Nine months into the Biden administration approved that, ConocoPhillips Inc. Announced has officially sanctioned full development of its massive Willow oil project on Alaska's North Slope.
โWe are excited to reach this important milestone,โ Ryan Lance, president and CEO of ConocoPhillips, said in a statement about the final investment decision. "With the authorization of this project, we have begun winter construction and Alaskans have begun to receive the benefits of responsible energy development."
Willow, with estimated reserves of 600 million barrels expected to be produced over its lifetime, will be one of the largest North Slope oil fields to come online. From its location within the National Petroleum Reserve in Alaska, it will also become the westernmost producing oil field on the North Slope. First production is expected in 2029, according to the company.
Construction is already underway and about 800 employees and contractors are working on the project, according to the company. The project has the potential to create more than 2,500 construction jobs and 300 long-term jobs that will endure beyond construction, the company said in its statement.
Alaska political and business leaders welcome the project as critical to preserving North Slope oil operations. Willow is expected to supply up to 180,000 barrels per day at peak operation, representing more than a third of average daily production in the fiscal year that ended June 30.
North Slope oil production peaked in 1988 at more than 2 million barrels per day and has declined since then as fields aged and depleted.
Lance, in the company's statement, referred to the support of the project in Alaska.
โWe are grateful for the many supporters who advocated for Willow. Alaska Native communities and groups, especially those closest to the project on the North Slope, continually provided input that helped shape this project. โWe also appreciate the unwavering support of Alaskaโs bipartisan congressional delegation โ Senators Lisa Murkowski and Dan Sullivan and Representative Mary Peltola โ the state legislature and organized labor groups,โ she said.
However, environmentalists and some Native organizations have criticized the project and the Biden administration for approving it. A lawsuit challenging that approval remains active at the appeals court level. Earlier this week, the Ninth Circuit Court of Appeals rejected a request of environmental plaintiffs for an emergency injunction prohibiting winter construction. The court also scheduled a hearing for February 4 in San Francisco for arguments in the legal dispute.
