Opening Arctic for Drilling Is Trump Priority, Key Senator Says
(Bloomberg) -- Senator Lisa Murkowski said President Donald Trump is interested in opening up new coastal waters for oil and gas drilling and reversing Obama-era policies that restrict energy development in Alaska.
Both Trump and Interior Secretary Ryan Zinke are weighing ways to expand opportunities to drill in Arctic waters though the changes could take years to accomplish administratively, Murkowski said in an interview on the sidelines of the CERAWeek conference in Houston.
“It’s fair to say we are looking at how we might be able to -- how the administration might be able to -- allow for opportunities within this important area, offshore Alaska,” Murkowski said.
Murkowski, who heads the Senate Energy and Natural Resources Committee, joined her fellow Republican senator from Alaska, Dan Sullivan, in a meeting with Trump and Zinke earlier this week to discuss the issue. Trump “clearly understood the impact of taking off-line” oil and gas development in the Chukchi and Beaufort seas north of Alaska, Murkowski said.
“What was very clear was a recognition that what Alaska has to offer is considerable, important and we need to be working to undo much of what the Obama administration did in terms of locking up these resources,” Murkowski said of her talks with Trump.
Wildlife Refuge Drilling
Among her targets: making it easier to develop parcels in the National Petroleum Reserve-Alaska, a 23-million-acre (9.3 million hectare) region set aside 94 years ago because of its oil and gas potential, and allowing the activity in part of the Arctic National Wildlife Refuge (ANWR).
Any decision to open up ANWR would fall to Congress, where Murkowski and Sullivan are pushing legislation that would allow oil and gas development in as much as 2,000 acres of the refuge.
The president can set some changes into motion immediately by directing the Interior Department to rewrite a plan for selling offshore oil and gas leases over the next five years and add auctions of tracts in the Arctic and Atlantic oceans that the Obama administration left out. But wedging those sales back into the plan would require environmental analysis and public comment periods -- perhaps consuming a year for the Arctic and even longer for parcels along the U.S. East Coast.
The Trump administration also is weighing how to undo an executive order that President Barack Obama used to withdraw almost all U.S. Arctic waters and underwater canyons in the Atlantic Ocean from future oil and gas leasing. Environmentalists say it would be unprecedented for any president to rescind such a designation, and the reversal would almost certainly be challenged in court.
‘Legal Scrutiny’
“You would have opponents lining up, so it must be done in a way that can survive legal challenge,” Murkowski said. Although an executive order reversing Obama’s decision would be the cleanest option, she said such action isn’t imminent because Zinke still needs to assemble a legal team to help craft an approach capable of withstanding legal scrutiny.
“What that requires is a good solid legal team that is walking you through the steps of the process, and right now the secretary is without a team,” Murkowski said. “I know for a fact that has been a level of frustration for Secretary Zinke. He is itching to go and is very frustrated by the fact that he doesn’t have his folks in place.”
Trump has repeatedly pledged to expand U.S. energy development and remove “obstacles” holding back exploration of America’s “vast untapped domestic energy reserves.”
Obscure 1953 Provision
Most federal decisions over offshore oil and gas development happen in five-year increments, through the government’s schedule for selling leases. But Obama aimed to set permanent policy in 2016 when he invoked an obscure provision in a 1953 law to withdraw U.S. waters from future oil and gas leasing. The provision previously had mostly been used to permanently protect coral reefs, walrus feeding grounds, and marine sanctuaries.
Any move by Trump to undo Obama’s protections is sure to draw a legal challenge, but it could take years before a lawsuit is ready to be filed, and there is scant legal precedent on the matter.
12
View Full Article
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Japan Failing to Meet Corporate Demand for Clean Power: Amazon
- Russian Navy Enters Warship-Crowded Red Sea Amid Houthi Attacks
- Libya's Surprise Oil Minister Change Throws Spotlight on Output
- Oman Sees Increasing Ship-to-Ship Transfers of Russian Oil Bound for India
- Ithaca Energy Studies Deal for Eni's UK Upstream Assets
- Falcon Oil Declares Commercial Flow Test Results for Shenandoah Well
- Japan Failing to Meet Corporate Demand for Clean Power: Amazon
- Macquarie Strategists Expect Brent Oil Price to Grind Higher
- UK Oil Regulator Publishes New Emissions Reduction Plan
- PetroChina Posts Higher Annual Profit on Higher Production
- McDermott Settles Reficar Dispute
- US, SKorea Launch Task Force to Stop Illicit Refined Oil Flows into NKorea
- Pennsylvania County Joins List of Local Govts Suing Big Oil over Climate
- Russian Navy Enters Warship-Crowded Red Sea Amid Houthi Attacks
- USA Commercial Crude Oil Inventories Increase
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Equinor Makes Discovery in North Sea
- Standard Chartered Reiterates $94 Brent Call
- India Halts Russia Oil Supplies From Sanctioned Tanker Giant
- DOI Announces Proposal for Second GOM Offshore Wind Auction
- Centcom, Dryad Outline Recent Moves Around Red Sea Region
- PetroChina Set to Receive Venezuelan Oil
- Czech Conglomerate to Buy Major Stake in Gasnet for $917MM
- US DOE Offers $44MM in Funding to Boost Clean Power Distribution
- Oil Settles Lower as Stronger Dollar Offsets Tighter Market
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension
- Equinor Makes Discovery in North Sea