Biden Administration Approves Massive Oil Drilling Project in Alaska

Biden Administration Approves Massive Oil Drilling Project in Alaska
This 2019 aerial photo provided by ConocoPhillips shows an exploratory drilling camp at the proposed site of the Willow oil project on Alaska's North Slope. (ConocoPhillips via AP, File)
John Haughey
3/13/2023
Updated:
3/13/2023
0:00
The Biden administration’s decision to allow ConocoPhillips to proceed with its $8 billion North Slope Alaska Willow Project while making the Arctic Ocean off-limits to oil development and banning new leases on 13 million of the National Petroleum Reserve in Alaska’s 23 million acres is drawing criticism from all sides.

ConocoPhillips and the state’s bipartisan congressional delegation weren’t among the critics.

“This was the right decision for Alaska and our nation,” ConocoPhillips Chair and CEO Ryan Lance said in a statement. “Willow fits within the Biden Administration’s priorities on environmental and social justice, facilitating the energy transition and enhancing our energy security, all while creating good union jobs and providing benefits to Alaska Native communities.”

For Houston-based ConocoPhillips, the White House approval ends five years of regulatory review that saw the energy company’s initial five-pad proposal whittled back to three with mounting concern—until the decision was released on March 13; the Department of Interior’s (DOI) Bureau of Land Management (BLM) had recommended that Willow be trimmed to two pads, which would have made the endeavor financially infeasible.

ConocoPhillips in its statement said that it “welcomes the decision ... adopting the three core pads” plan, and Lance assured Willow “will provide reliable energy while adhering to the highest environmental standards.”

Texas-based ConocoPhillips' proposed Willow Project is within the 23-acre National Petroleum Reserve in Alaska (NPRA) on Alaska’s North Slope. (Courtesy ConocoPhillips)
Texas-based ConocoPhillips' proposed Willow Project is within the 23-acre National Petroleum Reserve in Alaska (NPRA) on Alaska’s North Slope. (Courtesy ConocoPhillips)

2,500 Construction Jobs; 300 Permanent Workers

ConocoPhillips will spend up to $8 billion to build the roads, pipelines, and 219 wells that will require the hiring of 2,500 Alaskan construction workers, which drew support for the project from the Alaska CIO-AFL.

The three 12-acre gravel pads will span 556 acres. Each pad, where the project’s 300 permanent workers will live, has a 55-square-mile horizontal drilling radius at 22,000 feet deep. The company plans to extend the pad drilling radius to 154 square miles, and go as deep as 37,000 feet below the tundra, during the project’s 30-year lifespan.

The company forecasts Willow will produce as much as 180,000 barrels of oil a day, about 1.5 percent of total U.S. oil production. Over its three-decade lifespan, it will produce more than 600 million barrels of oil and generate up to $17 billion in revenues for the federal government, Alaska, the North Slope Borough, and North Slope communities, ConocoPhillips says.

ConocoPhillips submitted its five-pad proposal in 2018. It was approved by the Trump administration’s DOI in October 2020. Meanwhile, Earthjustice was among the groups that legally challenged the BLM’s environmental impact statement (EIS) approving the project. The Biden administration’s Justice Department defended the EIS in court proceedings.

In August 2021, a federal judge stayed approval and returned the EIS to the BLM for revision, ordering it be ready within 18 months.

The BLM issued its renewed review on Feb. 1, recommending in its “preferred alternative” that Willow be reapproved, but scaled back to three pads from five.

Following a 30-day public comment period after the BLM published its revised EIS on Feb. 1, which expired on March 2, a decision was expected any time after.

Word of the decision surfaced over the weekend, with a formal announcement expected on March 15. But the BLM released its decision early—on March 13—by posting its 68-page supplemental Environmental Impact Statement (EIS) on its website.
The entrance to the ConocoPhillips Alaska Inc. building is seen in downtown Anchorage, Alaska, on April 8, 2020. (Yereth Rosen/Reuters)
The entrance to the ConocoPhillips Alaska Inc. building is seen in downtown Anchorage, Alaska, on April 8, 2020. (Yereth Rosen/Reuters)

Alaskans Applaud

Both chambers of the Alaska Legislature unanimously adopted a resolution approving the Willow Project. Republican Gov. Mike Dunleavy is a proponent, and the state’s congressional delegation—Republican Sens. Lisa Murkowski and Dan Sullivan and Democrat Rep. Mary Peltola—support the project.

On March 1, Murkowski, Sullivan, and Peltola joined an “amazing constellation of Alaska royalty” including state lawmakers, union representatives, Native Americans, and Alaskan Natives in Washington to call on Biden to approve Willow.

“We did it, Alaska!” Murkowski wrote in a tweet. “I’m so relieved that an economically viable Willow Project is being reapproved. What a huge and needed victory for all Alaska. This project will produce lasting economic and security benefits for our state and the nation.”

In a joint statement, Murkowski, Sullivan, and Peltola said they “welcomed the Biden administration’s decision ... after litigation, a court remand, years of supplemental environmental analysis, and a united statewide push in strong support” to approve an “economically viable three-pad” project.

Sullivan said the project “is critically important for Alaska’s economy, good-paying jobs for our families, and the future prosperity of our state” and also “for our national security and environment. Producing much-needed American energy in Alaska with the world’s highest environmental standards and lowest emissions enhances the global environment.

“Now, it’s on us here in Alaska to make sure that we make the best of this opportunity—that we use the revenues and jobs and economic opportunity from this project to make investments in the future of Alaska,” Peltola said. “We need to build up our schools, our housing stock, our rural Internet and electric grids, and more, in order to make this a truly 21st-century economy. We can make Alaska a national and global example of what an energy bridge to the future truly looks like.”

Sen. Dan Sullivan (R-Alaska) warns President Joe Biden that trying to have it both ways—approving the Willow Project, but scaling it back to a financially unfeasible two pads—would be a deceitful avoidance of making a tough decision and will elicit a landslide of lawsuits. (Madalina Vasiliu/The Epoch Times)
Sen. Dan Sullivan (R-Alaska) warns President Joe Biden that trying to have it both ways—approving the Willow Project, but scaling it back to a financially unfeasible two pads—would be a deceitful avoidance of making a tough decision and will elicit a landslide of lawsuits. (Madalina Vasiliu/The Epoch Times)

New Restrictions ‘Legally Dubious’

While welcoming the Willow approval, Sullivan criticized the administration’s decision to make 2.8 million acres of the Beaufort Sea in the Arctic Ocean and 13 million acres within the National Petroleum Reserve Alaska indefinitely off limits for future oil and gas leasing.

“The fight to unleash American and Alaskan energy is far from over,” he said. “The fact that this Willow [decision] comes with the announcement of future legally dubious resource development restrictions on Alaska lands and waters is infuriating and demonstrates that the Biden administration’s unprecedented lock-up of our state will continue.”

The Arctic restrictions also drew a rebuke from the American Petroleum Institute (API), representing the nation’s largest oil and gas companies, which cited the administration’s confusing “mixed signals” to the industry.

“In the current energy crisis, the Biden administration should be focused on strengthening U.S. energy security and standing with the working families of Alaska by supporting the responsible development of federal lands and waters—not acting to restrict it,” API Senior Vice President Frank Macchiarola said in a statement. “We urge the administration to end the mixed signals on energy policy and focus instead on real solutions for the American people.”

Caribou on Alaska's North Slope, with Prudhoe Bay oil installations in the background on June 22, 2014. (Monteux via Wikimedia Commons/CC BY-SA 4.0)
Caribou on Alaska's North Slope, with Prudhoe Bay oil installations in the background on June 22, 2014. (Monteux via Wikimedia Commons/CC BY-SA 4.0)

Environmental Concerns

Opponents call the Willow Project “a carbon bomb” noting, by the BLM’s analysis, it would produce enough oil each year to release 9.2 million metric tons of carbon into the atmosphere, the equivalent to the combined emissions of 2 million gas-powered cars.

Over the course of 30 years, the BLM calculates, Willow would release an estimated 278 million metric tons of carbon, which opponents say is more than 70 coal-fired power plants could produce every year.

Approving the three-pad proposal angered many Democrats and environmental groups, including the League of Conservation Voters, Sierra Club, and Earthjustice, among key vote-generators for Biden’s presidential campaign. Opponents launched a #StopWillow petition blitz, convincing more than 50 million signees to demand that he stop the project.

“Biden approved Willow knowing full well that it’ll cause massive and irreversible destruction, which is appalling,” Center for Biological Diversity Senior Attorney Kristen Monsell said in a statement. “People and wildlife will suffer, and extracting and burning more fossil fuel will warm the climate even faster. Biden has no excuse for letting this project go forward in any form. New Arctic drilling makes no sense, and we’ll fight hard to keep ConocoPhillips from breaking ground.”
“We can’t drill our way to a sustainable future. We must conserve public lands, not sell them off to corporate polluters,” Sierra Club Executive Director Ben Jealous said in a statement. “The harmful effects of President Biden’s decision cannot be overstated.”

He said those “harmful effects” will be felt environmentally and by Biden politically.

“By allowing ConocoPhillips to move forward with this operation, [Biden] and his administration have made it almost impossible to achieve the climate goals they set for public lands,” he said.

“Willow will be one of the largest oil and gas operations on federal public lands in the country, and the carbon pollution it will spew into the air will have devastating effects for our communities, wildlife, and the climate. We will suffer the consequences of this for decades to come.”

“We are too late in the climate crisis to approve massive oil and gas projects that directly undermine the new clean economy that the Biden Administration committed to advancing,” Earthjustice President Abigail Dillen said in a statement, hinting at legal action.

“We know President Biden understands the existential threat of climate, but he is approving a project that derails his own climate goals.”

Sullivan said proponents are ready for expected legal challenges.

“We are prepared to defend this decision against likely frivolous legal challenges from the same Lower 48 NGOs who’ve consistently tried to kill the Willow Project,” he said. “We will do so by working closely with the same Alaska stakeholders who brought us this far. We hope that the Alaska federal judge taking this case hears and respects their voices.

“Alaskans should take pride in knowing that when we come together and fight together for our common prosperity, our voices cannot be ignored.”

John Haughey reports on public land use, natural resources, and energy policy for The Epoch Times. He has been a working journalist since 1978 with an extensive background in local government and state legislatures. He is a graduate of the University of Wyoming and a Navy veteran. He has reported for daily newspapers in California, Washington, Wyoming, New York, and Florida. You can reach John via email at [email protected]
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