Several of the world’s largest oil companies have renewed their interest in exploration activities in the Alaskan Arctic, driven by the need to replenish reserves, diversify their asset portfolios, and seize opportunities amid a more favorable regulatory environment under U.S. President Donald Trump’s administration.

In March, ExxonMobil, Shell, and Repsol were among the producers that collectively outbid others with a record US$163 million to secure leases in the National Petroleum Reserve of Alaska, a largely untapped region on Alaska’s North Slope. The U.S. Geological Survey estimates this area holds approximately 8.8 billion barrels of recoverable oil, making it one of the most significant onshore resources in the country.

Other major players, including ConocoPhillips and Australia’s Santos, also participated in the lease sales, acquiring rights over more than one million acres in the rugged and often ice-bound wilderness of the North Slope. The region presents operational challenges and costs but remains highly attractive due to its resource potential.

The return of ExxonMobil and Shell to Alaskan exploration marks a notable shift after nearly a decade-long hiatus for both companies. Their re-entry is viewed as a validation of the current administration’s rollback of environmental regulations and expanded leasing program. According to industry analytics firm Wood Mackenzie, capital expenditures in the state reached US$5 billion last year, rising from US$4.1 billion in 2024, nearing a ten-year high.

“Alaska is a fantastic opportunity,” said Francisco Gea, head of upstream at Repsol. He highlighted the imminent startup of the Pikka project— a joint venture between Santos and Repsol on the North Slope—and expressed confidence that renewed production from the state will contribute significantly to oil supplies in the Pacific region during a critical period.

Industry observers noted that Shell’s decision to re-engage in Alaska was unexpected, considering the firm’s 2015 announcement to halt exploration indefinitely after incurring US$7 billion in losses and facing strong environmental opposition. Shell CEO Wael Sawan attributed the company’s return to a strategic focus on onshore, well-established basins where exploration, appraisal, and development activities could be more effectively differentiated. He emphasized that current operations differ markedly from the offshore drilling setbacks experienced in the past.

ExxonMobil, while retaining pipeline infrastructure and stakes in existing Alaskan oilfields, had concentrated its exploratory efforts primarily outside the state over the previous decade, notably in Guyana, where it made substantial discoveries beginning in 2015. The draw back to Alaska has been bolstered by significant recent findings made by independent wildcatter Bill Armstrong and the advancing development of large projects such as ConocoPhillips’ Willow and Santos/Repsol’s Pikka.

The Pikka project, valued at approximately US$4.5 billion, is poised to commence operations this month with an initial production target of up to 80,000 barrels per day. Meanwhile, ConocoPhillips is progressing with its US$9 billion Willow undertaking, targeting startup in 2029 and expected to produce around 180,000 barrels daily.

Armstrong, who drilled the Pikka field in partnership with Repsol and has been active in acquiring additional leases in the region, highlighted the high success rate in exploration since his discovery in 2013, noting a 94 percent appraisal success rate industry-wide. Armstrong also sold a substantial stake in the Pikka project to Oil Search in 2017, which was subsequently acquired by Santos.

The resurgence of activity in Alaska signals a renewed industry focus on its vast resource potential, though it remains to be seen how evolving market dynamics and environmental considerations will influence future development.