of Arctic National Wildlife Refuge, about 65 miles east of Prudhoe. 

More informationabout Arctic energy development

Related Knowledge Center: ENERGY BASICS: petroleum

State of Play

While electric-powered vehicles may be the ride of the future, oil remains at least for now the dominant fuel for transportation around the world. And after a period of time at the end of the 20th century when oil was subject to wide fluctuations in price, new supplies in North America as a result of non-conventional recovery techniques have helped stabilize prices.

More informationabout ENERGY BASICS: petroleum