U.S. Geological Survey: North Alaska Holds Vast Natural Gas, Oil Reserves

Scientists from the U.S. Geological Survey said this week that an area in Alaska could hold trillions-of-dollars-worth of natural gas and oil.

The U.S. Geological Survey said that Alaska’s North Slope shales could contain roughly half of as much natural gas as is located in the Marcellus shale in the contiguous U.S., which by some estimates holds more than $2-trillion-worth of the hydrocarbon. According to an analysis conducted by the organization, Alaska’s North Slope shales could contain not only as much as 80 trillion cubic feet of gas, but also more than 2 billion barrels of oil.

Scientists and geologists have long known that Alaska is home to large stockpiles of fossil fuels, but the latest projections from the U.S. Geological Survey surprised experts. The U.S. government has been loath to significantly expand oil and natural gas drilling in Alaska, citing environmental concerns, but with natural gas prices continuing their steady upward climb, public officials are increasingly mulling a shift in strategy.

The Obama Administration is facing mounting criticism over this year’s precipitous rise in oil prices. While experts noted the president is not at fault for the uptick in prices – the fault largely resides with ongoing political instability in the Middle East and surging demand from emerging economies such as Brazil, Russia, India and China – critics are pressing the administration to reconsider its opposition to oil engineering projects.

In January, President Obama formally rejected the proposed Keystone XL pipeline, which would have connected Canada’s production from tar sands with refineries in the U.S. While environmental advocates lauded the president’s decision, proponents argued it would have bolstered domestic energy supplies and reduced the nation’s reliance on oil and gas from the Middle East.

Nonetheless, the president said that his decision was not necessarily a condemnation of the pipeline project, but rather, a result of an expedited timeline that did not allow for a thorough environmental and engineering review. Bloomberg reports the administration is working with Alaskan officials to progressively open the state’s natural gas and oil reserves. Royal Dutch Shell is one of the first oil companies to take advantage of Alaska’s untapped fossil fuel stores, as it will begin drilling this year in the Chukchi and Beaufort seas off the North Slope.

Engineers from the U.S. Geological Survey said their projections on the state’s fossil fuel reserves were based on data obtained from drilling operations elsewhere, including those in the Marcellus shale, which holds an estimated 144 trillion cubic feet of gas.

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