|
|
| Fig. 1: Oil Reserves in Alaska. [2] (Source: A. Ganesh) |
The State of Alaska holds the distinction of being the largest state by land area in the United States, while also maintaining a prominent position as a major player in the global oil industry. The oil sector represents a substantial portion of Alaska's economy, accounting for half of the state's gross domestic product and providing employment opportunities for approximately one- quarter of its workforce. Since the initial discovery of oil reserves in 1957, Alaska has experienced numerous subsequent discoveries, resulting in the recovery of billions of barrels of oil. [1]
Since 1980, the Alaskan crude oil reserves have experienced nearly a fourfold reduction. Specifically, in 1980, the estimated amount of oil was approximately 8751 million barrels. However, by 2020, this number had dwindled to a mere 2423 million barrels. [2] While it may appear that the decline in Alaskan oil reserves is solely due to natural depletion, it is essential to acknowledge the regulatory role played by the government in curtailing oil acquisition in specific protected areas of Alaska. The Alaska National Interest Lands Conservation Act of 1980, for instance, prohibited drilling for oil in designated areas. Similar Acts that enforced comparable laws contributed significantly to the reduction in Alaskan oil acquisition. It is imperative to acknowledge that the upsurge in oil reserves subsequent to 2016 does not necessarily signify an increase in resources. Rather, it is more probable that the advancements in oil extraction technologies have facilitated the extraction of more oil from the existing reserves. The current estimates only reflect the amount of oil that can be extracted. In recent years, technological advancements such as horizontal drilling have enabled the extraction of a higher volume of oil from the ground. [3] Moreover, it is critical to recognize that there exists an ongoing debate regarding Alaska's territorial boundaries as they pertain to oil exploration. It has been proposed that significant oil reserves might lie beneath the continental shelves of the Arctic. However, there remains a lack of clarity and consensus regarding the precise demarcation of the boundary between Alaska and the open Arctic Ocean. The delineation of this boundary would be crucial in determining the extent of Alaska's jurisdiction over these potential oil reserves
Alaska continues to assert its dominance as a significant player in the global oil market. Although the government's participation has at times impeded the acquisition of this valuable resource, recent legislative actions have resulted in the lifting of drilling bans in select regions. Should the government remove all restrictions on oil extraction, it is plausible that Alaska will achieve unprecedented levels of drilling.
© Ananya Ganesh. The author warrants that the work is the author's own and that Stanford University provided no input other than typesetting and referencing guidelines. The author grants permission to copy, distribute and display this work in unaltered form, with attribution to the author, for noncommercial purposes only. All other rights, including commercial rights, are reserved to the author.
[1] C. M. Naske and H. E. Slotnick, Alaska: A History, 3rd Ed. (University of Oklahoma Press, 2014).
[2] "Proved Reserves of Crude Oil and Natural Gas in the United States, Year-End 2021," U.S. Energy Information Administration, December 2022.
[3] "Alaska National Interest Lands Conservation Act," Pub. L. 96-487, 94 STAT 2371, December 1980.