Page 5 - NorthAmOil Week 11 2023

NorthAmOil COMMENTARY NorthAmOil

The federally owned NPR-A holds may hold Additionally, ConocoPhillips has leased the
up to 600mn barrels of oil. The area is the largest Willow site for over 20 years. The administra-
undisturbed tract of public land in the US, cov- tion considered the impact of lawsuits if the pro-
ering 23.6mn acres (95,506 square km). ject were denied. If that had been the case, Biden
The night before the Willow decision was lawyers feared that legal action by backers of the
issued, in a compromise the Biden administra- project could cost the federal government $5bn,
tion announced sweeping new protections for unidentified Biden administration officials told
pristine Alaskan land and oceans. This would the New York Times.
protect almost 3mn acres (12,141 square km) of In fact, legal opposition by critics of the pro-
the Beaufort Sea in the Arctic Ocean indefinitely ject’s approval started within hours of the DoI’s
from new oil and gas leasing, in effect closing off decision being announced. At least two lawsuits
US Arctic waters to more exploration. had been filed as of March 16.
That will ensure that “this important hab- The first suit, filed in federal court with the
itat for whales, seals, polar bears, as well as Sierra Club as a co-plaintiff, challenges the
for subsistence purposes, will be protected in Biden administration, arguing that the project
perpetuity from extractive development,” said would undermine its goal of reducing GHGs
the DoI. and would also harm wildlife and subsistence
The new protection was immediately crit- hunting. The Biden administration has called
icised by the American Petroleum Institute for reducing GHG emissions by 50-52% from
(API), the oil industry’s main lobby group. 2005 levels by 2030.
“In the current energy crisis, the Biden A coalition of several other environmental
administration should be focused on strength- groups then filed a lawsuit against the Biden
ening US energy security and standing with administration the next day in federal court in Biden’s approval
the working families of Alaska by supporting Alaska. A federal judge had noted flaws in the
the responsible development of federal lands Willow plan, the plaintiffs said. The approval of Willow marks
and waters – not acting to restrict it,” said the does not account for the judge’s opinion, the the first time he
API’s senior vice president of policy, Frank environmental groups have alleged.
Macchiarola. “Developing a massive new Arctic oil for- has approved an
Former US President Barack Obama had mation is a threat to the global climate and an
banned drilling in 2015 in parts of the Arctic’s already dramatically warming Arctic region,” oil or gas project
Beaufort and Chukchi seas. Then Obama’s suc- said the lawsuit. The coalition includes the Nat-
cessor, former US President Donald Trump, ural Resources Defence Council (NRDC), the without being
called for lease sales in the Beaufort Sea starting Center for Biological Diversity and Greenpeace. forced to do so
in 2019 and the Chukchi Sea in 2020. A federal Such lawsuits are to be expected when a major
court, however, overturned Trump’s plan in new oil or gas project is approved, and indeed by the courts or
2019. opposition is likely to be stronger when eco-
logically sensitive regions such as the Arctic are Congress.
What next? involved. While it is possible that legal action
Biden’s approval of Willow marks the first time could delay projects, developments generally
he has approved an oil or gas project without continue moving forward, with occasional
being forced to do so by the courts or Congress. adjustments needing to be made in order to
Biden has been under pressure because of high align with regulatory requirements. Receiving
gasoline prices, and he is also expected to seek federal approval puts Willow on track to go
re-election in 2024. ahead after all.™

Week 11 16•March•2023 www. NEWSBASE .com P5