Oil drilling push in Alaska faces setback as no bids emerge

A government auction to lease drilling rights in Alaska's Arctic National Wildlife Refuge ended without bids, reflecting weak industry interest despite renewed Republican support for oil extraction there.

Lisa Friedman reports for The New York Times.

In short:

The Interior Department's lease sale offered 400,000 acres of the Arctic refuge, but no oil companies submitted bids.
The refuge, home to wildlife and considered sacred by the Gwich’in people, has long been contested ground in U.S. energy policy debates.
Republicans argue that opening the refuge could boost Alaska's economy, while environmental groups claim the region is too fragile for industrial activity.

Key quote:

“The lack of interest from oil companies in development in the Arctic National Wildlife Refuge reflects what we and they have known all along: There are some places too special and sacred to exploit with oil and gas drilling.”

— Laura Daniel-Davis, acting deputy secretary of the Interior Department

Why this matters:

The failure of the lease sale highlights a shift in energy priorities, with companies hesitant to invest in environmentally sensitive regions. The result also suggests doubts about the economic viability of Arctic drilling despite political pressure to expand domestic energy production.

www.nytimes.com

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