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High Energy Costs Drive up Inflation, Call for Domestic Oil

Mar 10, 2022

As rising energy costs continue to drive up inflation, Alaska Governor Mike Dunleavy calls, again, upon President Joe Biden to offer Americans relief by removing the federal roadblocks to domestic oil and gas production.

“A gallon of gas in Anaktuvuk Pass is $9.95. Alaska is awash in energy, but not able to capitalize on it,” Governor Dunleavy said. “Mr. President, we know you can help with this.”

The Consumer Price Index rose 7.9 percent through February, the fastest pace of annual inflation in 40 years, according to a news release today by the Bureau of Labor Statistics. Energy prices were already on the rise before Russian President Vladimir Putin’s war on Ukraine. The gasoline index rose 6.6 percent in February. Today’s CPI does not capture today’s soaring gas prices from that invasion. Now, Russia’s sidelined oil without buyers has reduced global petroleum supplies and shot up the price for crude oil to $130/barrel. 

The energy index increase will have great impact on Alaska as it will affect the cost of everything that is shipped in, including fuel imports by barge to communities off the road system.  

In his address Tuesday, President Joe Biden banned imports of Russian oil and gas, praised green energy, yet did not undo regulations and policies that shackle the production of U.S. oil and gas.

“Mr. President you said your policies are not holding back domestic energy production. This will be a true statement when you reverse course and allow energy projects to get back on the track they were on before you took office,” said Governor Dunleavy. “You can lower the price at the pump for Americans by expediting the permitting and regulating processes on responsible oil and gas projects. The U.S. should not be begging for oil from dictatorships such as Iran and Venezuela. We can produce it at home with the highest of standards for environmental protection, if you will simply let us.”

Here is a list of Alaska energy projects stalled or stopped by your Administration. Some of them will factor into our nation’s energy security.

  • Defend the Willow project in the National Petroleum Reserve-Alaska, NPR-A. Your administration did not appeal a federal court judgment that reversed an approval. Defend the project in the supplemental EIS. With a resource estimate of 450 million to 800 million barrels of oil equivalent, Willow is the largest standalone oil development on the North Slope in more than 20 years. It is nearly shovel ready, could be built by 2025-2026, and would supply some 160,000 barrels of oil per day.
  • Restore the leases your administration suspended on oil and gas in ANWR, the Arctic National Wildlife Refuge.
  • Undo the recently reverted management plan of the NPR-A, which prohibits development on 6.7 million acres. Between the development of NPR-A and the 1002 Area of ANWR, Alaska could place an additional ~17 billion barrels of oil and an additional 32Tcf of gas in the marketplace.
  • The Alaska Gasline Project has key permits and federal loan guarantees in place. A Wood Mackenzie report estimates that Alaska’s LNG pricing would be lower than that of other U.S. projects competing for the same Asian market. Your Administration can stop issuing anti-fossil fuel statements to encourage investment in domestic energy production. 
  • Withdraw your motion for remand in February to the Ambler Road project. If allowed to be developed, the project would provide a supply of strategic minerals needed for renewable energy projects, electronics, and military defense.
  • Lift the pause on federal oil and gas lease sales