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Alaska’s Outer Continental Shelf

September 29, 2009

Alaska’s Offshore (A Game-Changing Energy Resource):

  • At a time when the American public is crying out for more domestic energy, Alaska has enormous untapped oil and gas potential, especially in its offshore areas. The Chukchi Sea, off Alaska’s northwest coast, offers more resources than any other undeveloped U.S. energy basin, and, according to experts, may be one of the largest untapped oil and gas sources in the entire world.
  • According to very conservative estimates from the federal government, the waters off Alaska’s coasts hold about 27 billion barrels of oil and 132 trillion cubic feet of natural gas.
    • This is more than all the current total proven U.S. oil reserves (i.e. approximately 21 billion barrels).
    • Alaska would have 8th largest oil resources in the world – ahead of Nigeria, Libya, Russia and Norway.
    • This is more than all the current total proven U.S. oil reserves.
    • This is more proven oil reserves than Russia and Mexico process.
  • A recent assessment by the US Geologic Survey concludes that about 30% of the world’s undiscovered natural gas and 13% of its oil are located above the Arctic Circle, with Alaska holding enough oil & natural gas to maintain production for “many years to come.”
  • Alaska has the infrastructure and workforce needed to begin producing energy from these resource basins as soon as it is made available. But for that to happen, the federal government must take action.
  • Alaska currently produces more than 13 percent of our nation’s domestic crude oil, and is behind only Texas in terms of production from offshore sources. Yet its potential has only begun to be tapped. There is so much more oil and natural gas to be reached in the state, and with new technologies, we can do it efficiently while at the same time protecting our environment.
  • Alaska’s Chukchi and Beaufort Seas, along with Cook Inlet and the North Aleutian Basin, were included in that last Five-Year Program, consistent with analysis from the Interior Department showing the areas could be safely explored without inflicting undue harm on marine life or the environment.

Economic Benefits (Jobs for Alaska, Jobs for the Nation):

  • There are more than 108,000 Alaskan jobs tied to the discovery, production, and shipment of Alaskan oil and natural gas – accounting for more than 15 percent of Alaska’s population.
  • Last February, a lease sale on tracts in the Chukchi netted taxpayers more than $2.6 billion in bonus bids. It was quite a take – especially since MMS expected to only receive $67 million before the auction took place.
  • A recent study by University of Alaska’s Institute of Social and Economic Research University and Northern Economics found that new offshore energy production in the State of Alaska would produce:
    • An annual average of 35,000 jobs over the next 50 years for the state of Alaska alone, with a total payroll of $72 billion (2007$) over the 50-year period
    • OCS development could also be an important factor in reducing risks for the proposed natural gas pipeline from the North Slope to Lower 48 markets
    • Offshore development would play a vital role is keeping the Trans Alaskan Pipeline System (TAPS) flowing, a critical link to America’s energy distribution
  • New offshore oil & gas development in Alaska will generate thousands of new, high-paying jobs throughout the 50 states, from steel & pipe manufacturers in the Midwest to shipping on the coasts to advanced computer technology in California and Seattle, to Union Labor for pipeline construction and maintenance.

Despite Promise of Alaska Energy, We Still Can’t Access the Resource:

  • Since 2005, 680 leases have been awarded to companies interested in exploring for oil & gas off the Alaska coasts. Despite years of applications for permits, community consultation, environmental studies and analysis, and over $3 billion in bonus payments to the federal government and investment in technology, equipment and personnel, not one well has been drilled in the Alaska OCS.
    • The leases were sold ONLY after an exhaustive environmental analysis.
    • When the federal government awards a lease, it has an obligation to process the permits and allow the company to move forward with potential development.
  • Why?
    • The current regulatory system is overly complex and has failed to issue the permits required for Alaska offshore operations.
    • Lawsuits filed against the government on various technicalities regarding offshore exploration have kept offshore development, jobs and economic opportunity bottled-up in courts, preventing operations from moving forward (one court, for example has not rendered a decision in almost 2 years).
  • Bottom Line:
    • The current regulatory and judicial structure are preventing America’s ability to access and develop some of its most promising natural resources at a time when America needs jobs, economic growth and reduced dependency on foreign energy sources.

What Can Be Done to Help?

  • Help create jobs, improve the current economic situation and build an effective national energy policy by reforming the regulatory permitting system to ensure that federal agencies share resources, work cooperatively on environmental studies and develop a common structure for permit application and review.
    • Pass Congressional legislation that recognize advancements in technology and make permitting for exploration and development consistent and easier.
    • When the government issues a lease, it should have the desire to ensure that lease receives the appropriate permits in a timely manner and any court challenges are vigorously defended.
  • Pass Congressional legislation requiring federal courts to render timely decisions on energy projects.
  • Enact Congressional legislation granting Alaska citizens and local communities the same monetary benefits of offshore oil and gas production that the citizens of the Gulf Coast enjoy.
  • Produce a robust and timely Five-Year Program for Offshore development.

Action Needed:
Join us in our effort as we build public support for offshore oil and natural gas development in Alaska. To get involved and ensure our voices are heard, tell President Obama today that you support keeping the 2007-2012 Five-Year Program Intact. Please feel free to use our sample text as seen below.

Send the letter of support now!

Written by Editor · Filed Under Arctic National Wildlife Refuge, ENERGY, Take Action 

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