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Released November 17, 2025 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)
President Donald Trump has been keen on pursuing efforts that would enhance Alaska's energy potential, opting to dust off a long-planned liquefied natural gas (LNG) facility in one of his first acts of office.
Burgum said the administration had overturned a measure from former President Joe Biden that would keep much of Alaska off limits to drillers.
"By rescinding the 2024 rule, we are following the direction set by President Trump to unlock Alaska's energy potential, create jobs for North Slope communities and strengthen American energy security," said Burgum. "This action restores common-sense management and ensures responsible development benefits both Alaska and the nation."
Prior to Burgum's announcement, the Department of the Interior said it was already considering reopening parts of the National Petroleum Reserve in Alaska up to drillers, leasing out parts of the Arctic National Wildlife Refuge.
Two new discoveries, however, are expected to help lift Alaskan crude oil production for the first time since 2017.
ConocoPhillips (Houston, Texas) achieved first oil at its Nuna development, part of the Kuparuk River Unit, on the North Slope in December 2024, and the company is expecting around 20,000 BBL/d from 29 well locations. Led jointly by Australian energy company Santos (Adelaide) and Spanish energy company Repsol (Madrid), the Pikka project could yield as much as 80,000 BBL/d from 45 wells. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project and Plant databases can learn more about the Kuparuk River Unit and Pikka project.
A warming climate, meanwhile, makes it difficult to operate in the North Slope because the ice roads and drilling pads need a frozen ground. On the other hand, the decline in the offshore ice pack makes it easier to ship products and equipment to and from the region. Opening the state up to drillers doesn't mean the interest is there. Shell plc (London, England) was a major player in Alaska, slapping down $39 billion for drilling rights in 2007, though the company left the state less than a decade later. Its drillship, Kulluk, struck ground off the Alaskan coast in 2012, and the U.S. Coast Guard blamed the harsh winter conditions and Shell's efforts to evade Alaskan tax laws for the incident.
Alaskan leaders had no public statements on Thursday's federal action. Environmental groups have already sued the Trump administration over a proposed land-swap with the tribal Izembek group for road construction in southwest Alaska.
By the Numbers
About Industrial Info Resources
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) platform 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).
Summary
Trump has pushed hard to bolster the energy sector in Alaska. The administration last week overturned an order that limited access to drillers.Trump Rescinds Biden-era Measure on Alaskan Drilling
Re-opening up parts of Alaska for oil and gas drilling is part of a "common-sense" approach to energy management, U.S. Interior Secretary Doug Burgum said Thursday.President Donald Trump has been keen on pursuing efforts that would enhance Alaska's energy potential, opting to dust off a long-planned liquefied natural gas (LNG) facility in one of his first acts of office.
Burgum said the administration had overturned a measure from former President Joe Biden that would keep much of Alaska off limits to drillers.
"By rescinding the 2024 rule, we are following the direction set by President Trump to unlock Alaska's energy potential, create jobs for North Slope communities and strengthen American energy security," said Burgum. "This action restores common-sense management and ensures responsible development benefits both Alaska and the nation."
Prior to Burgum's announcement, the Department of the Interior said it was already considering reopening parts of the National Petroleum Reserve in Alaska up to drillers, leasing out parts of the Arctic National Wildlife Refuge.
Oil Growth Expected, But Still Marginal
Alaskan natural gas production is negligible, accounting for less than 1% of the nation's total. Crude oil production this year is expected to average 420,000 barrels per day (BBL/d), compared with a total national production forecast of 13.6 million BBL/d.Two new discoveries, however, are expected to help lift Alaskan crude oil production for the first time since 2017.
ConocoPhillips (Houston, Texas) achieved first oil at its Nuna development, part of the Kuparuk River Unit, on the North Slope in December 2024, and the company is expecting around 20,000 BBL/d from 29 well locations. Led jointly by Australian energy company Santos (Adelaide) and Spanish energy company Repsol (Madrid), the Pikka project could yield as much as 80,000 BBL/d from 45 wells. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project and Plant databases can learn more about the Kuparuk River Unit and Pikka project.
Is Alaska Still a Prime-Time Player?
Production in the state peaked at 2 million BBL/d in 1988, but has declined steadily ever since. Even with new fields on the North Slope producing oil, output should only reach 480,000 BBL/d by next year. By contrast, production in the Permian Basin is expected to average 6.5 million BBL/d, based on estimates from the U.S. Energy Information Administration (EIA).A warming climate, meanwhile, makes it difficult to operate in the North Slope because the ice roads and drilling pads need a frozen ground. On the other hand, the decline in the offshore ice pack makes it easier to ship products and equipment to and from the region. Opening the state up to drillers doesn't mean the interest is there. Shell plc (London, England) was a major player in Alaska, slapping down $39 billion for drilling rights in 2007, though the company left the state less than a decade later. Its drillship, Kulluk, struck ground off the Alaskan coast in 2012, and the U.S. Coast Guard blamed the harsh winter conditions and Shell's efforts to evade Alaskan tax laws for the incident.
Alaskan leaders had no public statements on Thursday's federal action. Environmental groups have already sued the Trump administration over a proposed land-swap with the tribal Izembek group for road construction in southwest Alaska.
By the Numbers
- 2 million BBL/d: Alaska oil production in 1988
- 480,000 BBL/d: Alaska oil production expected by next year
- 2017: The last year Alaska saw oil production increase
- The Trump administration is pressing hard for new Alaskan energy developments.
- Environmental groups are already filing lawsuits against the federal government.
- A warming climate creates mixed challenges for energy development
About Industrial Info Resources
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) platform 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).
