Page 4 - NorthAmOil Week 17 2022

NorthAmOil COMMENTARY NorthAmOil

More obstacles in Alaska as

Biden administration restricts

NPR-A leasing

The administration of US President Joe Biden has overturned a Trump-era

policy to open up more of the NPR-A to drilling

ALASKA THE administration of US President Joe Biden dominance. However, it was only during his last
is making changes in Alaska. This week, the month in office that his administration finalised
WHAT: Bureau of Land Management (BLM), part of the a plan to open up more than 80% of the reserve
The Biden administration US Department for the Interior (DoI), unveiled to oil and gas leasing.
has overturned a Trump- a decision on the management of the National This came too late for the Trump adminis-
era policy opening up Petroleum Reserve-Alaska (NPR-A). The deci- tration to hold any lease sales that included the
more of the National sion will see the government revert to manage- newly available NPR-A land. However, had the
Petroleum Reserve- ment policies for the reserve from the era of administration had time to hold a lease sale, the
Alaska (NPR-A) to oil and former president Barack Obama. This overturns results might have proved disappointing, based
gas leasing. a push by Obama’s successor, former president on the results of other lease sales held during
Donald Trump, to open up more of the NPR-A Trump’s presidency. His term in office coincided
WHY: to drilling. with lower crude prices and the emergence of
The administration has The move comes as no great surprise. The pressure on producers to demonstrate more
reverted to Obama-era BLM had been reviewing the 2020 Integrated financial discipline.
management policies for Activity Plan (IAP) for the region, and Biden Another lease sale held in Alaska in the final
the reserve, which still has tended to align more closely with Obama, days of the Trump administration attracted con-
leaves roughly half open under whom he served as vice president, on fed- siderably less interest than the government had
for leasing. eral policy on oil and gas leasing and drilling. anticipated. That sale opened up leasing within
However, the change represents an additional the Arctic National Wildlife Refuge (ANWR)
WHAT NEXT: hurdle for oil and gas producers in Alaska, as for the first time. The Trump administration
This comes as various various companies are currently struggling with had been banking on raising $1.8bn from two
Alaskan oil and gas obstacles related to specific projects in the state. ANWR lease sales over a decade, but that first
operators continue to lease sale only attracted $14.4mn in high bids,
struggle with obstacles Reversing course with the majority coming from a development
affecting individual Trump had pushed for an expansion of leasing in corporation owned by the State of Alaska.
projects. the NPR-A as part of his broader policy of energy Given the timing, it is likely that jitters over

P4 www. NEWSBASE .com Week 17 28•April•2022