Jun 03, 2025 (MarketLine via COMTEX) --
The move complies with Trump's directive to boost Alaska's oil, gas and mineral production.
US President Donald Trump is planning to repeal the restrictions imposed by Joe Biden on oil drilling in Alaska's National Petroleum Reserve.
The policy shift, which aims to unlock new opportunities for oil and gas development, could increase crude production from the reserve.
Interior Secretary Doug Burgum revealed the planned policy change at a town hall in Utqiagvik, Alaska, highlighting the administration's commitment to energy development in the region.
The move aligns with Trump's executive order to expand resource development in Alaska, including oil, natural gas and minerals.
The National Petroleum Reserve-Alaska, a 23-million-acre area, holds an estimated 8.7 billion barrels of recoverable oil.
The Trump administration's measure seeks to repeal a 2024 rule imposed by Biden that designated 13 million acres of the reserve as "special areas" with leasing limitations.
Oil production in the reserve is projected to increase significantly, with forecasts suggesting a jump to 139,600 barrels per day (bpd) by fiscal year 2033 (FY33), up from 15,800bpd in FY23.
The Biden-era rule has posed challenges for companies such as ConocoPhillips, Santos, Repsol and Armstrong Oil & Gas, which have been active in the region.
Commenting on the latest development, American Petroleum Institute (API) Policy, Economics and Regulatory Affairs senior vice-president Dustin Meyer said:A "API applauds the administration for taking action to repeal the misguided NPR-A rule and fully leverage AlaskaaEUR(TM)s National Petroleum Reserve as a driver of revenue, economic growth and energy security. Our industry is committed to the safe, responsible development of AlaskaaEUR(TM)s vast energy resources, and we look forward to working with Secretary Burgum to advance American energy dominance."
During the town hall, the announcement was met with applause from local residents and officials including Senator Dan Sullivan and Alaska Governor Mike Dunleavy.
Energy Secretary Chris Wright expressed expectations for increased oil development and criticised past policies for hindering the region's potential.
Rex Rock Sr., head of the Arctic Slope Regional Corporation, stated that the 2024 rule lacked support from the local region.
Meanwhile, environmentalists have warned of the need to protect the Arctic's unspoiled land and wildlife, arguing against the burning of the reserve's oil in a warming world.
The proposal to reverse the Biden-era rule will undergo a 60-day public comment period, potentially leading to a swift policy reversal and new leasing in the reserve.
Conservationists who supported the original protections may challenge the change in federal court.
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