Oil & Gas Development
In October 2005, Shell Offshore Inc. bid on 33 blocks in the Alaska Peninsula Oil and Gas Lease Sale. The Alaska Department of Natural Resources accepted Shell as the highest bidder, at nearly $1 million. The blocks are cradled within the North Aleutian Basin, a large area encompassing Bristol Bay and the Bering Sea side of the Alaska Peninsula and Aleutians East Borough. The vicinity around Nelson Lagoon and Port Moller has been identified as having the greatest offshore potential.
However, the 1989 Exxon Valdez Oil Spill spurred an ongoing presidential moratorium on Outer Continental Shelf (OCS) exploration, which is critical to developing the region's offshore oil and gas reserves.
In addition, no activity can take place without the required permits in place. In the Bristol Bay region and the Alaska Peninsula, all activity on an oil and gas lease must be in compliance with the Alaska Coastal Management Program and local coastal management district plans.
There are other significant onshore and offshore oil and gas considerations being explored in the SWAMC region. Only time will tell if they bear fruit.