Home Economy The battle for 614 million barrels of Alaska oil

The battle for 614 million barrels of Alaska oil

0
The battle for 614 million barrels of Alaska oil

It has been called a “coal bomb” and a reindeer killer, but for many it is a promising project that could lift the local economy to Alaska and ensure US energy security. The reason for the $8 billion plan proposed by ConocoPhillips to develop oil in the Willow region of Alaska. This project caused a reaction from environmental organizations and caused a split among the local population.

The Willow area is estimated to contain 614 million barrels of crude oil and, if ConocoPhillips’ plan is approved, the field could produce up to 160,000 barrels per day, about 1.3% of current US production. However, opponents of the plan point out that mining them would release 254 million metric tons of emissions into the environment.

US Department of the Interior after all, he made it clear that the government had reservations about the plan’s “large environmental impact and its possible consequences for the Alaskan Native people who depend on hunting for survival.” Indigenous groups also warn that the ConocoPhillips plan will endanger Alaska’s Canadian reindeer, on which the region’s people depend for survival, as well as their traditions and way of life.

Pressure

Opponents argue that the Canadian reindeer, on which the livelihood of the local population depends, will be in danger.

At the same time, local and local officials, as well as labor unions and Alaska Native organizations, argue that the plan could create a significant number of well-paying jobs, provide the superpower with more oil, and ensure its energy self-sufficiency. and security. And some industry allies are steadily increasing pressure on the Biden administration to finally approve the controversial plan.

Disputes and tensions over the Willow field have exacerbated Joe Biden’s dilemmas as the US president pushes ahead with a bold climate change agenda, while at the same time pressuring oil companies to increase production to drive down fuel prices. consumers.

ConocoPhillips has been making the proposal for many years, which was initially approved by the Donald Trump administration. However, in 2021 it was overturned by a federal court because it found insufficient investigation into its environmental impact. The Biden administration then defended him in court in the face of backlash from environmental groups. A final decision on the plan is expected to be made within the next month. In the meantime, of course, his opponents have proposed a much milder version of this, only exploring a very small part of it. The plan calls for production at three to four locations at the Willow field, with opponents offering production at only one of the locations.

In this case, ConocoPhillips would have to limit itself to 48% of the region’s oil and minimize the necessary road works and works that could interfere with the movement of reindeer in the region, creating a problem of their seasonal migration. However, the company insists that in this case the project will not be profitable and will cease to be financially viable. And the battle continues.

Author: BLOOMBERG, FINANCIAL TIMES

Source: Kathimerini

LEAVE A REPLY

Please enter your comment!
Please enter your name here