JUNO, Alaska (AP) — This week, three cabinet members from the Trump administration visited Alaska. Natural Gas Project has been facing challenges for years.
The visits from Interior Secretary Doug Burgham, Energy Secretary Chris Wright, and Environmental Protection Agency Administrator Lee Zeldin come after Trump signed an executive order earlier this year aimed at enhancing oil and gas drilling, mining, and logging in Alaska. The administration is also focused on attracting investments in proposed liquefied natural gas projects in Alaska, particularly from Asian countries, as much as possible, with Customs Lecture.
Their itinerary includes a meeting with the Resource Development Group, U.S. Senator Dan Sullivan, and Lisa Murkowski in Anchorage, followed by a trip to Utqiagvik, an oil-rich Arctic town on the northern slope, where many Alaskan Native leaders see oil development as crucial for the region’s economy.
Federal officials are also set to visit the Prudhoe Bay oilfield, located over 850 miles (1,368 kilometers) north of Anchorage near the Arctic Ocean coast. They plan to address the Republican Governor Mike Dunleavy’s annual energy conference in Anchorage on Tuesday.
Dunleavy’s office noted that it’s common for U.S. officials to visit Alaska during the warmer months, but these agency visits hold significant importance. Dunleavy, a Trump Ally, expressed his gratitude for an administration that “recognizes Alaska’s unique values.”
Government and industry representatives from several Asian nations, such as Japan, are anticipated to partake in parts of the trip, highlighting the pressure for investment from the U.S., despite skepticism and opposition from environmental groups.
In Alaska, some environmentalists criticized the agenda at Dunleavy’s meeting. “We’re pleased to help kick-start this initiative,” stated Andy Modelo, Senior Policy Director for the Alaska Wildlife League.
“We should focus on climate solutions that benefit Alaska rather than pursuing developments in areas where the industry is trying to advance, like Arctic refuges,” he emphasized.
Encouraging More Excavation
Trump has long advocated for provisions of the 2017 tax law, which were reinforced by an Alaska Congressional delegation seeking oil and gas leases in the coastal plains of the Arctic National Wildlife Refuge, despite one being embroiled in ongoing litigation. The main bidder is a state company that faced the cancellation of seven leases under President Biden’s administration. The judge in March ruled against the Biden administration, and the Interior Department is working to restore the leases in alignment with Trump’s executive order.
The second sale did not attract any bids, as it was deemed too restrictive.
Discussions about excavation in refuges—home to polar bears, musk oxen, birds, and other wildlife—have long been contentious. Indigenous Gwichin leaders view these lands as sacred and emphasize their importance to the caribou herds they depend on.
Many North Slope Iñupiat leaders who supported excavation in refuges felt unheard during Biden’s administration. During the visit from Trump officials, they also advocated for additional developments in the National Petroleum Reserve-Alaska, a project favored by Trump, and hope to be included in future planning decisions.
Nagruk Harcharek, president of Voice of the Arctic Iñupiat, an advocacy group that includes local leaders, described the officials’ visits as “a step in the right direction.”
“Massive Natural Gas Pipeline”
For years, the state has aimed to harness North Slope’s natural gas reserves to provide affordable energy to more residents and enhance revenues through exports. However, concerns over costs and shifting directions, alongside questions regarding competition and economic feasibility with other projects, have hindered progress. Oil companies have routinely reinjected gases produced during oil extraction on the slopes, which continue to be Alaska’s economic lifeline.
The latest gas proposal envisions a pipeline extending approximately 810 miles (1,300 km) to transport gas from the North Slope to the port, alongside facilities to process and export liquefied natural gas to Asian markets. In a speech to Congress in March, Trump highlighted his ongoing support for the “massive natural gas pipeline.” He claimed that nations like Japan and South Korea would “wish to partner with us, bringing in trillions of dollars.” However, no firm national commitments have been secured.
The companies advancing the project previously invested around $44 billion into the pipeline and associated infrastructure, awaiting a conclusive decision on whether to proceed.
Alaska in the Spotlight
Dunleavy characterized Trump’s favorable stance on energy development as “everyday Christmas,” though Alaskan revenue remains fragile due to significant fluctuations in oil prices, which have dropped sharply over the past year.
A state lawmaker from the political party passed a resolution urging Congress to allocate 90% of royalty revenues from oil and gas leases in Arctic refuges to Alaska, asserting that the U.S. government had previously promised such revenue sharing. The resolution also advocated for its application to oil reserves.
Alaska’s tax framework permits businesses like ConocoPhillips Alaska to recover substantial development costs associated with the enormous Willow oil project in the reserve against production taxes. While there’s broad support among lawmakers for Willow, there’s also a push for changes in federal royalty shares to address losses in state revenue from reserve production.
Source: apnews.com