Second Legally Mandated Lease Sale in the Arctic Refuge a Complete Failure, Receives No Bids

The Biden administration just concluded the second legally mandated lease sale in the Arctic Refuge. It should come as no surprise that this lease sale in the most cherished National Wildlife Refuge in America was even more of a failure than the first. The Arctic National Wildlife Refuge leasing program—originally projected to yield $2.2 billion—was sold in the 2017 Tax Act as a shortsighted attempt to lower the deficit. But that budget estimate has now been tested in the real world twice, and one thing is clear: the American people were sold a lie. 

“The message is clear: this land is not meant for resource extraction,” said Nicole Whittington-Evans, senior Alaska program director for Defenders of Wildlife. “The lack of industry interest underscores that this is a terrible idea. Going forward, we must remain committed to protecting this iconic landscape. The Arctic National Wildlife Refuge is a national treasure known for its irreplaceable wildlife and is considered sacred by the Gwich’in people.”  

Even oil companies recognized that drilling in the Arctic Refuge doesn’t make financial sense and is not worth the risk: no major company showed up to the first lease sale in January of 2021, and no entities bothered to bid in the most recent sale either. 

The fact that the second lease sale was, as predicted, a massive failure demonstrates that drilling in this fragile, irreplaceable Arctic landscape is not only a bad business decision but also raises doubts about the motivation of any decision maker or member of Congress that continues to push for development. The fact that banks won’t fund it, insurance companies won’t underwrite it, and drilling in the Refuge has broad, long-standing opposition from the Gwich’in Nation and the American public clearly show that there is nothing to be gained, but much to be lost from developing this irreplaceable landscape. 

Members of our coalition, alongside the Gwich’in Steering Committee, Tribal Governments, and Iñupiat allies shared the following statements,

“Today – for the first time in many years – the Gwich’in people celebrate that there are no active threats to Iizhik Gwats’an Gwandaii Goodlit. But we also recognize that as others have sought to profit from this land before, threats to it still remain,” said Kristen Moreland, Executive Director of the Gwich’in Steering Committee. “We reaffirm our commitment to seeing it permanently protected and remain steadfast in protecting our way of life for our future generations.”

“Today marks a significant success in protecting the Arctic Refuge,” says Curtis Gilbert, First Chief of Arctic Village Council. “The total failure of the second lease sale demonstrates the overwhelming public opposition to oil and gas drilling in the Refuge. We continue to maintain our unrelenting opposition to any development on these sacred lands– grounds that are not only central to our cultural and spiritual identity, but fundamental to the subsistence way of life that has sustained our people for countless generations.” 

“Our communities are celebrating this momentous win today,” said Raeann Garnett, Tribal Chief of Native Village of Venetie Tribal Government. “Gwich’in people have always known that oil and gas drilling in the Refuge was not only a violation of our human rights as Indigenous people, but that it is unpopular and simply a bad business decision. Though we may be celebrating today, we remember that this is a signal that permanent protections for the Arctic Refuge is the only path forward." 

"Drilling in the Arctic National Wildlife Refuge is bad for the Gwich’in and other Indigenous Peoples who depend on the land and animals in the region; it's bad for the wildlife; it's bad for the planet; and clearly, it's bad for business,” said Desirée Sorenson-Groves, President and CEO of the National Wildlife Refuge Association. “It's time to protect the Arctic Refuge once and for all and take drilling off the table." 

“The oil industry’s glaring lack of interest in this sale – combined with the undeniable realities of climate change and massive public opposition to drilling in the Arctic Refuge – should make it obvious to everyone that there is no legitimate reason for the federal government to have a leasing program for the sacred land of the coastal plain,” said The Wilderness Society’s Alaska Senior Manager Meda DeWitt. “Besides being economically unsound, attempting to drill there would cause irreparable harm to the calving grounds of the Porcupine Caribou Herd and threaten the Indigenous communities that rely on the caribou to sustain their people and cultures,” DeWitt added. “It is time for Congress to recognize the absurdity of this leasing program and take action to permanently protect this sacred land.” 

“The Arctic National Wildlife Refuge is cherished internationally for its ecological value and held to be a sacred place by neighboring Gwich’in communities – this is no place to drill for oil,” said Erik Grafe, an attorney at Earthjustice who lives in Anchorage. “It’s unsurprising, then, that no major oil companies showed up to bid. They seem to understand that drilling in this remote landscape is too risky, too complicated, and just plain wrong. The incoming Trump administration still hasn't gotten the memo, and has vowed to keep trying to sell the Refuge for oil. We'll continue to use the power of the law to defend this cherished place, as we have for decades.”

“This lease sale was a complete failure, plain and simple,” said Athan Manuel, director of Sierra Club’s Lands Protection Program. “Big Oil and Gas CEOs recognize that drilling in the Arctic Refuge is all risk and no reward, and it’s opposed by the Gwich'in Nation, who depend on the Refuge for their survival  . Companies won’t bid for it, banks won’t fund it, and insurance companies won’t underwrite it. That should make it clear we need to focus on preserving these landscapes for the next generation, not sell them off chasing private profit.” 

“Zero bids in a federally mandated lease sale for extraction for profit from sacred lands stewarded by Indigenous Peoples. The message couldn’t be clearer. With Secretary Haaland’s cancellation of leases held by the Alaska Industrial Development and Export Authority, there are currently zero leases in the Coastal Plain for the first time in years! It’s time for the oil and gas industry to leave these lands and peoples. It’s time to do away with this mandated leasing of our magnificent Coastal Plain of the Arctic National Wildlife Refuge and heed the leadership of the Gwich’in Nation,” said Janet MacGillivray, Executive Director of Seeding Sovereignty.

“Today’s complete lack of bids is Déjà vu all over again. Congress’s push to drill in the Arctic Refuge is a losing strategy,” said Kristen Miller, executive director of Alaska Wilderness League. “The first lease sale was a resounding failure, and now the second hasn’t attracted a single bidder. It’s clear that the only people clinging to this nonsense plan are drilling proponents in Congress more interested in advancing self-serving rhetoric than protecting one of America’s most iconic wild places.” 

“World Wildlife Fund has long held that the Coastal Plain of the Arctic National Wildlife Refuge is no place for oil and gas activities, in solidarity with Alaska Native communities that call the region home,” said Steve MacLean, Managing Director, U.S. Arctic Program at World Wildlife Fund. “Based on the failure of today’s lease sale, it’s clear that even fossil fuel companies recognize that it makes no sense to drill in this national treasure, economically or environmentally. Instead of looking for additional lease opportunities, we should be looking for economically viable, alternative livelihood solutions that will support local communities in a just transition away from fossil fuels and new drilling."

“The effort to drill on land sacred to the Gwich’in people and essential to Arctic health and future generations needs to end once and for all,” said Brook Brisson, senior staff attorney for Trustees for Alaska. “Americans want this place protected, and the oil industry has again shown no interest. It’s time to shift to energy solutions that work for everyone.”

“This is great news for the lands and waters of the Arctic National Wildlife Refuge, which are essential to the health and culture of Indigenous communities across the region,” said Sean McDermott, Arctic Program Coordinator with the Northern Alaska Environmental Center. “Both mandated lease sales were economic failures, proving again how unpopular and impractical it is to pursue oil and gas development in the Refuge. It’s time for these ecosystems to be permanently protected, and for the well-being of local communities to come before politics.”

“The oil and gas industry confirms—again—what’s long been obvious: the Arctic Refuge is no place for extractive industry,” said Garett Rose, senior attorney at NRDC.  “This landscape is one of the Nation’s ecological crown jewels and of overriding importance to the Gwich’in people and the communities that stand with them. Oil and gas development has never and will never make sense there.”

“We stand alongside indigenous communities in celebrating the failure of these lease sales”, said Sarah Furman, Co-Executive Director of the Fairbanks Climate Action Coalition. “The ongoing push for extraction in the refuge is a threat to fragile ecosystems and the health and culture of local communities. It’s time to permanently protect these lands, move away from fossil fuel extraction and invest in alternative energy sources.”