Environmental groups sue to stop ConocoPhillips' Alaska oil project

A coalition of environmental groups filed a lawsuit on Tuesday challenging ConocoPhillips' (NYSE:COP) Willow oil and gas project in Alaska, which the Biden administration approved earlier this week, saying the project's greenhouse gas emissions would undermine the U.S. government's climate goals.

The groups including the Natural Resources Defense Council, Center for Biological Diversity and Greenpeace asked a U.S. district court in Alaska to vacate the record of decision approving the project because the U.S. Interior Department finalized the approval without addressing flaws in the plan identified by a federal judge in 2021.

A separate lawsuit challenging the approval was filed Tuesday by the Sovereign Iñupiat for a Living Arctic along with the Sierra Club and others.

Meanwhile, ConocoPhillips (COP) wasted no time beginning work on the project, as the company reportedly already has started building ice roads inside the National Petroleum Reserve-Alaska to enable the movement of heavy equipment.

The Willow project would produce up to 180K bbl/day of oil at its peak, according to the company.

ConocoPhillips (COP) shares fell 6% in Wednesday's trading, as U.S. crude oil futures fell to the lowest level since December 2021.