New US Interior Secretary Moves to Expand Alaska Energy Development

Former North Dakota Governor Doug Burgum took the oath of office to become the 55th US secretary of the interior on Saturday (February 1), vowing to prioritize domestic energy expansion, particularly in Alaska.

On his first day in office, Burgum wasted no time in advancing the administration’s energy agenda, signing six Secretary’s Orders designed to bolster US energy independence and expand resource development, particularly in Alaska.

“Today marks the beginning of an exciting chapter for the Department of the Interior,” Burgum said in a Monday (February 3) press release. “We are committed to working collaboratively to unlock America’s full potential in energy dominance and economic development to make life more affordable for every American family while showing the world the power of America’s natural resources and innovation.”

His swift actions align with the Trump administration’s revitalized efforts to reverse environmental and regulatory policies enacted under Joe Biden. Among the most consequential of his directives is Secretary’s Order 3422, which implements Executive Order 14153, titled “Unleashing Alaska’s Extraordinary Resource Potential.”

This order prioritizes resource extraction in Alaska, and rescinds previous restrictions that limited oil, gas and mineral production in the state. Specifically, Secretary's Order 3422 directs the Department of the Interior to maximize natural resource production on both federal and state lands in Alaska. This includes oil and gas extraction and timber harvesting.

A key component of this shift is the revocation of Secretary’s Order 3401, which was issued in June 2021. It placed a temporary moratorium on activities in the Arctic National Wildlife Refuge Coastal Plain Oil and Gas Leasing Program.

The new order reinstates Secretary’s Order 3352, originally issued in May 2017, which prioritized energy development in the National Petroleum Reserve-Alaska (NPR-A). The reversal means that federal agencies must immediately reevaluate existing restrictions on leasing and permitting for oil and gas extraction in Alaska.

Additionally, Burgum’s order requires a review of all punitive restrictions that have hindered energy development in the state. Agencies must submit plans within 15 days outlining how they will execute the administration’s energy goals.

By reinstating Secretary's Order 3352, the interior department is once again prioritizing the NPR-A for oil and gas leasing. The NPR-A is one of the largest oil-rich federal land reserves in the US, containing an estimated 8.7 billion barrels of recoverable oil and 25 trillion cubic feet of natural gas, according to government assessments.

Burgum’s order also emphasizes Alaska’s potential as a major liquefied natural gas (LNG) hub. The order includes provisions for fast-tracking pipeline infrastructure and transportation networks to support the state's LNG industry.

To facilitate these efforts, the order mandates expediting the permitting and leasing process for new energy and natural resource projects in Alaska, and prioritizing infrastructure projects that are necessary for transporting resources.

The directive is expected to accelerate investments in Alaska’s energy sector, encouraging private companies to expand operations in the North Slope, the Cook Inlet and offshore areas.

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.