This aerial photo provided by U.S. Fish and Wildlife Service shows a herd of caribou on the Arctic National Wildlife Refuge in northeast Alaska. Alaska Sen. Lisa Murkowski says her legislation to open Alaska’s Arctic National Wildlife Refuge to oil and gas drilling would generate $2 billion in royalties over the next decade _ with half the money going to her home state. (U.S. Fish and Wildlife Service via AP)

This aerial photo provided by U.S. Fish and Wildlife Service shows a herd of caribou on the Arctic National Wildlife Refuge in northeast Alaska. Alaska Sen. Lisa Murkowski says her legislation to open Alaska’s Arctic National Wildlife Refuge to oil and gas drilling would generate $2 billion in royalties over the next decade _ with half the money going to her home state. (U.S. Fish and Wildlife Service via AP)

Murkowski sees financial boon in refuge drilling

  • By MATTHEW DALY
  • Saturday, November 11, 2017 8:12pm
  • News

WASHINGTON — Alaska Sen. Lisa Murkowski says her legislation to open Alaska’s Arctic National Wildlife Refuge to oil and gas drilling would generate $2 billion in royalties over the next decade — with half the money going to her home state.

But environmental groups and other critics call those projections wildly optimistic, noting that recent sales on Alaska’s North Slope have fallen short of projected revenue.

Murkowski chairs the Senate Energy and Natural Resources Committee, which will hold a hearing on the bill next week. The measure calls for at least two major lease sales over the next decade in areas encompassing at least 400,000 acres each in the refuge’s coastal plain. Surface development would be limited to 2,000 acres.

The 19.6-million acre refuge in northeastern Alaska is one of the most pristine areas of the United States and is home to polar bears, caribou, migratory birds and other wildlife.

The wildlife refuge has been the focus of a political fight for more than three decades. President Bill Clinton vetoed a GOP plan to allow drilling in the refuge in 1995, and Democrats led by Sen. Maria Cantwell of Washington state defeated a similar GOP plan in 2005.

The Trump administration and congressional Republicans are pushing to revive the drilling plan as a way to help pay for proposed tax cuts promised by President Donald Trump. The GOP-approved budget includes $1 billion in revenue from drilling leases over 10 years.

The bill requires at least a 16.67 percent royalty rate evenly split between the federal government and Alaska.

Murkowski said the bill represents “a tremendous opportunity for both Alaska and our country” and will “put us on a path toward greater prosperity by creating jobs, keeping energy affordable for families and businesses, generating new wealth and strengthening our security.”

Not only will the bill reduce the federal deficit by $1 billion over ten years, it will save even more over decades to come as drilling expands, Murkowski said.

Taxpayers for Common Sense, a fiscal watchdog group, says the drilling legislation is likely to generate about $100 million for U.S. taxpayers — one-tenth the amount Murkowski and the Congressional Budget Office predict.

Gene Karpinski, president of the League of Conservation Voters, said Murkowski’s bill would “hand over the pristine Arctic National Wildlife Refuge to Big Oil to generate fantasy revenues to justify tax cuts for the wealthiest.”

Because of high exploration costs in the remote Arctic, analysts say oil prices must be at least $70 a barrel to justify drilling. A benchmark for crude oil is about $57 a barrel.

Adam Kolton, executive director of the Alaska Wilderness League, which opposes ANWR drilling, called the GOP revenue projections “pure fantasy,” adding: “This is a dry hole in the budget.”

The drilling bill is supported by most congressional Republicans, including Alaska Sen. Dan Sullivan and the state’s sole House member, Don Young. Independent Gov. Bill Walker also backs the bill.

More in News

Kenai Peninsula College Director Cheryl Siemers speaks to graduates during the 55th commencement ceremony at Kachemak Bay Campus on Wednesday, May 7, 2025, in Homer, Alaska. (Delcenia Cosman/Homer News)
Kenai Peninsula College leadership sees temporary transitions

KPC Director Cheryl Siemers is serving as interim UAA chancellor, while former KBC director Reid Brewer fills in her role.

Ash-Lee Waddell (center) of Homer is one of six recipients of the 2025 First Lady’s Volunteer Award at the Governor’s Residence in Juneau, Alaska, on May 13, 2025. Photo courtesy of the Office of the Governor
First lady honors Alaska volunteers

Volunteers from Homer and Nikiski were recognized.

The front of the Kenai Police Department as seen on Dec. 10, 2019. (Photo by Brian Mazurek/Peninsula Clarion)
Update: Middle schooler reported missing found after 24-hour search

The student was seen leaving Kenai Middle School at around 10:30 a.m. Wednesday.

The Oceania Riviera stands out against a bluebird sky at the Homer Harbor on Wednesday, May 7, 2025. Over 1200 passengers from aboard the boat explored Homer throughout the beautiful day. (Chloe Pleznac/Homer News)
Homer tourism season kicks off with arrival of cruise ships

The first cruise ship of the season arrived April 28 with 930 passengers.

tease
‘Tomorrow — remember you are still a learner’

Kachemak Bay Campus graduated 49 students during its 55th annual commencement hosted on May 7.

Mt. Redoubt rises above Cook Inlet and the Anchor River drainage as fireweed is in bloom, as seen from Diamond Ridge Road on Friday, July 22, 2022, near Homer, Alaska. (Photo by Michael Armstrong/Homer News)
Native plants provide lifeline for local songbirds

Shorebird Festival talk highlights importance of native plants.

Sterling Elementary School students collect trash from the banks of the Kenai River near Bing’s Landing in Sterling, Alaska, during the 10th Annual Kenai River Spring Cleanup on Wednesday, May 14, 2025. (Jake Dye/Peninsula Clarion)
Cleaning up the mess that’s left behind

Students from six local schools combed for litter during the 10th Annual Kenai River Spring Cleanup.

Kenai City Hall on Feb. 20, 2020, in Kenai, Alaska. (Photo by Victoria Petersen/Peninsula Clarion)
Kenai land sales proposal delayed amid council concerns

The ordinance would amend city code to add new language allowing officers and employees to participate in property sales.

Greg Springer delivers a presentation on sockeye fishing during A Day at the River at Centennial Park in Soldotna, Alaska, on Saturday, May 10, 2025. (Jake Dye/Peninsula Clarion)
Gearing up for summer fishing

Trout Unlimited and the Kenai Watershed Forum host “A Day at the River.”

Most Read