Trump revives oil drilling push in Alaska wildlife refuge

The Trump administration announced on Friday to push a new oil drilling lease sale in Alaska's wildlife refuge.

The auction is the latest test of industry appetite for drilling in northern Alaska, a high-risk endeavor involving decades of work and billions of dollars of investment.

Why it Matters:

A U.S. oil and gas group said Alaska was an important region for the industry.American Petroleum Institute spokesperson said in an email, "Alaska’s resources are key to America's energy security, and we expect to see continued investment throughout the state."

Oil companies spent $163 million to pick up new leases in the NPR-A at an auction earlier this year, and a liquefied natural gas plant is under development in the area.

The U.S. Bureau of Land Management, an arm of the Department of the Interior, offered 60 tracts in the refuge for auction to oil and gas drillers.

Companies were required to submit bids by June 3, and they will be opened and read via a livestream on Friday.

The decision aligned with Trump's promise to boost domestic energy development and is supported by Alaska state officials and some native groups who want to open up drilling in ANWR to create jobs and reverse the state's declining oil production.

U.S. oil production is already at record levels due to drilling in more accessible areas like Texas and New Mexico, and companies have limited spending on new projects to focus on returning cash to shareholders.

Unlike the National Petroleum Reserve, which is adjacent to ANWR on Alaska's North Slope, the 19-million-acre wildlife refuge has no roads, facilities, or other infrastructure.

Alaska: a hidden gem with major oil reserves:

According to the U.S. Geological Survey, ANWR's 1.5 million-acre coastal area along the Beaufort Sea is estimated to contain up to 11.8 billion barrels of technically recoverable oil.

As per the state agency, the Alaska Industrial Development and Export Authority is currently the only oil and gas leaseholder in ANWR, with six tracts. There has been no development of them to date.

The Trump administration will hold a sale of oil and gas leases on 689,000 acres (278,828 ‌hectares) in Alaska's Arctic National Wildlife Refuge, a remote and pristine habitat for species including polar bear, caribou and migratory birds.

The sale is the first of four in ANWR mandated in the One Big Beautiful Bill Act that President Donald Trump signed into law last year.