The 23-million acre National Petroleum Reserve — four times the size of New Jersey — is located west of the big but declining Prudhoe Bay oil field on the North Slope of Alaska. Set aside by President Harding as a strategic naval petroleum reserve in 1923, it was renamed and transferred to the Interior Department in 1976.
Later it was opened up to some limited drilling in 1980 as a result of a rider to an appropriations bill attached by the late Sen. Ted Stevens (R-Alaska). A further provision diverted half the royalties to the state of Alaska, even though the reserve is federal land. Six lease sales were held between 1999 and 2010.
Environmental groups have warned on drilling there. They say that the reserve provide critical habitat for the peregrine falcon, two caribou herds, moose, rough-legged hawks, gray wolves and other wildlife.
On Oct. 1, 2010, 30 environmental and conservation groups submitted a letter urging a “balanced development and strong protection of the extraordinary biological resources in the Reserve.”
A senior administration official said that some areas, such as Teshekpuk Lake, would not be open to drilling.
On Friday, as word of Obama’s radio address leaked out, Cindy Shogun, executive director of the Alaska Wilderness League, said “We completely concur with President Obama’s weekly announcement to move forward with responsible and safe domestic oil production, while respecting sensitive areas.”
Top executives at big oil companies have been pressing for more leasing of federal lands and faster approval of permits. Shell Oil is one of the biggest operators in the Gulf of Mexico. It has also poured $2.2 billion into buying leases and $1.5 billion into preparations for drilling in Alaska, while fending off court challenges by environmental groups.
In a recent interview, Shell president Marvin Odum said “certainly my view is that when the government puts leases out there for sale, it’s a statement that they’re ready to go.” But, he added, the company has been waiting five years for one air permit for drilling in the remote Chukchi Sea.
“To wait five years before drilling is a pretty frustrating process,” he said.
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