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Trump Signs Executive Order to Expand Resource Development in Alaska
Jan. 22, 2025 09:25AM PST
The executive order, aimed at expanding Alaska's natural resource development, unravels restrictions imposed by the previous administration.
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US President Donald Trump signed an executive order on Monday (January 20) prioritizing the development of Alaska’s natural resources, including oil, gas, minerals and timber.
The order aims to reverse restrictions imposed by the Biden administration and facilitate the expedited permitting and leasing of energy and resource projects across the state.
It directs federal agencies to amend or repeal regulations that hinder Alaska energy and resource projects, including restrictions on oil and gas lease sales in the Arctic National Wildlife Refuge (ANWR) and the National Petroleum Reserve.
In addition, the order reinstates prior Trump-era policies for the coastal plain oil and gas lease program in the ANWR, which had been scaled back under the Biden administration.
Beyond oil and gas, the order encourages increased timber harvesting and the development of Alaska’s liquefied natural gas (LNG) projects. Specifically, it prioritizes permitting for pipeline infrastructure related to the Alaska LNG Project.
This US$44 billion initiative is expected to export up to 20 million metric tons of LNG annually by 2031.
Alaska Governor Mike Dunleavy praised the move from Trump, describing it as a significant step toward enhancing Alaska’s role in the nation’s energy independence.
Alaska is unleashed! On his first day in office, President Trump signed an executive order recognizing Alaska as a true energy warehouse, paving the way for unprecedented opportunities in resource development and energy independence. Read the Executive Order:…
— Governor Mike Dunleavy (@GovDunleavy) January 21, 2025
“Alaska is unleashed! On his first day in office, President Trump signed an executive order recognizing Alaska as a true energy warehouse, paving the way for unprecedented opportunities in resource development and energy independence,” Dunleavy posted on social media platform X, formerly known as Twitter.
The executive order has also garnered strong support from Alaska's congressional delegation.
In a joint statement, Senator Lisa Murkowski, Senator Dan Sullivan and Representative Nick Begich applauded the administration’s commitment to revitalizing Alaska’s resource development sector.
“President Trump is picking up right where he left off, reversing years of damaging decisions and prioritizing Alaska’s unrivaled opportunities for responsible energy and mineral development,” Murkowski said.
The ANWR, which spans over 78,000 square kilometers in Northeastern Alaska, has long been at the center of debates over oil and gas drilling.
Environmentalists and some Indigenous groups have opposed extraction in the region due to its ecological significance and cultural value. The area serves as a critical calving ground for the porcupine caribou herd, among other wildlife.
The 2017 Tax Act, signed during Trump’s first term, mandated two lease sales in the ANWR's coastal plain.
However, no bids were received during the Biden administration’s second lease sale in January 2024, partly due to stricter environmental regulations and diminished industry interest.
Under the new executive order, the Trump administration is seeking to attract bidders by reducing regulatory barriers.
However, industry analysts remain skeptical about the immediate impact of these changes, citing market conditions and development costs as key factors influencing investment decisions.
Larry Persily, publisher of the Wrangell Sentinel and a longtime observer of Alaska’s oil and gas sector, expressed cautious optimism about the policy’s potential to ease regulatory hurdles.
“Trump's orders will relieve some of the regulatory risk, but long term it also depends on who is in the Oval Office four years from now,” Persily said in an interview with HNN.
“Explorers and producers have multiple prospects around the world, and they will invest in the ones that present the lowest risks and the highest probability of returns," he further explained.
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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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