U.S. DEPARTMENT OF THE INTERIOR

BLM Alaska Oil and Gas

Oil and gas leasing on Alaska’s Federal lands is concentrated in two regions: the Cook Inlet Region on both sides of the Cook Inlet and in the National Petroleum Reserve–Alaska (NPR-A). Exploration and production in the Cook Inlet Region began in the 1950s and continues to contribute to Alaska's economy and energy needs. Exploration in the NPR-A has three distinct exploration periods; the first two were government-led efforts from 1945-1952 and 1975-1981 and resulted in several discoveries but no sustainable production.  The third period of exploration has followed the 1999-2010 lease sales in the NPR-A. This exploration has resulted in several discoveries. 

The BLM administers the Federal onshore oil and gas leasing program and issues permits for geophysical exploration, and permits to drill oil and gas wells, and authorizations to construct pads and install production facilities. Oil companies pay lease rentals and royalties on oil and gas production to the Office of Natural Resource Revenue.  The State of Alaska receives 90% of these bonuses, rents, and royalties from the oil and gas leases in the Cook Inlet Region and 50% of the bonuses, rents, and royalties from the NPR-A.