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January 2017

Vol. 22, No. 5 Week of January 29, 2017

New state, federal moves to open ANWR

KRISTEN NELSON

Petroleum News

With a new administration in Washington, D.C., and a new Legislature in Juneau come renewed efforts to get the 1002 area of the Arctic National Wildlife Refuge open for drilling.

Alaska’s U.S. Sens. Lisa Murkowski and Dan Sullivan, both Republicans, introduced legislation early in the year to allow limited oil and natural gas development within the non-wilderness portion of ANWR.

Resolutions have been introduced in the Alaska Legislature supporting the opening of ANWR, one of Rep. Dave Talerico, R-Healy, and one by Rep. Dean Westlake, D-Barrow.

Congressman Don Young, R-Alaska, has introduced a bill in the House to allow drilling in the 1002 area of ANWR.

S. 49, the Alaska Oil and Gas Production Act, would allow development of no more than 2,000 surface acres in the 1.5 million acre 1002 area of ANWR, which overall includes 19 million acres.

In a release on their legislation, Murkowski and Sullivan noted that the U.S. Geological Survey estimates the 1002 area as having an estimated 10.4 billion barrels of oil and 8.6 trillion cubic feet of natural gas, with a reasonable chance of economically producing 16 billion barrels of oil. The lead time for development would be as much as 10 years, with the Energy Information Administration projecting that in 2027 the U.S. would still import 6.94 million barrels per day.

Murkowski noted that Alaskans have proved for nearly 40 years that natural resources can be developed responsibly, while protecting the environment.

“Alaskans overwhelmingly support responsible development in the non-wilderness portion of ANWR and there is no valid reason why we should not be allowed to proceed,” she said.

Sullivan said Alaskans “of all political stripes” have been pleading with the federal government for decades to develop the state’s resources, “including the small 1002 area of ANWR.” The denial, he said, is “shameful.”

“Development of this area would be a boost to our state and national economies, providing thousands of good-paying jobs and billions of dollars in federal and state revenue,” Sullivan said.

Alaska Gov. Bill Walker applauded the senators for introducing the legislation and said, “The state will do everything it can to provide the infrastructure needed to responsibly access the 1002 section of ANWR.”

There will be opposition - as there has been whenever 1002 area drilling is proposed.

Cindy Shogan, executive director of the Alaska Wilderness League, said in a statement that the organization “will fight any and all attempts to drill in the Arctic National Wildlife Refuge,” saying ANWR “is owned by all Americans and is one of our nation’s most treasured places.”

House Joint Resolution 5, by Westlake, chair of the House Special Committee on Arctic Policy, Economic Development and Tourism, had its first hearing, in that committee, Jan. 24. HJR 4, by Talerico, who serves on the special committee, was also assigned to that committee but the committee had not yet scheduled it when Petroleum News when to press.

Both resolutions encourage Congress to open the 1002 area of ANWR for drilling while protecting local residents and the wildlife, with the Porcupine Caribou herd specifically named.






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