Alaska Oil Lease Sale Draws Record $163M Bids as Majors Return

A U.S. Bureau of Land Management lease sale for 625 tracts across Alaska’s National Petroleum Reserve attracted record bids totaling $163 million in May, as Exxon, Shell, ConocoPhillips, Repsol and Santos returned to a region long sidelined by high costs and environmental opposition. The sale signals renewed strategic interest in Alaskan conventional oil amid a global supply crunch. ConocoPhillips’ 160,000-barrel-per-day Willow project, approved in late 2020, and Santos’ Pikka project—expected to add 80,000 bpd by the third quarter of 2026—are the state’s only recent greenfield developments. Alaskan production has slumped from 2 million bpd two decades ago to below 600,000 bpd. The Middle East war has removed an estimated 14 million to 15 million bpd of global supply, making Alaskan projects more competitive. A proposed $40 billion Alaska LNG export plan has also drawn fresh interest after the conflict choked off 20% of global LNG supply. Santos’ Alaska head Bruce Dingeman called the lease sale “a vote of confidence” in the region’s geology and regulatory environment.