ConocoPhillips announced today that it was putting its 2014 Alaska Chukchi Sea exploration on hold.

ConocoPhillips stated that it wouldn’t be prudent at the time to preserve its option to drill in 2014 because of uncertainties with evolving federal regulatory requirements and operational permitting requirements.

“While we are confident in our own expertise and ability to safely conduct offshore Arctic operations, we believe that more time is needed to ensure that all regulatory stakeholders are aligned,” said Trond-Erik Johansen, President, ConocoPhillips Alaska.

In 2008, ConocoPhillips was awarded 98 exploration lease tracts on the continental shelf in the Chukchi Sea. But, a recent report by the Department of Interior called for the government and industry to develop an Arctic-specific model for off-shore oil and gas exploration in Alaska.

“We welcome the opportunity to work with the federal government and other leaseholders to further define and clarify the requirements for drilling offshore Alaska,” Johansen said. “Once those requirements are understood, we will re-evaluate our Chukchi Sea drilling plans. We believe this is a reasonable and responsible approach given the huge investments required to operate offshore in the Arctic.”

Of ConocoPhillip’s halt to exploration plans, Governor Parnell stated, “I am disappointed that the federal government’s unstable regulatory environment has led Conoco to make this business decision,” Governor Parnell said. “The federal government’s inability to provide regulatory certainty is once again reducing jobs and economic opportunities for Alaskans.”

Alaska’s Senator Murkowski, ranking Republican on the Senate Energy and Natural Resources Committee, and the Interior Appropriations Subcommittee, which holds both the authorizing power and budgetary oversight for the Department of the Interior, had this to osay about the announcement:

“I’m disappointed that ConocoPhillips won’t be moving forward with its Arctic program next year – Alaska and the nation need the energy and the jobs that new oil production off Alaska’s coast would bring – but it’s a decision that’s not unexpected,” Murkowski said. “Companies can’t be expected to invest billions of dollars without some assurance that federal regulators are not going to change the rules on them almost continuously. The administration has created an unacceptable level of uncertainty when it comes to the rules for offshore exploration that must be fixed if we’re going to end our dependence on oil from the Middle East.”

In response to ConocoPhillip’s announcement, Senator Begich released the following statement:

“I am disappointed. I’ve spent the last four years working with the administration and industry to promote responsible development of Alaska’s Chukchi and Beaufort seas. With today’s announcement, I will continue to encourage the Department of Interior and industry to work together, iron out their differences and get moving on exploring and developing these resources that are key to our economic and national security. While today’s decision is disappointing, I remain encouraged and optimistic about the progress the administration has made to allow more progress on oil and gas development off Alaska’s Arctic coast than it has seen in decades. ”

Representative Don Young also weighed in on the news, saying, “It is unfortunate that ConocoPhillips will delay exploration in the Chukchi Sea next year. While I am confident that ConocoPhillips can and will responsibly drill in the Arctic, today’s announcement really shines the spotlight on the endless amount of permitting, rules and regulations coming from the Obama Administration that continue to hamper the oil and gas industry, especially with regards to offshore exploration,” Rep. Young said.

“Uncertainty in any business can be detrimental, and in ConocoPhillips case, federal regulators going forward must provide some level of assurance for offshore exploration to occur in the Arctic so that we can continue to move the country closer toward true energy independence while also creating long lasting jobs for generations to come.”

ConocoPhillips is the largest oil producer in the state. The company operates the Kuparak and Alpine Oil Fields and maintains a working interest in the Prudhoe Bay unit as well as the Tran-Alaska Pipeline.