Alaska Drilling Restrictions Set To Be Lifted As Energy Projects Advance

U.S. Secretary of the Interior Doug Burgum announced on Thursday that restrictions on oil and gas leasing and infrastructure development in Alaska will be lifted. The move reverses policies set under the previous administration, opening more land for exploration and clearing regulatory hurdles for key projects like the Ambler Road and the Alaska LNG pipeline.

"It's time for the U.S. to embrace Alaska's abundant and largely untapped resources as a pathway to prosperity for the nation, including Alaskans," Burgum stated, per The Washington Post.

The policy shift includes reopening 82% of Alaska's National Petroleum Reserve for leasing and revoking land-use restrictions along the Trans-Alaska Pipeline Corridor and Dalton Highway.

The Alaska LNG pipeline, a $44 billion project, could transport as much as 3.5 billion cubic feet of natural gas daily from the North Slope to an export terminal. It already garnered interest from international partners like Taiwan's state-owned CPC Corporation and is seen as one of the key infrastructure projects for energy exports.

The changes also impact the controversial Ambler Road, a 211-mile road project to access a mining district rich in copper, zinc, and rare earth minerals. Trilogy Metals TMQ, a mining exploration company focusing on developing the Ambler mining district, jumped on the news, gaining over 15%.

Last year, the Biden administration blocked the project, citing environmental and Indigenous community concerns. However, Alaska Governor Mike Dunleavy has long pushed for its approval, arguing that securing mineral supply chains vital to national security and industrial production is critical.

President Donald Trump signaled for these changes in January, vowing to undo “the unnecessary restrictions” on Alaskan resource development. His administration has focused on energy and resource independence as a key objective, seeking to reverse policies that limited development in this resource-rich region.

Yet, environmental groups are already opposing these developments. Organizations like Greenpeace and the National Resources Defense Council have sued the administration over executive orders allowing offshore oil drilling in Alaskan waters.

In a complaint filed last month, they argued that the new measures threaten Alaska's pristine ecosystems, including habitats for caribou, polar bears, and migratory birds.

"Expanding oil drilling across public lands in the Arctic is risky, harmful to the health and well-being of people who reside nearby, devastating to wildlife, and bad for the climate," Carole Holley, managing attorney for Earthjustice's Alaska office, said per Reuters.

These groups have a history of successfully stopping similar plans, including a case from 2019, when District Court Judge Sharon Gleason struck down Trump's plan, ruling that presidents cannot unilaterally revoke past leasing withdrawals.

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