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July 2016

Vol 21, No. 28 Week of July 10, 2016

Alliance promotes Arctic OCS development

Pros and cons of leasing in Chukchi, Beaufort, subject of Roll Call policy briefing breakfast; Murkowski calls for oil development

ALAN BAILEY

Petroleum News

The general manager of the Alaska Support Industry Alliance and members of the Alliance board visited Washington, D.C., at the end of June to make the case for keeping Chukchi Sea and Beaufort Sea lease sales in the Bureau of Ocean Energy Management’s next five-year outer continental shelf lease sale program, the Alliance has reported.

The Alliance representatives met with senior officials from the Department of the Interior and the Department of Energy, and with members of Congress, to make the argument for holding the sales. Points raised included the support of the Alaska Native communities; the essential role of offshore development in the Alaska economy; the importance of offshore development in future U.S. energy security; the ability to develop Arctic offshore oil and gas safely; and the role of offshore development in building critical Arctic infrastructure, the Alliance said.

Policy briefing

The delegation also attended a policy briefing breakfast hosted by the Roll Call organization. At that briefing Sen. Lisa Murkowski, R-Alaska, argued for Arctic offshore oil development, saying that oil from the Arctic offshore is needed, that the resources can be developed safely, and that the majority of Alaskans support outer continental shelf development. Well paying jobs associated with the oil industry are essential to the continued way of life of Arctic communities in Alaska, Murkowski argued.

Sen. Jeff Merkley, D-Oregon, an ardent opponent of Arctic offshore oil development, argued that the United States should lead the way in addressing climate change by taking oil and gas leasing on public lands off the table. Merkley also said that the risk of environmental damage from Arctic offshore oil drilling is unacceptably high.

During the briefing, Leah Donahey, senior campaign director for the Alaska Wilderness League, also said that Arctic offshore oil drilling presents too high an environmental risk. Donahey said that Arctic investment should be in renewable energy rather than oil and gas, but that local employment from this shift could take many years to accomplish. Rosetta Alcantra, president of E3 Environmental LLC, said that offshore oil and gas development would bring jobs and much needed infrastructure to Arctic Alaska. Joseph Ralston, former NATO supreme allied commander, said that private investment from the oil industry is needed to support Alaska’s strategic importance to the United States. Ralston also commented that, whereas in general people want to see a move towards renewable energy sources, oil and gas will still be needed for many years into the future.






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