The response to the auction of oil drilling rights at Alaska Wildlife Refuge is tepid
Officials from the U.S. Department?of the?Interior said that only $3.7million was bid for five parcels of land in Friday's auction by Trump's administration.
The auction included 58 tracts on 689,000 acres (278.828 hectares), in a wildlife refuge known for its pristine habitat, which is home to species such as polar bears, caribou, and migratory bird species. Nine bids were made on five tracts totaling 70,000 acres. The only bidders were Hex Energy LLC and Alaska Industrial Development and Export Authority.
The largest individual win was $1.7 million, on Trac No. Hex Energy's 112 was the highest winning tract.
The auction was a test of the industry's appetite for drilling in Alaska's north, a high risk endeavor that involves decades of hard work and billions of dollars.
The sale on Friday was the first in a series of four that were mandated by the One Big Beautiful Bill Act, which President Donald 'Trump signed last year. The sale is in line with Trump's promise of boosting domestic energy development. Alaska state officials, as well as some native groups, support the plan to increase drilling in ANWR.
In an email, Nagruk Harcahrek said, "The right way to develop these lands is in consultation with the Indigenous Stewards of the lands."
According to the U.S. Geological Survey, oil and gas companies have not shown much interest in the 1.5 million-acre coastal area of ANWR along the Beaufort Sea despite the fact that it contains up to 11,8 billion barrels technically recoverable crude oil.
In January 2025, the Biden administration did not receive any bids from energy companies when it sold 400,000 acres in a sale required by Congress. In 2021, the first sale of land in the region was not well received.
U.S. production of oil is already at a record level due to drilling in areas that are more easily accessible, such as Texas and New Mexico. Companies have also limited their spending on new projects so they can focus on returning cash back to shareholders.
A group of oil and gas industry experts said Alaska is an important region in the industry.
In an email, a representative of the American Petroleum Institute stated that "Alaska is?key to America’s energy security and we expect continued investment in the entire state."
Unlike the National Petroleum Reserve (NPR), which is adjacent to ANWR in Alaska's North Slope region, the 19 million-acre wildlife sanctuary has no infrastructure, roads or facilities.
At an auction held earlier this year oil companies paid $163 million for?new leases? in the NPRA. A liquefied gas plant? is also?under construction in the area.
Alaska Industrial Development and Export Authority is the sole oil and gas leasing company in ANWR. It holds six tracts. They have not been developed to date.
ANWR is a?native home of the Inupiat people and the Gwich'in, who are?divided on oil and gas development.
Kristen Moreland said, "Some places are just too important to give up," during a conference call with journalists. The lease sale tomorrow is about more than just economics or the development of the area. It's about our culture, our voice, and how we live. (Reporting and editing by Stephen Coates, Nia Williams, and Nichola Groom)
(source: Reuters)
