Biden Administration Permits A Huge Willow Oil Project In Alaska

The Biden administration has approved a scaled-back version of ConocoPhillips' (COP.N) $7 billion oil and gas drilling Willow project in Alaska, according to the US Department of Interior, eliciting praise from Alaskan authorities and the oil sector but anger from environmentalists.

The decision comes after a vigorous last-minute push by opponents who argued that the development of the three drill sites in northeastern Alaska contradicts President Joseph Biden's well publicised efforts to combat climate change and convert to greener energy sources.

Alaska's political authorities claim that the project would generate hundreds of jobs and billions of dollars in income for the state and federal governments. The state is primarily reliant on money from oil production, although output has dropped substantially since its peak in the 1980s.

"I believe the people of Alaska have been heard," said U.S. Congresswoman Mary Peltola, an Alaska Democrat, during a conference call with reporters. "The state of Alaska cannot bear the weight of addressing our global warming challenges on its alone."

The project's fate has been widely followed as Biden attempts to reconcile his ambitions of decarbonizing the US economy and re-establishing US leadership on climate change while also expanding local fuel supply to keep costs low.

The United Nations, which has pushed countries to expedite their transition away from fossil fuels, has condemned the decision.

"These are not initiatives that take us forward," spokesman Stephane Dujarric said when questioned about the Willow approval. The Interior Department authorised the project with three drilling sites despite expressing worry over Willow's greenhouse gas emissions last month. ConocoPhillips had hoped to construct up to five drill sites as well as project infrastructure such as dozens of kilometres of roads and pipelines, as well as seven bridges.According to the government, the lower scope will have less of an impact on habitats for species such as polar bears and yellow-billed loons.

The government also announced late Sunday sweeping new safeguards for undisturbed Alaskan lands and waters that would keep roughly 3 million acres of the Arctic Ocean's Beaufort Sea "indefinitely off limits" to oil and gas leasing, virtually cutting off U.S. Arctic seas to oil development. It also designated 13 million acres of "ecologically sensitive" special regions within Alaska's petroleum reserve as protected.

Environmental organisations, on the other hand, chastised the Biden administration for attempting to have it "both ways" on climate change.

"Promoting sustainable energy development is pointless if we continue to enable businesses to loot and pollute as they choose," said Wenonah Hauter, Executive Director of Food & Water Watch.

Green organisations have stated that they will take Willow to court. Alaska Senator Dan Sullivan said the congressional delegation is preparing an amicus brief to defend the project in the event of a court challenge.

ConocoPhillips, based in Houston, hailed Monday's decision, having already approved a scaled-back version of the project.

"This was the correct decision for Alaska and our country," said ConocoPhillips CEO Ryan Lance in a statement.

Alaska Republican Senator Lisa Murkowski welcomed the "excellent news" on Monday, adding "this will mean employment and income for Alaska" by sending up to 180,000 barrels of oil per day into the Trans Alaska Pipeline