US auctions oil and gas drilling in Alaska's Cook Inlet
The Trump Administration will on Wednesday 'offer over 1 million acres (404,686 ha) of Alaska's Cook Inlet?to?oil & gas explorers. This is a key test to see if the industry wants to invest in this region.
This is the first auction of six Alaskan offshore oil and natural gas auctions that will be held by?U.S. through 2032. The One Big Beautiful Bill Act was signed by President Donald Trump last year.
The U.S. Bureau of Ocean Energy Management officials will begin reading bids on their website at 10:00 a.m. Alaska time (1900 GMT).
According to the sale documents, leases are valid for a period of 10 years. They also include a royalty rate of 12.5% on fuel produced.
Trump has sought ways to increase domestic oil and gas resources, particularly in Alaska, where production has declined for decades. Drilling in Alaska and the Arctic is a high-risk venture that involves decades of effort and billions of dollar investments.
In 2022, the last federal auction of acreage held in Cook Inlet attracted only one bidder.
Hilcorp, a Houston-based company, owns eight active federal leases in Cook Inlet. They do not produce oil or gas. Reporting by Nichola Grout; editing by Himani Sarkar
(source: Reuters)
