Drilling in the Arctic Refuge: A Bad Deal
The push to drill for oil in the Arctic National Wildlife Refuge has long been justified by promises of major federal revenue. But history—and math—tell a different story. Arctic drilling is a speculative gamble that puts taxpayer dollars and public lands at risk.
Beyond the financial shortfall, proposed leasing threatens the region’s thriving outdoor recreation economy—a sector that supports local communities and generates billions in economic activity. The two pieces below—a recent column and a detailed TCS report—lay out the real costs to taxpayers and the broader economic implications of Arctic drilling.
Op-Ed: “Stop Gambling Taxpayer Dollars on Arctic Drilling Delusions”
By Steve Ellis and Patrick Berry, published in The Hill
The numbers don’t lie: Arctic drilling has failed to deliver for taxpayers. The first lease sale in 2021 raised just $16.5 million—almost entirely from a state-backed entity at the minimum bid. The second sale, in 2025, drew zero bids. Meanwhile, the outdoor recreation industry in Alaska—anchored in part by the Arctic Refuge—generates more than $3 billion annually and supports 6% of the state’s jobs. This op-ed argues that relying on Arctic Refuge lease revenues to fund tax cuts isn’t just fiscally reckless—it threatens a sustainable, job-creating sector and irreplaceable public lands.
Report: “Learning from Past Mistakes: Arctic Refuge Leasing Is Not a Reliable Revenue Offset”
By Taxpayers for Common Sense
This in-depth analysis dismantles the myth that Arctic Refuge drilling can deliver meaningful returns for the federal budget. Drawing on two decades of lease data from Alaska’s North Slope, the report finds that future sales in the Arctic Refuge would likely generate just $3 to $30 million—nowhere near the billion-dollar claims used to justify opening the area to drilling. The January 2025 sale attracted no bids. The 2021 sale raised $16.5 million, mostly from a state agency. ANWR leasing is a fiscal fiction, not a budget solution.
Want to Learn More?
For deeper background on the costs, consequences, and false promises of Arctic drilling, explore our additional resources. From legislative analysis to budget breakdowns, we lay out the facts and follow the money.
- Here We Go Again: New Arctic Refuge Oil & Gas Lease Sales Required under Reconciliation Bill, May 29, 2025 | 5 min read
- FAQ on the Arctic National Wildlife Refuge, April 14, 2025 | 18 min read
- Five Fast Facts about Oil and Gas Leasing in the Arctic National Wildlife Refuge, Jan 9, 2025 | 4 min read
- Zero Industry Interest in Second Oil & Gas Lease Sale in the Arctic National Wildlife Refuge, Jan 9, 2025 | 5 min read
- ANWR lease sale yielded abysmal results, Sep 6, 2023 | 5 min read
- Sale of Drilling Leases in Arctic Refuge Fails to Yield a Windfall, Jan 7, 2021 | 11 min read
- Trump auctions Arctic refuge to oil drillers in last strike against US wilderness, Jan 6, 2021 | 9 min read