JUNEAU, Alaska — On Wednesday, the U.S. Interior Department announced that there were no bids submitted for the recent oil and gas lease auction in the Arctic National Wildlife Refuge, which has faced criticism from the state for its restrictive regulations. This sale was part of an initiative stemming from a 2017 law intended to encourage exploration and development in the refuge’s vast coastal plain. Companies were expected to submit their bids by Monday, according to the agency’s announcement.
Acting Deputy Secretary of the Interior, Laura Daniel-Davis, remarked that the absence of interest in leasing the coastal plain signals a consensus that certain areas are too pristine and vital to jeopardize through oil and gas extraction. “The oil and gas industry owns millions of acres of leases that remain undeveloped,” she added, suggesting that exploring those opportunities would be a more sensible approach than entering speculative leases in such an extraordinary environment.
The state of Alaska is not likely to accept this outcome quietly, as it has filed a lawsuit against the Interior Department and federal officials regarding this sale, claiming the lease terms were overly restrictive. They are also requesting the courts to dismiss the environmental review that supports the lease sale. There is also ongoing litigation linked to the initial lease auction, conducted in late 2020 during the Trump administration, which is still unresolved.
The 2017 legislation, often cited by President Trump, mandated two lease sales in the coastal plain by the end of 2024. Major oil companies did not participate in the first auction, which predominantly featured bids from a state-run entity. Following this, President Biden initiated a review of the leasing program, leading to the cancellation of several existing leases, with some smaller firms already relinquishing their leases from the first sale.
The U.S. Bureau of Land Management indicated that it offered a minimal acreage of 400,000 acres (approximately 162,000 hectares) in this second sale, which met the requirements set forth in the 2017 law. The proposed lease areas were selected to avoid critical polar bear denning sites and calving grounds for caribou, aiming to minimize environmental impact.
Local leaders from the Gwich’in communities adjacent to the refuge regard the coastal plain as sacred, emphasizing its crucial role in supporting their caribou herds and voicing their opposition to drilling. In contrast, leaders from the Iñupiaq community of Kaktovik, situated within the refuge, support responsible drilling, viewing it as vital for economic stability and growth in their region.
Supporters of drilling, including various state officials, express hope that the Trump administration will advance efforts to open the refuge to oil extraction, arguing that it could create job opportunities, boost revenue, and enhance U.S. oil production capabilities. However, despite the Bureau of Land Management mentioning that the coastal plain might contain between 4.25 billion and 11.8 billion barrels of recoverable oil, there remains limited data on both the quantity and quality of oil in the region. Environmentalists argue that the energy sector’s apparent lack of enthusiasm for the area should be a significant indicator.
“There seems to be a recognition that drilling in this remote area poses significant risks, is complex, and is fundamentally inappropriate,” stated Erik Grafe, an attorney with Earthjustice. He added that the incoming Trump administration has yet to grasp this sentiment, as it continues to fuel plans to auction the refuge for oil. Earthjustice affirms its commitment to leveraging legal means to protect this treasured landscape, a pursuit they have maintained for many years.
