(Oil Price)– ConocoPhillips has submitted a formal application to federal regulators seeking approval to drill four new exploratory wells and conduct seismic testing west of its $7.5 billion Willow oil development in Alaska’s National Petroleum Reserve, Bloomberg reports.
The proposal, filed with the Bureau of Land Management, would significantly extend the company’s Arctic footprint and marks its most ambitious exploration effort in the region since 2020.
The plan outlines new access roads, well pads, and 3D seismic surveys across the Bear Tooth Unit, a lease area directly adjacent to Willow. ConocoPhillips is betting on new reserves that could enhance Willow’s production corridor, though there has been no disclosure of projected volumes for the new block yet.
The move comes as U.S. President Donald Trump continues to promote increased domestic energy production, particularly in Alaska. Willow itself, approved in 2023 and now under construction, is expected to reach peak output of 180,000 barrels per day and remains one of the largest U.S. oil developments in decades.
While the Trump administration has signaled regulatory openness, the new expansion will still require environmental reviews and permitting from federal agencies. No timeline has been released for the decision.
ConocoPhillips has prioritized Alaska in its 2025 capital plan while trimming Lower 48 investments, betting that Arctic output will remain commercially viable amid fluctuating global prices and favorable federal policy.
The Conoco filing also comes shortly after CNBC ranked Alaska as the worst state for doing business in America in 2025, due to the state of the economy as a result of high dependence on oil for revenues. The price of Alaska North Slope crude averaged $85.24 per barrel in the 2024 fiscal year, and the Alaska Department of Revenue projects the price to fall to $74.48/barrel for the 2025 fiscal year, and down to $67/ barrel in FY 2027.
By Charles Kennedy for Oilprice.com
