The U.S. Interior Department announced on Wednesday that no bids were received for the recent oil and gas lease sale in Alaska’s Arctic National Wildlife Refuge. The state has raised concerns about the sale being too restrictive and not aligned with a 2017 law meant to open up the refuge to exploration and development. Monday marked the deadline for companies to submit bids, but no interest was shown by oil companies in pursuing leases in the refuge’s coastal plain.
Acting Deputy Secretary Laura Daniel-Davis acknowledged the lack of interest from oil companies, stating that there are certain areas too special to risk with oil and gas drilling. She suggested that the industry focus on developing the millions of acres already available for lease rather than participating in speculative leasing in such a unique and remarkable location.
Despite the lack of bids, the state has filed a lawsuit against the Interior Department and federal officials over the sale, arguing that the terms were too restrictive. The state is also seeking to invalidate the environmental review supporting the sale. Litigation from the previous lease sale, held in early 2021, is still ongoing.
The 2017 law called for two lease sales in the refuge’s coastal plain by late 2024, but major oil companies did not participate in the first sale. President Biden’s administration ordered a review of the leasing program, resulting in the cancellation of seven remaining leases. The Bureau of Land Management offered 400,000 acres for lease in the second sale, meeting the minimum acreage requirement set by the 2017 law.
While some communities near the refuge view the coastal plain as sacred and oppose drilling due to its impact on caribou herds, others support responsible oil development for economic reasons. Proponents of drilling see the potential for job creation, revenue generation, and increased oil production. However, environmentalists and advocates continue to oppose drilling in the refuge, citing the risks and complexities involved.
The lack of interest from oil companies in the recent lease sale has been seen as a significant development by environmentalists, who argue that it underscores the challenges and risks associated with drilling in such a remote and ecologically sensitive area.
“We have for decades.”
