HCN: Why the Arctic National Wildlife Refuge may not be drilled

Alaska, Beyond Alaska, News, Online, Print, Uncategorized

This story originally published in High Country News.

Every summer, the Porcupine caribou herd travels hundreds of miles to return to the northernmost edge of the Arctic National Wildlife Refuge on Alaska’s North Slope. There, on the coastal plain known as Area 1002, the cows give birth to calves, and the animals forage for food and huddle together against the swarms of mosquitoes.

The caribou are protected, almost, by the 1980 Alaska National Interest Lands Conservation Act, which granted federal protection to more than a quarter of Alaska’s 375 million acres, including the Arctic National Wildlife Refuge. Most of the nearly 20-million-acre refuge was designated as wilderness, but the coastal plain was set aside for oil and gas development, if and when Congress approved it. Since then, politicians have batted the issue back and forth, neither fully protecting the region or opening it up. Last month, though, the Trump administration opened the entire 1.56 million acres of the 1002 for leasing, removing the last regulatory hurdle to the prospect of well pads, roads and pipelines in the calving grounds and setting the stage for the exploitation of one of the conservation movement’s most important sites.

The fate of the area, and the caribou that depend on it, is not yet sealed, however. Before drill rigs can move in, developers must overcome other legal and political challenges, along with an increasingly uncertain petroleum economy and the possibility of a new presidential administration.

The latest obstacle was thrown up on Sept. 9, when 15 state governments in the Lower 48 and three Alaska tribal entities south of the Refuge — Native Village of Venetie Tribal Government, Arctic Village Council and Venetie Village Council — all took separate legal action against the federal government to try to stop the lease sale. That’s in addition to other lawsuits filed last month by the Gwich’in Steering Committee — which advocates for 15 Gwich’in communities in Alaska and Canada — with 12 other environmental organizations, and another from a coalition of conservation groups. “We used to migrate alongside (the caribou) for over 40,000 years,” Bernadette Demientieff, executive director of the Steering Committee, said in an interview. “We can’t survive without them.” The Gwich’in Steering Committee was formed in 1988 in response to proposals to drill in the herd’s calving grounds. With the help of other conservation groups, the Gwich’in managed to convince major banks — including Wells Fargo, Goldman Sachs and JPMorgan Chase — to curtail or ban investment in fossil fuel projects in Alaska, a serious matter for an industry still reeling from low oil prices.

Even if the conservationists’ legal and political challenges fail, petroleum companies will have to decide whether developing the coastal plain is worth it. Oil prices have been relatively low for the last five years, and new drilling techniques have opened up huge, more appealing reserves in shale formations in the Lower 48.

The oil industry’s longtime “holy grail” — drilling the Arctic Refuge — is no longer quite as alluring, said Philip Wight, a professor specializing in Arctic energy history at University of Alaska Fairbanks. The industry is transforming, and arguments for drilling in ANWR to supercharge revenues for Alaska simply don’t pencil out, he said.

The Trump presidency and its Republican-led Congress gave Sen. Lisa Murkowski, R-Alaska, the opportunity to insert a provision approving a lease sale into the 2017 Tax Cuts and Jobs Act.

Nevertheless, the Tax Cuts and Jobs Act initiated an environmental analysis of exploration and development possibilities, which wrapped up this August, when Interior Secretary David Bernhardt signed the record of decision setting the first lease sale of the 1002 for late 2021. But a new president could reverse the approval: A campaign spokesman told the Associated Press last month that Joseph Biden seeks to “permanently protect ANWR and other areas impacted by President Trump’s attacks on federal lands and waters.” A new president could use the Antiquities Act to declare the coastal plain a national monument, permanently halting the lease sale. “There is just so much that changed to make this happen that can change completely with the next administration,” Siqiñiq Maupin, Arctic community organizer for Native Movement and the director of Sovereign Inupiaq for a Living Arctic, said in an interview.

Given all the political and economic uncertainties, drilling in the Arctic may simply be too risky for companies today. For now, the fate of the Porcupine caribou lies in the invisible hand of the market, buffeted by political changes that are hard to predict. Guessing what the world is going to look like in the 2030s and beyond is a “substantial risk,” Larry Persily, the former federal coordinator for gas projects in Alaska, said. “You cannot hold on (to a lease) for 20 years in speculation. If you don’t do something, you won’t make the money back. That’s a lot of crystal ball work.”

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