It has always been a bad idea – drilling in ANWR

The Guardian posted an article yesterday and it’s showing elsewhere too. The lease auction was expected to generate $900m, but alas the state of Alaska bought most of the leases for a total of $14m. It was always a bad idea

quote: “Alaska’s state-owned economic development corporation made almost all of the bids for the leases, in the hopes that oil companies will eventually be interested in the area. They spent $12m. Major oil companies steered clear of the auction. Only two lesser-known companies placed bids: Knik Arm Services, which is listed as a real estate firm, and Regenerate Alaska Inc., a subsidiary of 88 Energy.”

One source stated that Alaska has NEVER done this before and they do not have expertise to convert the leases to revenue (without selling) … so why did they do it? Because a <$5m auction when one expected $900m is odd … but $14m is not?

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