Currently, much of the United States’ domestic oil is extracted from Texas by smaller domestic oil and gas producers such as Triple Diamond Energy Corp. However, Texas isn’t the only place in the U.S. where massive amounts of oil and gas are located.

Prudhoe Bay Alaska

In the United States, the largest oil field currently producing oil is located in North East Alaska.  Since 1968 the oil field known as Prudhoe Bay has been continuously producing oil for the US market.  17% of the domestic oil in the United Sates is produced in Prudhoe Bay and transported by using the Trans-Alaskan Pipeline.  The pipeline brings the oil from the oil field in Alaska to the port of Valdez.  From the port the oil is brought to the lower states with the use of tankers. 

Over the years, oil production in Prudhoe Bay has slowed and now oil companies have started considering the area to the east of Prudhoe Bay.  Geologists have found that large reserves of oil are present just to the east of the current oil field. 

The Barriers to Discovering New Oil Reserves in Alaska

Unfortunately, the land to the east of the oil field is the Artic National Wildlife Refuge.  The political and environmental impact of searching for gas resources in an established wildlife refuge has prevented any serious exploration.

The refuge in question is made up of 19 million acres of completely undisturbed land that has been officially set aside since 1987.  Both the United States and Canada signed an agreement that would help ensure the survival of natural Alaskan wildlife like the caribou. 

By establishing the refuge, both countries hoped to protect the herd from being disturbed or destroyed by development.  Efforts have been made to authorize expurgation in the Artic National Wildlife Refuge but the Senate and President have continuously opposed or overturned bills and proposals that allowed the refuge to be disturbed. 

Where to Drill?

The same geologist reports that initially caused interest in the area have also led to difficulty in starting exploration.  In 1988, a Geological Survey reported that the oil reserves would be found in the central and eastern parts of the reserve.  A decade later a new survey claimed that the reserves would actually be found in the western part of the refuge.  With looming doubts about where exactly to drill, even the most determined political official is hesitant to send in United States oil companies to begin exploration. 

In addition to the concerns that the entire refuge could be destroyed while attempting to find the oil reserves, there are concerns over whether the exploration is truly feasible.  It has been estimated that the oil reserves located underneath the refuge are between 8 billion and 16 billion barrels.  With the current daily demand of gas in the United States, the gas produced from these reserves would last only two years at best. 

In the event that the government does decide to explore the refuge, domestic companies will be utilized in order to extract the oil required for reserves while taking care to cause as little environmental impact as possible.