Arctic National Wildlife Refuge Eyed for Oil Drilling

Alaska’s Arctic National Wildlife Refuge regained national attention over the weekend when the Obama administration announced plans to prevent oil and gas drilling along the coastal plain, which is expected to contain considerable hydrocarbon resources.

Senator Lisa Murkowski and state officials vehemently oppose the action and are digging in for a fight. Murkowski, Gov. Bill Walker and the rest of the congressional delegation issued a joint statement that said this announcement – along with two other pending energy issues – was like “declaring war on Alaska’s future.”

Rep. Don Young called the plan “callously planned and politically motivated” and “akin to spitting in our faces and telling us it’s raining outside.” He also accused the Obama administration of capitulating to “the most extreme environmentalist elements,” as reported by Alaska Dispatch News

Breaking Energy recently reported that ARWR’s western boundary had been redrawn, which put roughly 20,000 acres of coastal land under state control. This paved the way for two pending oil & gas exploration licenses to be awarded.

The state is in a difficult position, heavily reliant on oil and gas revenue that has decreased in recent years as oil production declines. The sharp drop in oil prices is also hitting state coffers harder than those in less energy-revenue-dependent states. Revenue from untapped natural gas reserves could potentially backfill some of the state’s lost oil revenue, while condensate extracted from the gas stream would help increase dwindling volumes flowing through the Trans-Alaska Pipeline. But at the same time, protecting the pristine Alaskan wilderness is an equally high priority for the state government and population.

Coming on the heels of the Obama administration ANWR announcement, The Consumer Energy Alliance, a trade group, said it launched an educational campaign Arctic For All, designed to promote public awareness of Arctic issues and the importance of the Arctic region to the United States.

“The Arctic region will be critical to U.S. foreign policy and energy security in the coming years. It’s important that Americans understand and fully embrace that we are an Arctic nation.  Our ties to the region, and the critical importance of Alaska’s natural resources, should not be taken for granted.  We can help the U.S. be a global leader on Arctic development,” said David Holt, CEA President.