Reports related to this article:
Project(s): View 6 related projects in PECWeb
Plant(s): View 4 related plants in PECWeb
Released April 22, 2024 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--The Biden administration said Friday it will restrict about 13.3 million acres of the National Petroleum Reserve in Alaska (NPR-A) from new oil and gas leasing. The move is aimed at protecting native communities and wildlife in the region, said the Department of the Interior, but oil and gas interest groups and Republican lawmakers decried the action as wrong-headed.
"Alaska's majestic and rugged lands and waters are among the most remarkable and healthy landscapes in the world, sustaining a vibrant subsistence economy for Alaska Native communities," President Joe Biden said in a White House statement. "These natural wonders demand our protection."
The action does not impact existing oil and gas leases in the NPR-A.
The Department of the Interior said the region includes "Special Areas" that are "collectively known for their globally significant intact habitat for wildlife, including grizzly and polar bears, caribou and hundreds of thousands of migratory birds."
Extending from the northwest slope of the Brooks Range to the Arctic Coast, the NPR-A encompasses roughly 23 million acres of public land managed by the Bureau of Land Management (BLM).
Secretary of the Interior Deb Haaland said, "Today's announcements underscore our commitment to ensure that places too special to develop remain intact for the communities and species that rely on them."
The Biden administration also nixed the 210-mile Ambler Road project proposed by the Alaska Industrial Development and Export Authority (AIDEA). The road would have spanned BLM-managed public lands with the aim of providing access to mining of critical minerals.
"The funding model to build, maintain and mitigate the impacts of the road is speculative: AIDEA would finance the road through funds from investors by selling bonds, and the bonds would be paid off over time by charging annual fees to mining companies who would eventually use the Ambler Road," the Interior Department said.
AIDEA accused the Biden administration of waging an "illegal war on Alaska and its residents for political gain."
The restrictions also drew the ire of the American Petroleum Institute (API).
"This misguided rule from the Biden Administration sharply limits future oil and natural gas development in Alaska's National Petroleum Reserve, a region explicitly intended by Congress to bolster America's energy security while generating important economic growth and revenue for local Alaskan communities," said API Senior Vice President of Policy, Economics and Regulatory Affairs Dustin Meyer. "At a time when the world is looking for American energy leadership, this is yet another step in the wrong direction."
The API emphasized the economic and national security benefits of Alaska's oil and gas industry, which it said supports nearly 70,000 direct and indirect Alaska jobs. The industry trade group added that revenue derived from oil and natural gas development helps to provide a wide range of public services.
According to data from the U.S. Geological Survey, the NPR-A is estimated to hold 8.7 billion barrels of oil and 25 trillion cubic feet of natural gas, the API said.
U.S. Senator Dan Sullivan (R-Alaska) and a group of fellow Republican lawmakers blasted the Biden administration's action the day before the announcement.
"This administration is deliberately undertaking policies to punish Americans and undermine our strengths while continuing to help our adversaries," Sullivan said. "Tomorrow, they're going to undermine America's national security interests even further by announcing the shutdown of two of the most important energy and critical mineral developments in our country: the National Petroleum Reserve of Alaska (NPR-A) and Alaska's Ambler Mining District."
In December, ConocoPhillips (NYSE:COP) (Houston, Texas) said it had reached a final investment decision (FID) on the Willow oil drilling project in the NPR-A. That project had received the green light from the federal government. For more information, see December 27, 2023, article - ConocoPhillips Reaches FID for Willow Oil Project in Alaska. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project and Plant databases can click here for a list of Willow-related project reports and click here for the related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
"Alaska's majestic and rugged lands and waters are among the most remarkable and healthy landscapes in the world, sustaining a vibrant subsistence economy for Alaska Native communities," President Joe Biden said in a White House statement. "These natural wonders demand our protection."
The action does not impact existing oil and gas leases in the NPR-A.
The Department of the Interior said the region includes "Special Areas" that are "collectively known for their globally significant intact habitat for wildlife, including grizzly and polar bears, caribou and hundreds of thousands of migratory birds."
Extending from the northwest slope of the Brooks Range to the Arctic Coast, the NPR-A encompasses roughly 23 million acres of public land managed by the Bureau of Land Management (BLM).
Secretary of the Interior Deb Haaland said, "Today's announcements underscore our commitment to ensure that places too special to develop remain intact for the communities and species that rely on them."
The Biden administration also nixed the 210-mile Ambler Road project proposed by the Alaska Industrial Development and Export Authority (AIDEA). The road would have spanned BLM-managed public lands with the aim of providing access to mining of critical minerals.
"The funding model to build, maintain and mitigate the impacts of the road is speculative: AIDEA would finance the road through funds from investors by selling bonds, and the bonds would be paid off over time by charging annual fees to mining companies who would eventually use the Ambler Road," the Interior Department said.
AIDEA accused the Biden administration of waging an "illegal war on Alaska and its residents for political gain."
The restrictions also drew the ire of the American Petroleum Institute (API).
"This misguided rule from the Biden Administration sharply limits future oil and natural gas development in Alaska's National Petroleum Reserve, a region explicitly intended by Congress to bolster America's energy security while generating important economic growth and revenue for local Alaskan communities," said API Senior Vice President of Policy, Economics and Regulatory Affairs Dustin Meyer. "At a time when the world is looking for American energy leadership, this is yet another step in the wrong direction."
The API emphasized the economic and national security benefits of Alaska's oil and gas industry, which it said supports nearly 70,000 direct and indirect Alaska jobs. The industry trade group added that revenue derived from oil and natural gas development helps to provide a wide range of public services.
According to data from the U.S. Geological Survey, the NPR-A is estimated to hold 8.7 billion barrels of oil and 25 trillion cubic feet of natural gas, the API said.
U.S. Senator Dan Sullivan (R-Alaska) and a group of fellow Republican lawmakers blasted the Biden administration's action the day before the announcement.
"This administration is deliberately undertaking policies to punish Americans and undermine our strengths while continuing to help our adversaries," Sullivan said. "Tomorrow, they're going to undermine America's national security interests even further by announcing the shutdown of two of the most important energy and critical mineral developments in our country: the National Petroleum Reserve of Alaska (NPR-A) and Alaska's Ambler Mining District."
In December, ConocoPhillips (NYSE:COP) (Houston, Texas) said it had reached a final investment decision (FID) on the Willow oil drilling project in the NPR-A. That project had received the green light from the federal government. For more information, see December 27, 2023, article - ConocoPhillips Reaches FID for Willow Oil Project in Alaska. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project and Plant databases can click here for a list of Willow-related project reports and click here for the related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
