Paul Fuhs: AIDEA leads the way in Alaskan development

By PAUL FUHS

July 14, 2026 – I commend the Board of Directors and Executive team at AIDEA, the Alaska Industrial Development and Export Authority for its recent actions in development of ANWR on Alaska’s North Slope, the Golden Goose of Alaska’s economy.

These actions are entirely consistent with Alaska statute Chapter 44.88 which established AIDEA and charged them to “promote development and advance the general prosperity and welfare of Alaskans.” The subsequent passage of Section AS44.88.800, the Arctic Industrial Development Fund, further mandated this approach in Alaska’s Arctic regions.

AIDEA’s actions in securing leases in the 1002 area of ANWR, when others put their tail between their legs and ran, could be one of the best investments that Alaska has ever made.

AIDEA spent $13 million to secure 365,000 acres of land and then in another lease offer acquired three more lease sites for $3.5 million. To identify the potential on these sites, and to direct an actual drilling prove up program, the Board of Director appropriated $190, 000 for a 3-d Seismic exploration program.

Alaskans should be thankful that AIDEA has $1.7 billion in assets so can easily purchase these leases and bring them to commercial operation.  If this proving up operation is successful, the returns to Alaska will be substantial. In a proven field, the standard government to corporate split it typically 60% government and 40% industry under production sharing agreements.

This would dwarf the current state oil and gas taxation structure where industry takes all the risk of exploration.  It would also put AIDEA in the position to transfer substantial revenues to the Alaska general fund and permanent fund in addiiton to the $475 million AIDEA has already paid the state over the years under Section AS44.88.088 of their governing statute.

The 1002 area of ANWR, which was set aside by Congress within the refuge for potential oil and gas development at the insistence of a visionary President Eisenhower, has long been identified as a highly prospective petroleum development area.

US Geological Survey estimates that the area holds up to 16 billion barrels of oil, making It almost equivalent to the Prudhoe Bay development.

The recent settlement of a court case with the Department of Interior further validates the AIDEA’s leases after attempts by the Biden administration to cancel them and further authorizes their proposed exploration program.

Although the settlement limits the allowed impact on the Refuge to 2000 acres, this should be plenty enough to accommodate AIDEA’s exploration and development plan given modern drilling operations.  This is due to industry’s incredible accomplishments in reducing the size of drill pads and direction drilling.

A typical North Slope drill pad now encompasses only 6-14 acreas and can support up to 50 wells with directional drilling reaching out to 7.5 miles.  This allows each drill pad to access up to 176 square miles of potential reserves. This creates a minimal separation of drill pads of 15 miles which is plenty of undeveloped room for caribou or anything else to cross.

Another important aspect of AIDEA’s leadership in this area can show the oil industry that you can successfully lease and develop the 1002 area of ANWR.  If they take the approach we recently witnessed in their substantial lease purchases in the NPRA area, it would be welcome.

An associated issue are the 92,000 acres of lands in the 1002 area owned by Katovik Inupiat Corporation and the Arctic Slope Regional Corporation.  These areas were acquired in the Chandler Lake Land Exchange in the 1980’s where these lands in the 1002 area were swapped for 102,000 acres of ASRC lands in the Gates of the Arctic National Wildlife Preserve.

The Gates of the Arctic lands were seen as much more environmentally valuable by the Department of Interior than the far less valuable lands in the 1002 area.

However, the government then played a deadly trick on our Native Corporations, encouraged by ‘environmental’ organizations, to continually block them from drilling on their own lands or by providing any method for moving found resources to the oil transportation network in Prudhoe Bay.

This is similar to the dark history of US relations with Native Americans when lands were ceded to them, only then to be forecefully taken back.  In the modern day, the law, politicians and the courts can be just as deadly effective as a gun to enforce government actions.

Hopefully the recent positive actions by our Congressional delegation, President Trump’s administration, the Department of Interior, and the courts can restore a more honest and morally defensible relationship with our Alaska Native corporations.

The actions of AIDEA also make these lands more valuable since exploration data sharing can occur, and an overall plan for transportation infrastructure can be developed.

Alaskans owe a big thanks to the AIDEA Board of Directors and their Executive team for their leadership.

Paul Fuhs is the former Mayor of Dutch Harbor/Unalaska and Commissioner of Commerce and Economic Development for Governor Wally Hickel.

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