No oil companies submitted bids for this week's oil and gas lease sale in Alaska's Arctic National Wildlife Refuge, the U.S. Interior Department announced Wednesday. This lack of interest follows a similar pattern from the previous sale.
The deadline for bids was Monday. Interior Acting Deputy Secretary Laura Daniel-Davis stated the lack of interest "reflects what we and they have known all along"—that some areas are too valuable to risk oil drilling. She emphasized that companies have readily available, less controversial lease opportunities elsewhere.
Despite the lack of interest, the Interior Department has maintained the required minimum acreage for the sale was offered. The sale avoided areas crucial to polar bears and caribou. This contrasts with the state's assertion that the terms were too restrictive.
The state of Alaska has filed a lawsuit challenging the sale, arguing that the terms were overly restrictive and seeking to overturn the environmental review. This follows a 2017 law calling for two lease sales in the refuge by late 2024.
The first sale saw limited participation, mainly from a state corporation. President Biden's administration initially ordered a review of the program, leading to the cancellation of some leases. Though environmental groups applaud the lack of interest, the state and some political leaders still advocate for drilling.
Opponents, including Gwich'in communities, prioritize the area's sacred status and the caribou herds they rely on. Conversely, some Alaskan Iñupiaq communities support responsible drilling for economic benefits.
While the Bureau of Land Management estimates oil potential, the amount and quality remain uncertain. Environmental advocates interpret the lack of interest as a clear signal of the risks inherent in drilling in such a remote area. Legal challenges and potential further action are expected from both sides.
