Interior Department Cancels Arctic Offshore Lease Sales

Beaufort and Chukchi Sea Lease Sales will be Cancelled in Current Five Year Oil and Gas Program

10/16/2015
Last edited 02/15/2023

Date: October 16, 2015
Contact: Jessica Kershaw, Interior_Press@ios.doi.gov

WASHINGTON – In light of current market conditions and low industry interest, the U.S. Department of the Interior today announced that it will cancel the two potential Arctic offshore lease sales scheduled under the current five-year offshore oil and gas leasing program for 2012-2017. Today, the Bureau of Safety and Environmental Enforcement (BSEE) also denied requests from Shell and Statoil for lease suspensions, which would have extended the expiration date of the leases.  

“In light of Shell’s announcement, the amount of acreage already under lease and current market conditions, it does not make sense to prepare for lease sales in the Arctic in the next year and a half,” said Secretary of the Interior Sally Jewell.  “I am proud of the performance of Interior’s Bureau of Ocean Energy Management and Bureau of Safety and Environmental Enforcement, the U.S. Coast Guard and others in ensuring that Shell’s program this past season was conducted in accordance with the highest safety and environmental standards.”

Under the current Five-Year Program, Chukchi Sea Lease Sale 237 was scheduled potentially for 2016.  The Bureau of Ocean Energy Management (BOEM) issued a Call for Information and Nominations in September 2013, in response to which industry submitted no specific nominations.  Shell recently announced that the results of its exploration well at the Burger J site in the Chukchi Sea did not warrant further exploration in the Burger prospect. 

Similarly, Beaufort Sea Lease Sale 242 had been scheduled potentially for the first half of 2017.  BOEM published a Call for Information and Nominations in July 2014, but only received one nomination, thereby raising concerns about the competitiveness of any such lease sale at this time. 

Today, the Bureau of Safety and Environmental Enforcement (BSEE) also denied requests from Shell and Statoil for lease suspensions, which would have allowed the companies to retain the leases beyond their primary terms of ten years.  The leases will expire in 2017 (Beaufort) and 2020 (Chukchi).  Among other things, the companies did not demonstrate a reasonable schedule of work for exploration and development under the leases, a regulatory requirement necessary for BSEE to grant a suspension. To view the letters regarding the suspension requests, click here for Statoil and click here for Shell.

  • Press Release
    Winter view of oil and gas production in Alaska
    05/15/2026

    Interior Begins Process to Streamline Permitting in the National Petroleum Reserve in Alaska

    Today, Secretary of the Interior Doug Burgum announced the start of a new effort to streamline permitting for oil and gas infrastructure in the approximately 23-million-acre National Petroleum Reserve in Alaska. The effort comes in response to a petition for rulemaking from the Alaska Oil and Gas Association that requested the Bureau of Land Management amend its regulations to create a new development permit program in the petroleum reserve.

    Read more
  • Press Release
    Highway stretching toward tall rocky mountains with pine trees lining both sides under a blue sky
    05/06/2026

    Interior Transfers 1.4 Million Acres in Dalton Utility Corridor to State of Alaska

    Alaska – Today, the Department of the Interior announced a major Alaska statehood land transfer to convey approximately 1.4 million acres of land along the Dalton Utility Corridor to the State of Alaska. With conveyance of these lands north of the Yukon River, the Bureau of Land Management has fulfilled more than 96% of the state’s entitlement under the Alaska Statehood Act, expanding Alaska’s opportunities for resource development, strengthening local economies, and enhancing the state’s control of its own economic destiny.

    Read more

Was this page helpful?

Please provide a comment