The Trump Administration’s strategy of expanding oil and gas production by drilling on public lands in Alaska took a hit this week. The first of six auctions for gas and oil leasing in Cook Inlet received zero bids.
The Origins
Cook Inlet stretches roughly 180 miles from the Gulf of Alaska to Anchorage. It is a major site for commercial salmon and herring fisheries, and is also a popular outdoor recreation site, with ample opportunities for fishing, kayaking, and whale watching.
The One Big Beautiful Bill, passed in 2025, required that there be a series of six sales from now until 2032, leasing offshore areas in the Cook Inlet to oil and natural gas companies. This is part of President Trump’s focus on expanding energy production in the United States.
“Alaska’s unique position as both a strategic energy hub and a gateway to the Arctic makes it essential to U.S. energy security. Responsible development in Cook Inlet will help reduce reliance on foreign imports while supporting the state’s decades-long tradition of powering America with reliable, homegrown energy,” the Bureau of Land Management (BLM) said in a 2025 press release.
The Sale
The Bureau of Ocean Energy Management (BOEM) held the first auction from Feb. 2 to March 4. It received zero bids. At the same time, the state of Alaska held an auction for on- and offshore land in the same area. It received a single bid of $600 for one 20-acre tract from Three Mountains LLC, an Alaska company.
The BOEM last held an auction for offshore leasing in this area in 2022. It received one bid of $63,983 from Hilltop Alaska LLC.
Reporting from Alaska Public Media suggests that energy companies’ lack of interest is due to the area’s high production costs.
Responses
Multiple environmental groups celebrated the news that the leasing sales were unsuccessful. The Center for Biological Diversity, along with Earthjustice and the National Defense Resources Council, had plans to sue in an attempt to block the auction. The groups were concerned about the impact of drilling on several species, including the Cook Inlet Beluga Whale, northern sea otter, and Steller’s eider, a sea duck.
“What an embarrassment for Trump’s fossil fuel fantasy and what great news for Cook Inlet wildlife that this lease sale was such a flop,” Cooper Freeman, Alaska director at the Center for Biological Diversity, said in an email to GearJunkie.
“I’m deeply relieved for the inlet’s imperiled belugas and salmon, who just can’t take more oil and gas pollution if they’re going to have a fighting chance at truly recovering. It’s obvious that this sale was more about politics than practical energy needs. We need to focus on actions that will actually help Alaskans, like protecting our incredible wild places and marine life and transitioning to renewable energy for the long term.”
GJ reached out to the BLM for public comment, but did not hear back by the time of publication.
Why This Matters
The lack of bids means that this land won’t undergo drilling, a win for environmental activists. The next Cook Inlet leasing scale is scheduled for March 2027, and, by law, it must occur. If the BLM continues to fail to attract bids, it will not bring in the expected revenue from the land. A continued lack of interest from oil and gas companies may render Trump’s energy strategy of “drill baby drill” in Alaska dead in the water.
