Drilling in the Arctic Refuge: A Financial Disaster and a Threat to Our Future 

In 2017, the Tax Cuts and Jobs Act signed by the Trump administration included a highly controversial provision: it mandated two oil and gas lease sales in the Arctic National Wildlife Refuge. The first sale, held on January 6, 2021, during the final days of the Trump presidency, was a bust. Now, the second lease sale is scheduled for January 9, 2025 – a sale no smart company would show up to. 

While there’s a critical opportunity to incorporate stringent environmental protections in the Refuge, it’s clear that Arctic drilling is financially unviable and an all-around bad idea.  

One of The World’s Most Expensive Places to Drill 

The Arctic isn’t just remote; it’s one of the most difficult environments on Earth. Extracting oil here requires specialized equipment, infrastructure to handle frozen landscapes, and significant risk mitigation for extreme weather. These challenges make Arctic drilling the costliest venture in the industry. 

Take it from the investors themselves, like Goldman Sachs commodity expert Michele Della Vigna who told CNBC in 2017 that, “We think there is almost no rationale for Arctic exploration. Immensely complex, expensive projects like the Arctic we think can move too high on the cost curve to be economically doable.” 

For companies to even break even, oil prices need to hover between $63-$84 per barrel. But as the global shift toward renewables accelerates, oil prices are unlikely to cooperate with that narrow margin, making Arctic drilling a bad long-term investment. 

Risky and Unpredictable Returns 

Drilling in the Arctic is a gamble. The Trump administration’s first lease sale raised a mere $12 million—less than 1% of the projected returns. Many bidders later backed out, leaving the sale as both a financial and environmental embarrassment. Even BP, one of the largest oil giants, exited Alaska altogether, signaling the region’s diminishing prospects. 

In fact, the only company that stuck around was the Alaska Industrial Development and Export Authority (AIDEA) whose leases were revoked under the Biden administration – a group with an outstanding track record of failed investments and wasted taxpayer money. 

U.S. oil industry growth has slowed, with Alaska’s production plummeting from 25% of national output in 1988 to just 6th place today. The Trans-Alaska Pipeline now operates at only 25% capacity, reflecting the state’s waning significance as an oil powerhouse. 

Domestic Drilling Won’t Solve Economic Problems 

Despite claims to the contrary, more drilling in the Arctic won’t lower gas prices or solve economic hardships. Why? Because U.S. oil is sold on the global market to the highest bidder. Domestic production has little impact on local gas prices, which are driven by international supply chains, geopolitical instability, and global demand—not by how much we drill at home. 

Moreover, investing in Arctic oil locks us into a volatile and unstable market. It doesn’t provide the economic security Americans need; it simply pads the profits of fossil fuel companies while leaving consumers to face unpredictable energy costs. 

The True Cost of Inaction on Climate 

Arctic drilling isn’t just financially reckless—it’s environmentally catastrophic. Fossil fuel operations on public lands account for nearly 25% of U.S. carbon emissions. More drilling accelerates climate change, with devastating economic consequences: 

• $16 million per hour is lost globally to climate-driven disasters. 

• $150 billion annually is spent in the U.S. alone to recover from extreme weather fueled by climate change. 

• By 2050, the global cost of climate damage will reach $3.1 trillion annually, a staggering burden we’re handing to future generations. 

A Choice for Our Future 

The world is moving away from oil. As renewables grow and climate impacts worsen, fossil fuel investments are becoming stranded assets. Drilling in the Arctic is a bet on climate failure—and we can’t afford to lose. 

The Arctic Refuge is more than a patch of frozen tundra; it’s a priceless ecosystem, a symbol of wild America, and a critical resource for subsistence communities. Short-term profits for oil companies should never outweigh the long-term health of our economy, environment, and society. 

Let’s make the right choice: protect the Arctic Refuge, prioritize renewable energy, and build a future that works for everyone—not just for fossil fuel executives. 

Sign our petition and tell oil companies: Don’t bid on Refuge leases!  

Photo Credit: Florian Schulz / Protect The Arctic