Since the Arctic Refuge leasing program was established in 2017, there have been two lease sales, both of which were flops. No companies have current plans to drill in the Arctic Refuge.
The 2021 lease sale was a flop
For the 2021 lease sale, only three bidders showed up. Eleven of the 22 tracts offered were bid on, with nine leases actually awarded. The sale raised just over $14 million — less than 1% of projected revenue. Arguably, that lease sale flopped because of politics. President Biden had been elected and had indicated on the campaign trail that he was against arctic drilling. So maybe the oil companies stayed away because they thought their leases would be canceled. That’s part, but not all, of the story. The truth is that big oil companies aren’t interested in drilling in the refuge and in fact, most of them are not interested in drilling in the arctic at all.
- Chevron and Hilcorp paid $10 million to terminate their legacy leases in the Arctic National Wildlife Refuge.
- In response to a shareholder resolution asking the oil company to “[assess] the benefits and drawbacks of committing to not engage in oil and gas exploration and production in the AMAP area, particularly in the Arctic Refuge,” ExxonMobil informed its shareholders that the company has no plans for new oil and gas exploration or development in the refuge.
- ConocoPhillips shared that they have no plans to drive in the Arctic Refuge. They do have a large interest and leases in other parts of Alaska’s arctic region.
The 2024 lease sale was a flop
Between 2021 and 2025, the Department of the Interior took a new look at the leasing program, concluded that the first lease sale had been held without adequate environmental review and revamped the plan for offering leases. The 2025 lease sale was even more of a flop, with no bids and raising $0.
To protect the caribou, polar bears and migratory birds that depend on the coastal plain, there are very few areas that are suitable for leasing to oil companies. It turns out that the areas deemed suitable for drilling without harming wildlife were unattractive to potential bidders. So the lesson is that you can’t protect wildlife and drill for oil in the arctic.
What’s next for the Arctic Refuge?
President Trump issued an Executive Order on January 20, “Unleashing Alaska’s Extraordinary Resource Potential” which, among its many goals, aims to revert to the 2021 leasing program which prioritized oil production over wildlife protection. That may not be enough to get the oil companies to bid next time. Every major bank in the U.S. has said they won’t finance drilling in the refuge and more than 20 insurance companies have adopted policies to protect the refuge. Getting oil from the northern coast of the arctic means contending with a melting permafrost and the cost of getting the oil down from Alaska. They may decide to sit the next one out, too.
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Ellen runs campaigns to protect America’s beautiful places, from local beachfronts to remote mountain peaks. She sits on the Steering Committee of the Arctic Defense Campaign and co-coordinates the Climate Forests Campaign. Ellen previously worked as the organizing director for Environment America’s Climate Defenders campaign and managed grassroots campaign offices across the country. Ellen lives in Denver, where she likes to hike in Colorado’s mountains.
