Page 5 - NorthAmOil Week 22 2021
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NorthAmOil                                   COMMENTARY                                          NorthAmOil






























                         the project. It also noted that development  8bn of barrels of oil, and Alaska’s political lead-
                         would take place on “valid leases” within the  ers have been seeking to allow drilling in the
                         NPR-A.                               area, which constitutes about 8% of the refuge.
                           Willow is expected to produce up to 160,000  They argue that development could help boost
                         barrels per day (bpd) of oil from up to five  jobs and revenue in the state, as well as helping
                         drilling sites. Developing it will also require  to keep oil flowing through the Trans-Alaska
                         construction of hundreds of miles of pipelines  Pipeline System (TAPS).
                         and ice roads, an airstrip and a gravel mine   However, Biden has set out to make the
                         site, among other infrastructure. In February,  ANWR off-limits to oil drilling from the start.
                         the Ninth Circuit Court of Appeals issued an  Upon taking office, he immediately placed a
                         emergency order blocking ConocoPhillips  temporary moratorium on oil and gas lease
                         from starting work on a gravel mine site and  activities in the refuge, as well as ordering a
                         road, after opponents raised their concerns  review of the leases approved by his predeces-
                         over the environmental impact of the work in  sor’s administration.
                         the court.                            Following the review, the DoI said it had
                           The parties involved in the court case have  “identified defects in the underlying record of
                         agreed to an expedited timeline for resolving  decision supporting the leases, including the
                         dispute, which could allow ConocoPhillips to  lack of analysis of a reasonable range of alterna-
                         resume work on Willow in the winter. The com-  tives” required under the National Environmen-
                         pany had been targeting a start-up date of 2024  tal Policy Act. A more comprehensive review of
                         for the project but the Ninth Circuit Court’s  the leasing programme will now be carried out,
                         order has caused a delay of at least a year.  while nine leases sold by the Trump administra-
                           US Senator for Alaska Lisa Murkowski said  tion will be suspended.
                         this week that while her state had got off to a   “The department is notifying lessees that it is
                         “rough start” with the Biden administration,  suspending oil and gas leases in the Arctic Ref-  Alaska’s
                         the latter had taken the right step with the court  uge, pending the review, to determine whether
                         filing.                              the leases should be reaffirmed, voided or sub-  congressional
                           ConocoPhillips also welcomed the DoJ’s  ject to additional mitigation measures,” the DoI   delegation
                         position on supporting the previous review for  said this week.
                         Willow, which had lasted more than two years.  Just two oil companies and an Alaska eco-  has said it will
                           “We believe that review satisfies the legal  nomic development corporation participated in
                         requirements,” a ConocoPhillips spokeswoman,  buying the right to explore for oil and gas in the  continue working
                         Rebecca Boys, was quoted by Anchorage Daily  ANWR during that auction, which was held in
                         News as saying. However, the company was  January. Given that the incoming Biden admin-  to persuade
                         unable to comment further given still pending  istration had set its sights on reversing moves   Biden of the
                         litigation.                          to open the refuge to drilling, the low level of
                                                              participation was unsurprising.       importance of
                         Protecting the ANWR                   However, Alaska’s congressional delegation
                         The case of the 19mn-acre (76,890-square km)  has said it will continue working to persuade   drilling in the
                         ANWR is different, though, given its role. The  Biden of the importance of drilling in the ref-
                         region is home to a variety of wildlife, and oppo-  uge to the state’s economy. And US Senator for   refuge.
                         nents of oil and gas development there have long  Alaska Dan Sullivan told media that the Biden
                         sought to emphasise that it is one of the US’ last  administration had an “enormously high legal
                         truly wild places.                   bar” to meet when it came to halting drilling in
                           But the US Geological Survey (USGS) esti-  the refuge altogether. It seems, nonetheless, that
                         mates that the ANWR’s coastal plain could hold  Biden will try to do just that.™



       Week 22   03•June•2021                   www. NEWSBASE .com                                              P5
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