A quick background
In 1960, the Secretary of the Interior signed an order protecting the northernmost parts of Alaska at the federal level. The order protected 8.9 million acres and named it the Arctic National Wildlife Range. In 1980, President Carter signed the Alaska National Interest Lands Conservation Act (ANILCA) into law, renaming and enlarging the Arctic National Wildlife Refuge (ANWR) to over 19 million acres, with eight million of the 19 million ANWR acres designated as Federal Wilderness.
The non-wilderness area is called the 1002 Area and can be developed – if Congress approves. The 1002 Area is approximately 1.5 million acres and is a target of E&P development. Alaskan Senator Lisa Murkowski is proposing limited development of up to 2,000 acres.
ANWR development moves forward
On November 15, 2017 the Senate Committee on Energy and Natural Resources approved Senator Murkowski’s ANWR energy development plan. The budget reconciliation legislation came favorably out of committee on a bipartisan vote of 13-10. Senator Murkowski voted in support of the legislation, which now heads to the Budget Committee. Murkowski is chairman of the Senate Committee on Energy and Natural Resources.
The Congressional Budget Office estimates the legislation will raise nearly $1.1 billion over the 10-year budget window. Between rents, royalties, and federal taxes, it will raise substantially greater revenues once production from the 1002 Area begins.
Sen. Murkowski said on her website that opening the 1002 Area will generate $124.6 billion in royalties alone, based on current estimates.
According to one USGS study, 10.4 billion barrels of oil can be recovered from the 1002 Area.
Following today’s Senate Energy & Natural Resources Committee meeting on ANWR, Rex A Rock Senior, President & CEO of the Arctic Slope Regional Corporation commented on the committee movement.
“The 1002 area was specifically set-aside for exploration by Congress. Despite being only 2,000 acres in size, it remains the largest conventional onshore project in North America, and has huge economic significance, not just for the state of Alaska, but for our nation as a whole.
“I call on Congress to recognize that Native Alaskans are the best stewards of our lands and open up 1002,” he said.
The ASRC is backed by the IPAA.
