Alaska
Alaska development agency may eye some exploration work next winter in Arctic refuge after ruling
A state development agency might consider doing some oil exploration work in the Arctic National Wildlife Refuge next winter, following a federal judge’s ruling Tuesday that the Biden administration lacked authority to cancel the agency’s oil and gas leases there, an agency official said.
The Alaska Industrial Development and Export Authority may not be able to pursue a full exploration program there next winter, with seismic surveys across the leases, agency executive director Randy Ruaro said in an interview Wednesday. But some seismic surveys — using seismic waves to map the subsurface — may be possible, he said.
That’s because the Biden administration threw up a major hurdle when it issued a decision in December that sharply limited exploration activity there, he said. That hurdle must still be removed, he said.
“They left part of ANWR open, even the Biden administration did, because they had to,” Ruaro said. “But quite a bit of it is zoned out.”
The agency is challenging the decision in court. It can also work with the Trump administration, which supports drilling in the refuge, to reverse Biden’s decision, he said.
“We’ve got a couple options,” Ruaro said.
But it’s unknown how long either option will take, he said.
The possibility of drilling in the refuge took a big step forward in 2017 when the Republican-led Congress passed a law opening the refuge to development.
The state agency acquired the seven leases, totaling 365,000 acres in the northwest corner of the refuge along the coast, in a lease sale held in the final days of the first Trump administration.
No major oil companies bid in that historic sale, and the state agency was the only bidder to hold on to its leases. But the Biden administration canceled the leases in 2023, citing legal flaws with the leasing program.
The 19.6-million-acre area for decades has been a battleground for pro-development advocates who say an oil discovery will help the economy and national security, and conservation and some Indigenous groups who fear it will threaten polar bears and caribou and add to climate pollution.
Judge Sharon Gleason, in her 22-page decision on Tuesday, said the cancellation violated the 2017 law calling for the refuge to be opened, because the Biden administration did not obtain a court order for the cancellation.
She sent the matter back to Interior, where the new Interior secretary, Doug Burgum, said last week that he plans to expand opportunities for oil and gas development in the 1.6-million-acre coastal plain of the refuge.
Alaska Gov. Mike Dunleavy and the Voice of the Arctic Iñupiat, representing elected Iñupiaq leadership from Alaska’s North Slope where the refuge is located, praised the decision.
So did Alaska’s U.S. senators, who helped write the provision in the 2017 law opening the refuge, and freshman Rep. Nick Begich III.
“After the first Trump administration developed a good program and AIDEA secured seven leases, the Biden administration spent four years attempting to turn the program on its head,” Sen. Lisa Murkowski said in a statement from the delegation Wednesday. “While we lost years of development to their willful intransigence, this decision is an important step to getting things back on track.”
Conservation groups and the Gwich’in Steering Committee criticized Gleason’s decision for allowing the agency to keep its leases. They said the state development agency has no ability to extract oil and gas, and has been has been the subject of reports showing it has made poor financial investments.
“AIDEA is the ‘grim reaper’ of Alaska megaprojects — when they show up to spend money, smart investors stay away,” said Andy Moderow, senior director of policy for the Alaska Wilderness League. “We will continue to challenge their misguided attempts to industrialize the Arctic Refuge, so that the Coastal Plain can sustain continued and new traditions for generations to come.”
‘Valuable deposits’
The refuge’s remote location in northeast Alaska, and the controversy over drilling there, has likely limited bidding interest from oil companies. The Biden administration held a second lease sale for the refuge early this year, but receive no bids of any sort.
Gleason’s decision suggested that the agency, which acquired its leases with the idea of working with exploration companies, could be sitting on sizable amounts of oil.
She said environmental reviews conducted under the first Trump administration and under Biden found that the coastal plain houses valuable deposits of oil and gas.
“Although these documents indicate that there are no proven plays, or groups of oil fields, due to the lack of oil and gas exploration in the Coastal Plain, they nonetheless confirm that the Coastal Plain contains valuable deposits according to the federal government’s best estimates,” Gleason wrote.
The U.S. Geological Survey in 1998 estimated that the refuge contains pools of oil that today would be comparable to large discoveries made in recent years in Alaska, far west of the refuge, such as at ConocoPhillips’ Willow field.
Ruaro said AIDEA has reviewed data from old wells drilled west of the refuge on state land. It’s also taken a new look at two-dimensional seismic surveys shot in the 1980s, when Congress allowed oil companies to drill the only well ever allowed in the refuge, he said.
“We think we have a very good idea of what’s in the northwest corner of ANWR, on our leases, and we think there are billions of barrels of oil,” Ruaro said.
The recent announcement of an oil discovery just west of the refuge also highlights the area’s oil potential, Ruaro said. The partners announcing the find included Australian-based Santos and Bill Armstrong, the geologist whose work led to major discoveries in Alaska and prompted ConocoPhillips to take steps that led the company to Willow.
“We think those trends continue into ANWR,” said Ruaro, referring to geological patterns that could support a discovery.
Next steps on possible exploration in the refuge will be considered by the agency’s board, he said. The agency will work with partners like the community of Kaktovik, an Alaska Native village in the refuge, along with the North Slope Borough and the Voice of the Arctic Iñupiat, he said.
“I would say that all options to advance the project and development are on the table, and we’ll get full guidance from our board,” Ruaro said.
The board will likely consider what it will take to soon acquire detailed, new seismic exploration data, known as three-dimensional seismic, which replaced the old 2D seismic technology, he said.
“3D is the goal,” he said.
Two US soldiers were wounded by a brown bear during a training exercise in Alaska on Thursday, the US Army stated.
Anchorage Daily News reported that the soldiers were from the 11th Airborne Division, and that the exercise had been a “land navigation training event” near Joint Base Elmendorf-Richardson.
State wildlife officials said that the bear attack seemed to be a defensive one, from a bear which had recently emerged from its den. Staff members from the Alaska Department of Fish and Game collected evidence at the scene in an attempt to learn more about the bear, such as its species and gender.
“The incident is currently under investigation, and we are working closely with installation authorities and local wildlife officials to gather all relevant information and ensure the safety of all personnel in the area,” the 11th Airborne Division said in a statement, reported ABC News.
ABC News also cited an 11th Airborne Division spokesperson, Lt.-Col. Jo Nederhoed, who said that the two soldiers had been seriously wounded, but were receiving care at a hospital in Anchorage, and had shown improvement by Saturday morning.
“We hope both individuals have a full and quick recovery, and our thoughts are with them during this time,” Fish and Game Regional Supervisor Cyndi Wardlow said in a statement reported by Anchorage Daily News. “In this case, having bear spray with them in the field may have saved their lives.”
Both of the soldiers reportedly had and used bear spray during the attack.
The bear’s condition and whereabouts are currently unknown.
Up, up and away … that’s where most travel prices are going.
It’s true. Not only are our nation’s geopolitical thrusts in the Mideast affecting the cost of your fill-ups, every component of your trip from airfares to car rentals and hotel stays are subject to price hikes.
Imagine filling up a jetliner with jet fuel that’s doubled in price. It’s enough to melt your credit card, regardless of the number of points you get for every dollar spent!
Because the price of oil affects everything, higher prices are eating away at your travel budget in many ways.
Bag fees
There’s lots of press on this. All airlines are increasing their checked-bag fees because of the jump in fuel prices.
Back in 2009, Alaska Airlines instituted a $15 fee for the first checked bag and $25 for the second bag. At the time, there was no charge for the first bag and a second bag was $25.
Last week, Alaska Airlines, along with other major airlines, increased its fees to $45 for the first checked bag and $55 for the second bag. Delta Air Lines charges the same.
Even if the cost of oil comes down, I don’t expect bag fees will ever be reduced.
Travelers who live in Alaska are somewhat insulated from the new hikes because both Delta and Alaska Airlines offer two free checked bags, with conditions:
1. Alaska offers two free checked bags for travelers flying to or from Alaska who are enrolled in Club 49. This does not affect other flights on Alaska. Separately, ATMOS credit card holders can get a free checked bag. Also, elite members of the ATMOS scheme get one or two free checked bags systemwide.
2. Delta offers two free checked bags for travelers flying to or from Alaska who are SkyMiles members who live in Alaska. Again, this does not apply to other Delta flights. Separately, Delta American Express cardholders can get a free checked bag.
3. Elite-level travelers with the oneworld airline cartel, including Alaska Airlines, can get one or two checked bags on American, British Airways, Japan Airlines, Qantas or other oneworld carriers.
[Anchorage’s international airport rolls out self-driving wheelchairs]
Main Cabin vs. Basic Economy
The spread between the lowest available price, Basic Economy, and a more flexible ticket, Main Cabin, has increased. While the difference used to be $20-$30 each way when the Basic Economy scheme was introduced in 2018, the round-trip upcharge now can exceed $100.
For example, the lowest Basic fare to Portland is $337 round-trip on Alaska Airlines. The upcharge to Main Cabin, with full loyalty points, pre-assigned seats and more flexibility on changes and cancellations, is $447, a 33% upcharge.
This trend is not specifically attributable to the new Iran War. It’s just a cost that continues to rise.
New fees
I’m impressed at the creativity of airline people who dream up new fees. Here are some of my favorites from Alaska Airlines:
1. Phone reservations: $15
2. Partner award booking fee: $12.50
3. Pet travel fee: $100 in the cabin, $200 in the baggage compartment with a kennel
4. Left on board item return fee: $20
On Condor Airlines, operating the only nonstop service from Anchorage to Europe, travelers can choose from four different bundles in economy class. The least-expensive, Economy Zero, from $840 round-trip, features fees for travelers:
1. Carry-on bag fee, up to 8kg: $35; a small bag like a purse always is included for free
2. Checked bag: $75
3. Airport check-in: $30
All three of these fees are included in the next-highest fare bucket, Economy Classic, from $900 round-trip. It’s cheaper to buy the bundle than it is to buy the components a la carte. Seat assignments are additional, from $25 for economy.
Airfares on the rise
There are a few good deals available for travel to select West Coast/Intermountain destinations in May, including:
1. Anchorage-San Francisco on Alaska Airlines, from $307 round-trip. Fly May 15-28 only. Add $90 round-trip for Main cabin.
2. Anchorage-Los Angeles on Alaska Airlines, from $317 round-trip. May 15-25 only. Add $90 round-trip for Main.
3. Anchorage-Phoenix on United, Delta or Alaska, from $267-$287 round-trip. Fly May 8-June 9 only. Add $90-$100 for Main.
4. Anchorage-Denver $357 round-trip on Delta. Fly May 8-June 9 only. Add $90 round-trip for Main.
For travel to other destinations, or later in the summer, be prepared to pay more.
Flying to Hawaii? Alaska Air’s nonstop prices out at $706 round-trip between May 30 and June 6. Add $110 round-trip for Main.
Nonstop flights from Anchorage to Salt Lake City start at $669 round-trip with Delta on May 17. That’s $100 more than the cost for the same flights last month. Add $90 more for Main.
Hotel costs continue to rise, accompanied by pesky resort fees.
The Outrigger on the Beach in Waikiki is a very nice beachfront hotel. It’s not plush, or the nicest property. But it’s solid. The cost is $334 per night.
But there’s more: a $50 per night resort fee, plus a variety of taxes and charges, totaling $112.55 per night.
Down in Seattle, the Sound Hotel in the Belltown neighborhood is marketed by Hilton. The discounted rate for “Honors” members — it’s free to join — is $313.34 per night for a king room in late May. Taxes and fees add an extra $56.40 per night.
There’s no appreciable bump yet for hotel rates as a result of the oil price surge. Yet. But if these hotel rates seem high, they’re in line with hotel rates in Anchorage this summer. At the Sheraton in Anchorage in June, it’s $450 per night, plus $54 in taxes and fees, when booked at Expedia.
Car rentals are not cheap
My go-to site for car rentals is the Costco site, which compares major brands and automatically includes Costco discounts.
In Las Vegas, for a one-day rental in May, Budget charges $67 per day, which includes taxes and fees of $22.77. In Anchorage, the same kind of car, medium SUV, costs $92.97 with Alamo.
The biggest differences so far in car rental rates seems to be the bill you’ll pay when you fill up the tank before returning. There’s no appreciable jump in prices because of the new war.
When it comes to making travel arrangements for the spring and summer, it’s more risky making completely non-refundable arrangements.
I made the decision to purchase most of my summer travel plans in advance, but only after determining I would not need to change the dates. Particularly with airline tickets, it’s expensive to change your dates.
There’s lots of uncertainty regarding travel arrangements, particularly international travel. As fuel prices go up due to oil shortages, travel companies will look for ways to recoup the increased costs. In most cases, those higher costs will be borne by travelers.
ANCHORAGE, Alaska (KTUU) – The reopening of the Strait of Hormuz has led to a decrease in oil prices nationally, but Alaska’s senior senator said the state faces a different situation that could threaten rural communities.
“If you can’t produce power because you don’t have the diesel or you just can’t pay the prices, your little communities can collapse,” Sen. Lisa Murkowski, R-Alaska, said at a Friday press conference at the Arctic Encounter Summit in Anchorage.
The price of oil has been a double-edged sword for Alaska. On one hand, the increased price of North Slope oil brings more revenue to the state, but consumer prices can also rise.
North Slope oil prices were $106.36 a barrel on Thursday.
“This is a very precarious time,” Murkowski said. “Our state has enjoyed a bounty because we have benefited from the higher prices of oil that goes into our treasury, but it’s the Alaskans in … the off-road communities that are threatened to be hit most hard.”
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