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Crude Oil, LNG, Refined Products
January 21, 2025
HIGHLIGHTS
Executive order cites 'abundant, largely untapped supply of natural resources'
Rescinds 'punitive' Biden climate restrictions, would open federal lands
Seeks to expedite LNG permitting
Newly inaugurated US President Donald Trump signed an executive order Jan. 20 that aims to roll back much of former president Joe Biden's climate-oriented restrictions on oil and gas development in Alaska, directing his agency heads to "unlock this bounty of natural wealth" by allowing more leasing and development on federal lands and expediting permitting of LNG infrastructure projects.
"Unleashing this opportunity, however, requires an immediate end to the assault on Alaska's sovereignty and its ability to responsibly develop these resources for the benefit of the Nation," the executive order states. "It is, therefore, imperative to immediately reverse the punitive restrictions implemented by the previous administration that specifically target resource development on both State and Federal lands in Alaska."
The order states that it is now the policy of the United States to "fully avail itself" of Alaska's "vast lands and resources" by removing restrictions on areas of federal lands and waters withdrawn from oil and gas leasing by Biden.
"Alaska has such an incredible abundance of natural resources, but under the previous administration, both the Department of Interior and [US Department of Agriculture] have limited Alaska's production and its ability to produce wealth for American citizens," an incoming White House official said on a call with reporters Jan. 20 previewing the action.
The official cited Alaska's geostrategic location, which includes its positioning for LNG exports. The order also calls for prioritized permitting and approval processes for the Alaska LNG Project.
The executive order also promised to roll back restrictions on exploiting Alaska's timber, minerals and seafood resources.
In August, the Biden administration banned drilling on 28 million acres of Alaskan federal land, declaring unlawful an order from the first Trump administration that sought to open those areas for oil, gas and mineral extraction. That order followed an April move to close development in over half of the 23-million-acre National Petroleum Reserve-Alaska, the largest federally managed tract of land in the US, which is estimated to hold 895 million barrels of oil, per a 2010 US Geological Survey.
Biden's moves have drawn legal challenges and Republican criticism, the latest coming after a congressionally mandated lease sale on the Coastal Plain of the Arctic National Wildlife Refuge drew no bids. Critics, including Republican Alaska governor Mike Dunleavy, whose office sued the administration in December, accused the Interior of offering unattractive parcels during the Biden administration.
Trump's executive order promises to rescind any Biden-era policies that do not align with the new administration's policy for Alaska. It also specifically rescinds a series of orders and environmental impact statements issued throughout Biden's term that temporarily halted lease activities to conduct environmental reviews, and canceled previously scheduled lease sales.
Throughout his 2024 presidential campaign, Trump promised to "drill, baby, drill" and establish energy "dominance. " He criticized Biden's climate agenda and touted the Arctic National Wildlife Refuge's Coastal Plain as a potential oil and gas area on par with Saudi Arabia. In 2024, the Congressional Research Service estimated the Coastal Plain to have 10.4 billion barrels of recoverable crude, while OPEC estimates Saudi Arabia's proven reserves at 200 billion barrels.
"We will bring prices down, fill our strategic reserves up again, right to the top, and export American energy all over the world," Trump said in his inaugural address Jan. 20. "It is that liquid gold under our feet that will help to do it."