Through decades of Arctic experience, industry has shown that impacts to both onshore and marine mammal subsistence activity can be avoided and mitigated through close cooperation and communication with primary subsistence users. Moreover, major investments in research in the Arctic OCS over decades by industry, government, and academia provide a solid foundation for responsible development that minimizes risks to other resources and the environment. Furthermore, industry and regulators continue to adapt to the challenges of operating in the Arctic and new technologies will further ensure that development and environmental protection can coexist in the region. Operators have taken great strides to implement lessons learned and enhance prevention and response capabilities. Through smart planning, Arctic offshore energy development and subsistence lifestyles can be compatible.

Alaskans recognize the vital role oil and gas development plays in our state’s economy and more than 72 percent of residents support offshore development in the Arctic. One cannot overstate the importance of oil and gas to Alaska. Oil production accounts for more than one-third of the economic activity in the state. It provides and funds thousands of private and public sector jobs, as well as critical public services. It’s clear that Alaskans and our state’s economy would benefit significantly from increased oil production. In fact, the very concept of Alaska’s statehood is predicated on the development of our natural resources.

More than five decades ago when Alaska statehood was debated, many politicians in Washington, D.C. doubted this northern territory could build an economy and contribute to the union. Alaskans joined together to convince Congress that development of Alaska’s vast resources could establish and sustain a strong private sector economy. Washington responded by adding a 49th star to the American flag. We remind federal policy makers that Alaska was allowed to join the union because of the expectation that the development of our natural resources would sustain our economy.

Now, more than 50 years later, Alaska’s economic lifeline, the Trans-Alaska Pipeline System (TAPS), is starved for oil. It’s not because we have depleted our natural resources. In fact, there is more oil in place onshore and offshore the North Slope than what we have developed since statehood. The challenge is achieving access to the resource.

TAPS has played a critical role in our nation's energy security, carrying more than 17 billion barrels of oil to West-Coast markets. It is a critical and strategic link to the nation’s long-term energy security. However, throughput in TAPS peaked at 2.1 million barrels per day in 1988 and the pipeline is now running at three quarters empty. With its enormous resource potential, the Alaska OCS likely contains enough oil to at least double TAPS throughput, extend the longevity of the pipeline, and sustain our state’s economy for decades.

It is vital that the United States maintain opportunities to develop offshore oil and gas, particularly in the resource-rich Beaufort and Chukchi seas. The region holds an estimated 27 billion barrels of oil and 132 trillion cubic feet of natural gas. It would constitute the eighth largest oil resource in the world, ahead of Nigeria, Libya, Russia, and Norway. Development of these immense energy resources would create an estimated 54,700 jobs and $193 billion in government revenue.

As the Proposed Program notes, the Arctic areas are especially promising to help meet the country's long-term energy needs. Energy development in the U.S. Arctic would also significantly bolster the nation's influence in a strategically critical area, bring much needed infrastructure to the region, and provide additional response capabilities in an area where shipping and other activities are increasing. Moreover, OCS development would also reduce economic risks for the proposed Alaska LNG Project, a clean energy priority of the Obama administration.

RDC and many Alaskans share President Obama’s view that America needs to conserve more and put new emphasis on renewable and alternative energy. By doing so, the nation can ultimately break its heavy reliance on fossil fuels. However, America still needs to pursue oil and gas production, given the fact it will take decades before renewable energy becomes a dominant energy source. Moreover, Alaska OCS production will be needed to offset a projected sharp decline in shale production in the coming decades.

For the benefit of Alaskans as well as businesses and consumers across the country, RDC respectfully urges BOEM to continue to include leasing opportunities in the Chukchi and Beaufort seas, as well as Cook Inlet, in the final plan. Given the extensive areas that have been removed from leasing in recent years, RDC strongly opposes additional exclusions and closures – actions that will have the same effect of closing an area to leasing. We also support efforts to expand revenue sharing to all states with adjacent offshore oil and gas activity, including Alaska. Revenue sharing would ensure Alaska is adequately positioned to bear the costs related to offshore development and have access to the same benefits as other states with offshore activity.

RDC appreciates the opportunity to comment on the Proposed Program and DPEIS.

Sincerely,

Resource Development Council for Alaska, Inc.