Alaska Pushes Arctic Drilling Plans Despite Industry Cold Shoulder

The Trump administration has renewed its push to open Alaska’s Arctic National Wildlife Refuge to oil drilling, but there’s one problem: the oil industry isn’t interested. Despite Interior Secretary Doug Burgum’s declaration that “Alaska is open for business,” major oil companies have largely walked away from the pristine wilderness area.

The numbers tell the story. When the first federally mandated lease sale was held in 2021, only Alaska’s state-funded development corporation AIDEA placed significant bids, generating a mere $12 million—far short of the projected $2 billion. The second required sale in early 2025 attracted zero bidders. Major players like Chevron, BP, and ExxonMobil have all abandoned their Arctic refuge interests, citing poor economics and environmental risks.

Now Alaska taxpayers are footing the bill for what private companies won’t touch. AIDEA has authorized spending over $100 million on Arctic projects, including controversial infrastructure like the 211-mile Ambler Road through protected lands. Critics point to the corporation’s troubled track record—it lost at least $38 million on its last oil venture and has written off nearly half its investments as worthless.

The fight extends beyond economics to Indigenous rights and environmental protection. Gwich’in leader Kristen Moreland calls the drilling plans “a slap in the face” to communities who depend on caribou herds that use the refuge’s coastal plain as calving grounds. With oil prices struggling and climate concerns mounting, Alaska’s Arctic ambitions face an uphill battle against market realities and growing opposition from both Wall Street and Main Street.