Which statement best describes oil ownership in Alaska?

• A. The oil is collectively owned by the people of Alaska
• B. The oil is owned by private corporations
• C. The oil is owned by the federal government
• D. The oil is owned by the state government

Answer: (B)

Oil in Alaska is owned by the state government. The Alaska Constitution assigns ownership of mineral resources, including oil and gas, to the state, which represents the people. The state holds the subsurface rights to lands it owns and licenses development to private companies through leases, in exchange for royalties and taxes paid to the state. Private corporations do the drilling and operate the wells under those leases, but they do not own the oil itself. The federal government would own oil only on federal lands, which are separate from Alaska’s state lands. This arrangement lets Alaska manage its natural resources for the public good and receive revenue from oil development.