ConocoPhillips' huge Alaska oil project approved by Biden administration
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The Biden administration gave formal approval Monday for development of the Willow oil drilling project on Alaska's North Slope, while blocking future drilling on more than 13M acres in Alaska and the Arctic Ocean.
With the new authorization from the U.S. Department of the Interior, ConocoPhillips (NYSE:COP) will be permitted to drill from three locations across its Willow site in the National Petroleum Reserve-Alaska.
The company originally sought to drill from five well pads at Willow and that anything short of three locations would not be viable.
ConocoPhillips' (COP) $8B plan is expected to produce ~600M barrels of oil over 30 years.
Climate activists said they were happy the Biden administration plans to protect the Arctic but are angry that it would approve a project they call a "carbon bomb," and the decision is sure to trigger legal challenges from environmental groups.
ConocoPhillips (COP) shares -0.9% in Monday's trading, with most energy companies declining along with oil prices in the wake of the failures of Silicon Valley Bank and Signature Bank.