Biden administration restricts oil and gas leasing in 13 million acres of Alaska's petroleum reserve (2024)

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JUNEAU, Alaska (AP) — The Biden administration said Friday it will restrict new oil and gas leasing on 13 million acres (5.3 million hectares) of a federal petroleum reserve in Alaska to help protect wildlife such as caribou and polar bears as the Arctic continues to warm.

The decision — part of a yearslong fight over whether and how to develop the vast oil resources in the state — finalizes protections first proposed last year as the Democratic administration prepared to approve the contentious Willow oil project.

The approval of Willow drew fury from environmentalists, who said the large oil project violated President Joe Biden’s pledge to combat climate change. Friday’s decision also completes an earlier plan that called for closing nearly half the reserve to oil and gas leasing.

A group of Republican lawmakers, led by Alaska U.S. Sen. Dan Sullivan, jumped out ahead of Friday’s announcement about the new limitations in the National Petroleum-Reserve Alaska before it was publicly announced. Sullivan called it an “illegal” attack on the state’s economic lifeblood, and he predicted lawsuits.

“It’s more than a one-two punch to Alaska,” Alaska Sen. Lisa Murkowski said, “because when you take off access to our resources, when you say you cannot drill, you cannot produce, you cannot explore, you cannot move it — this is the energy insecurity that we’re talking about.”

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The decision by the Interior Department doesn’t change the terms of existing leases in the reserve or affect currently authorized operations, including Willow.

The Biden administration also Friday recommended the rejection of a state corporation’s application related to a proposed 210-mile (338-kilometer) road in the northwest part of the state to allow mining of critical mineral deposits, including including copper, cobalt, zinc, silver and gold. There are no mining proposals or current mines in the area, and the U.S. Bureau of Land Management determined the road-building alternatives analyzed “would significantly and irrevocably impact resources,” the agency said in a statement. A final decision on the recommendation is pending.

Brian Ridley, chief of Tanana Chiefs Conference, an Alaska Native nonprofit corporation, said the administration’s “choice to reject the Ambler Road Project is a monumental step forward in the fight for Indigenous rights and environmental justice.” The tribes of the Tanana Chiefs Conference had expressed concerns a road would harm their communities, land and wildlife.

Sullivan accused the administration of undermining U.S. national security interests with both decisions. Alaska political leaders have long accused the administration of harming the state with decisions limiting the development of oil and gas, minerals and timber.

“Joe Biden is fine with our adversaries producing energy and dominating the world’s critical minerals while shutting down our own in America, as long as the far-left radicals he feels are key to his reelection are satisfied,’' Sullivan said Thursday at a Capitol news conference with 10 other GOP senators. “What a dangerous world this president has created.”

Biden defended his decision regarding the petroleum reserve.

Alaska’s “majestic and rugged lands and waters are among the most remarkable and healthy landscapes in the world,” are critical to Alaska Native communities and “demand our protection,” he said in a statement.

Nagruk Harcharek, president of Voice of the Arctic Iñupiat, a group whose members include leaders from across much of Alaska’s North Slope region, in a statement said the decision “does not reflect our communities’ wishes.” The group’s board of directors previously passed a resolution opposing the administration’s plans for the reserve, and Harcharek expressed frustrations that local leaders were not consulted before details of the administration’s proposal were released last September.

“From our perspective, essentially what you’re doing is you’re taking the economic potential and shrinking it to a point where, we don’t know,” he said in an interview regarding Friday’s announcement. “There’s a lot of unknowns associated with that.”

The American Petroleum Institute, the oil industry’s top lobbying group, called the rule “misguided’’ and said it sharply limits future oil and natural gas development in the petroleum reserve, “a region explicitly intended by Congress to bolster America’s energy security’’ and generate revenue for Alaskan communities.

“At a time when the world is looking for American energy leadership, this is yet another step in the wrong direction,” said Dustin Meyer, an API senior vice president.

The petroleum reserve, about 100 miles (161 kilometers) west of the Arctic National Wildlife Refuge, is home to caribou and polar bears and provides habitat for millions of migrating birds. It was set aside around a century ago as an emergency oil source for the U.S. Navy, but since the 1970s it has been overseen by the Interior Department. There has been ongoing, longstanding debate over where oil and gas development should occur.

Most existing leases in the petroleum reserve are clustered in an area that’s considered to have high development potential, according to the Bureau of Land Management, which falls under the Interior Department. The development potential in other parts of the reserve is lower, the agency said.

The rules announced Friday would place restrictions on future leasing and industrial development in areas designated as special for their wildlife, subsistence or other values and call for the agency to evaluate regularly whether to designate new special areas or bolster protections in those areas. The agency cited as a rationale the rapidly changing conditions in the Arctic due to climate change, including melting permafrost and changes in plant life and wildlife corridors.

ConocoPhillips Alaska, which has leases and projects in the petroleum reserve, including Willow, is reviewing the decision “to determine its scope and effect,” according to a company statement.

Environmentalists were elated by Friday’s decision.

“The Biden administration’s actions for America’s Arctic shows a commitment to conservation that meets the needs of the region’s outsized vastness and ecological value,” said Kristen Miller, executive director at Alaska Wilderness League. “Our nation’s public lands are an essential part of addressing the climate and biodiversity crisis, and this decision could not come at a more critical time.”

Activist Bill McKibben called the decision a “massive win,″ adding: “We lost the fight over Willow, but the huge outcry meant that some real good came of that debacle.″

Jeremy Lieb, an attorney with Earthjustice, called the decision an important step but urged “even bolder action to keep the fossil fuel industry out of the Arctic, for the sake of the climate and future generations.” Earthjustice is involved in litigation currently before a federal appeals court that seeks to overturn Willow’s approval.

A decision in that case is pending.

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Daly reported from Washington.

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Follow the AP’s coverage of the U.S. Department of the Interior at https://apnews.com/hub/us-department-of-the-interior.

Biden administration restricts oil and gas leasing in 13 million acres of Alaska's petroleum reserve (2024)

FAQs

Why is Biden releasing oil reserves? ›

In an effort to reduce gasoline prices this summer, the Biden administration is releasing approximately one million barrels of reserve gasoline supplies.

Why did Biden approve oil drilling in Alaska? ›

Supporters hail the energy and jobs it would create in Alaska. Opponents have said it would dangerously accelerate emissions and the climate crisis. The administration's decision comes after it announced a limit on oil drilling across 16 million acres in Alaska and the Arctic Ocean.

How many barrels of oil did Biden take out of the Strategic oil Reserve? ›

Biden's releases pulled more than 200 million barrels out of the petroleum reserve in the 10 months after Russia's invasion of Ukraine sent international oil prices skyrocketing last year, with average U.S. gasoline prices jumping to a record high above $5 a gallon in June 2022.

Can you drill for oil in Alaska? ›

The BLM administers the Federal onshore oil and gas leasing program in Alaska, as well as issues permits for geophysical exploration, permits to drill oil and gas wells, and authorizations to construct pads and install production facilities.

Which country has the most untapped oil reserves? ›

By Per Magnus Nysveen. OSLO, NORWAY–The United States now holds the world's largest recoverable oil reserve base–more than Saudi Arabia or Russia–thanks to the development of unconventional resource plays.

Who has the largest oil reserves in the world? ›

Venezuela

How many oil leases did Biden cancel? ›

JUNEAU, Alaska (AP) — In an aggressive move that angered Republicans, the Biden administration canceled the seven remaining oil and gas leases in Alaska's Arctic National Wildlife Refuge on Wednesday, overturning sales held in the Trump administration's waning days, and proposed stronger protections against development ...

What are the arguments for oil drilling in Alaska? ›

Drilling will also increase oil revenues for the state of Alaska , which is a huge benefit. And drilling oil in ANWR could possibly lower gas prices at the pump. Americans pay a lot of money for gas and for that price to be lowered, even by a little bit, it would be very beneficial.

Why did the US start an oil pipeline in Alaska? ›

Construction of the pipeline system took place between 1975 and 1977. It was important for the United States to have a domestic source of oil to offset the high rise in foreign oil and the Alaska Pipeline fulfilled that obligation.

How many years of oil reserves does the US have? ›

Oil Reserves in the United States

The United States has proven reserves equivalent to 4.9 times its annual consumption. This means that, without imports, there would be about 5 years of oil left (at current consumption levels and excluding unproven reserves).

Did Biden activate the reserves? ›

President Joe Biden today issued an executive order approving the mobilization of select reserve forces with up to 3,000 personnel, augmenting the armed forces in support of Operation Atlantic Resolve.

How many oil reserves does the US have today? ›

U.S. crude oil and lease condensate proved reserves increased 9% from 44.4 billion barrels to 48.3 billion barrels at year-end 2022 (Table 1).

How much untapped oil is in Alaska? ›

Recent estimates by the U.S. Geological Survey (USGS) of undiscovered petroleum resources in conventional reservoirs from the onshore part of the Arctic Alaska petroleum province include mean volumes of over 24 billion barrels of oil and over 85 trillion cubic feet of natural gas, and estimates for Cook Inlet basin ( ...

Where is oil found in Alaska? ›

Oilfield facilities at Prudhoe Bay. The Milne Point oil field is 35 miles (56 km) west of Prudhoe Bay and the leased area, called the Milne Point Unit by the State of Alaska, includes the Kuparuk River Oil Pool, Sag River Oil Pool, and the Schrader Bluff Oil Pool.

Who are the largest oil producers in Alaska? ›

ConocoPhillips is Alaska's largest oil producer and has been a leader in oil and gas exploration and development in the state for more than 50 years.

What is the status of the US oil reserves? ›

Oil highlights

U.S. crude oil and lease condensate proved reserves increased 9% from 44.4 billion barrels to 48.3 billion barrels at year-end 2022 (Table 1). U.S. crude oil and lease condensate production increased 6% in 2022.

Did the US buy 3 million barrels of oil for the Strategic Petroleum Reserve? ›

The 3 million barrels are being purchased for an average price of $77.69, well below the average of about $95 per barrel that SPR crude was sold for in 2022, securing a good deal for taxpayers.

Who does the US sell oil to? ›

The top five destination countries of U.S. total petroleum exports by export volume and percentage share of U.S. total petroleum exports in 2023 were: Mexico—1.17 million b/d—11% China—0.98 million b/d—10% The Netherlands—0.86 million b/d—9%

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