ANWR Issue

2017 brought sweeping changes to the federal tax code and included massive tax cuts worth more than $1.8 trillion over a decade. In an effort to offset these costs, Congress opened the Arctic National Wildlife Refuge (ANWR), known as the 1002 Area, to oil and gas leasing for the first time. Although Congress estimated new revenue from the leases would total $1 billion, based on our analysis of potential revenues from leasing the 1002 Area, we concluded the $1 billion-dollar figure was nothing but a pipe dream. Realistically, we estimated taxpayers could expect about $9-$14 million from oil and gas leasing in ANWR, or less than 2 percent of projected revenues.

The lease sale held on January 6, 2021 yielded more dismal result than we predicted, bringing in around $8.2 million in bonus bids and rent revenues for federal taxpayers, or less than 1 percent of the revenue that Congress estimated. The return on leasing in ANWR does not justify the administrative costs and the potential liabilities that come with drilling in the region. Taxpayers are better served by limiting leasing in the region. The FY2022 reconciliation process is an opportunity to repeal leasing in the Arctic National Wildlife Refuge and protect taxpayers from potential liabilities. Read our issues brief to learn more about fiscal concerns with leasing in ANWR.

Read more about our analysis of federal oil and gas drilling and how taxpayers are not receiving a fair return when selling rights to these valuable federal lands:

Analysis: ANWR Lease Sale Yielded Abysmal Results

FAQ: Big Questions about the Oil & Gas Lease Sale in the Arctic National Wildlife Refuge

Report: Drilling in the Arctic: Broken Revenue Promises in ANWR

Our Take: Putting Your Money Where Your Mouth Is — ANWR Edition

Op-ed: Latest Arctic Lease Sale Harbinger of Bad Returns for Taxpayers

Our Take: 2019 Arctic Leasing Plan Stalled

Infographic: Arctic Oil and Gas Leasing

Op-ed: Drilling in the Arctic Won’t Offset Reconciliation’s Deficit Increase

In the News: The White House Saw Riches in the Arctic Refuge, but Reality May Fall Short

Our Take: House Appropriators Attempt to Secure Arctic Oil Revenues

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