The Trump administration is set to create a new designated region for offshore oil leasing in Arctic waters off the coast of Alaska, despite the historic challenges associated with oil exploration in the region.
The Department of the Interior will soon unveil a five-year national plan for offshore oil and gas leasing in federal waters, which will include a new High Arctic planning area.
Details regarding the plan are expected to be published in an upcoming notice in the Federal Register, with additional information made available on the Bureau of Ocean Energy Management’s website.
Interior Secretary Doug Burgum has emphasized the significance of this initiative, stating, “Launching the process to develop the 11th National Outer Continental Shelf Program marks a decisive step toward securing American Energy Dominance.”
He further highlighted the administration’s commitment to responsible offshore energy development, aiming to drive job creation, bolster economic growth, and strengthen American energy independence.
“Under President Donald J. Trump’s leadership, we are unlocking the full potential of our offshore resources to benefit the American people for generations to come,” Burgum added in a statement.
In the past, most federal Arctic waters were previously designated off-limits to oil leasing by former Presidents Barack Obama and Joe Biden.
During his first term, President Trump attempted to reopen these areas but was met with legal challenges, resulting in federal court rulings against his efforts.
Most recently, a coalition of environmental groups filed a lawsuit against the Trump administration in February over attempts to reverse protections in the Northern Bering Sea and other ocean areas.
Environmentalists have subsequently condemned the newly announced plans for offshore oil leasing, including those in the Arctic region. Natalie Jones of the Center for Biological Diversity expressed concerns regarding the ecological impact, stating, “Drilling in the Arctic is a disaster waiting to happen.”
Jones continued, emphasizing the inability to effectively clean up an oil spill in such extreme conditions and the potential harm to polar bears and bowhead whales.
Despite some sporadic exploratory efforts in federal Arctic waters, commercial oil production remains elusive, with the only exception being a small portion of the Hilcorp-operated Northstar field, primarily located on state territory.
The Liberty project, which was anticipated to serve as the first entirely federal oil production site off Alaska, has faced significant delays and stagnation for decades.
Originally discovered by BP Exploration (Alaska) Inc. in the 1990s, the project has seen two separate development plans that ultimately fell through.
Hilcorp acquired full ownership of Liberty in 2020, yet the lack of progress on the project resulted in the expiration of its leases earlier this year.
The last significant oil exploration attempt in federal Arctic waters occurred under Royal Dutch Shell in 2015, when the company abandoned the campaign after investing over $7 billion.
Shell’s attempts were fraught with complications, including a significant incident in which a mobile drill rig, the Kulluk, ran aground during a storm on December 31, 2012.
Shell’s exploration efforts in the Beaufort Sea, situated east of Point Barrow, alongside a separate drill ship in the Chukchi Sea, were plagued by numerous operational and environmental challenges.
Ultimately, the company managed to complete only one well in the Chukchi, concluding that the oil found was insufficient to warrant any further development.
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