Arctic National Wildlife Refuge

Since late 2019, five major U.S. banks have announced that they would stop funding Arctic Refuge oil drilling. Goldman Sachs was the first, and they were followed by Wells Fargo, Citigroup, and Morgan Stanley. (1, 2)

The Arctic Refuge began as the Arctic National Wildlife Range in 1960. The purpose of its establishment was to protect the wildlife and wilderness. The Range became part of the Arctic National Wildlife Refuge through the Alaska National Interest Lands Conservation Act in 1980. Its new purpose, according to the U.S. Fish & Wildlife Service, was “to conserve animals and plants in their natural diversity, ensure a place for hunting and gathering activities, protect water quality and quantity, and fulfill international wildlife treaty obligations.” (3)

The Arctic Refuge is part of the National Wildlife Refuge System, which the U.S. Fish & Wildlife Service manages. It includes 19.64 million acres of land and water in northeastern Alaska and is home to 37 species of land mammals, 42 fish species, eight marine mammal species, and over 200 species of birds. (3, 4)

Arctic Refuge Oil Drilling

In September 2019, the Trump administration said it hoped to open up the entirety of the Arctic Refuge’s coastal plain to oil drilling. Their plan involved building 175 miles of roads, verticle supports for pipelines, a landing and storage site for barges, a seawater-treatment plant, and up to four airstrip and well pad locations. (5)

Although the petroleum has had a long-held interest in the Arctic National Wildlife Refuge, it has always been closed to oil and gas exploration. Environmental groups are concerned about the impact that drilling could have on the polar bears, caribou, wolves, and birds that live in the Refuge. Polar bears, which are designated as “threatened” under the Endangered Species Act, have been pushed to the coastal plain as they lose their habitat to melting ice. They would be at increased risk due to drilling. (5, 6)

Besides environmental groups, Gwich’in and Inupiat Indigenous activists have advocated against Arctic Refuge oil drilling. The coastal plain is where the Porcupine Caribou Herd gives birth to its calves. This herd is sacred to the Gwich’in people, and it is essential to their livelihood. (1)

In a March 2019 statement to the U.S. House of Representatives Committee on Natural Resources, Bernadette Demientieff, Executive Director of the Gwich’in Steering Committee, explained that the caribou are foundational to Gwich’in spirituality, and they provide food, tools, and clothing. Demientieff said, “Drilling [on the coastal plain] would cause lower [caribou] birth rates and threaten migrations, risking everything we hold dear.” (7)

Banks Refuse to Fund Drilling

In response to advocacy for the Arctic Refuge, those five major U.S. banks have refused to fund drilling there. In December 2019, Goldman Sachs became the first when it changed its policies to include restrictions for financing in the oil and gas industry. The new policy specifically mentioned protecting the Arctic Refuge. (1, 2)

Morgan Stanley joined the group in April 2020 with a new environmental and social policy statement. Advocacy groups continue to push more banks to stop funding Arctic Refuge oil drilling. They are also asking national representatives to establish permanent protections for the area. (1)