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A polar bear roaming ANWR
A polar bear roaming ANWR
Indefinitely Wild

Good News: Trump’s ANWR Oil-Lease Sale Was a Failure

Drawing only three bidders and $14 million, the administration's attempt to drill for oil in the massive Alaskan refuge is likely dead on arrival

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A polar bear roaming ANWR

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On Wednesday, while a mob of domestic terrorists stormed the U.S.听Capitol, something else undemocratic was going on: the Trump administration was holding the first-ever sale for oil leases in the Arctic National Wildlife Refuge (ANWR). And, like the attempted coup, it was a complete failure鈥攐ne听that鈥檚 likely to lead to permanent protections for the country鈥檚 last unspoiled wilderness.听

鈥淭oday鈥檚 sale reflects the brutal economic realities the oil and gas industry continues to face after the unprecedented events of 2020, coupled with ongoing regulatory uncertainty,鈥 said Kara Moriarty, president and CEO of the Alaska Oil and Gas Association, an industry advocacy group, in an emailed statement.听

The auction raised just , fallingwell听short of the the Department of the Interior forecast last January. Only 11 of the 22 tracts offered sold, approximately听550,000 of the one million acres put up for sale. Proceeds will be split between the federal government听and the state of Alaska.听

Drilling in ANWR was authorized by Congress in 2017听as part of the Trump administration鈥檚 tax cuts. Proceeds of the lease sale were lost to those cuts. That has obviously failed to happen.听

The Alaska Industrial Development and Export Authority (AIDEA)鈥攁n entity of the state government鈥攑urchased nine tracts. Mark Graber, a real estate investor, purchased one. And听Regenerate Alaska, a subsidiary of an Australian energy听company, also purchased a single 23,000-acre tract. No major oil company participated.听

The sale鈥檚 poor performance was widely predicted. Following pressure from the public, and given both the extreme expense of developing extraction operations in the remote area听and the environmental impacts of doing so, announced they would not offer any funding for drilling in ANWR.听

The AIDEA plans to sit on its leases, with the goal of making them available to oil companies, should any of them express an interest. 鈥淏y acquiring these tracts, Alaska preserves the right to responsibly develop its natural resources,鈥 said Alan Weitzner, the organization鈥檚 executive director, in an announcement accompanying the sale. It鈥檚 unclear if Graber (the real estate investor) or听Regenerate Alaska have the funds to develop the tracts they purchased听on their own, or if they, too, are hoping to attract outside investments or simply resell them.听

Those leases could prove to be very temporary. With Democrats taking control of both houses of Congress, the Biden administration will be able to stall development听or even buy the leases back. Representative Jared Huffman, a Democrat from California, has already announced that he plans to push for , and both President-elect Biden and his nominee for secretary of the interior, Deb Haaland, are on record as .听

The timing of the failed lease sale, rushed through by the DOI at the eleventh听hour, along with the incoming administration鈥檚 stated desire to protect ANWR, could represent the end of the 40-year long fight over drilling in the 19.6-million-acrerefuge. Drilling proponents had hoped ANWR might contain billions of barrels of oil. Opponents argued that the environmental costs of drilling there were simply too high. ANWR鈥檚 coastal plain, where these leases are located, is home to the most imperiled polar bear population in the Arctic听and is a crucial habitat for other animals like caribou and migratory birds. Climate change听caused by fossil-fuel emissions already threatens the area,听something that could worsen by burning any听oil present beneath the surface.

In a statement, Adam Kolton, executive director of the Alaska Wilderness League, said, 鈥淲e have long known that the American people don鈥檛 want drilling in the Arctic refuge, the Gwich鈥檌n people don鈥檛 want it, and now we know the oil industry doesn鈥檛 want it either.鈥

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