State should bid on ANWR leases

Frank Murkowski has a great idea for dealing with the ANWR oil leasing issue.

Murkowski, Alaska’s governor from 2002-2006 and United States Senator from 1981-2002, says the state should bid on the leases at the federal sale scheduled for January 6.

Murkowski says the bids should be high enough to meet the minimum bids set by the Bureau of Land Management but low enough to avoid discouraging any company serious about developing the better prospects in the Arctic National Wildlife Refuge.

Murkowski’s proposal is aimed at overcoming the dual problems that the price of oil is currently low and President-elect Joe Biden says he will try to end oil and gas development in the Arctic.

Most of the major companies have already announced that they support the long-term phase-out of fossil fuels and are onboard with the drive to end oil and gas development in the Arctic. They plan to be active in whatever comes next.

The oil and gas beneath Alaska’s ANWR lands has real value and will be needed in the years ahead when the nation gets back to meeting its near-term needs while getting on with the critical job of converting to new fuel sources.

Alaska could draw on assets in the Permanent Fund to pay for the leases and hold them as a long-term investment.

Biden is well-intentioned in that the world needs to phase out the burning of fossil fuels but that can only be done as we phase in renewal energy sources. Oil and gas will be essential fuels for many years to come and gas seems likely to play an important role in the transition to renewable energy sources.

The role of gas in the years ahead is already becoming obvious with the growing use of electric vehicles. Even I look forward to driving an electric car someday although I currently have a 20-year-old gasoline-burning Volvo that hopefully can keep going for more years to come.

The oil and gas potential of acreage on the coastal plain of the Arctic National Wildlife Refuge has been known for many years. The area is east of the Prudhoe Bay area where the big discoveries of years past have already been developed.

Frank Murkowski has long been a supporter of the move to develop Alaska’s oil and gas potential. He has been an advocate for such issues both as a United States senator and as governor of Alaska.

Leasing and developing the oil and gas potential of ANWR has been controversial largely because of efforts by environmental activists to drive the energy companies out of Alaska. But their attacks have been misguided.

I worked at Atlantic Richfield Company, better known as ARCO, in the years after its 1968 discovery at Prudhoe Bay. I saw how ARCO, Exxon and the other companies operated and can report that they were extremely cautious and careful to avoid disturbing the wildlife and other natural assets in the areas they were working.

The major companies have long been good stewards of the lands and waters in and near their operating areas. I have seen their work firsthand and listened to the arguments of the environmental extremists who always try to discredit them. That experience convinced me that the companies do good work. If the ANWR leases are developed they can and will be brought to production in a responsible and environmentally sensible manner.

The oil and gas beneath the coastal plain will be valuable assets and Murkowski’s idea of having the state of Alaska play an active role in a federal lease sale seems a very good one.

Tom Brennan is an Anchorage columnist and author of six books. He was a reporter/columnist for The Anchorage Times and an editor and columnist at The Voice of The Times.