In This Article:
(Bloomberg) -- The Trump administration is moving to repeal Biden-era curbs blocking oil drilling across most of the mammoth petroleum reserve in Alaska that’s home to an estimated 8.7 billion barrels of recoverable oil.
Most Read from Bloomberg
-
Billionaire Steve Cohen Wants NY to Expand Taxpayer-Backed Ferry
-
Now With Colorful Blocks, Tirana’s Pyramid Represents a Changing Albania
Interior Secretary Doug Burgum announced the planned policy shift late Sunday at a town hall in Utqiagvik, a village on the Chukchi Sea coast, as he and fellow members of President Donald Trump’s cabinet visit Alaska to promote energy development in the region.
The measure would open up new opportunities for oil and gas development in the 23 million-acre National Petroleum Reserve-Alaska, an Indiana-sized parcel in the northwest of the state that was set aside as a source of energy for the Navy a century ago.
The action responds to a directive Trump issued after his inauguration in January, when he signed an executive order compelling a host of policy changes meant to expand oil, natural gas and mineral development in Alaska.
The reserve holds an estimated 8.7 billion barrels of recoverable oil, according to a 2017 assessment by the US Geological Survey. And its production is set to skyrocket, with the development of recent discoveries. Alaska has forecast that crude production from the reserve will climb to 139,600 barrels per day in fiscal 2033, up from 15,800 barrels per day in fiscal 2023.
Trump’s measure would repeal a 2024 rule imposed under former President Joe Biden, which designated 13 million acres of the reserve as “special areas,” limiting future oil and gas leasing, while maintaining leasing prohibitions on 10.6 million acres of the NPR-A.
The rule has complicated future oil drilling and production in the reserve where companies including ConocoPhillips, Santos Ltd., Repsol SA and Armstrong Oil & Gas Inc. have been active. ConocoPhillips is developing its 600-million-barrel Willow project in the refuge, which is expected to produce first oil in 2029.
Burgum’s announcement was greeted by applause inside a heritage center in Utqiagvik, where local residents had gathered to speak with officials from the Trump administration, as well as Senator Dan Sullivan and Alaska Governor Mike Dunleavy, about resource development. Burgum, who leads the National Energy Dominance Council, was joined by the panel’s vice chair, Energy Secretary Chris Wright and Environmental Protection Agency Administrator Lee Zeldin.