ConocoPhillips has formally applied to the Bureau of Land Management for permission to drill four new exploratory wells and conduct seismic testing in Alaska’s National Petroleum Reserve. This initiative is part of the company’s ambitious strategy to expand its operations near the existing $7.5 billion Willow Project. The proposed drilling area is located west of Willow and includes plans for new access roads, well pads, and 3D seismic surveys across the Bear Tooth Unit, which directly borders Willow.
This move represents ConocoPhillips’ most significant exploration effort in the Arctic since 2020. The company aims to tap into new reserves that could enhance production capabilities in the Willow corridor, although it has yet to disclose potential volume estimates for the new exploration block.
Strategic Focus on Alaska
ConocoPhillips’ application comes amidst a broader push by U.S. President Donald Trump, who has consistently advocated for increased oil production, particularly in Alaska. The Willow project, which received approval in 2023 and is currently under construction, is projected to reach a peak output of 180,000 barrels per day. This makes it one of the largest oil developments in the United States in decades.
While the Trump administration has indicated a willingness to facilitate regulatory processes, the proposed expansion will still require thorough environmental reviews and permitting from federal agencies. As of now, there is no set timeline for when a decision on the drilling application will be made.
Market Considerations and Economic Impact
ConocoPhillips has placed a strong emphasis on Alaska in its capital plans for 2025, opting to reduce investments in the Lower 48 states. This strategy reflects the company’s belief that Arctic output will remain economically viable, despite fluctuations in global oil prices and favorable federal policies.
The filing from ConocoPhillips coincides with recent rankings by CNBC, which identified Alaska as a leading state for economic growth in 2025, largely due to its heavy reliance on oil revenues. In the fiscal year 2024, the price of Alaska North Slope crude averaged $85.24 per barrel. However, the Alaska Department of Revenue anticipates a decline in prices to $74.48 per barrel for the fiscal year 2025, followed by a further drop to $67 per barrel by fiscal year 2027.
This combination of new exploration initiatives and the evolving market landscape underscores the critical role of oil production in Alaska’s economy as well as the strategic interests of ConocoPhillips in the Arctic region.
