Trump Administration Reopens 10 Million Acres in Alaska to Oil Drilling
The move reverses a Biden-era rule, aiming to expand domestic energy production and drawing immediate praise from industry and criticism from environmental groups.
The Trump administration has formally reversed a key environmental policy of its predecessor, reopening more than 10 million acres of the National Petroleum Reserve in Alaska (NPR-A) to future oil and gas development.
The U.S. Interior Department finalized the decision on Wednesday, November 13, rolling back a 2024 rule that had cordoned off vast swaths of the ecologically sensitive region from leasing. The move is seen as a significant victory for the energy industry, intended to bolster American energy security and provide a long-term runway for domestic production.
Energy stocks saw modest gains following the announcement. Shares of Chevron rose by approximately 1.5% in morning trading, while ExxonMobil and ConocoPhillips, a major operator in Alaska, registered smaller increases. The measured market reaction reflects the long-term nature of the policy, which unlocks potential resources rather than immediate production.
The new rule rescinds protections that designated nearly 13 million acres within the reserve as “special areas” and specifically maintained prohibitions on leasing across 10.6 million of those acres. Interior Secretary Doug Burgum said the action aligns with President Trump’s directive to “unlock Alaska’s energy potential, create jobs for North Slope communities and strengthen American energy security,” according to reports from the Associated Press.
The National Petroleum Reserve, a 23-million-acre region on Alaska’s North Slope, is the largest single unit of public land in the United States. Originally set aside in 1923 as an emergency fuel source for the U.S. Navy, its management has been the subject of a decades-long political tug-of-war between conservation and development interests.
For companies with a significant Alaskan footprint, the policy shift provides greater certainty for future exploration and investment. ConocoPhillips, which operates the large Willow oil project in the NPR-A, stands to benefit from the expanded access to adjacent areas. While the company has not issued a statement on the rule change, the broader access could de-risk future capital-intensive projects in the remote arctic landscape.
The decision was praised by state officials, with Alaska Governor Mike Dunleavy calling it a “step in the right direction” for the state's economy. Pro-development groups, including the Voice of the Arctic Iñupiat, also voiced support, citing potential economic benefits for local communities.
However, the reversal has been met with condemnation from environmental organizations, who warn that new drilling activity could threaten fragile ecosystems and wildlife, including caribou herds and migratory birds. The previous administration’s rule was designed to protect these habitats, and the reversal is expected to face swift and significant legal challenges.
The full impact of the policy change will unfold over several years, contingent on the outcomes of future lease sales, global energy prices, and the resolution of anticipated court battles. Still, the decision marks a clear pivot in federal land management and a powerful signal of support for the domestic oil and gas industry.