The Citizen (Gauteng)

Outcry as Trump auctions off Alaska oil rights

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US President Donald Trump’s administra­tion auctioned off 11 oil leases in the Alaska National Wildlife Refuge on Wednesday, in a last-ditch move to expand drilling in the areas coveted by some petroleum producers before he leaves office.

Major oil companies, however, sat out bidding for tracts in the environmen­tally sensitive area and nine of the leases went to the

Alaska Industrial Developmen­t and Export Authority, a state agency, while two went to small companies.

The sale raised $14 million (about R214 million).

The White House announced the plan to go ahead with the sale in mid-November, just weeks after Trump lost his re-election bid to former Democratic vice-president Joe Biden.

An area long sought by petroleum interests and defended by environmen­talists, drilling in the refuge was authorised in the 2017 tax reform legislatio­n. But some major banks have said they won’t finance projects in the refuge and environmen­talists continue to battle the plan in court.

Interior Department Deputy Secretary Kate McGregor described the sale as a “truly historic” event that will “result in economic benefits to Alaskans and the nation, as well as contribute to [increasing] domestic energy production and job creation”.

The Alaska Wilderness League blasted the move and condemned the sale as “an utter failure” which is “less than one percent of the $1.8 billion promised by the Tax Act when the Arctic Refuge leasing was mandated”.

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