Administration expected to approve limited drilling at Alaska project

An environmental review expected soon would effectively signal that Project Willow is proceeding, according to people familiar with the report.

WASHINGTON — The Biden administration is expected to propose a scaled-down version of a massive oil drilling project in Alaska's North Slope, according to two people familiar with the decision. The proposal would allow drilling to continue on a limited basis under an $8 billion project known as Willow that climate activists have criticized for years.

The project, led by ConocoPhillips, has the potential to eventually unlock 600 million barrels of crude oil. Opponents say the decision undermines Biden administration promises to reduce fossil fuel use to limit the damage from climate change.

The Office of Land Management in Alaska is preparing to say it has selected a "preferred alternative" for development on Alaska's National Petroleum Reserve that calls for cutting the project from five drill sites to three, according to a person who consulted the draft report in recent days, and a second who was independently briefed on the content of the report. Both requested anonymity to discuss details of the plan.

The BLM action, which is expected in the coming days, is an environmental scan that includes options ranging from allowing five drill sites (the outcome ConocoPhillips sought) to not allowing drilling at all. This does not represent a final government decision, but it would effectively be a recommendation to proceed with a reduced drilling operation.

Separately, BLM and House officials Blanche are considering additional measures to reduce carbon dioxide emissions and environmental damage, such as postponing permitting decisions for one of the drilling sites and planting trees, according to one of the two people familiar with. with the plan.

The Home Office's final decision is expected to be released approximately next month. That decision will ultimately be made at the White House by President Biden's top advisers, multiple administration officials said.

The White House has not responded to a request for comment.

The decision to allow some drilling is widely seen as a balancing act as the Biden administration seeks common ground among its climate change goals and pressure from the oil industry, as well as from Alaska lawmakers. Willow is a particular priority for Senator Lisa Murkowski of Alaska, a moderate Republican who is often the senator most likely to break with her party and support Democratic nominations and certain political compromises.

ImageRepresentative Mary Peltola of Alaska expressed concern about the impact of the weather, while noting that the Alaska is financially dependent on oil and gas tax revenues. Credit ...Haiyun Jiang/The New York Times

The politics are complex. Mr Biden urged oil companies to increase production amid the Russian invasion of Ukraine, which continues to threaten energy supplies. At the same time, the administration is overseeing $370 billion in investments in wind, solar, electric vehicles and other clean energy to move the country away from fossil fuels.

To get these projects built, administration officials said reforms to federal permit laws are needed. But that effort has become deeply politicized, and some observers have said moderate Republican lawmakers like Ms. Murkowski of Alaska might be able to help break a deadlock.

"The Senate Majority is still shaky, and they need to keep Lisa Murkowski open to voting with Democrats on core issues like the debt ceiling, budget, and appropriations," said Wendy Schiller,...