Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Exclusive: Trump administration to miss 2019 target for Alaska refuge oil lease sale - official

Published 11/21/2019, 07:12 AM
Updated 11/21/2019, 07:12 AM
© Reuters. FILE PHOTO: Interior Secretary David Bernhardt testifies before a House Appropriations Interior, Environment, and Related Agencies Subcommittee hearing on the Interior Department's FY2020 budget request on Capitol Hill

By Valerie Volcovici

WASHINGTON (Reuters) - The Trump administration will miss its target of holding the first-ever oil drilling lease sale in Alaska’s Arctic National Wildlife Refuge this year due to delays in the environmental review process, Interior Secretary David Bernhardt told Reuters.

President Donald Trump has made opening up drilling in ANWR – America’s largest wildlife sanctuary – a key goal in his broader effort to maximize U.S. oil, gas, and coal production after previous administrations resisted energy industry pressure to access the area. The Interior Department has previously said https://www.reuters.com/article/us-alaska-oil-refuge/u-s-vows-first-oil-lease-sale-in-alaska-arctic-refuge-this-year-idUSKCN1T1011 it was determined that a sale would happen in 2019.

Bernhardt told Reuters in an interview this week that the Interior Department is still in the process of completing a “record of decision” for the project, the last phase of review in the National Environmental Policy Act permitting process before a lease sale can happen.

The process is intended to make sure that federal agencies consider the environmental effects of a policy decision before it moves ahead.

"I am pretty confident that we will ultimately finalize a record of decision that will go forward on that but there is nothing imminent. It's certainly not days away," Bernhardt said.

After a record of decision is published, Interior’s Bureau of Land Management must launch a 30-day public comment period on which tracts of land should be included in the lease sale.

Asked when a lease sale would take place, Bernhardt said: "I think we are not even at the point yet of determining that."

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

A spokeswoman for the Interior Department, Carol Danko, confirmed that the sale would not take place this year.

The refuge, which is home to different animal species from polar bears to Porcupine caribou, has been off limits to drilling for decades and long sought after by the oil and gas industry.

But a 2017 tax bill passed by Congress and signed by Trump included a mandate for oil leasing in the coastal plain of ANWR and directed the Interior Department to hold a lease sale within four years.

Opening up the oil-rich region has long been a goal of Alaska's congressional delegation, which views it as a good way to revive the state’s flagging energy industry – a crucial source of public revenue.

The Interior Department has been at the forefront of the Trump administration's "energy dominance" agenda to boost fossil fuel and other energy leasing on federal land. In 2018, federal oil and gas lease sales generated a record $1.1 billion, triple its previous record, according to Interior https://www.doi.gov/news/energy-revolution-unleashed-interior-shatters-previous-records-11-billion-2018-oil-and-gas.

But the administration's rush to expand drilling, both on federal land and in coastal waters, has hit some speedbumps in the courts.

In March a federal judge in Alaska ruled Trump’s 2017 order to revoke the Obama administration’s ban on drilling in the Arctic and Atlantic oceans was illegal, prompting Bernhardt to halt a five-year plan to open up more than 90% of the Outer Continental Shelf.

Bernhardt said those offshore drilling plans remain on hold. The "legal process certainly needs to be further along" before he will move ahead, he said.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Other federal courts have ruled the Bureau of Land Management has not adequately weighed the climate change impacts of drilling, halting several on-land lease sales.

Asked whether Interior need to pay more attention to climate change in leasing decisions, Bernhardt said the agency needs to consider "reasonably foreseeable" effects. He disagreed that continued oil and gas development will hasten climate change.

"If we are a large worldwide supplier of natural gas, what does it mean? That’s good for the world," he said.

Latest comments

Trump misses everything.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.