The Trump administration has announced plans to create a new designated region for offshore oil leasing in Arctic waters off Alaska, an area known for its extreme costs, logistical hurdles, and safety concerns related to past exploration attempts.
According to the Department of the Interior, a new five-year national plan for offshore oil and gas leasing in federal waters will include a newly designated High Arctic planning area.
Details of this plan are set to be released in an upcoming notice in the Federal Register, with supplementary information to be posted on the Bureau of Ocean Energy Management’s website.
Interior Secretary Doug Burgum emphasized the Administration’s commitment to energy development, stating, “Launching the process to develop the 11th National Outer Continental Shelf Program marks a decisive step toward securing American Energy Dominance.”
He further claimed that through a public engagement process, the administration aims to reinforce its commitment to responsible offshore energy development, which, according to him, will drive job creation, bolster economic growth, and strengthen American energy independence.
Burgum asserted, “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.”
Despite the optimism from the Trump administration, previous efforts to explore these Arctic regions met significant resistance and challenges. Most federal Arctic waters were previously designated off-limits to oil leasing under the administrations of former Presidents Barack Obama and Joe Biden.
During his initial term, President Trump attempted to open areas that had been withdrawn from the leasing program by Obama, but his efforts were thwarted by a federal court.
A more recent attempt by Trump to open these withdrawn waters to oil leasing is currently facing legal challenges, with environmental groups actively opposing the administration’s initiatives.
In February, a coalition of environmental organizations, including the Center for Biological Diversity, filed a lawsuit against the Trump administration in response to its attempts to remove protections from the Northern Bering Sea and various areas in the Atlantic and Pacific oceans.
Environmental advocates have voiced strong criticism regarding the new plans for offshore oil leasing, particularly in the fragile Arctic ecosystem.
Natalie Jones, a representative of the Center for Biological Diversity, expressed concerns via email, stating, “Drilling in the Arctic is a disaster waiting to happen. There’s no way to clean up an oil spill there and it will harm polar bears and bowhead whales. Oil companies should think twice about drilling in the Arctic, as it has been plagued with challenges.”
Despite sporadic attempts to explore for oil in federal Arctic waters, there has been no commercial oil production recorded, with the exception of a small segment of the Northstar field, operated by Hilcorp, which predominantly lies within state territory.
The Liberty project, initially expected to be the first production site entirely in federal waters off Alaska, has faced setbacks for decades without any development progress. Discovered in the 1990s by BP Exploration (Alaska) Inc., this project saw various development plans but faced abandonment.
Hilcorp acquired full ownership of Liberty in 2020; however, the lack of progress eventually led to the expiration of its leases earlier this year.
The last significant oil exploration attempt in the federal Arctic waters occurred in 2015 when Royal Dutch Shell abandoned its campaign after spending over $7 billion.
This campaign was marked by numerous operational and environmental issues, particularly highlighted by the wreck of a mobile drill rig during a storm in December 2012.
Shell had utilized the rig, the Kulluk, for exploration in the Beaufort Sea, while a separate drill ship, the Noble Discoverer, operated in the Chukchi Sea, both facing numerous challenges.
Ultimately, Shell completed only one well in the Chukchi Sea, concluding it yielded insufficient oil to justify further development.
As the Trump administration moves forward with its plans, the future of Arctic oil leasing remains a contentious issue, with ongoing legal battles and environmental concerns looming large.
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