The Trump administration has announced plans to hold six oil and gas lease sales in Cook Inlet over the next six years, starting next March.
The plan "ensures Alaskans benefit from new jobs, stronger local economies and long-term investment in their communities," the Interior Department said in an emailed statement.
Southcentral Alaska depends on natural gas from Cook Inlet for heat and electricity generation, but industry has shown only mild interest in the area in recent years.
It takes more than a lease sale to boost production, said Larry Persily, a former Kenai Peninsula Borough official for oil and gas matters.
“ That's the first step. But there's not really a shortage of opportunities in Cook Inlet. There's more a shortage of capital and interest," he said. "So I guess the first test we'll see is who bids in March of 2026.”
Hilcorp is the primary producer of Cook Inlet gas. It has been the only bidder in the last two federal offerings. The company has warned that it may not be able to supply enough gas by 2027 to meet Southcentral’s demand.
Persily said the newly announced lease schedule doesn’t solve the near-term problem.
“Because by the time you have a lease sale and you get permits and you explore and you find something to turn to production, it's probably not going to come in time," he said. "So dealing with the Southcentral gas shortage is going to have to come from existing leases" or outside the region.
The offshore oil and gas leasing plan announced this week was mandated by Congress in the reconciliation bill it passed in July.
