Alaska Promised Exemption from Oil and Gas Production Ban
During his visit to Alaska, U.S. Interior Secretary Doug Burgum promised to reverse a decision by the previous administration and “free up” 13 million acres of land—out of a total of 23 million acres—for oil and gas production. Joe Biden had previously designated these lands as “special zones.” Companies such as ConocoPhillips, Santos, Repsol, and Armstrong Oil & Gas already operate in the area, but their projects have been delayed by Biden’s executive orders. However, the ConocoPhillips project in Alaska, which was not subject to the ban, is scheduled to produce its first oil in 2029 (Willow project).
Oil production on these lands could increase from 15,800 barrels per day in 2023 to 140,000 barrels per day within ten years.
These measures, along with the $44 billion Alaska LNG project managed by Glenfarne Group, are expected to be discussed at the Alaska Energy Conference, which U.S. Secretary of Energy Chris Wright attended alongside Burgum.
According to Oil and Capital (Neft i Kapital), Trump has been actively inviting Asian companies, especially Japanese, to participate in the Alaska LNG project. A delegation of officials from potential partner countries is expected to arrive in Alaska. However, Japan has previously expressed skepticism about the project’s efficiency: a 1,300-kilometer gas pipeline must be built from the northern fields to the state’s southern ports, where the gas would be liquefied (and liquefaction capacity must also be built). On the other hand, Asian partners have few alternatives: either invest in U.S. LNG, including in new projects with questionable profitability, or face U.S. import tariffs on exported goods and services.
